Factors That Affect the Effectiveness of Management Accounting Software

Abstract

This study aims to examine the suitability of the conceptual model regarding the effect of business strategy, user competence, organizational structure on the Effectiveness of Management Accounting Software (MAS), and how the influence between the variables studied during the Covid 19 Pandemic took place. Quantitative methods are used to test the suitability of the proposed model and to determine the predicted effect between the variables studied. The data were tested using Covarian Base Structural Equation Model (CB-SEM) with Lisrell 8.5 software. This study uses primary data collected through questionnaires to a population of 118 State-Owned Enterprises (SOEs) Management Accounting departments in Indonesia, with a selected sample size of 100 SOEs, which were selected using a simple random technique. The results of this study succeeded in confirming the conceptual model developed by the researcher and empirically proving the influence of business strategy on MAS Effectiveness, user competence on MAS Effectiveness and organizational structure on MAS Effectiveness in Indonesian SOEs companies. The effectiveness of MAS depends on the relevance of the needs of its users. The right business strategy, effectively provides relevant information for the company to design MAIS according to user needs, so that the company's operational activities run effectively and efficiently, the company is able to implement a Cost Reduction Strategy through production cost savings, production process accuracy, implementing product differentiation and low pricing strategy with a focus on customer needs during the Covid-19 pandemic. The results of this study contribute to producing strategic management accounting information to anticipate business continuity during and after the Covid 19 Pandemic and to help overcome the crisis due to the Covid 19 pandemic in the early stages of the Covid 19 Pandemic by optimizing business strategy, organizational structure, and company HR competencies.