Philippine E-Journals

The Influence of Accounting Information System on the Organizational Performance Among SMEs in Tagum City

Chrisha P. Burgos | Irish S. Namoc | Jasmeren P. Padilla | Joe Mari N. Flores

 

Abstract:

Accounting Information System serves as a mechanism for en- hancing better organizational performance. The study intends to de- termine the influence of accounting information systems on the or- ganizational performance among SMEs in Tagum City by evaluating the level of accounting information systems in terms of system qual- ity, information quality, and system threats, and the level of organiza- tional performance in terms of organizational efficiency, cost reduc- tion, and quality of decision making of the small-medium enterprises in Tagum City. Also, it aims to determine the significant relationship between the accounting information system and the organizational performance of SMEs. A quantitative and descriptive-correlational method is used, through the adapted survey questionnaires where 240 SMEs in Tagum City responded. The results were tested at a 0.05 level of sig- nificance. System quality and information quality have the highest level (4.37 mean, 0.386 SD), and (4.35 mean, 0.392 SD). System threat has a low level (2.40 mean, 0.426 SD). Cost reduction, quality of deci- sion-making, and organizational efficiency have a very high level (4.47 mean, 0.424 SD; 4.41 mean, 0.393 SD; 4.38 mean, 0.389 SD). The results revealed that accounting information system versus organiza- tional performance yields an R-value of 0.709, which means signifi- cant. The outcome is due to the p-value of 0.000, lower than 0.05 lev- els of significance. It led to the decision that the null hypothesis, which stated no significant relationship between accounting information systems and organizational performance, was rejected. Therefore, the correlation result exemplifies that the accounting information system on SMEs organizational performance in Tagum City is very high.