Effect of information quality and internal electronic integration on internal cost management and organizational performance
DOI:
https://doi.org/10.16930/2237-766220243437Keywords:
Information quality, Internal electronic integration, Internal cost management, Organizational performanceAbstract
Internal electronic integration provides data integration for organizations. Through it, organizations obtain information about production costs, which allows the company to perform better in the market. In this context, this research aims to analyze the effect of information quality on internal cost management and its impact on organizational performance. This research was developed descriptively through data collection with 99 respondents, which include professionals in the positions of coordinator, senior analyst, manager, and cost supervisor of Brazilian companies. The data was measured using quantitative analysis and structural equations through the SmartPLS 4 software. This research's primary findings demonstrate that organizations with internal electronic integration between company departments have information that provides better internal cost management. These results are justified since quality information allows professionals to perform a more detailed analysis of expenses in the organization, making it possible to reduce organizational costs. Thus, correct and real-time information allows managers to make decisions that increase organizational performance and obtain a greater understanding of the internal processes involving production lines. This study presents new insights into the perception of professionals in the field of costs concerning the relationships investigated in the research. It also contributes to the managers' decisions and strategies to manage their costs and raise the company's performance.
References
Anderson, M. A., Banker, R. D., Huang, R., & Janakiraman, S. (2007). Cost behavior and fundamental analysis of SG&A costs. Journal of Accounting, Auditing and Finance, 22(1), 1-28. https://doi.org/10.2308/acch.2009.23.2.201 DOI: https://doi.org/10.1177/0148558X0702200103
Asree, S., Zain, M., & Rizal Razalli, M. (2010). Influence of leadership competency and organizational culture on responsiveness and performance of firms. International Journal of Contemporary hospitality management, 22(4), 500-516. https://doi.org/10.1108/09596111011042712 DOI: https://doi.org/10.1108/09596111011042712
Barua, A., Konana, P., & Whinston, A. (2004). An empirical investigation of net-enabled business value. MIS Quarterly, 28, 585-620. https://doi.org/10.2307/25148656 DOI: https://doi.org/10.2307/25148656
Brandão, H. P., Borges-Andrade, J. E., & Guimarães, T. de A. (2012). Desempenho organizacional e suas relações com competências gerenciais, suporte organizacional e treinamento. Revista de Administração, 47(4), 523-539. https://doi.org/10.5700/rausp1056 DOI: https://doi.org/10.5700/rausp1056
Chang, H. H., Tsai, Y.-C., Fu, C.-S., Chen, S.-H., & De Peng, Y. (2016). Exploring the antecedents and consequences of technology and knowledge integration mechanisms in the context of NPD. Information Systems Frontiers, 18(6), 1165-1189. https://doi.org/10.1007/s10796-016-9629-y. DOI: https://doi.org/10.1007/s10796-016-9629-y
Cooper, R., & Chew, W. B. (1996). Control tomorrow’s costs through today’s designs. Harvard Business Review, 74, 88-98.
Cooper, R., & Slagmulder, R. (2004). Inter-organizational cost management and relational context. Accounting, Organizations and Society, 29, 1-26. https://doi.org/10.1016/S0361-3682(03)00020-5 DOI: https://doi.org/10.1016/S0361-3682(03)00020-5
Dekker, H., & Van Goor, A. R. (2000). Chain Management and management accounting: A case study of activity-based costing. International Journal of Logistics, Research and Applications, 3, 41-52. https://doi.org/10.1080/13675560050006664 DOI: https://doi.org/10.1080/13675560050006664
Faul, F., Erdfelder, E., Buchner, A., & Lang, A.-G. (2009). Statistical power analyses using G*Power 3.1: Tests for correlation and regression analyses. Behavior Research Methods, 41(4), 1149-1160. https://doi.org/10.3758/brm.41.4.1149 DOI: https://doi.org/10.3758/BRM.41.4.1149
Fayard, D., Lee, L. S., Leitch, R. A., & Kettinger, W. J. (2012). Effect of internal cost management, information systems integration, and absorptive capacity on inter-organizational cost management in supply chains. Accounting, Organizations and Society, 37(3), 168-187. https://doi.org/10.1016/j.aos.2012.02.001 DOI: https://doi.org/10.1016/j.aos.2012.02.001
Feng, D., Shen, C., Pei, Z. (2021). Production decisions of a closed-loop supply chain considering remanufacturing and refurbishing under government subsidy. Sustainable Production and Consumption, 27, 2058-2074 DOI: https://doi.org/10.1016/j.spc.2021.04.034
Gable, G., Sedera, D., & Chan, T. (2008). Re-conceptualizing Information System Success: The IS-Impact Measurement Model. Journal of the Association for Information Systems, 9(7), 377-408. https://doi.org/10.17705/1jais.00164 DOI: https://doi.org/10.17705/1jais.00164
Ghunaim, N. M., & Jaaron, A. A. M. (2022). The influence of cost of quality on the performance of food manufacturing companies: an empirical study. The TQM Journal, 34(4), 788-806. https://doi.org/10.1108/TQM-01-2021-0026 DOI: https://doi.org/10.1108/TQM-01-2021-0026
Guan, X., & Chen, Y.-J. (2016). The Interplay between Information Acquisition and Quality Disclosure. Production and Operations Management, 26(3), 389-408. https://doi.org/10.1111/poms.12651 DOI: https://doi.org/10.1111/poms.12651
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., & Thiele, K. O. (2017). Mirror, Mirror on the Wall: A Comparative Evaluation of Composite-Based Structural Equation Modeling Methods. Journal of the Academy of Marketing Science, 45, 616-632. https://doi.org/10.1007/s11747-017-0517-x DOI: https://doi.org/10.1007/s11747-017-0517-x
Hoque, Z., (2014). 20 years of studies on the balanced scorecard: trends, accomplishments, gaps and opportunities for future research. British Accounting Review, 46(1), 33-59. https://doi.org/10.1016/j.bar.2013.10.003 DOI: https://doi.org/10.1016/j.bar.2013.10.003
Knauer, T., Nikiforow, N., & Wagener, S. (2020). Determinants of information system quality and data quality in management accounting. Revista de Controle de Gestão. https://doi.org/10.1007/s00187-020-00296-y DOI: https://doi.org/10.1007/s00187-020-00296-y
Kurisu, C., Shima, Y., & Yasukata, K. (2022). The Use of Accounting Information in Cost Management: A study of Japanese General Hospitals. Japanese Management and International Studies, 3-34. https://doi.org/10.1142/9789811237164_0001 DOI: https://doi.org/10.1142/9789811237164_0001
Lee, L., Fayard, L., Kettinger, W., & Leitch, R. (2006). The Role of Electronic Integration and Absorptive Capacity on Interorganizational Cost Management in Supply Chains. ICIS 2006 Proceedings. https://aisel.aisnet.org/icis2006/42/
Loshin, D. (2011). Dimensões da Qualidade de Dados. The Practitioner's Guide to Data Quality Improvement, 129-146. https://doi.org/10.1016/b978-0-12-373717-5.00008-7 DOI: https://doi.org/10.1016/B978-0-12-373717-5.00008-7
Lutfi, A., Al-Okaily, M., Alsyouf, A., & Alrawad, M. (2022). Evaluating the D&M IS success model in the context of accounting information system and sustainable decision making. Sustainability, 14(13), 8120. https://doi.org/10.3390/su14138120 DOI: https://doi.org/10.3390/su14138120
Ma, S., He, Y., Gu, R., Li, S., (2021). Sustainable supply chain management considering technology investments and government intervention. Transportation Research Part E: Logistics and Transportation Review, 149, 102290. https://doi.org/10.1016/j.tre.2021.102290 DOI: https://doi.org/10.1016/j.tre.2021.102290
Michels, A., & Zonatto, V. C. da S. (2017). Efeitos da gestão interna de custos no desenvolvimento da capacidade absortiva e da gestão de custos interorganizacionais. Anais do Congresso Brasileiro de Custos - ABC. https://anaiscbc.emnuvens.com.br/anais/article/view/4248
Poffo, R. F. (2023). Inovação Exploitation e Exploration: uma análise bibliométrica da produção científica da base de dados da Scopus (1995-2022). Revista Catarinense da Ciência Contábil, 22, e3373-e3373. https://doi.org/10.16930/2237-766220233373 DOI: https://doi.org/10.16930/2237-766220233373
Scheele, M. L., Thonemann, U. W., Slikker, M. (2018). Designing incentive systems for truthful forecast information sharing within a supplier. Manager. Sci, 64(8), 3690-3713. ttps://doi.org/10.1287/mnsc.2017.2805 DOI: https://doi.org/10.1287/mnsc.2017.2805
Shank, J. K., & Miguel, J. G. S. (2009). Merging financial and management accounting: strategic cost management and corporate risk assessment under SOX. Journal of Corporate Accounting & Finance, 20(2), 83-99. https://doi.org/10.1002/jcaf.20469 DOI: https://doi.org/10.1002/jcaf.20469
Shen, B., Dong, C., & Minner, S. (2022). Combating Copycats in the Supply Chain with Permissioned Blockchain Technology. Production and Operations Management, 31(1), 138-154. https://doi.org/10.1111/poms.13456 DOI: https://doi.org/10.1111/poms.13456
Shniekat, N., AL_Abdallat, W., Al-Hussein, M., & Ali, B. (2022). Influence of Management Information System Dimensions on Institutional Performance. Information Sciences Letters, 11(5), 435-1443. https://digitalcommons.aaru.edu.jo/isl DOI: https://doi.org/10.18576/isl/110512
Wang, F., Chen, J., Yang, H., & Yu, B. (2022). Supplier selection with information disclosure in the presence of uninformed consumers. Int. J. Prod. Econ., 243, 108341. https://doi.org/10.1016/j.ijpe.2021.10834 DOI: https://doi.org/10.1016/j.ijpe.2021.108341
Ward, P., & Zhou, H. (2006). Impact of Information Technology Integration a Lean/Just-In-time Practices on Lead-time Performance. Decision Sciences, 37, 177-203. https://doi.org/10.1111/j.1540-5915.2006.00121.x DOI: https://doi.org/10.1111/j.1540-5915.2006.00121.x
Wijethilake, C., Munir, R., & Appuhami, R. (2018). Environmental Innovation Strategy and Organizational Performance: Enabling and Controlling Uses of Management Control Systems. Journal of Business Ethics, 151(4), 1139-1160. http://www.jstor.org/stable DOI: https://doi.org/10.1007/s10551-016-3259-7
Wouters, M., Morales, S., Grollmuss, S., & Scheer, M. (2016). Methods for Cost Management during Product Development: A Review and Comparison of Different Literatures. Advances in Management Accounting, 26, 139-274. https://doi.org/10.1108/S1474-787120150000026005 DOI: https://doi.org/10.1108/S1474-787120150000026005
Yuan, M., Pun, H., & Guan, X. (2022). Information disclosure in a supply chain with copycat threat. Production and Operations Management, 302(3), 1018-1030. https://doi.org/10.1016/j.ejor.2022.01.027 DOI: https://doi.org/10.1016/j.ejor.2022.01.027
Zhang, G., Gong, Y., & Hong, X. (2022). Free rider effect of quality information disclosure in remanufacturing. Transportation Research Part E: Logistics and Transportation Review, 166, 102907. https://doi.org/10.1016/j.tre.2022.102907 DOI: https://doi.org/10.1016/j.tre.2022.102907
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Revista Catarinense da Ciência Contábil
This work is licensed under a Creative Commons Attribution 4.0 International License.
The copyright for articles published in this journal belongs to the author (s), with first publication rights assigned to Revista Catarinense da Ciência Contábil. Due to appearing in this publicly accessible journal, articles are free to use, with mandatory recognition of the original authorship and initial publication in this magazine and for educational and non-commercial applications. The magazine chose to use published works for non-commercial purposes, including the right to submit or work for publicly accessible databases. The content of published articles is the sole and exclusive responsibility of the authors. - The author (s) authorize (s) a publication of the article in the journal; - The author (s) guarantee (s) that a contribution is original and unpublished and that it is not being evaluated in another magazine (s); - A magazine is not responsible for the opinions, ideas and concepts emitted in the texts, for the full responsibility of the author (s); - It is reserved to the editors or the right to make textual adjustments and to adjust the article to the publication rules.
This work is licensed under a Creative Commons Atribuição-NãoComercial-CompartilhaIgual 4.0 Internacional.
