International Journal of Human Capital in Urban Management
Quarterly Publication

Development of accounting information system quality in local government: mediating role of accounting competency

Document Type : ORIGINAL RESEARCH ARTICLE

Author

H. Sofyani

Department of Accounting, Universitas Muhammadiyah Yogyakarta, Bantul, Indonesia

https://doi.org/10.22034/IJHCUM.2024.02.10
Abstract
BACKGROUND AND OBJECTIVES: Several investigations were previously conducted on the crucial role of Accounting Information System in enhancing organizational performance and accountability. However, there is a limited amount of knowledge regarding the factors that influence the quality of Accounting information system, especially when considering their application in local government settings in developing countries. Therefore, this study aimed to investigate the factors determining Accounting information system quality in local government of Indonesia, including availability and functions of network, hardware, and software. The mediating role of accounting competency was also explored using resource orchestration theory.
METHODS: This study adopted a questionnaire survey method and conducted statistical hypothesis testing using Structural Equation Modelling-Partial Least Square (SEM-PLS) method. The data were obtained from local government organization staff in Yogyakarta Special Region, selected based on involvement in using software.
FINDINGS: The results showed that availability and functions of network and software, as well as accounting competency, were positively correlated with Accounting information system quality, with p-values of 0.000, 0.023, and 0.000, respectively. Meanwhile, availability and functions of hardware did not show a significant correlation, as evidenced by p-value of 0.375. Accounting competency significantly mediated the relationship between availability and functions of network, software, and Accounting information system quality, with p-values of 0.032 and 0.001, respectively. Moreover, Adj. R2 was 0.467 (medium level), and the SRMR value assessed the model fit at 0.079 (good model fit).
CONCLUSION: This study contributed a novel framework related to the determinants of improving Accounting information system quality in local government setting and addressed the debate surrounding the role of accounting competency in the system development. Moreover, there were emphases on the significant mediating role of accounting competency as a prerequisite for other determinants (availability and functions of network, hardware, and software) to promote better Accounting information system quality.

Keywords

Accounting competency
Accounting information system
E-government
Hardware-software-network
Local government
Subjects

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International Journal of Human Capital in Urban Management
Volume 9, Issue 2 - Serial Number 34
Spring 2024
Pages 331-344

  • Receive Date 27 September 2023
  • Revise Date 13 November 2023
  • Accept Date 18 November 2023

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