Journal Article

Does business intelligence mediate the relationship between ERP and management accounting practices?

Youssef, Mayada Abd El-Aziz, Mahama, Habib

2021

Overview

Purpose The purpose of this study is to investigate the role of business intelligence and analytics (BI&A) in mediating the relationship between enterprise resource planning (ERP) and three sets of management accounting practices (MAPs): budgeting, costing and performance evaluation. It also examines the extent to which the usage of ERP affects the intensity of the application of various MAPs. Design/methodology/approach Structural equation modeling (SmartPLS 3) is used to analyze data collected from a cross-sectional survey of 82 firms in the UAE. The results indicate that the constructs are valid and reliable and that the model supports the research hypotheses. Findings The findings confirm the positive effect of the extent of using ERP systems, as a construct of modules, on the extent of applying three sets of MAPs. They also show that the extent of the use of BI&A systems partially mediates the relationship between the extent of the use of ERP systems and intensity of applying each of the three sets of MAPs. Practical implications The results encourage organizations to adopt BI&A to reap the full benefits of ERP. Originality/value In contrast to the extant research that presumes a direct influence of ERP on MAPs, this study investigates if the extent of the use of BI&A mediates the presumed relationship between the extent of the use of ERP and intensity of applying each of the three sets of MAPs.

• Publisher: Emerald Publishing Limited,Emerald Group Publishing Limited
• Subject: Accounting procedures / Activity based costing / Alliances / Balanced Scorecard / Big Data / Business intelligence / Data analysis / Decision making / Enterprise resource planning / Hypotheses / Information processing / Management accounting / Performance evaluation / Performance management / Radio frequency identification / Software