Does business intelligence mediate the relationship between ERP and management accounting practices?
Journal of Accounting & Organizational Change
ISSN: 1832-5912
Article publication date: 15 June 2021
Issue publication date: 27 October 2021
Abstract
Purpose
The purpose of this study is to investigate the role of business intelligence and analytics (BI&A) in mediating the relationship between enterprise resource planning (ERP) and three sets of management accounting practices (MAPs): budgeting, costing and performance evaluation. It also examines the extent to which the usage of ERP affects the intensity of the application of various MAPs.
Design/methodology/approach
Structural equation modeling (SmartPLS 3) is used to analyze data collected from a cross-sectional survey of 82 firms in the UAE. The results indicate that the constructs are valid and reliable and that the model supports the research hypotheses.
Findings
The findings confirm the positive effect of the extent of using ERP systems, as a construct of modules, on the extent of applying three sets of MAPs. They also show that the extent of the use of BI&A systems partially mediates the relationship between the extent of the use of ERP systems and intensity of applying each of the three sets of MAPs.
Practical implications
The results encourage organizations to adopt BI&A to reap the full benefits of ERP.
Originality/value
In contrast to the extant research that presumes a direct influence of ERP on MAPs, this study investigates if the extent of the use of BI&A mediates the presumed relationship between the extent of the use of ERP and intensity of applying each of the three sets of MAPs.
Keywords
Acknowledgements
Data collection for this study was carried out in UAE and has ethical approval from the Social Sciences Research Ethics Committee at the UAE University. The authors would like to thank the anonymous reviewers for their very insightful and helpful comments that helped improve the presentation and the content of the paper. The authors are extremely grateful for the two-year research grant received from the United Arab Emirates University (UPAR-G00003277), which enabled this research study to be carried out.
Citation
Youssef, M.A.E.-A. and Mahama, H. (2021), "Does business intelligence mediate the relationship between ERP and management accounting practices?", Journal of Accounting & Organizational Change, Vol. 17 No. 5, pp. 686-703. https://doi.org/10.1108/JAOC-02-2020-0026
Publisher
:Emerald Publishing Limited
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