Empirical examination of organizational culture on accounting information system and corporate performance: Evidence from a developing country perspective

Abstract

Purpose

The study aims to empirically examine the impact of organizational culture on accounting information system and corporate performance of firms in Ghana.

Design/methodology/approach

A survey was conducted using top corporate executives of diverse firms from different industrial sectors. The data were analyzed using structural equation modeling (SEM) and a further post hoc test was done using analysis of variance (ANOVA).

Findings

The study demonstrates that there is a statistically significant relationship between organizational culture on accounting information system and corporate performance. The results indicate that mission, adaptability and consistency dimensions of organizational culture were significant and also accounting information system influences corporate performance. Moreover, there are significant differences in the means of accounting information system on different industrial sectors.

Research limitations/implications

The study is limited to the extent that only overall profitability was used to measure performance. In addition, the study did not control for leadership style and organizational structure in the relationships. The implication of the study is that ethical culture-shaped accounting information system and financial reporting practice which ultimately leads to corporate performance.

Originality/value

Ghana is a developing country where structures and institutions are not well developed. Businesses and organizational forms are now beginning to pick up; therefore, organizational culture, accounting information systems and their impact on corporate performance are not well documented. These are all new phenomena in this part of the globe. The context of Ghana in terms of national culture that feeds into organizational culture, institutions, quality and application of accounting information is entirely different from that of advanced countries. The study therefore contributes to the extant literature by applying the constructs of organizational culture, accounting information system and corporate performance within a developing country perspective.

Citation

Kwarteng, A. and Aveh, F. (2018), "Empirical examination of organizational culture on accounting information system and corporate performance: Evidence from a developing country perspective", Meditari Accountancy Research, Vol. 26 No. 4, pp. 675-698. https://doi.org/10.1108/MEDAR-01-2018-0264