Accounting analytics and management controls interact to drive firm performance through both linear and non-linear mechanisms.
Authors
Ashish Varma, Institute of Management Technology (IMT), Ghaziabad, India
Anuj Sharma, Professor, Jindal Global Business School, O. P. Jindal Global University, Sonipat, Haryana, India
Adnan Khan, Institute of Management Technology (IMT), Ghaziabad, India
Summary
The extant literature establishes accounting information system (AIS) quality and dynamic-accounting analytic system capabilities as antecedents of superior firm performance. Yet the mechanism through which the two interact with firms’ embedded management control systems (MCS) is partially understood at best. Moreover, research has not addressed whether this mechanism is expected to be linear or non-linear and whether an optimum level of accounting analytic capabilities exists. This study aims to enrich the broad understanding of digitalization-enabled accounting analytic systems capabilities and makes certain clear contributions. First, this study clarifies the linkage between AIS quality, dynamic accounting analytic system capabilities, MCS, and firm performance by drawing upon Simons’ levers of control framework. Second, it establishes the linear and non-linear mechanisms through which dynamic accounting analytic capabilities and interactive controls interact, thereby investigating the “it depends” question. Third, it provides empirical evidence on the granular role of the specific levers of MCS on firm performance. Finally, it responds to the call by accounting luminaries to empirically build a bridge between the AIS and MCS literature.
Published in: Journal of Computer Information Systems
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