The effectiveness of accounting information system as a determinant on the operational performance of micro business in Panabo City

Abstract

Accounting information systems are vital in the operational performance of micro business or any types of business organization to help businesses grow. This study intends to determine the effectiveness of accounting information system as the determinant on the operation performance of microbusiness in Panabo City by examining the level of effectiveness of an accounting information system in terms of user satisfaction, system quality, system use, decision making quality, and economic success; and to ascertain the level of operational performance of the micro business in terms of revenue generation, productivity and gross profit. It also aims to determine the significant relationship between the effectiveness of the accounting information system and the operational performance of the micro business. Also, to determine which domain in the effectiveness of the accounting information system significantly influences the operational performance of micro-business in Panabo City. A Quantitative and descriptive- correlational research design is used, this design measures a correlation between the two variables where 200 micro-business owners responded in the study. Results were tested at a 0.05 level of significance, whereas system use has the highest level (4.56 mean and 0.45 standard deviations). Productivity has the highest level (4.59 mean and 0.42 standard deviations) in the micro business. Using Pearson-r, significant value (p = 0.01), confirming that the operational performance of microbusiness was significantly associated with the levels of the accounting information system. Moreover, through multiple regression analysis, 53.1% variance with a corresponding F-ratio = 44.012 and p- value = 0.01 revealed that the accounting information system has significantly influenced the operational performance of microbusiness. Specifically, decision making quality (beta = 0.250, p = 0.001), and economic success (beta = 0.234, p = 0.001) are correlated to operational performance of microbusiness. Owners struggle to become successful and to be stable in the market. Thus, being innovative and knowledgeable in the business can help you keep up in the volatile market.