Critical Success Factors for Accounting Information System Data Quality

ABSTRACT Today’s organizations are operating and competing in an information age. Quality information is critical to organizations’ success in today’s highly competitive environment. Accounting information systems (AIS) as a discipline within information systems require high quality data. However, empirical evidence suggests that data quality is problematic in AIS. Therefore, knowledge of critical factors that are important in ensuring data quality in accounting information systems is desirable. A literature review evaluates previous research work in quality management, data quality, and accounting information systems. It was found that there was a gap in the literature about critical success factors for data quality in accounting information systems. Based on this gap in the literature and the findings of the exploratory stage of the research, a preliminary research model for factors influence data quality in AIS was developed. A framework for understanding relationships between stakeholder groups and data quality in accounting information systems was also developed. The major stakeholders are information producers, information custodians, information managers, information users, and internal auditors. A model for critical success factors for AIS DQ was proposed and examined in four Nigerian organizations were carried out, where two of them were banking organizations and the other two are manufacturing organizations. Each case was examined as a whole to obtain an understanding of the opinions and perspectives of the respondents from each individual organization as to what are considered to be the important factors in the case Furthermore, the variations between five different stakeholder groups were also examined. The results of the four main case studies suggested 26 factors that may have impact on data quality in AIS. The major findings from the survey are: 1. respondents rated the importance of the factors and the actual performance of those factors consistently higher. 2. Four factors were found to be significantly different between different stakeholder groups: user focus, measurement and reporting, data supplier quality management and audit and reviews. 3. The top three critical factors for ensuring data quality in AIS were: top management commitment, education and training, and the nature of the accounting information systems. The key contribution of this project is the theoretical framework developed from the analysis of the findings of this research, which is the first such framework built upon empirical study that explored factors influencing data quality in AIS and their interrelationships with stakeholder groups and data quality outcomes. That is, it is now clear which factors impact on data quality in AIS, and which of those factors are critical success factors for ensuring high quality information outcomes. In addition, the performance level of factors was also incorporated into the research framework. Since the actual performance of factors has not been highlighted in other studies, this research adds new theoretical insights to the extant literature. In turn, this research confirms some of the factors mentioned in the literature and adds a few new factors. Moreover, stakeholder groups of data quality in AIS are important considerations and need more attention. The research framework of this research shows the relationship between stakeholder groups, important factors and data quality outcomes by highlighting stakeholder groups’ influence on identifying the important factors, as well as the evaluation of the importance and performance of the factors.

TABLE OF CONTENTS

Title Page … … … … … … … … … i

Certification … … … … … … … … … ii

Approval Page … … … … … … … … iii

Dedication … … … … … … … … … iv

Acknowledgments … … … … … … … … v

Table of Contents … … … … … … … … vii

List of Figures … … … … … … … … xi

List of Tables … … … … … … … … vii

Abstract … … … … … … … … … x

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study … … … … … … 1

1.2 Statement of the Problems … … … … … 3

1.3 Objectives of the Study … … … … … … 5

1.4 Research Questions … … … … … … 5

1.5 Research Hypothesis … … … … … … 6

1.6 Significance of the Study … … … … … 7

1.7 Scope of the Study … … … … … … 8

1.8 Limitations of the Study … … … …. … … 9

1.9 Operational Definition of Key Terms … … … … 10

1.10 Profile of the Organization used for the Study … … 11

1.10.1 First Bank Plc … … … … … … … 11

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1.10.2 Zenith Bank Plc … … … … … … … 12

1.10.3 Nigeria Breweries Plc … … … … … … 13

1.10.4 Nigeria Bottling Company Plc … … … … … 13

References … … … … … … … … 15

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Introduction … … … … … … … 16

2.2 Data Quality … … … … … … … 16

2.3 Accounting Information System … … … … 19

2.4 Data Quality of Accounting Information System … … 19

2.4.1 Data Quality in AIS for this research … … … … 22

2.5 Quality Management … … … … … 24

2.5.1 Quality management: Just-in-time … … … … 27

2.5.2 Product Perspective on Data Quality Management … … 29

2.5.3 Product Quality and Service Quality … … … … 30

2.5.4 Data Quality in Database System … … … … 36

2.6 Critical Success Factors for Quality Management and TQM… 32

2.7 Total Data Quality Management … … … … 35

2.7.1 Data Quality in e-Business … … … … … 36

2.7.2 Framework for Data Quality Research … … … 36

2.7.3 Important Steps in Ensuring Data Quality … … … 40

2.8 Data Quality in Accounting Information System … … 43

2.8.1 The Model for factors Influencing Data Quality in AIS … 43

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2.8.2 Possible factors that Impact on Data Quality in AIS… … 46

2.8.3 Critical factors for Ensuring Data Quality in AIS … … 46

2.9 Stakeholder Groups for Data Quality in AIS … … … 47

References … … … … … … … … 53

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction … … … … … … … 53

3.2 Research Design … … … … … … … 53

3.3 Sources of Data … … … … … … … 54

3.4 Area of Study … … … … … … … 55

3.5 Instruments for Data Collection … … … … 55

3.6 Population of the Study … … … … … … 56

3.7 Sampling Procedure … … … … … … 56

3.8 Sample Size Determination … … … … … 57

3.9 Validity of the Research Instrument … … … … 59

3.10 Reliability of the Research Instrument … … … … 59

3.11 Questionnaire Design and Administration … … … 61

3.12 Data Treatment Technique(s) … … … … … 61

References … … … … … … … … 64

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

4.1 Introduction … … … … … … … 65

4.2 Analysis of Questionnaire … … … … … 66

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4.3 Test of Hypothesis … … … … … … 89

4.4 Discussion of Results … … … … … … 105

CHAPTER FIVE: SUMMARY OF MAJOR FINDINGS,

CONCLUSION AND RECOMMENDATIONS

5.1 Introduction … … … … … … … 108

5.2 Summary of Major Findings … … … … … 108

5.3 Conclusion … … … … … … … … 109

5.4 Recommendations … … … … … … … 110

5.5 Contributions to Knowledge … … … … … 111

5.6 Suggested Area for Future Research … … … … 113

Bibliography … … … … … … … 115

Appendix I … … … … … … … … 119

Appendix II … … … … … … … … 126