A development of enterprise resource planning success model for accounting profesionals

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY Phan, Thi Bao Quyen A DEVELOPMENT OF ENTERPRISE RESOURCE PLANNING SUCCESS MODEL FOR ACCOUNTING PROFESSIONALS A DOCTORAL THESIS Ho Chi Minh City, 2020 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY Phan, Thi Bao Quyen A DEVELOPMENT OF ENTERPRISE RESOURCE PLANNING SUCCESS MODEL FOR ACCOUNTING PROFESSIONALS Major: Accounting Code: 9340301 A DOCTORAL THESIS Supervisors: Associate Professor, Dr Vo, Van Nhi Dr Nguyen, Thi Kim Cuc Ho Chi Minh City, 2020 iii STATEMENT OF AUTHENTICATION I certify that any content in this thesis has not previously been submitted for a degree at this or any other institution I also certify that the dissertation is prepared by me Any help that I have received in my research work has been acknowledged In addition, I certify that all sources and literature used are adequately indicated in the reference Phan Thi Bao Quyen ACKNOWLEDGEMENTS The effort to complete this thesis would not have been possible without the contribution of a number of persons and organizations First and foremost, I would like to express my deepest gratitude to my two supervisors, Associate Professor, Dr Vo Van Nhi and Dr Nguyen Thi Kim Cuc for their support and guidance Especially Associate Professor, Dr Vo Van Nhi, my principal supervisor, his encouragement keeps me going even through the most difficult moments of this study I would like to offer my gratitude to University of Economics Ho Chi Minh City, and acknowledge the supports I have received from the School of Accounting at University of Economics Ho Chi Minh City I would like to thank Associate Professor, Dr Nguyen Xuan Hung and Dao Tat Thang for facilitating me completing the PhD thesis on time I would like to thank my colleagues in Accounting Information System Division for their encouragement during my PhD journey I would like to give a special thank to Dr Nguyen Phuoc Bao An for providing me constructive feedback and making me trust myself that I am capable to finish this stressful research project I also would like to thank Dr Nguyen Bich Lien for her comments on system-use concept of the ERP success model for accounting professionals, which is a motivation for discovering a more appropriate system-use concept in the ERP ongoing context In my daily work, I would like to thank Dr Luong Duc Thuan, Dr Pham Tra Lam, Nguyen Quoc Trung and Nguyen Huu Binh for supporting me to perform lecturing-tasks in order to facilitate my researching I am so grateful to Dr Nguyen Thi Thu for her enthusiasm for my research-method-relatedqueries I would like to acknowledge the advices and the comments on how to effectively adopt the Smart-PLS software to analyze the collected data from Dr Nguyen Phong Nguyen I really appreciate his experience of such a useful tool I would like to thank the help of Dr Trinh Hiep Thien for his assistance in distinguishing between reflective and formative constructs I also would like to thank Nguyen Thao Nguyen for her counseling on confirmation factor analysis My thanks also go to academics from UEH and informants from participant organizations that have assisted me to complete the pre-testing, pilot testing and main survey, whose names cannot be disclosed owning to confidentiality agreements I would like to thank my brothers and sisters, as well as my friends, in particular, Phan Quoc Hieu, Dr Pham Thanh Ha, Phan Quoc Lan, and Nguyen Thi Thu Nguyet Their help, support, and friendship keep me balance every up and down moment and make the completion of this thesis more interesting and enjoyable instead of pressure only or sometimes boringness I give special thanks to my parents, especially my wonderful mom, who have always stayed by me, encouraged me to pursue my academic career, as well as assisting me to take care my children Without their support and sacrifice, this work would have been stalled For this reason, this thesis is dedicated to both of you Last but not least, I would like to thank my husband and my little daughters Your love, support and continual understanding have made this adventure possible Therefore, this thesis is also dedicated to all of you TABLE OF CONTENTS STATEMENT OF AUTHENTICATION I ACKNOWLEDGEMENTS II TABLE OF CONTENTS IV ABBREVIATIONS VIII LIST OF TABLES IX LIST OF FIGURES XI ABSTRACT XII CHAPTER INTRODUCTION 1.1 Chapter introduction 1.2 Background of research 1.3 Motivations for research 1.3.1 Motivation - ERP research 1.3.2 Motivation – Behavioral Accounting Research (BAR) 1.3.3 Combination of ERP research and Behavioral Accounting research (BAR) 1.4 Research objective 1.5 Research questions 1.6 Justification 1.7 Methodology 1.8 Research scope 1.9 Thesis structure 1.10 Chapter summary 1 2 11 12 14 15 15 16 18 CHAPTER LITERATURE REVIEW 19 2.1 Chapter introduction 2.2 Enterprise Resource Planning 2.2.1 Defining ERP 2.2.2 Evolution of ERP 2.2.3 Advantages and disadvantages of ERP 2.2.4 The ERP lifecycle 2.3 ERP Success Models 2.3.1 Challenges of measuring ERP success 2.3.2 A summary of ERP Success Models from 1990 up to present 2.3.3 Issues with the existing ERP success studies 2.3.4 Differences between the current study and the eleven previous ESMs 2.3.5 Review of ERP success studies in Vietnam 2.4 Review of ‘rich construct(s)’ enabling to overcome unanswered validity-setting-related issues 2.5 Chapter summary 19 20 20 22 23 25 25 25 27 43 46 47 45 47 CHAPTER CONCEPTUAL FRAMEWORK, CONSTRUCT CONCEPTUALIZATION AND HYPOTHESES 49 3.1 Chapter introduction 49 3.2 Theories used in the ESMAP 3.2.1 D&M IS success model (DeLone & McLean, 1992) 3.2.2 IS-continuance theory (Bhattacherjee, 2001) 3.2.3 Principle “fitness for use” (J M Juran, 1988) 3.2.4 How to combine three theories to form the ESMAP 3.3 Conceptual ESMAP, construct conceptualization and hypotheses 3.3.1 Conceptual ESMAP 3.3.2 Relationships among constructs of organizational-level impacts 3.3.3 Perceived qualities and benefits; and organizational-level impacts 3.4 Chapter summary 49 49 50 52 54 54 54 55 61 62 CHAPTER RESEARCH METHODOLOGY 63 4.1 Chapter introduction 4.2 Research approach 4.2.1 The nature of the phenomenon being studied 4.2.2 Research approach selection 4.3 Philosophical worldview 4.4 Research design 4.4.1 Selecting the type of research method 4.4.2 Time horizons 4.5 Research method 4.5.1 Instrument design 4.5.2 Sample design 4.5.3 Data collection 4.6 Ethical considerations 4.7 Chapter summary 63 64 64 65 65 65 65 66 66 67 75 80 81 82 CHAPTER DATA ANALYSIS 83 5.1 Chapter introduction 5.2 Step 1: Data preparation 5.2.1 Data screening and cleaning 5.2.2 Straight lining check 5.2.3 Testing for outliers 5.2.4 Bias Tests 5.2.5 Section summary 5.3 Step 2: Instrument preparation 5.3.1 Instrument reliability assessment 5.3.2 Instrument validity assessment 5.4 Step 3: Testing the ESMAP 5.4.1 Analysis technique selection 5.4.2 Measurement model assessment 5.4.3 Structural model assessment 5.5 Chapter summary 83 84 86 86 86 87 88 88 89 89 97 97 99 104 122 CHAPTER DISCUSSION OF FINDINGS 124 6.1 Chapter introduction 6.2 Descriptive findings 6.3 An overview of the relationship between accountant performance and organizational performance 6.3.1 Discussion on organizations’ perceptions of organizational performance 124 124 128 128 6.3.2 Discussion on organizations’ perceptions of accountant performance 130 6.3.3 Discussion on direct impact of accountant performance on organizational performance 131 6.4 Use and its outcomes 131 6.4.1 Discussion on organizations’ perceptions of use 131 6.4.2 Discussion on appropriateness of effective use in the ERP context 132 6.4.3 Discussion on direct impact of effective use on accountant performance 133 6.4.4 Additional discussion on indirect impact of effective use on organizational performance 133 6.5 Satisfaction and its outcomes 134 6.5.1 Discussion on organizations’ perceptions of satisfaction 134 6.5.2 Discussion on direct impact of satisfaction on accountant performance 135 6.5.3 Additional discussion on direct and indirect impact of satisfaction on organizational performance 135 6.6 System quality and its direct impacts on use and satisfaction 136 6.6.1 Discussion on organizations’ perceptions of system quality 136 6.6.2 Discussion on direct impact of system quality on use 137 6.6.3 Discussion on direct impact of system quality on satisfaction 137 6.7 Information quality and its direct impacts on use and satisfaction 138 6.7.1 Discussion on organizations’ perceptions of information quality 138 6.7.2 Discussion on direct impact of information quality on use 138 6.7.3 Discussion on direct impact of information quality on satisfaction 139 6.7.4 Discussion on the role of information quality in D&M IS success model (1992) 139 6.7.5 Discussion on the role of information quality in the ESMAP 139 6.8 Perceived accounting benefit and its outcomes 140 6.8.1 Discussion on organizations’ perceptions of perceived accounting benefit 140 6.8.2 Discussion on operationalization of perceived accounting benefit 141 6.8.3 Discussion on direct impact of perceived accounting benefit on use 143 6.8.4 Discussion on direct impact of perceived accounting benefit on satisfaction 144 6.8.5 Additional discussion on direct and indirect impacts of perceived accounting benefit on accountant performance and organizational performance 144 6.9 Other advanced discussions on the ESMAP 146 6.9.1 Differences of the ESMAP by the length of ERP system 146 6.9.2 Differences of the ESMAP by organizational size 147 6.9.3 Differences of the ESMAP by ERP vendors 147 6.10 Chapter summary 148 CHAPTER CONCLUSION 149 7.1 Chapter introduction 7.2 Research questions revisited 7.2.1 How is the ERP success model for accounting professionals formed in order to improve accountant performance, which in turn enhances organizational performance? 7.2.2 How is the ERP success model for accounting professionals (ESMAP) validated? 7.3 Contributions of the study 7.3.1 Theoretical contributions 7.3.2 Practical contributions 7.4 Limitations of the study and area for further research 7.5 Delineations and further research 7.6 Final concluding remarks 149 149 LIST OF PAPERS 159 REFERENCE 160 150 150 151 151 155 155 156 157 APPENDICES 183 Appendix 2.1 Eleven previous ERP success models 183 Appendix 4.1 Advantages of using survey method in the current study 190 Appendix 4.2 Identifying formative and reflective constructs 191 Appendix 4.3 Evidence in relation to the expert panel’s feedback on the preliminary questionnaire 193 Appendix 4.4 The original Part A of the preliminary questionnaire 195 Appendix 4.5 A summary of changes in Part B of the preliminary questionnaire after analyzing feedbacks from the expert panel 195 Appendix 4.6 The questionnaire after pre-testing 196 Appendix 4.7 Questionnaire translation process in the current study 200 Appendix 4.8 List of interviewees and demographic information 201 Appendix 4.9 Pilot study responses from three target informants 202 Appendix 4.10 The Vietnamese questionnaire after pilot testing 203 Appendix 4.11 Bias issues consideration and how to minimize them 207 Appendix 4.12 Sample size Calculator v2.0 for Cronbach’s Alpha Test 210 Appendix 4.13 The result of calculating the minimize sample size by G*Power software 211 Appendix 4.14 Sample size recommendation in PLS-SEM for a Statistical Power 80% (Hair Jr et al., 2014) 211 Appendix 4.15 A covering letter 212 Appendix 5.1 Summary of Deleted Cases 213 Appendix 5.2 Result of Outlier Testing 214 Appendix 5.3 Independent Sample T-test for Non-response Bias 219 Appendix 5.4 Total Variance Explained for Common Method Bias Test 224 Appendix 5.5 Development of the final sample 226 Appendix 5.6 Instrument reliability assessment 227 Appendix 5.7 Sample characteristics consideration 229 Appendix 5.8 Process of interpreting the factors 234 Appendix 5.9 EFA Test Results - Scales without modifications 235 Appendix 5.10 Summary after Factor Analysis 236 Appendix 5.11.1 Results of fit consideration of higher-factor instruments – PAB 237 Appendix 5.11.2 Results of fit consideration of higher-factor instruments - USE 238 Appendix 5.12 Cross-factor loadings 239 Appendix 5.13 Internal consistency and convergent validity results of the first order factor “PAB_operational” after eliminating indicator PAB18 240 Appendix 5.14 Decision-making process for keeping or deleting formative indicators basing on outer weight and outer loading Hair Jr et al (2014) 241 Appendix 5.15 Results of alternative models analysis 242 Appendix 6.1 Demographic characteristics of surveyed companies 245 Appendix 6.2 Demography characteristics of ERP system 246 Appendix 6.3 Demographic characteristics of informants 247 Appendix 6.4 Comparing sample means 248 Appendix 6.5 Testing the D&M IS Success model (1992) without PAB 251 Appendix 7.1 Practical implications for ERP adoption organizatons’ stakeholders 252 ABBREVIATIONS AP AVE B2B B2C BAR CB-SEM CFA CFM CFOs CR CSF/ CSFs D&M EFA ERP ES ESM/ ESMs ESMAP Ex_U Extended _U FMCG HTMT IQ IS IT KMO MRP OP PAB PCA PLS-MGA PLS-SEM SAT SQ UEH VAF VIF Accountant Performance Average Variance Extracted Business To Business Business To Customer Behavioral Accounting Research Covariance-Based Structural Equation Modeling Confirmatory Factor Analysis Common Factor Model Chief Finance Officer(s) Composite Reliability Critical Success Factor(s) Delone And Mclean Exploratory Factor Analysis Enterprise Resource Planning Enterprise Systems ERP Success Model(s) ERP Success Model For Accounting Professionals Extent Of Use Extended Use Fast Moving Consumer Goods Heterotrait-Monotrait Ratio Information Qualilty Information System Information Technology Kaiser-Meyer-Olkin Test Manufacturing Resource Planning Ogrnizational Performance Perceived Accounting Benefit Principal Component Analysis Partial Least Squares – Multi-group Analysis Partial Least Squares - Structural Equation Modeling Satisfaction System Quality University Of Economics Ho Chi Minh City Variance Accounted For Variance Inflation Factor Appendix 5.15 Results of alternative models analysis Table 1: Direct relationships for Hypothesis testing (alternative model related to Extent of Use) Hypothesis H1: H2: H3: H4a: H4b: H5a: H5b: H6a: H6b: Relationship AP -> OP Ex_U -> AP SAT -> AP SQ -> Ex_U SQ -> SAT IQ -> Ex_U IQ -> SAT PAB -> Ex_U PAB -> SAT Std Beta 0.6379 0.0636 0.6503 0.4461 0.2909 -0.1327 0.124 0.0343 0.4674 Std Error 0.0667 0.093 0.0643 0.1483 0.0899 0.1622 0.0979 0.1626 0.1012 [t - value]^ 9.4765*** 0.6202 10.2516*** 3.0417** 3.2691** 0.8722 1.2363 0.2278 4.6101*** Decision Supported No Supported Supported Supported No No No Supported *p AP SQ -> Extended_U SQ -> SAT IQ -> Extended_U IQ -> SAT PAB -> Extended_U PAB -> SAT *p100 – 200 >200 – 500 >500 – 1000 >1000 Total Company size (number of employees) 10000 Total (Source: by author) Frequency % 23 22 54 14 120 19.2 18.3 45 11.7 5.8 100.0 72 44 42 120 60.0 36.7 35.0 28 10 12 25 120 1.7 2.5 23.3 5.8 6.8 8.3 10.0 20.8 2.5 5.8 5.0 7.5 100.0 11 12 14 22 52 120 2.5 5.0 9.2 10.0 11.7 18.3 43.3 100.0 13 29 23 32 120 6.7 10.8 24.2 19.2 26.7 7.5 5.0 100.0 Appendix 6.2 Demography characteristics of ERP system Type of ERP software Oracle SAP XMAN (ERP) SalesUp ERP Navision Microsoft Dynamic Lemon FAST (ERP) Others (AMIS – MISA, Bamboo, Bravo, Bross, IMAS, Maconomy, MMIS, Peoplesoft, PERP…) Total Years that ERP is implemented and used at current company 2 – years >4 – years >6 – years >8 years Total (Source: by author) Frequency % 20 43 2 3 40 16.7 35.8 1.7 1.7 2.5 3.3 2.5 2.5 33.3 120 100.0 21 16 37 13 33 120 0.0 17.5 13.3 30.8 10.8 27.5 100.0 Appendix 6.3 Demographic characteristics of informants Frequency Position in the firm (job title) Chief Finance Officer CFO Chief accountant Internal controller Internal auditor Management accountant Total Position in organization’s hierarchy Top management position Mid-level personnel Senior staff Staff Total Gender Female Male Total Education background College degree University bachelor degree Master degree Total Age < 25 25 – 34 35 – 44 >44 Total Experience Years at current position (years) Years using ERP at current position (years) % 15 39 45 15 120 12.5 32.5 37.5 12.5 5.0 100.0 27 51 39 120 22.5 42.5 32.5 2.5 100.0 63 57 120 52.5 47.5 100.0 101 19 120 0.0 84.2 15.8 100.0 66 51 120 2.5 55.0 42.5 00.0 100.0 Min Max Mean 1 20 6.5 2.7 1 7 5.2 5.5 5.4 3 7 7 6.2 6.1 6.2 5.9 Extent of using ERP system (the degree users perceive the following statements according to 7-likert scale ranging from strongly disagree to strongly agree) Many hours per day at work Many times per day at work Overall, use ERP a lot Intend to continuously use (the degree users perceive the following statements according to 7-likert scale ranging from strongly disagree to strongly agree) We intend to continue using the ERP in our job We intend to use more functions of the ERP We intend to continue using the ERP for processing more tasks We intend to suggest that our company should continue to use the current ERP system (Source: by author) Appendix 6.4 Comparing sample means The Independent Samples T test is generally used for comparing sample means to indicate whether there is sufficient evidence to infer that the means of the two sample distributions significantly differ from each other The two samples are measured on common some variables of interest but there is no overlap of memberships between two groups These variables are the length of ERP adoption, organizational size and utilized ERP packages Based on Trọng and Ngọc (2008), if the significance level of Levene’s Test is less than 0.05, the significance level of T-test is the value of hypothesis “Equal variances assumed”, in contrast, if the significant level of Levene’s Test is greater than 0.05, the significance level of T-test is the value of hypothesis “Equal variances not assumed” And the significance level of T-test must be below 0.05 to assert that there exists the difference to population between two groups Accordingly, in terms of p-values greater than 0.05, there are not enough proofs to prove that there exist the differences between each group set (see Table 1, and 3) Table 1: Results of the Independent Samples T-test by the length of ERP adoption Levene's Test for Equality of Variances SQ IQ PAB USE Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed F 094 t-test for Equality of Means Sig t 760 -1.565 df Sig (2-tailed) Mean Difference 118 120 -.32780 -1.533 28.514 3.433 1.782 991 066 136 -.32780 118 962 00986 039 24.545 970 00986 118 287 -.21645 -.907 25.344 373 -.21645 118 314 -.21122 -.899 26.242 377 -.21122 048 184 -1.070 322 -1.011 SAT AP OP Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed 474 15.533 698 493 000 405 -.717 118 475 -.16017 -.656 26.844 518 -.16017 118 631 07504 361 23.541 721 07504 118 524 -.08712 -.621 28.336 540 -.08712 481 -.639 Table 2: Results of the Independent Samples T-test by the organizational size Levene's Test for Equality of Variances SQ IQ PAB USE SAT AP OP Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed F 1.549 571 030 2.699 082 111 987 Sig .216 451 t-test for Equality of Means t -.503 775 740 322 Sig (2-tailed) Mean Difference 616 -.10833 -.554 30.120 583 -.10833 -.230 118 819 -.04833 -.241 28.532 811 -.04833 118 278 -.22462 -1.050 26.259 303 -.22462 118 811 -.05125 -.207 24.116 838 -.05125 -.131 118 896 -.03000 -.140 29.015 889 -.03000 661 118 510 10500 690 28.358 496 10500 964 118 337 13375 1.097 31.339 281 13375 864 -1.089 103 df 118 -.240 Table 3: Results of the Independent Samples T-test by the adopted ERP packages Levene's Test for Equality of Variances SQ IQ PAB USE SAT AP OP Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed F Sig .000 997 t-test for Equality of Means t 165 df 118 165 114.399 075 196 1.260 476 441 1.360 870 02659 118 779 -.04414 -.280 114.036 780 -.04414 118 118 24099 1.568 114.151 120 24099 118 934 01326 082 109.653 935 01326 624 118 534 10610 619 111.277 537 10610 118 811 -.02840 -.238 113.786 812 -.02840 837 118 404 08678 828 107.842 409 08678 785 -.281 658 1.575 264 491 083 508 -.239 246 Sig (2-tailed) Mean Difference 869 02659 Appendix 6.5 Testing the D&M IS Success model (1992) without PAB Results of direct effects in the D&M IS success model (1992) H Relationship H1: AP -> OP H2: USE -> AP H3: SAT -> AP H4a: SQ -> USE H4b: SQ -> SAT H5a: IQ -> USE H5b: IQ -> SAT (Source: by author) Std Beta Std Error [t - value]^ Decision 0.6416 0.2506 0.536 0.2052 0.4277 0.3485 0.3575 0.0613 0.0715 0.0657 0.1193 0.0849 0.1186 0.0907 10.3101*** 3.5106*** 8.1686*** 1.7689 5.0957*** 2.9128** 3.8697*** Supported Supported Supported No Supported Supported Supported 95% CI LL 0.4982 0.124 0.426 0.0039 0.2896 0.1428 0.1939 95% CI UL 0.7124 0.3555 0.6462 0.3971 0.5708 0.532 0.4889 Appendix 7.1 Practical implications for ERP adoption organizatons’ stakeholders 7.3.2.1 For ERP vendors: The difference on the relationship between perceived accounting benefit and satisfaction by the ERP vendors recorded significantly indicates that at originations employing popular ERP packages such as SAP and Oracle, satisfaction of accounting professionals is increasingly higher when they perceive accounting-benefits that the ERP system brings for their work This finding is meaningful for popular ERP vendors (SAP and Oracle) They understand their products better; determine their tools’ impacts when implementing them in practice; then provide valuable experiences for their customers in duration of ERP implementation and postimplementation The more advantaged their customers receive from their products, the higher their reputation is 7.3.2.2 For ERP-adopting organizations The ESMAP allows maximize the ERP’s impacts on accounting professionals, which in turn increasingly enhance the ERP’s impacts on organizations To put it differently, organizations will obtain beneficial outcome when individuals (particular, accountant professional) use successfully the ERP system to add more value to organization Therefore, the ERP-adopting organizations receive indirect benefits from the ESMAP 7.3.2.3 For accounting professionals The ERP system is still company’s backbone for the planning, control, and execution of all business processes20, even in revolution of industry 4.0 However, the role of accounting professions, especially CFOs and senior controllers, has dramatically changed They are no longer seen as passive manager, but partners actively involved in creating business strategies The ESMAP guides them how to be come productive under ERP settings In short, the ESMAP supports them to adjust their ERP adopting behavior in order to improve their work performance, and via this, enhance organizational performance 20 According to Deloitte’s report “Industry 4.0: is your ERP system ready for the digital era?” quoted from website: https://www2.deloitte.com/content/dam/Deloitte/de/Documents/technology/Deloitte_ERP_Industrie4-0_Whitepaper.pdf 7.3.2.4 For organization management The results of this study support organization management to increasingly acknowledge the power of the ERP system for its usage of senior accounting experts In other words, the study provides guidance on how to guide accountant professionals to effectively adopt the ERP system in organization management’s efforts to improve organizational performance Besides, it allows management to better manage, control accounting experts and their work in ERP adoption and ongoing context For example, organizational management should recognize that a high level of system quality and perceived accounting benefit are likely to result in improved organizational performance via increased effective use, satisfaction and accountant performance More specifically, given discussions on findings in Chapter 6, which is modeled in Figure 7.1, the author identifies practical implications, summarizes and categories them into four instruction sets for organization management, namely: Black arrow line: direct effect Red arrow line: indirect effect Blue line: the relationship has difference by length of ERP system or by firm size or by ERP vendor Figure 7.1: The supported relationships useful for organization management A set of instructions on advancing organizational performance The following solutions are ordered in descend manner of impact extent of each construct on organizational performance First, organization management should focus on finding how to improve accountant performance, since it is not only a direct driver, also a mediator controlling the impacts of use and satisfaction on organizational performance, and also a mediator managing the impacts of perceived accounting benefit on organizational performance More specifically, management should frequently organize seminars for accounting department, or thoroughly communicate to accounting-professionals on ERP system’s advantages for their work such as “they can learn much through the presence of the ERP system” (AP1), “the ERP system helps them to more enhance their awareness and recall of job-related information” (AP2), “the ERP system also helps them to more enhance their effectiveness in their job” (AP3), and “the ERP system allows them more increasing their productivity” (AP4) Noting that, large-sized companies’ management need to more focus on raising these perceptions of accounting professionals Analogous to small-and-medium-sized firms, the higher accounting department perceives the ERP impacts on them; the more massive their organization performance is enhanced Second, management should pay more attention on accounting department’s satisfaction of the ERP system, as it offers both direct and indirect impacts on organizational performance In a little more detail, management needs to find out how to make accountant professional more satisfy of system quality (SAT1), information quality (SAT2), perceived accounting benefit (SAT3) and overall ERP system (SAT4) Third, the most different and dominant contribution of the ESMAP, management needs to find out how to improve accounting department’s perceptions of accounting-related benefits received from the ERP system as these perceptions influence directly and indirectly organizational performance These perceptions include “the ERP system makes reduction of time for closure of monthly account” (PAB6), “the ERP system makes reduction of time for closure of quarterly account” (PAB7), “the ERP system makes reduction of time for closure of annual accounts” (PAB8), “the ERP system makes reduction of time for issuing of financial statements” (PAB9), “the ERP system increases flexibility in information generation” (PAB10), “the ERP system increase integration of accounting applications” (PAB11), “the ERP system improves decisions based on timely and reliable information” (PAB12, “the ERP system improve quality of reports- statements of account” (PAB13), “the ERP system improves internal audit function” (PAB14), “the ERP system improve working capital control” (PAB15), “the ERP system increase use of financial ratio analysis” (PAB16), “the ERP system make reduction of time for issuing payroll” (PAB17), “the ERP system makes reduction of personnel of accounting department” (PAB18) Overall, the more clarified the accountant professional perceive accounting-benefits obtained from the ERP system, the higher the organizational performance is Simultaneously, the more clarified the accountant professional perceive accounting-related benefits received from the ERP system, the more effective they use the ERP system (when they are master of it), and in the meantime, the more satisfied they feel for the ERP system, then the more productive they are, and finally, the more gainful their organizations offer Fourth, management should concern about how to improve effective use because it has nearly full indirect impact on organizational performance via accountant performance Based on the measures of effective use, the author suggests that making accounting professionals clarify how effectively the ERP system used for their decision support and work integration is appropriate solution to improve effective use For example, effectiveness of using the ERP system means that using it enables them to improve the efficiency of the decision process (USE1), manage their work (USE3), make explicit the reasons for their decision (USE4), make sense out of data (USE7), communicate with people in other work groups (USE5), monitor their own performance (USE6), communicate with people in other departments (USE8), and keep people in other department informed (USE11) A set of instructions on enhancing accountant performance The following solutions are ordered in descend manner of impact extent of each construct on accountant performance First, management should find out how to improve the satisfaction of accounting professionals, which is more necessary in large-sized companies The more satisfied accounting professionals are with ERP system, the more strongly they agree that the ERP system supports them to perform well their routine work Second, a different way to enhance accountant performance relates to increasing how effectively when using the ERP, especially in large-sized organizations To put it differently, this study provides a strong proof for management to convince their inexperience and unconfident accounting professionals that the more extensively the ERP system is used for decision support and work integration, the more likely these experts will perceive that ERP system has considerably positive impacts on their work Third, PAB has not direct impact on accountant performance, however PAB has indirect impact on accountant performance via use and satisfaction (parallel mediation model) Therefore, to advance accountant performance, management not only focuses on making use and satisfaction increased, also concentrate on making PAB improved An instruction on improving effective use According to the ESMAP, to make accountant professionals use the EPR system more effectively, the only way that the management should conduct is to attempt to find how to increase PAB, as the more increasingly they perceive accounting-related benefits from the ERP system, the more effectively they use the ERP system A set of instructions on increasing accounting professionals’ satisfaction The following solutions are ordered in descend manner of impact extent of each construct on satisfaction First, organization management should find how to improve system quality, which in turn, absolutely, enhance satisfaction For instance, information such as “the ERP system is easy to use” (SQ1), “the ERP system is easy to learn” (SQ2), “the ERP user interface can be easily adapted” (SQ7), “the ERP system meets users requirements” (SQ5), “the ERP system includes necessary features and functions for users job” (SQ6), and “the ERP can be easily modified or improved according to users needs” (SQ8) should be communicated commonly to accounting department The earlier the accountant professionals realize system quality, the more satisfied they feel about the ERP system Second, another solution of increasing satisfaction is making accountant professionals perceive accounting-related benefits, which the ERP system offers, more earlier and clarified This is more meaningful in large-sized organizations or in firms employing popular ERP packages such as SAP and Oracle ... predict, access and improve organization’s accountant performance to achieve the advanced organizational performance for their organizations As a result, the ESMAP allows management to better manager,... Motivation – Behavioral Accounting Research (BAR) Behavioral accounting research (BAR) or behavioral research in accounting is defined as the study of accounting professionals’ behavior or non-accountants’... valuable implications for organization management on how they can successfully manage accounting department as well as accounting professionals in an attempt to maximize ERP’s impacts on organizational