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

Mayada Abd El-Aziz Youssef and Habib Mahama

Journal of Accounting & Organizational Change, 2021, vol. 17, issue 5, 686-703

Abstract: 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.

Keywords: United Arab Emirates; Management accounting practices; Enterprise resource planning; Budgeting practices; Performance evaluation practices; Strategic enterprise management; Business intelligence and analytics; Costing practices (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:jaocpp:jaoc-02-2020-0026

DOI: 10.1108/JAOC-02-2020-0026

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