The alignment of accounting information systems in small and medium enterprises in Vietnam

Abstract

The alignment of the Accounting Information System (AIS) has been documented in numerous studies that have a positive impact on the business performance of enterprises. However, there are few studies focused on exploring the factors that alignment of AIS in small and medium-sized companies (SMEs). The results of this study are significant because the percentage of small businesses in Vietnam is over 97%, moreover, these are organizations that often lack resources, so it is essential to study the influencing factors for businesses to achieve AIS alignment. This study focused on the compatibility between information requirement and the capacity of AIS to respond to the information request, using a cluster analysis method to classify the total number of study samples into two clusters: one more suitable and the other less suitable. Next, using binary regression analysis to look at the factors the alignment of AIS in small businesses consists of 7 factors. The study results show that all 7 factors in the study model influence the alignment of AIS to a decreasing degree: Owner's and manager's knowledge; The sophistication of information technology; Internal employee involvement; Commitment of owners and managers; External Expertise consultation; Organization culture and Size of the business.