The Success of Accounting System Design, Internal Control Effectiveness, and Firm Performance: Evidence from Small and Medium Enterprises (SMEs) in Thailand

Authors

  • Salakjit Ninlaphay Mahasarakham Business School, Mahasarakham University

Keywords:

The Success of Accounting System Design, Internal Control Effectiveness, Firm Performance

Abstract

This study aims to investigate the relationship between the success of accounting system design, internal control effectiveness and firm performance for Small Medium Enterprises (SMEs) in Thailand.  Data collection draws on using questionnaires survey of 197 accounting managers in manufacturing firms and service firms. Both descriptive and inferential statistic are used to analyses the data. The results illustrate that it has a direct positive relation between the success of accounting system design and internal control effectiveness and it also has a direct positive relation the success of accounting system design and firm performance. Moreover, this study finds that the internal control effectiveness is mediator of a direct positive relation the success of accounting system design and firm performance.

Downloads

Download data is not yet available.

References

Aphiwatpisan, N. (2017). Components of the Factors affecting in selection decision making of accounting software package of accounting managers of the stock exchange in Thailand. Journal of Accounting Profession, 14(41), 5-24.

Apostolou, B., et al. (2014). A summary and analysis of education research in accounting information system (AIS). Journal of Accounting Education, 32(2), 99-112.

Blockburn, N., et al. (2014). A dialogical framing of AIS-SEA design. International Journal of Accounting Information System, 15(2), 83-101.

Boulianne, E. (2007). Revisiting fit between AIS design and performance with the analyzer strategic-type. International Journal of Accounting Information Systems, 8(1), 1-16.

Bouwens, J., & Abernethy, M.A. (2000). The consequences of customization on management accounting system design. Accounting, Organizations and Society, 25(3), 221-241.

Chaiwong, D. (2009). An Appropriate financial accounting system: A case study of Management Developing Project in Pig sector of Maejo University. Maejo University.

Chatiwong, T. (2017). Accounting theory research: From the past to the future. Journal of Business Administration, 6(2), 203-212.

Coase, R.H. (1937). The nature of the firm. Economica, 4(16), 386-405.

Duangphakdee, A. (2017). Factor influencing efficiency of accounting information system used for Enterprise Resources Planning: A case study of Rubber Wood (Master Thesis). Prince of Songkla University.

Ge, W., Koester, A., & McVay, S. (2017). Benefit and costs of Sarbanes-Oxley Section 404(b) exemption: Evidence from small firms’ internal control disclosures. Journal of Accounting and Economics, 63(2-3), 358-384.

Hair, J.F., Black, B., Babin, B.J., Anderson, R.E., & Tatham, R.L. (2006). Multivariate data analysis (6th ed.). Upper Saddle River: Pearson Prentice Hall.

Horpiyakul, P., Sudsomboon, S., & Musik, N. (2015). Relationship between Accounting Information Reliability and Decision Making Efficiency of Education Institution Office of Vocational Education Commission. Journal of Accountancy and Management, 7(3), 129-137.

Hutchison, P.D., White, C.G., & Daigle, R.J. (2004). Advances in Accounting Information Systems and International Journal of Accounting Information Systems: first ten volumes (1992-2003). International Journal of Accounting Information Systems, 5(3), 341-365.

Johnstone, L. (2020). A systematic analysis of environmental management systems in SMEs: Possible research directions from a management accounting and control stance. Journal of Cleaner Production, 2020(244), Article 118802.

Kanjanaguntikul, N. (2016). Accounting system improvement and satisfaction of users in accounting system of Textile business (Independent Study). Rajamagala University of Technology Rattanakosin.

Laonamtha, U. (2016). The Effect of Accounting System Design Effectiveness on Organization Efficiency and Business Success of Electronics Parts Businesses in Thailand. RMUTL Journal of Humanities and Social Sciences, 4(2), 91-100.

Moonsri, K. (2018). Personal Potential Development Guidelines of Hotel and Resort Business. Journal of Interdisciplinary Research: Graduate Studies, 7(1), 14-24.

Ninlaphay, S. (2020). The Factors Affecting the Quality of Financial Statement of Small and Medium Enterprise (SMEs) in Thailand from the Perspective of the Executive. Journal of Business, Economics and Communications, 15(3), 38-49.

Nunnally, J.C. (1978). Psychometric Theory. New York, NY: McGraw-Hill.

Notte, A.L., & Rhodes, C. (2020). The theoretical frameworks behind integrated environmental, ecosystem, and economic accounting system and their classifications. Environmental Impact Assessment Review, 80.

Pentanyakan, S., Sapugdi, C., & Nirandorn, J. (2018). The development of online accounting system for budgeting control of spendary schools. SWU Education Administration Journal, 15(29), 179-187.

Pulkerd, P. (2013). Accounting system development for community financial institutions (Independent Study). Rajamangala University of Technology Thanyaburi.

Spatacean, L-O. (2012). Addressing fraud risk by testing the effectiveness of internal control over financial reporting-case of Romanian financial investment companies. Procedia Economics and Finance, 2012(3), 230-235.

Songmuang, D. (2017). Accounting system design (8rd ed.). Bangkok: Sematam.

Sittipatna, P., & Ouon, V. (2019). Causal factors affecting the quality of financial reporting and efficiency of decision making of Listed company in the Market for Alternative Investment (MAI). Journal of Humanities and Social Sciences, Rajapruk University, 4(3), 59-74.

Sudsombbon, S., & Sumritsakun, C. (2017). The Influence of Modern Accounting System on Organization Management Efficiency: Case Study of SMEs in Thailand. Journal of Modern Management Science, 10(2), 142-154.

Tikam, K. (2016). The reliability of financial reports to the sustainable development of the entity. The 11th National and International Academic Conferences, Sripatum University.

The Conceptual Framework for Financial Reporting. (2021). form https://www.tfac.or.th

Thongpracha, K., Itrat, P., & Tnagnatee, K. (2013). The Developing of Accounting System to serve the Sufficiency Economy: Principles of a Community Enterprise: Silk Community at Ban Du, T.Mueang Pak, A.Pak Thong Chai, Nakhon Ratchasima Province. Faculty of Business Administration, Rajamangala University of Technology Isan.

Vorayota, S., Chaisawaneeyakorn, M., & Sangkampra, W. (2018). Development of accounting system in management to enhance competitiveness of the local cotton sewing group, Ban Kok-ai Villge, Khemcha-I Sub-district, Khamcha-I District, Mukdahan Provice. Nakhon Phanom University Journal, 8(2), 81-89.

Wilai, S., Boonmunewai, S., & Ittarat, P. (2013). Accounting information quality effecting decision making efficiency of executives in small and medium enterprise in Muang District, Nakhonratchasima Province. NRRU Community Research Journal, 9(2), 19-27.

Williamson, O.E. (1975). The economics of organization: The transaction cost approach. American Journal of Sociology, 87(3), 548-577.

Published

2022-06-27

How to Cite

Ninlaphay, S. (2022). The Success of Accounting System Design, Internal Control Effectiveness, and Firm Performance: Evidence from Small and Medium Enterprises (SMEs) in Thailand. Economics and Business Administration Journal Thaksin University, 14(3), 105–124. Retrieved from https://so01.tci-thaijo.org/index.php/ecbatsu/article/view/248996

Issue

Section

Research Article