Impact of AIS success on decision-making effectiveness among SMEs in less developed countries

ABSTRACT

Accounting information system (AIS) is becoming increasingly paramount for SMEs in order to boost decision-making effectiveness (DME). The issue is no longer whether SMEs use AIS or not, but rather about the extent of benefits and effectiveness that can be achieved from such use. This paper aims to assess how AIS success impacts DME among SMEs in less developed countries (LDCs). Specifically, this paper develops a study model and validates it with empirical evidence gathered from the Yemeni business environment. This paper is based on DeLone and McLean (D&M) model to establish the relationship between AIS success and DME among SMEs in Yemen, a less developed country. A questionnaire is built and sent to owners and managers of 323 Yemeni SMEs from different sectors. PLS-SEM software was employed to analyze and test the gathered data. The findings exhibit important positive links between the success of AIS and DME. In particular, the outcomes appear that AIS information quality, use, and user satisfaction positively influence decision-making effectiveness; system and information quality are significant precedents of AIS usage and satisfaction; AIS usage is positively impacted by satisfaction. However, service quality is showed insignificant towards AIS usage and user satisfaction.

Theoretically, this study reduces research gaps related to AIS success in SMEs from a management perspective (i.e., DME) and LDCs context. Practically, the study model can serve as a device for SMEs to assess and anticipate the success of implemented AIS applications. Moreover, the study results can help SMEs' managers and owners to gain a clear insight into the positive role of AIS success in boosting decision-making effectiveness in their businesses. On the other hand, the study results may motivate those who depend on conventional manual accounting methods to make the transition to AIS. Also, this study offers practical guidelines for the government on AIS success importance among SMEs and its role in economic development. This research is deemed one of the first to introduce empirical evidence on the influence/relationship of AIS success on/and DME among SMEs in LDCs, Yemeni case.

KEYWORDS:

• Accounting information system
• decision-making
• SMEs
• DeLone and McLean model
• LDCs
• Yemen

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 World Bank: https://www.worldbank.org/en/topic/smefinance

2 Yemen is located in the Arabian Peninsula between Oman and Saudi Arabia.

Additional information

Notes on contributors

Hamood Mohammed Al-Hattami

Hamood Mohammed Al-Hattami is a PhD research scholar at Department of Commerce, Dr Babasaheb Ambedkar Marathwada University, Aurangabad, India. He is a Senior Lecturer at the Department of Accounting, Faculty of Commerce and Economic, Hodeidah University, Yemen. His main research interest Information Systems (Business Informatics), Accounting Information Systems, Accounting Education, and SMEs in LDCs. He attended several international, national conferences and workshops. He has authored and co-authored numerous research papers published in esteemed journals (ABDC, Scopus, SCI, and SSCI), that belong to reputed publishers including Taylor & Francis, Springer, Sage, and Inderscience. He has reviewed many research papers in different esteemed journals from different publishers including Taylor & Francis, Emerald, Springer, IEEE, and Elsevier.