Accounting Information System Quality An

ACCOUNTING INFORMATION SYSTEM QUALITY AND ORGANIZATIONAL
PERFORMANCE: THE MEDIATING ROLE OF ACCOUNTING INFORMATION QUALITY
I Nyoman SunartaA, Partiwi Dwi AstutiB
ARTICLE INFO ABSTRACT

Article history: Purpose: The aim of this study is to examine the mediating role of accounting
information quality in the relationship between accounting information system quality
Received 13 January 2023 and organizational performance in rural banks in the Province of Bali-Indonesia.
Theoretical framework: This research builds on the work of DeLone and McLean,
Accepted 08 March 2023 regarding information systems success.
Keywords: Design/methodology/approach: The data for this study were collected using a
questionnaire sent to the director of rural banks in the Province of Bali-Indonesia as
Accounting Information Quality; many as 99 participated in this study. The research data were analyzed using the
Accounting Information System structural equation-partial least squares (SEM-PLS) model.
Quality;
Findings: Empirically the results of this study provide empirical evidence that the
Organizational Performance.
accounting information system quality has a significant positive effect on
organizational performance and the accounting information quality. Meanwhile, the
accounting information quality has a significant positive effect on organizational
performance. In addition, the accounting information quality partially mediates the
effect of the accounting information system quality on organizational performance.
Research, Practical & Social implications: The study are expected to provide
insight into the management of rural banks in the Province of Bali-Indonesia,
regarding the important role of managing accounting information system quality and
accounting information quality because they are able to improve the performance of
the bank organizations they lead.
Originality/value: The originality of this research is the role model of accounting

information quality as a mediator of the influence of information system quality on
organizational performance.
Doi: https://doi.org/10.26668/businessreview/2023.v8i3.1192
QUALIDADE DO SISTEMA DE INFORMAÇÃO CONTÁBIL E DESEMPENHO

ORGANIZACIONAL: O PAPEL MEDIADOR DA QUALIDADE DA INFORMAÇÃO CONTÁBIL
RESUMO
Objetivo: O objetivo deste estudo é examinar o papel mediador da qualidade da informação contábil na relação
entre a qualidade do sistema de informação contábil e o desempenho organizacional nos bancos rurais da Província
de Bali-Indonesia.
Estrutura teórica: Esta pesquisa se baseia no trabalho de DeLone e McLean, no que diz respeito ao sucesso
dos sistemas de informação.
Design/metodologia/abordagem: Os dados para este estudo foram coletados usando um questionário enviado
ao diretor de bancos rurais na Província de Bali-Indonesia, dos quais 99 participaram deste estudo. Os dados da
pesquisa foram analisados utilizando o modelo da equação estrutural mínimos quadrados parciais (SEM-PLS).
A
Doctor, Faculty of Economics and Business, Universitas Pendidikan Nasional, Bali, Indonesia.
E-mail: [email protected] Orcid: https://orcid.org/0000-0001-8715-0746
B
Doctor, Faculty of Economics and Business, Universitas Warmadewa, Bali, Indonesia.
E-mail: [email protected] Orcid: https://orcid.org/0000-0003-4904-4402
Intern. Journal of Profess. Bus. Review. |Miami, v. 8 | n. 3| p. 01-20 | e01192 | 2023.

1
Sunarta, I. N., Astuti, P. D. (2023)
Accounting Information System Quality and Organizational Performance: the Mediating Role of Accounting
Information Quality
Resultados da pesquisa: Empiricamente, os resultados deste estudo fornecem evidências empíricas de que a
qualidade do sistema de informação contábil tem um efeito positivo significativo no desempenho organizacional
e na qualidade da informação contábil. Enquanto isso, a qualidade da informação contábil tem um efeito positivo
significativo sobre o desempenho organizacional. Além disso, a qualidade da informação contábil medeia
parcialmente o efeito da qualidade do sistema de informação contábil sobre o desempenho organizacional.
Pesquisa, implicações práticas e sociais: Espera-se que o estudo forneça uma visão da gestão dos bancos rurais
na Província de Bali-Indonesia, em relação ao importante papel da gestão da qualidade do sistema de informação
contábil e da qualidade da informação contábil, pois eles são capazes de melhorar o desempenho das organizações
bancárias que lideram.
Originalidade/valor: A originalidade desta pesquisa é o modelo de qualidade da informação contábil como
mediador da influência da qualidade do sistema de informação no desempenho organizacional.
Palavras-chave: Qualidade da Informação Contábil, Qualidade do Sistema de Informação Contábil,

Desempenho Organizacional.
CALIDAD DE LOS SISTEMAS DE INFORMACIÓN CONTABLE Y RENDIMIENTO

ORGANIZATIVO: EL PAPEL MEDIADOR DE LA CALIDAD DE LA INFORMACIÓN CONTABLE
RESUMEN
Propósito: El objetivo de este estudio es examinar el papel mediador de la calidad de la información contable en
la relación entre la calidad del sistema de información contable y el rendimiento organizativo en los bancos rurales
de la provincia de Bali-Indonesia.
Marco teórico: Esta investigación se basa en los trabajos de DeLone y McLean, relativos al éxito de los sistemas
de información.
Diseño/metodología/enfoque: Los datos de este estudio se recogieron mediante un cuestionario enviado a los
directores de las cajas rurales de la provincia de Bali-Indonesia, en el que participaron 99 personas. Los datos de
la investigación se analizaron mediante el modelo de ecuaciones estructurales por mínimos cuadrados parciales
(SEM-PLS).
Resultados: Empíricamente, los resultados de este estudio proporcionan pruebas empíricas de que la calidad del
sistema de información contable tiene un efecto positivo significativo en el rendimiento de la organización y en la
calidad de la información contable. Por su parte, la calidad de la información contable tiene un efecto positivo
significativo en el rendimiento de la organización. Además, la calidad de la información contable media
parcialmente el efecto de la calidad del sistema de información contable en el rendimiento organizativo.
Implicaciones sociales, prácticas y de investigación: Se espera que el estudio proporcione información a la
dirección de los bancos rurales de la provincia de Bali-Indonesia, sobre el importante papel de la gestión de la
calidad del sistema de información contable y la calidad de la información contable, ya que son capaces de mejorar
el rendimiento de las organizaciones bancarias que dirigen.
Originalidad/valor: La originalidad de esta investigación es el modelo de papel de la calidad de la información
contable como mediador de la influencia de la calidad del sistema de información en el rendimiento de la
organización.
Palabras clave: Calidad de la Información Contable, Calidad del Sistema de Información Contable, Desempeño
Organizacional.
INTRODUCTION
One of the main concerns of most organizations today is the need to improve their
performance (Ononwor, 2022). Organizational performance reflects the interaction between
organizational behavior and achievements as well as the output value offered by the
organization in the form of goods and services (Richard et al., 2009). Organizational
performance also involves the iterative activities of setting organizational goals, monitoring
progress toward goals, and making adjustments to achieve these goals more effectively and
Intern. Journal of Profess. Bus. Review. | Miami, v. 8 | n. 3 | p. 01-20 | e01192 | 2023.

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Information Quality
efficiently. An important element that affects organizational performance is the quality of

accounting information systems and accounting information. Ganyam and Ivungu, (2019) said
that organizations have widely used accounting information systems to automate business
activities, integrate all activities, and increase efficiency so as to gain a competitive advantage.
Organizations that use quality accounting information systems to support business
needs will make them more effective and efficient so that they can improve their performance
(Rosa & Purfini, 2019). According to Algrari and Ahmed, (2019), the accounting information
system plays a very important role as a provider of quality accounting information to assist
management in carrying out its duties optimally. Thus, the success or failure of an organization
in achieving its goals is highly dependent on the quality of the accounting information system
used. Quality accounting information is used to support organizations in making better
decisions and improving organizational performance.
The important role of the quality of accounting information systems on organizational
performance has been studied by several previous researchers, such as Trabulsi (2018) on Saudi
SMEs and Hanum et al. (2021) on private governance in Indonesia. Meanwhile, the important
role of accounting information quality on performance has also been studied by previous
researchers such as Makau, Lagat and Bonuke (2017) study on the hotel industry in Kenya and
Daniel et al. (2021) on insurance companies in Nigeria. In addition, previous researchers have
also tested the effect of the quality of accounting information systems on the quality of
accounting information, such as Kanakriyah (2016) studies on users of accounting information
in Jordan and Algrari and Ahmed (2019) on telecommunications companies listed on the Iraqi
stock market.
However, no study has been found that examined the mediating role of the quality of
accounting information on the relationship between the quality of accounting information
systems and organizational performance in rural banks. The problem of this research is whether
the quality of accounting information systems affects organizational performance, and the
quality of accounting information, whether the quality of accounting information affects
organizational performance, and whether the quality of accounting information mediates the
influence of the quality of accounting information systems on organizational performance. The
purpose of this study was to examine the influence of the quality of accounting information
systems on organizational performance through the quality of accounting information.
This research was conducted at rural credit banks in the Province of Bali, Indonesia,
with the following considerations: The development of digital banks and financial technology
has increasingly increased competition between financial institutions, including rural banks

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Information Quality
(Sari, 2022). The Covid-19 pandemic has had an impact on the decline in the economy and the
ability of customers to fulfill their credit obligations, which has had an impact on decreasing
performance achievements (Srinadi & Dwija Putri, 2022). Rural banks have implemented an
accounting information system to process all the financial transaction data. Thus, it is necessary
to examine whether the implementation of accounting information systems and the quality of
accounting information affects organizational performance.
The originality of this study is the role model of mediating the quality of accounting
information in the relationship between the quality of accounting information systems and
organizational performance. This study contributes to the accounting information system
literature by providing empirical evidence of the important role of accounting information
systems and the quality of accounting information in improving organizational performance,
especially in rural banks. In addition, this research also contributes to strengthening the
technology acceptance model.
LITERATURE REVIEW
Technology Acceptance Model
This research is based on the information system success model of DeLone and McLean
(1992) and DeLone and McLean (2003). In this model, six variables related to the success of
an information system are presented: system quality, information quality, use, user satisfaction,
individual impact, and organizational impact (DeLone and McLean, 1992). DeLone and
McLean (2003) revised the model by presenting the system quality, information quality, service
quality, users, user satisfaction, and net benefits. According to Al-Mamary, Shamsuddin and
Hamid (2018), one of the most studied dimensions of information system success is system
quality because system quality shows the size of the information processing system related to
how well hardware and software work together. The quality of information is a measure of the
quality of the information system. Information system research focuses more on the output
quality of the information system, namely, the quality of the information produced by the
system, especially in the form of reports.
Accounting Information System Quality

An accounting information system collects, records, stores, and processes data to
produce information for decision-makers. This includes people, procedures, instructions, data,
software, information technology infrastructure, internal controls, and security measures
(Romney & Steinbart, 2021). Meanwhile, Bodnar and Hopwood (2013) stated that an

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Information Quality
accounting information system is a collection of resources designed to convert financial and

other data into information. This information is communicated to various decision makers. SIA
is a mechanism developed to assist organizations in managing and controlling related business
activities that are integrated with information technology (Alawaqleh, 2020). The quality of the
accounting information system describes a system that is able to utilize existing resources to
provide reliable, flexible, integrated, and easily accessible financial and non-financial
information in a timely manner to bring efficient and effective performance to the company and
assist managers in making optimal decisions. thus helping achieve business goals (Nguyen &
Nguyen, 2020). According to Gorla, Somers and Wong (2010), the quality of information
systems is an important measure of their success of information systems.
Accounting Information Quality

Information is data that has been grouped and processed to provide meaning and
improve decision-making processes (Romney & Steinbart, 2021). Information will be useful
if it is of high quality. According to Anggadini (2013) the quality of information is
multidimensional, meaning that organizations must use various measures to evaluate the quality
of their information. Meanwhile, Gorla, Somers and Wong (2010) said the quality of
information is the quality of the output of the accounting information system, which in general
can be in the form of reports or online layers.
Information quality is the most useful type of information for existing and potential
investors, lenders, and other creditors to make reporting entity decisions based on the
information in financial statements. Financial information has two basic qualitative
characteristics: relevance and faithful representation. Relevant financial information is capable
of making a difference in the decisions made by users. Financial information can make a
difference in decisions if it has predictive or confirmatory value, or both. Financial information
has predictive value if it can be used as an input to processes used by users to predict future
outcomes. Financial information has confirmation value if it provides feedback about (confirms
or changes) previous evaluations. To be a representation so that it truly describes the actual
situation, the information must have three characteristics, namely complete, neutral, and free
from error (IFRS, 2018).
Organizational Performance
Organizational performance is the result of the activities and processes of all entities. In
general, there are two organizational performance measures, namely, organizational

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Information Quality
productivity and effectiveness, which reflect the final process of all entity activities.
Productivity is a measure of how efficiently employees work, whereas effectiveness is a
measure of how precise organizational goals are (Taşlıyan et al., 2018). According to Ensslin
et al. (2022), evaluating performance is a guide for organizational actors to achieve goals and
maintain or improve organizational performance.
Relationship between Accounting Information System Quality and Organizational

Performance
Accounting information systems play a vital role in organizations. Accounting
information systems are designed to assist organizations in processing data into information for
reporting purposes, which impacts the economy and organizational performance (Ganyam &
Ivungu, 2019). According to Algrari and Ahmed (2019) the development of accounting
information systems has a significant impact on organizational performance and effectiveness,
because organizational managers need information to support decision-making. The impact of
the accounting information system on organizational performance will occur when the
organization implements a quality accounting information system because, with a quality
information system, data will be processed quickly, reliably, and consistently so that the
information produced will be of high quality; thus, it can be used for support in decision making
so that the decisions taken will be better. Meanwhile, Rosa and Purfini (2019) revealed that the
company will be able to improve organizational performance by implementing a good and
quality accounting information system. Hendri et al. (2022) stated that the quality of the system
can support the tasks performed.
Several previous researchers have studied the importance of a quality accounting
information system in organizations. The results of previous studies show a relationship
between accounting information systems and performance. For example, a study conducted by
Akhter (2022) on private commercial banks of Bangladesh showed that the accounting
information system has a positive and significant effect on organizational performance, while
Alsmady (2022) conducted a study on the Amman Stock Exchange, providing empirical
evidence that the quality of accounting information has a strong positive effect on companies'
performance. Ironkwe and Nwaiwu (2018) conducted a study on companies in Nigeria. The
results show that the accounting information system has a positive and significant effect on
financial and nonfinancial performance. Meanwhile, a study conducted Trabulsi (2018) on
small- and medium-sized companies in Saudi Arabia proved that the accounting information

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Information Quality
system has a significant impact on organizational performance. Based on this description, the
first hypothesis (H1) tested in this study was:
H1: The quality of the accounting information system has a positive effect on
organizational performance
The Relationship between the Accounting Information Systems Quality and the
Accounting Information Quality
Accounting information plays a very important role in making business decisions
because all decisions will have an impact on finances; therefore, high-quality information is
very helpful in choosing the best alternative for decision-making (Algrari & Ahmed, 2019).
Information is data that has been processed so that it has meaning and is useful to its users
(Laudon & Laudon, 2020). Software quality can be used to determine system quality system
(Gorla et al., 2010). Overall, low-quality accounting software will result in higher costs because
the software is not able to serve the objectives to be achieved, accounting software is designed
not according to quality standards, is prone to errors, has weak security, and is not strong.
Meanwhile, Gorla et al. (2010) stated that software that is of poor quality produces low-quality
information with respect to the dimensions of information content, that is, information that is
less relevant and inaccurate, or incomplete. On the other hand, a flexible accounting
information system can be customized easily and quickly, thereby meeting the rapidly and
efficiently changing information needs of users and leading to the output of relevant and up-to-
date information to users, implying high information quality.
One of the successes of an information system is its output in the form of quality
information from various developed applications. Quality information is a measure of the
output of information systems (Pratiwi, 2021). Al-Mamary et al. (2018) stated that quality
information can be produced from a system that is easy to use and learn. An important role of
the accounting information system in an organization is to produce quality accounting
information. The success of an accounting information system in an organization will be able
increases the relevance of accounting information and reduces the level of uncertainty (Fitriati
et al., 2020).
The above description supports the premise that a quality accounting information
system produces quality information content. An accounting information system that utilizes
user-friendly and modern technology can present information in an easy-to-understand format,
enabling them to effectively use the accounting information system. A properly integrated
accounting information system provides accurate and complete information so that the

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Information Quality
information output is useful for supporting daily tasks and relevant for decision-making. The
description above shows that a quality accounting information system leads to quality
information formats and content. Fitriati et al. (2020) prove that the implementation of an
effective information system produces quality accounting information. Similar results were also
reported by Gorla et al., (2010), who provided evidence that the quality of the system affects
the quality of information. Based on this description, the second hypothesis (H2) tested in this
study was:
H2: The quality of accounting information systems has a positive effect on the quality of
accounting information.
Relationship of Accounting Information Quality to Organizational Performance

Quality information is used by users for business decision-making. Information of good
quality allows the organization to understand market needs thereby increasing value for
customers (Sedkaoui & Benaichouba, 2021). Poor quality information provided by accounting
information systems will result in high maintenance costs and disruption to the organization's
operations resulting in the organization incurring high costs. Poor quality information provided
by AIS results in large maintenance costs and disruption to the organization's operations,
resulting in high costs. When accounting information is available with good quality, the
organization will benefit from reducing labor costs, waste, and inventory costs. Thus, a high
content of accounting information (i.e., accurate, complete, and relevant) leads to better product
cost control and increased organizational efficiency (i.e., increased profits and increased
efficiency in decision-making).
According to Al-Mamary, Shamsuddin and Hamid, (2018) the quality of information
is a key factor that influences organizational performance. Sunarta and Astuti (2023) proved
that the quality of accounting information has a significant positive effect on the success of
decision-making. Dalkılıç et al. (2021) proved the quality of accounting information has a
positive effect on company performance and company value. Dewi et al. (2019) also prove that
the quality of accounting information has a positive and significant effect on financial
accountability. Based on this description, the third hypothesis (H3) tested in this study is:
H3: Accounting information quality has a positive effect on organizational performance.

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Information Quality
The Relationship of the Accounting Information Systems Quality to Organizational

Performance through the Accounting Information Quality
In general, it cannot be denied that the implementation of a good information system in
an organization produces quality information, which has a positive effect on the organization
as a whole. Organizations that use quality accounting information systems produce quality
accounting information. Furthermore, quality accounting information has a significant impact
on improving organizational performance. Thus, the quality of accounting information systems
and information quality is a key factor influencing organizational performance (Al-Mamary et
al., 2018).
For example, Kanakriyah (2016) proved that the use of accounting information systems
has a strong effect on the quality of accounting information and that accounting information
systems have a significant effect on company profitability. Gorla et al. (2010) proved that the
quality of the system has a positive effect on the quality of information and organizational
performance, and the quality of information has a positive effect on organizational
performance.
The above analysis shows that the quality of accounting information systems affects the
quality of accounting information, and organizational performance is also influenced by the
quality of accounting information. Therefore, the fourth hypothesis (H4) tested in this study
the quality of accounting information systems affects organizational performance through the
quality of accounting information
H4: The quality of accounting information systems has a positive effect on
organizational performance through the quality of accounting information.
MATERIAL AND METHODOLOGY

Construct Operationalization
The constructs used in this study were accounting information system quality,
accounting information quality, and organizational performance. The constructs used in this
study were accounting information system quality, accounting information quality, and
organizational performance. Accounting information system quality is measured in two
dimensions, namely, the flexibility and sophistication of the system, using an instrument
developed by by Gorla, Somers and Wong (2010). Flexibility consists of three items: (1) the
accounting information system used is easy to learn, (2) the accounting information system
used is only equipped with useful features and functions, and (3) the accounting information
system used can easily make changes. The sophistication of the system consists of six items:

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Information Quality
(1) the accounting information system used by applying the modern era, (2) nicely included,
(3) easy to use, (4) precise documentation, (5) quick response time for online inquiries, and (6)
short time lag between input and output records for batch processing.
Accounting information quality is measured in two dimensions: information content and
format. The information content dimension is measured by five items: (1) accurate information
output (including screen and print output), (2) complete, (3) concise, (4) useful in supporting
routine work, and (5) relevant for use in decision-making. The information format is measured
by three items, namely: (1) good format and appearance; (2) Can be compared with other
outputs (consistency); (3) consistent and easy to understand, this instrument was developed by
Gorla, Somers and Wong (2010).
Organizational performance is measured by two dimensions, financial performance and
non-financial performance, using an instrument developed by Wang et al. (2014) and Wang et
al. (2016), which was adapted for this study. Financial performance is measured by six (1)
statements including return on investment; (2) return on assets; (3) return on credit; (4) average
profitability; (5) profit growth; and (6) customer growth. Nonfinancial performance is measured
by five statements: (1) customer satisfaction, (2) quality development, (3) ordinary
management, (4) responsiveness, and (5) productivity.
Data Collection
This study used a sample of rural credit banks in the Bali province. Based on
PERBARINDO (https://www.perbarindo.or.id/anggota-bali/), the number of rural banks in
Bali, Indonesia in 2022 is 131. The sample size was calculated using the Slovin formula with
the assumption of a 5% sampling error; therefore, the sample size for this study was 99. We
collected data from directors or department heads who represented companies as respondents.
Data collection was carried out using a questionnaire that was delivered directly to the People's
Credit Bank in Bali, Indonesia via email and WhatsApp. Assuming a response rate of 80%, 123
questionnaires were sent to respondents. The questionnaires were accompanied by a cover letter
explaining the purpose of the research and guaranteeing data confidentiality. Three weeks after
completing the questionnaires, 99 questionnaires were returned, with a response rate of 78%.
The high response rate was because the questionnaire was delivered directly by students who
were doing internships.
We conducted a nonresponse bias test to ensure that there was no response bias. The
Levene's test result is 0.115 with a sig value of 0.712, because the sig value > 0.05, shows no

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Information Quality
difference between respondents who return on time and those who are late, this shows there is
no problem with nonresponse bias
RESULTS AND DISCUSSION

The research was analyzed using a partial least rectangular (PLS) structural equation
model with Warp-PLS software (version 8.0). PLS was chosen for use as a data analysis tool
because it does not demand a normal data distribution or large sample sizes, such as covariance-
based structural equation modeling (Kuechler et al., 2009). Owing to the advantages of
modeling using PLS, it is widely used to analyze survey data (Verhagen and van Dolen, 2009;
Kuechler, Mcleod and Simkin, 2009; Gefen and Straub, 2005). There are two stages in testing
using PLS: testing the measurement model (outer model), and testing the structural model
(inner model).
Measurement Model Testing

PLS modeling was used to validate the constructs of accounting information system
quality (AISQ), accounting information quality (AIQ), and organizational performance (OrP),
and to test the research hypotheses. According to Straub and Gefen (2004), reliability and
validity are mandatory for measuring the instruments. While reliability is a matter of
measurement within constructs, construct validity concerns the measurement between
constructs. Furthermore, Straub and Gefen (2004) stated that convergent and discriminant
validity are components of construct validity. In this study, the reliability, convergent validity,
and discriminant validity were tested for the three constructs.
Reliability was tested using composite reliability according to Chin, Marcolin, et al.
(2003), who stated that the composite reliability value provided more accurate information than
Cronbach’s alpha. Nunnally and Bernstein (1994) considered a reliable measure if the value of
the composite reliability coefficient was > 0.7. Table 1 shows that all components have a
composite reliability > 0.7, indicating that the indicators used to measure the constructs are
reliable.

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Information Quality
Table 1. Measurement of constructs and indicators (with reliability)

Latent construct Dimensions Number Factors Cronbach’s Composite AVE
of items loading alpha reliability
AISQ Flexibility 3 0,741 0.710 0.870 0.769
Sophistication 6 0,723
AIQ Content 5 0.712 0,702 0.845 0.731
Format 3 0.724
OrP Financial 6 0.716 0.821 0.918 0.848
Non-Financial 5 0.720
Testing the validity of the indicators using convergent and discriminant validity.
According to Fornell and Larcker (1981) convergent validity was tested using three criteria: (1)
all indicators as measurements must be significant and the loading factor must exceed 0.707
(Straub & Gefen, 2004) and (Gefen & Straub, 2005); (2) construct reliability must exceed 0.7,
and (3) the value of the variance extracted (AVE) for each construct must exceed 0.50.
Table 1 shows that the loading factor of the six dimensions exceeded 0.707, with a
significance of p=0.001. The composite reliability of the three constructs exceeded 0.70 (with
the lowest composite value of 0.845). Furthermore, the AVE value for all constructs exceeded
0.50 (minimum value of AVE = 0.731), so it can be said that convergent validity was fulfilled.
Discriminant validity was evaluated using a cross-loading indicator based on (Fornell
& Larcker, 1981) criteria. According to Fornell and Larcker (1981) good discriminant validity
is shown from the AVE square root for each construct, whose value is greater than the
correlation between constructs in the model. Table 2. The criteria for square root average
variance extracted in the diagonal column, which is given a bold letter whose value is greater
than the correlation between latent variables in the same column (above or below); thus,
discriminant validity was fulfilled.
Table 2. Discriminant validity

AVE Composite reliability AISQ AIQ OrP
AISQ 0.769 0.870 0.877 0.657 0.656
AIQ 0.731 0.845 0.657 0.855 0.713
OrP 0.848 0.918 0.656 0.713 0.921
Note: Square roots of average variances extracted (AVEs) shown on diagonal.
Structural Model Testing

The structural model in this study was tested using the estimated R2 values and path
coefficients. The path coefficient indicates the strength of the relationship between the
dependent and independent variables, whereas the predictive power of the model for the
dependent variable is measured by the value of R2 (Ko, Kirsch and King, 2005; Chin, Marcelin
and Newsted, 2003). According to Bentler (2004), the significant path coefficients support the

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Information Quality
hypothesized relationship. Meanwhile, Chin, Marcolin and Newsted (2003) stated that to be
considered, the standard path coefficient value should be 0.20, ideally above 0.30.
The results of the hypothesized model analysis are shown in Figure 1 and Table 3, which
show that AISQ has a significant positive effect on organizational performance (OrP) β = 0.39,
P < 0.01, thereby supporting the first hypothesis (H1). A significant positive relationship was
also shown between AISQ and AIQ (β = 0.67, P < 0.01), thereby supporting the second
hypothesis (H2). Meanwhile, AIQ also has a significant positive relationship to OrP (β = 0.49,
P < 0.01) thus supporting the third hypothesis (H3).
Figure 1. Full Research Model
Table 3. A theoretical model of the direct relationship of research variables

Independent Dependent Hypotheses Relevant Path Path p-value Remarks
Variable Variable coefficient
AISQ QrP H1 AISQ → QrP 0,39 <0,01 Supported
AISQ AIQ H2 AISQ → AIQ 0.67 <0.01 Supported
AIQ OrP H3 AIQ → OrP 0.49 <0.01 Supported
Mediation Effect Testing

Testing the mediating role of accounting information quality on the effect of accounting
information system quality on organizational performance, based on (Hair et al., 2011), consists
of three steps: First, estimate the direct effect of AISQ on QrP. Test results of the direct effect
of AISQ on OrP = 0.70; p < 0.01. The results of this direct-effect test met the requirements
because the results were significant. The test results are shown in Figure 2.
Figure 2. The results of the direct relationship between AISQ and OrP

13
Information Quality
The second is to estimate the indirect effect simultaneously with the triangle PLS-SEM
model, namely AISQ → OrP; AISQ → AIQ and AIQ → OrP. The estimation results show
AISQ → OrP = 0.39; p < 0.01; estimated AISQ → AIQ = 0.67; p < 0.01, and estimated AIQ
→ OrP = 0.49; p < 0.01. The test results are shown in Figure 1.
The third is to calculate the variance accounted for (VAF) with the formula for the
indirect effect divided by the total effect. The total influence is direct and indirect. If the VAF
value is above 80%, it indicates that there is full mediation, and if the VAF value is between
20% and 80%, then it can be categorized as partial mediation, whereas if the VAF value is less
than 20%, it can be concluded that there is almost no mediating effect (Hair et al., 2014). The
test results are listed in Table 4.
Table 4. The results of the VAF test of the relationship between AISQ and OrP through AIQ
Indirect effect 0.67 x 0.49 (AISQ → AIQ = 0.67; and AIQ →OrP = 0.49) 0.33
The direct effect of AISQ on OrP 0.70
Total effect (0.33 + 0.70) 1.03
VAF = indirect effect divided by the total influence 0.33/1.03 0,32
Table 4 shows a VAF value of 0.32 (32%) greater than 20%, so it can be concluded that
accounting information quality (AIQ) partially mediates the effect of accounting information
system quality (AISQ) on organizational performance; thus, the fourth hypothesis (H4) is not
rejected.
DISCUSSION
The acceptance of the first hypothesis (H1), which states that the quality of the
accounting information system has a positive effect on organizational performance, indicates
that, first, a flexible system consists of 1) an easy-to-learn accounting information system,
which allows users to not need a long time to understand and use the system, so that the process
becomes faster and more accurate; 2) a system that is only equipped with useful features and
functions, which encourages system users to focus on functions that support banking activities;
and 3) a flexible system to make changes easily. This allows rural banks to adjust the system
according to developments in information technology and the information needs of users, so as
to be able to improve organizational performance.
Second, the use of a sophisticated system by rural banks, namely:1) a modern
accounting information system, 2) well-integrated, 3) user-friendly, 4) good documentation, 5)
short response time for online inquiries, and 6) short time lag between data input and output for

14
Information Quality
processing batches, all of which can provide good, fast, and accurate service to improve
organizational performance.
The results of this study support those of Jarah and Iskandar, (2019) who proved that
accounting information systems provide support for financial performance, acquire new skills
at work to improve performance, and help reduce organizational costs. Ha, (2020) also proves
that accounting information systems have a positive effect on the operational performance of
small and medium companies in Vietnam. According to Akhter, (2022), banks need to ensure
the use of a quality accounting information system so that operations become effective and
efficient and organizations can develop. Akram and Jarah, (2022) say that the accuracy,
relevance, and reliability of accounting information systems play a very important role in
improving company performance.
Acceptance of the second hypothesis (H2) which states that the quality of the accounting
information system has a positive effect on the quality of accounting information. This indicates
that the flexible and sophisticated accounting information system used by rural banks is capable
of producing accurate information both on print and on screen; the resulting information is
complete; the system produces concise information, so it does not take much time to understand
it; the information generated is very useful in supporting daily work and relevant information
for decision making. Apart from the sophisticated and flexible content aspect of the system, it
is also capable of producing information in good form and appearance, comparable (consistent),
and easy to understand. This will improve the quality of accounting information.
The results of this study are in line with those of Binh et al. (2020) which proves that
the quality of the information system is the main driver of the quality and usefulness of
accounting information. This study also supports Gorla, Somers and Wong (2010), who state
that organizations that use systems with out-of-date hardware and software support cause
information output to be bad. On the contrary, when the quality of the system increases, it will
improve the quality of information.
Acceptance of the third hypothesis (H3), which states that the quality of accounting
information has a positive effect on organizational performance, indicates that with the content
of accounting information and the form of presentation, rural banks in the Province of Bali,
Indonesia are able to increase returns on investment, return on assets, credit returns, average
profitability, and customer growth better than major competitors. In addition to the content and
form of information presented, rural banks in the Province of Bali, Indonesia, are also able to
increase customer satisfaction, improve company quality, improve cost management, increase

15
Information Quality
responsiveness, and increase productivity so that it becomes better than the main competitors,
thus improving organizational performance.
The test results support those of Alsmady (2022) and Al-Mamary et al. (2018),
providing empirical evidence that the quality of information affects companies' performance.
Dewi et al. (2019) proved that the quality of local government financial information has a
positive effect on financial accountability.
Acceptance of the fourth hypothesis (H4) which states that the quality of accounting
information mediates the influence of the quality of accounting information systems on
organizational performance. People in Bali Province, Indonesia. Thus, rural banks must pay
attention to the quality of accounting information so that the implementation of a quality
accounting information system can improve organizational performance, in this case, the
performance of rural banks in Bali, Indonesia.
CONCLUSION
Based on the previous description, it can be concluded that implementing a quality
accounting information system will improve the organizational performance of rural banks in
the Province of Bali, Indonesia. The implementation of a quality accounting information system
produces such information. Quality accounting information can improve organizational
performance. Finally, accounting information quality can mediate the relationship between
accounting information quality and the organizational performance of rural banks in Bali,
Indonesia. This study supports the developed TAM model (DeLone & McLean 1992; DeLone
& McLean 2003).
The limitations of this study are, first, because of its perceptual nature, the results are
very dependent on the understanding of each respondent to the questions asked, which are
associated with the conditions encountered in the workplace. The two research samples are
limited to rural banks in the province of Bali, Indonesia, and the numbers are relatively small,
which will have an impact on the generalizability. Considering the results of this study, the
suggestion for further research is that future researchers can re-test by adding several mediating
variables, such as knowledge about the system, sharing information, and sharing knowledge.
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ACCOUNTING INFORMATION SYSTEM QUALITY AND ORGANIZATIONAL

PERFORMANCE: THE MEDIATING ROLE OF ACCOUNTING INFORMATION QUALITY

I Nyoman SunartaA, Partiwi Dwi AstutiB

ARTICLE INFO ABSTRACT

Originality/value: The originality of this research is the role model of accounting

QUALIDADE DO SISTEMA DE INFORMAÇÃO CONTÁBIL E DESEMPENHO

Intern. Journal of Profess. Bus. Review. |Miami, v. 8 | n. 3| p. 01-20 | e01192 | 2023.

Palavras-chave: Qualidade da Informação Contábil, Qualidade do Sistema de Informação Contábil,

CALIDAD DE LOS SISTEMAS DE INFORMACIÓN CONTABLE Y RENDIMIENTO

Intern. Journal of Profess. Bus. Review. | Miami, v. 8 | n. 3 | p. 01-20 | e01192 | 2023.

efficiently. An important element that affects organizational performance is the quality of

Intern. Journal of Profess. Bus. Review. | Miami, v. 8 | n. 3 | p. 01-20 | e01192 | 2023.