MKTG5004 Business Research Methods Research Plan

In the current era, certain developments in the information systems all through the world have necessitated the companies to invest resources in this part if they decide to compete successfully in the local and international market. In the recent years, accounting systems are likely to act as an information system that does not get affected by data or financial information limits (Alamin, Matthew and Scott 2015). Moreover, the modified accounting informant system encompasses quantitative and descriptive information that supports decision making of the users.  Users of data gathered from accounting information system are consumers, suppliers, investors and government in order to develop a goal based in the gathered accounting information.

2.1. Impact of AIS on Organizational Decision Making

Caria and Lídia (2016) Indicated that AIS serves as an effective decision making tool in order to control and coordinate all the activities of a company. It is also gathered that AIS is highly important to production of quality accounting information on a timely manner along with communication of the same information to the decision makers. AIS is most vital system for a company as accounting information has an important role in realizing the financial position of the company. Collier (2015) argued that integrating accounting information systems results in organizational coordination that further enhances the quality of information.

2.2. Conceptual Framework

Dutta, Raef and David (2015) explained that the conceptual framework is segmented in two parts. The first part analyses the usefulness and concept of accounting information systems within companies and the second part analyses the relevance value of accounting information in supporting investors to take investment decisions. Galliers, Robert and Dorothy (2014) revealed that efficiency of accounting information systems are relied on the perception of decision makers regarding information usefulness that is generated from system for satisfying operations processes information needs. Consequently, it can be said that accounting information system’s effectiveness not only relies on the systems purpose but also relies on contingency factors of every organization. Accounting systems are vital aspects of the organizational life and these are required to be analyzed in broader organizational, managerial and environmental context.

2.3. Value Relevance

Ijiri (2014) explained that value relevance is the capability of financial statement information for gathering and summering organizational value. This is also observed to investigate the link between a security price dependent variable and independent accounting variables set. The definitions presented by several researchers on value relevance explain a common thing that an accounting amount is observed to be value relevant if it has considerable link with security market value. Laudon, Kenneth and Jane (2014) stated that the information aspect of value relevance is employed in this research to evaluate the accounting data value relevance of selected organizations. Informational aspect measures the usefulness of accounting for the individual users devoid of excessive focus on detailed structure of relation between firm value and accounting data.

2.4. Empirical Framework

Previous literature provides detailed evidence of relationship among accounting information system and its impact on financial performance of companies. Prasad and Peter (2015) discovered positive association between accounting information system (AIS) design and organizational strategy with performance. For such treasons, successful implementation of AIS can save money and time of shareholders. Information usefulness can be understood as the extent to which information supports decision making. This includes the following:

• Subject’s demand for  product
• The extent to which the product impacts the subject’s forecast
• The extent to which the product results in effective forecasting
• The extent to which a product impacts the subject’s decisions, and
• The extent to which the product leads in effective decision making

3. Research Objectives and Hypothesis

The objective of the paper will be to analyze the ways in which accounting information systems serves as an aid in decision making of food and beverages companies in Australia. The hypotheses those are set and are to be tested through the current research are mentioned below:

• H0: There is no significant association between effective decision making and use of accounting information system
• H1: There is a significant association between effective decision making and use of accounting information system

4. Research Method

4.1. Scope of Research

The research tends to explain that in managing a company along with implementing internal control system, effect of accounting information system is important (Schaltegger, Roger and Joanne 2015). Advantages of accounting information system might be accessed through its effects on enhancing the decision making process, accounting information quality, performance analysis along with facilitating organizational transactions. Moreover, the research intends to explain the ways in which appropriate implementation of accounting information can facilitate managers to understand tasks properly and decrease uncertainty before making certain decisions (Simkin and Jacob 2014).

4.2. Sampling Frame

The sampling technique that is used in the current research is simple random sampling. This sampling technique is used for the reason that this serves as most effective way in gathering a representative sample from the population. It is also gathered that random sampling is a technique through which all the members from the population can have an equal opportunity to get selected from the sample (Simkin and Jacob 2014). This sampling method is also deemed to be highly relevant for the reason that in this process selection of a person for the sample does not impact the chances of any individual being selected. Additionally, opinion of several investors, portfolio managers, and stock brokers along with investment advisors within a stock exchange might be sought.

The sample of the study includes several employees within the food products companies in Australia. 100 major employees from selected seven food product companies are selected. These employees are particularly peopling that use accounting information system in accomplishing their job responsibilities.

4.3. Research Technique

In the current research, relevant data will be gathered from important primary sources. The primary sources of important data are the questionnaires those are developed efficiently and provided to the target respondents of 100 employees from selected organizations. The questions within the questionnaire will be both open and close ended that makes sure responses from the survey is gathered from using five point likert scale questions. The developed questionnaire includes twenty questions that are designed carefully in gathering important data. The research instrument was put under pilot study by expert planner that encompasses important members of the company (Xu 2015). From the survey, 45 questionnaires returned successfully with complete answers and the rest 5 questionnaires arrived with inadequate information. Therefore, total 45 questionnaires were available for analysis of data.

4.4. Data Analysis Technique

For the reason that the sampling technique that was considered suitable for this research is probability sampling method, correlation and regression data analysis technique is adopted. These analyses were carried out in consideration to value of 0.05% significance along with 95% level of confidence (Schaltegger, Roger and Joanne 2015). Hypothesis testing is conducted based on the results of correlation and regression analysis of the gathered questionnaire responses. Analysis of data was carried out through Karl Pearson’s product moment correlation.

4.5. Ethical Consideration

While accomplishing the current research, several ethical considerations was taken into account by the researcher in order to ensure reliability of the study. At the time of completing the research, the researcher has made sure that confidentiality of information related to survey participants was mentioned (Dutta, Raef and David 2015). Moreover, willful consent of the participants was gathered at the time of developing survey questionnaire. Additionally, the researcher has also focused on the fact that the entire research is a sole work of the researcher.

5. Contributions and Limitations

Completion of the current research tends to offer researchers with certain supportive evidences for successful implementation of accounting information system. The findings of this current research well explain the efficiency of accounting information systems in better decision making in distinct angle such as effective decision making by managers and efficient internal control systems. Moreover, it will also reveal the ways in which quality of financial report can be maintained along with maintaining highly effective financial transaction prices (Simkin and Jacob 2014). The findings are also deemed to reveal that with the growing years, increasing number of companies must consider using effective information technology for improving and increasing their competitive advantages in highly competitive industry. It will be gathered from completion of the research that accounting information can facilitate the managers in understanding their work in a better manner along with decreasing uncertainty in order to make effective decisions.

However, despite of having several useful implications, there might be certain limitations of the current research. Due to time constraints this research failed to conduct detailed evaluation of accounting information system with corporation of AIS designed organizations. It also did not focus on evaluating effectiveness of AIS as an aspect of MIS and could not explain impacts of user participation while designing AIS (Simkin and Jacob 2014). All these limitations will be addressed in the future research along with analyzing the extent to which aspects like inflation and human resource accounting can be taken into consideration while developing an accounting information system.

References

Alamin, Adel, William Yeoh, Matthew Warren, and Scott Salzman. "An empirical study of factors influencing accounting information systems adoption." In Proceedings of the Twenty-Third European Conference on Information Systems, pp. 1-11. ECIS, 2015.

Caria, Ana Alexandra, Anabela Martins Silva, Delfina Rosa Rocha Gomes, and Lídia Cristina Alves Morais Oliveira. "Accounting as an Information System." In MBA, pp. 125-156. Springer International Publishing, 2016.

Collier, Paul M. Accounting for managers: Interpreting accounting information for decision making. John Wiley & Sons, 2015.

Dutta, Saurav K., Raef A. Lawson, and David Marcinko. "A Conceptual Foundation for Management Accounting Information to Support Sustainability Strategies." 2015.

Galliers, Robert D., and Dorothy E. Leidner, eds. Strategic information management: challenges and strategies in managing information systems. Routledge, 2014.

Ijiri, Yuji. "The beauty of double-entry bookkeeping and its impact on the nature of accounting information." Economie Notes by Monte dei Paschi di Siena 22, no. 2-1993 (2014): 265-285.

Laudon, Kenneth C., and Jane P. Laudon. Management information system. Pearson Education India, 2016.

Prasad, Acklesh, and Peter Green. "Organizational competencies and dynamic accounting information system capability: impact on AIS processes and firm performance." Journal of Information Systems 29, no. 3 (2015): 123-149.

Schaltegger, Stefan, Roger Burritt, Dimitar Zvezdov, Jacob Hörisch, and Joanne Tingey?Holyoak. "Management roles and sustainability information. Exploring corporate practice." Australian Accounting Review 25, no. 4 (2015): 328-345.

Simkin, Mark G., Carolyn S. Norman, and Jacob M. Rose. Core concepts of accounting information systems. John Wiley & Sons, 2014.

Sousa, Ken, and Effy Oz. Management information systems. Nelson Education, 2014.

Xu, Hongjiang. "What Are the Most Important Factors for Accounting Information Quality and Their Impact on AIS Data Quality Outcomes?." Journal of Data and Information Quality (JDIQ) 5, no. 4 (2015): 14.