The Implementation of Advanced AIS and the Accounting Data Quality: The Case of Jordanian SMEs

This paper examines the effect of implementing advanced Accounting Information Systems (AIS) on Accounting Data Quality (DQ) in light of the Technology-Organization-Environment (TOE) theory. As organisations become more reliant on AIS to manage their financial data, it becomes essential to evaluate whether advanced AIS technologies contribute to greater DQ. This study seeks to investigate this relationship empirically by analysing data from 17,849 small and medium-sized (SMEs) Jordanian businesses. On the basis of the data collected via an online survey, the structural model was developed. The analysis of 412 completed surveys demonstrates that, among technological factors, “compatibility and relative advantage” have a significant impact on AIS implementation, “security and privacy” did not, however. AIS implementation is significantly influenced by all four organisational variables: top management support, firm size, IT-infrastructure, and employee IT-competency. Addressing the environmental constructs, it was confirmed that “Clients AIS Complexity” has a significant effect on AIS implementation. All hypothesised ties regarding the impact of AIS implementation on Accounting DQ were confirmed. The research concludes that AIS implementation is essential for organisations to maintain effective operation that can sustain productivity.