Effects Of Business Strategy On Performance Of Jordanian Service Companies: Mediating Roles Of Accounting Information System (Ais) And Information Quality
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Date
2016-09
Authors
Bani Melhem, Wael Ghazi Saleh
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Abstract
This empirical study investigated the relationship between the business strategy (cost leadership and innovative differentiation) and information quality with the Accounting Information System (AIS) to enhance firm performance in Jordanian public listed service firms. Previous studies had investigated the direct relationship of Business strategy and AIS to enhance the firm performance. However, there are limited studies investigated on how service firms can achieve better performance and secure competitiveness through business strategy, information quality and AIS. This study thus introduced an integrated model for service firms to achieve better performance through appropriate competitive business strategy and mediating variables such as information quality and AIS. To achieve the objectives of this study, data were collected from 192 service firms listed in Jordanian Stock Exchange, which represents about 58.8% response rate. The partial least squares (PLS) statistical analysis tool had been used to analyze the constructs of this study. Result had revealed that businesses strategy significantly affect AIS. Whereas, AIS has a significant effect on financial performance but not significant on non-financial performance. There is a positive relationship between AIS and information quality. The result showed that AIS mediate the relationship between business strategy and financial performance, as well as, information quality mediate the relationship between AIS and financial performance. This study provides a new insight to the service firms to increase financial performance by applying AIS and information quality as mediators along with business strategy.
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The relationship between the business strategy and information quality with the Accounting Information System , to enhance firm performance in Jordanian public listed service firms.