Effect of information quality and internal electronic integration on internal cost management and organizational performance

Abstract

Internal electronic integration provides data integration for organizations. Through it, organizations obtain information about production costs, which allows the company to perform better in the market. In this context, this research aims to analyze the effect of information quality on internal cost management and its impact on organizational performance. This research was developed descriptively through data collection with 99 respondents, which include professionals in the positions of coordinator, senior analyst, manager, and cost supervisor of Brazilian companies. The data was measured using quantitative analysis and structural equations through the SmartPLS 4 software. This research's primary findings demonstrate that organizations with internal electronic integration between company departments have information that provides better internal cost management. These results are justified since quality information allows professionals to perform a more detailed analysis of expenses in the organization, making it possible to reduce organizational costs. Thus, correct and real-time information allows managers to make decisions that increase organizational performance and obtain a greater understanding of the internal processes involving production lines. This study presents new insights into the perception of professionals in the field of costs concerning the relationships investigated in the research. It also contributes to the managers' decisions and strategies to manage their costs and raise the company's performance.