The impact of dynamic accounting information system (AIS) on organizational resilience with business process and crisis management capabilities as mediators

Abstract

Accounting information systems (AISs) are considered a vital resource for today’s organizations as it can facilitate effective planning and control and produced valuable information for decision-makers. However, organizations growth and survival are currently based dynamic AIS capability which depend on their ability to combine a flexible AIS with the complementary business intelligence (BI) system and the competence of human resources within an organisation, which in turn contributes to the development of the organization's resilience. Similarly, the combination of dynamic AIS and processes (i.e. business process capabilities and crisis management capabilities), developed and systematically integrated through business resource systems, also contributes to organizational resilience and the achievement of both strategic and operational goals. This study contributes to the extant literature on management information systems by investigating the interrelationships between accounting information systems (AISs)-related capabilities and their effects on organizational resilience (OR). Relying on resource-based theory (RBT) and dynamic capabilities view (DCV), a set of hypotheses is formulated to examine these links, considering the role that may be played by business process capabilities (BPC) and crisis management capabilities (CMC) as mediating variables. Structural equation modelling (SEM) has been applied using data collected from large organizations in Malaysia. Using survey data on 144 large organizations in Malaysia and using PLS structural equation modelling to test the study hypothesis, we found that organizations with a higher dynamic AIS capability were the result of flexible AIS synergism, human skills related to AIS and the complementary business intelligence system which allow their AIS to be dynamic. We also found a positive association between a dynamic AIS capability and business process capabilities and crisis management capabilities of the organization. Organizations with higher business process capabilities and crisis management capabilities are better able to leverage their dynamic AIS to enhance organizational resilience. The results suggest that improving a dynamic AIS resource can be value creation to an organization. From a theoretical perspective, the synergies between AIS and organizations competencies offered a valuable contribution to understanding their relation as a complementary resource of the organization. This study also provides guidance for organizations looking to the critical role of dynamic AIS in enabling and improving business processes and crisis practices in organizations in order to be resilient in the market.