Optimizing Business Performance Through Effective Accounting Information Systems: The Role of System Competence and Information Quality

In today’s competitive business environment, accounting information systems (AISs) are crucial for organizations seeking to enhance decision making and improve performance. This study investigates the interplay between AIS competence, information quality, and system effectiveness and their collective impact on business performance within Saudi Arabian companies. Using a quantitative approach, data were collected from 123 manufacturing and service firms through a structured questionnaire. Employing structural equation modeling (SEM), this study elucidates the direct and mediating effects of AIS attributes on organizational outcomes. The findings indicate that system competence has a direct positive effect on both information quality and AIS effectiveness. Information quality, in turn, positively influences AIS effectiveness and business performance. Additionally, AIS effectiveness was found to have a direct positive impact on organizational performance. This study provides valuable insights for managers seeking to optimize AIS investments and emphasizes the importance of integrating high-quality information systems to achieve strategic and operational goals. The results offer a detailed understanding of AIS dynamics, particularly within the context of emerging markets, and contribute to the broader discourse on technology-driven business performance enhancement.