success system of enterprise resource planning (erp (PDF)

European Journal of Accounting, Auditing and Finance Research Vol.4, No.7, pp.43-50, July 2016 ___Published by European Centre for Research Training and Development UK (www.eajournals.org) 43 ISSN 2054-6319 (Print), ISSN 2054-6327(online) SUCCESS SYSTEM OF ENTERPRISE RESOURCE PLANNING (ERP) IMPLICATIONS TO THE QUALITY OF ACCOUNTING INFORMATION Marjulin Doctoral Students of Science Accountancy Department, Faculty of Economics and Business, Padjadjaran University, Dipati Ukur Steet, Bandung, Indonesia & Lecturer of Accounting, Lhokseumawe State Polytechnic ABSTRACT: This study aimed to test the success of the ERP system can berimplikasinya to the quality of accounting information is generated. The results are expected to be evidence that the model can offer a solution in problem solving and the development of science in the success of the ERP system on the quality of accounting information. The research method used is descriptive and explanatory to get answers in outline and deeper into the problem. Data sourced from the distribution of a questionnaire on state enterprises in Bandung, as well as statistically processed using PLS SEM. The results showed quality accounting information by the achievement of success uniform ERP system. KEYWORD: Successful ERP System and the Quality of Accounting Information INTRODUCTION Wilkinson et al, (2000: 18) said that quality information is influenced by factors relevance, accuracy, timeliness, conciseness, clarity, quantifiable, and consistency, so it can be useful in decision making. Quality information is expected to make an impact in supporting the planning, control and business activities (Sacer et al, 2006: 59). The same thing is also dictated by Dull et al, (2012: 17) that the Information is data is presented in a form that is useful in a decision making activity. More Loudon and Loudon (2012: 38). Said quality information can be used for decision-making is the right decision. Sri Mulyani NS (2009: 18) explains that the relevant information if the information therein can influence decisions dirmuat users by helping them evaluate the events of the past or the present and also can predict the future and confirm or correct the results of their evaluations in the past. Further Epper (2003: 68) said that accurate information is the information closer to reality. ketepat time means the information is available when needed (Beest et al, 2009: 16). Completeness that the information is as complete as possible, so as to include all information that may influence the decision (Sri Mulyani NS 2009: 19). Muhamad Basri (2014) said that integrated information system not only facilitates technical state institutions work, but help in the decision-making process. If the process of presenting data can be performed in real time then so many decisions that can actually be done faster and more accurately. Askolani, (2014) also agreed that if the integrated information system could be built, it would be ideal and helps transparency. Joko Widodo (2016) says All services must be based on the electronics so easily accessible from anywhere, quickly and cost certainty clear. And thus not qualified information could result in decisions that are taken by the user is not qualified can result in losses (Huang et al, 1999). Information relies heavily on accounting information system (Azhar Susanto, 2013: 11).  European Journal of Accounting, Auditing and Finance Research Vol.4, No.7, pp.43-50, July 2016 ___Published by European Centre for Research Training and Development UK (www.eajournals.org) 44 ISSN 2054-6319 (Print), ISSN 2054-6327(online) Wilkinson et al, (2000: 6) says a system is a unified group of interacting parts that function together to Achieve its purposes. A system consisting of both physical and abstract subsystems, subsystems is a system that is smaller than the system environment (Sri Mulyani NS 2007: 4) .the system has clear objectives and designed by the makers of the system and the purpose of being the coordinates of the components in the system working so the purpose of the system can be achieved (Sri Mulyani NS 2007: 7). The purpose of the system is to process data into useful information (Azhar Susanto, 2013: 52). Quality information system is said if the integration between hardware, software, brain ware, telecomunication network, and database (Sacer et al, 2006: 62) or procedure (Mc Leod, 2007: 85). The information system should also have good accessibility (Wixom & Todd, 2005). According Bidgoli, (2004: 707) to facilitate the flow of information between all functions within the organization and manage the connections to outside parties needed an Enterprise Resource Planning system (ERP). according to O'Leary (2000) Enterprise Resource Planning (ERP) is a computer-based system that is designed to process transactions of enterprises and facilitate integrated planning and real time, the production of, and response. Hau & Kuzic 2010 says that ERP is a multi-module, packaging business application solutions that enable organizations to integrate business processes and corporate performance, and data distribution general, resource management as well as providing real-time information access. If the condition lack of good information system can reduce the quality of management, so that the information produced low quality (Strong et al, 1997). LITERATURE REVIEW The success of Enterprise Resource Planning (ERP) The success of the ERP system is defined as a form of statements about the condition of the system can generate accounting information according to user needs (Dellon & McLean, 1992 & 2003; Seddon, 1997; Davis, 1989; Pornpandejwittaya & Pairat, 2012). The fundamental role of information systems is to produce quality information (Azhar Susanto, 2013: 374). According to Hall, (2011: 31) ERP is a model of information system that enables organizations to automate and integrate core business processes. According to Romney & Steinbart (2012: 57) characterizes the ERP modules are financials (general ledger and reporting systems), human resources, Order to Cash (revenue cycle), pay for purchases (Cycle expenditure), Manufacturing (production cycle), project cost management, customer relations, sales and marketing management, System to build a master file. Azhar Susanto (2010: 234) says ERP benefit either directly or indirectly in improving the efficiency, integrity information for better decisions and speed in response to customer demand. Based on the above statement can be said that the benefits of the success of the ERP system is able to reduce the high cost of the structure, improve the business performance of existing organizations, improving customer service, simplifying complex business processes, setting global business, reduction in the time and support business strategies that will increase in efficiency and integration.  European Journal of Accounting, Auditing and Finance Research Vol.4, No.7, pp.43-50, July 2016 ___Published by European Centre for Research Training and Development UK (www.eajournals.org) 45 ISSN 2054-6319 (Print), ISSN 2054-6327(online) Success Measurement Systems Enterprise Resource Planning (ERP) According Pornpandejwittaya & Pairat (2012) to explain the success of the successful implementation of information systems in key areas of concern to the organization, used extensively by one or more user satisfaction and improve the quality of performance. Dellon & McLean (2003) said the success of information systems to measure the output generated by the system really is. Further DeLone and McLean (1992, 2003) said that the success of the model includes six components of the success of information systems yatu, 1) System quality. 2) Information quality. 3) Use, 4) User satisfaction. 5) Individual impac. 6) Organizational. Saarinen (1996) says there are four dimensions to measure the success of ERP systems are: 1) Development- satisfaction process. 2) System-use satisfaction. 3) System-quality satisfaction. 4) Organizational impact of information systems. Then Shanks et al, (2000) said that the success of ERP systems primarily related to the completion of the ERP project on time and within budget to an acceptable standard in the first two phases (planning and implementation) of the ERP process model. Furthermore, Mark et al, (2000) provide further details about the success of ERP implementation from the perspective of Success Viewed in technical terms, Success Viewed in economic, financial, or strategic business terms, Success Viewed in terms of the smooth running of business operations, Success as Viewed by the ERP-Adopting organization's managers and employees and Success as Viewed by the ERP-Adopting organization's customers, suppliers, and investors. Quality of Accounting Information Shipper & Vincent (2003: 99) said information quality is a complex concept that contains the value of relevance information, accounting conservatism and earnings management. More details Baltzan (2012: 214) disclose Information Integrity is a measure of the quality of information. Integrity constraints are rules that help Ensure the quality of information. The database ensures that users can never violate Reviews These constraints. To Ensure information systems do not suffer from a data integrity issues, the reviews for the characteristics common to high quality information: accuracy, completeness, timeliness, consistency and uniquess. Eppler (2003: 68) said two-dimensional quality of accounting information is the Quality of information content and quality of information access. Indicators of quality of information content consists of comprehensiveness, conciseness, clarity, correctness, accuracy, consistency, applicability and timeliness. Indicators of quality of information access consists of: traceability, maintainability, interactivity, speed, security, currency, accessibility and convenience. Romney & Steinbart (2012: 25) say the quality dimension of accounting information is relevant, reliable, complete, timely, and then added with understandable, verifiable, and accessible. More Mc. Leod (2007: 35) said that the development of the information system is the output given by the information processor to the dimensions of the information is accurate, relevant, timely, and complete. Effect of ERP System Success on the Quality of Accounting Information The quality of information is affected by the information system used (Lupasc et al, 2009). Strong et al (1997) said similar things that the poor quality of information creates chaos,  European Journal of Accounting, Auditing and Finance Research Vol.4, No.7, pp.43-50, July 2016 ___Published by European Centre for Research Training and Development UK (www.eajournals.org) 46 ISSN 2054-6319 (Print), ISSN 2054-6327(online) necessitating the diagnoses the root cause (root cause). Further Strong et al, (1997) also said the problem with the quality of information not only includes the value of the wrong information, but the information quality problems caused by changes in information needs. The integration of the components of the information system is an information resource company in order to achieve excellence (McLeod & Schell, 2008: 29). Sacer et al, (2006: 61) said accounting information generated by Information Systems, Information Systems for the main purpose is to provide information, and Information Systems ensure the quality of accounting information in support of planning, control and analysis activities of the organization. Further Sacer et al, (2006: 62) explains nothing without quality accounting information quality Information Systems, and Information Systems relies on the quality of input quality, process quality data, and output quality. The quality of the information provided is essential for the success of the system implemented in the organization guiding the implementation of the accounting process (Xu 2009: 2). So if any component in the system in the company's accounting information is not integrated in harmony, will result in a mismatch between the information on the management level of lower, middle and upper management, to external users, and the same thing (Azhar Susanto, 2013: 63). Information systems as a base to support the satisfaction of requests for information during the decision making process (Ponte & Pilar, 2000). Salehi et al, (2010) says the same thing that the information system will increase the correctness of financial statements. The next Sacer et al, (2006) says there is a relationship between information systems and the quality of accounting information. Similar disclosed Sajady et al, (2008) that the information system will improve the quality of accounting information, so that information systems can provide quality accounting information (Wongsim & Gao, 2011). METHODOLOGY Object of research The object of research is an attribute of people, objects have certain variations defined by the researchers to learn and then drawn conclusions (Sugiyono, 2010: 38). The object of this research is a concept that has a value. The research object is the success of ERP (Enterprise Resource Planning) and Quality of Accounting Information. Methods Used The method used is descriptive and explanatory. Descriptive method is a method used to describe or analyze the results of the study but not used to make broader conclusions (Sugiyono, 2010: 13). While the explanatory research is research conducted to obtain a description, a picture systematic, factual and accurate information on the facts, characteristics and relationships between variables studied (Sekaran & Bougie, 2013: 96). Variable Operationalization Cooper & Schindler (2003: 33) revealed that the Generally Accepted is a collection of meanings or characteristics associated with certain object). Further Cooper & Schindler (2003: 43) also said that the success of research hinges on (1) how the researcher Clearly conceptualize and (2) how well others understand the concepts the researcher use. Operationalizing is done by looking at the behavioral dimensions, Facets or properties denoted by the concept (sekaran  European Journal of Accounting, Auditing and Finance Research Vol.4, No.7, pp.43-50, July 2016 ___Published by European Centre for Research Training and Development UK (www.eajournals.org) 47 ISSN 2054-6319 (Print), ISSN 2054-6327(online) & Bougie, 2013: 200). The concept has been operationalized hereinafter called a variable. The variable is used as a synonym for the construct or the property being studied. A variable is a symbol to the which we assign numerals or values (Cooper & Schindler, 2003: 47). RESEARCH RESULT Effect of ERP System Success on the Quality of Accounting Information The success of ERP system is hypothesized to affect the quality of accounting information. The following are the results of the significance test of these hypotheses through statistical hypothesis as follows: Ho.β21 = 0 The success of the ERP system does not affect the quality of accounting information Ha.β21 ≠ 0 The success of ERP systems affect the quality of accounting information Table: Significance Tests Effect of ERP System Success on the Quality of Accounting Information coefficient line t-count t-critis conclusion 0,894 23,580 1,96 significant Source: PLS Calculation Results Hypothesis testing results show that the relationship variable success ERP system with the quality of accounting information indicated by the path coefficient of 0.894 with t-count at 23.580. Scores t-statistic is greater than t-critis (1.96). This result means that the success of ERP systems affect the quality of accounting information means in accordance with the Ha. The amount of influence the success of an ERP system on the quality of accounting information is the amount of (0.894 × 0.894 × 100%) = 80.49%. This figure means that the success of ERP systems provide 80.94% influence on the quality of accounting information. The results showed that the success of ERP systems affect the quality of accounting information, and according to previous theories such as DeLone & McLean (1992), Laudon and Laudon (2012: 14), and Romney & Steinbart; (2012: 13). as well as research, Ponte & Pilar, (2000). Salehi et al, (2010) Sajady et a1 (2007) and Wongsim & Gao (2011) CONCLUSION Based on the results and discussion of research that has been described, the research concluded there Effect of ERP System Success on the Quality of Accounting Information, is the quality of information has not been optimal because SOEs have not effectively use the ERP system. SUGGESTION  European Journal of Accounting, Auditing and Finance Research Vol.4, No.7, pp.43-50, July 2016 ___Published by European Centre for Research Training and Development UK (www.eajournals.org) 48 ISSN 2054-6319 (Print), ISSN 2054-6327(online) Suggestions can be submitted that this research can be used as a reference the next researcher to obtain replicability, and can also increase confidence in the research that has been done and improve usability research results generalizability. REFERENCES Askolani. 2014. SKK Migas-MoF Ready Build System: Migasreview.com June 13, 2014 Azhar Susanto. 2010. Information Technology For Business & Accounting. First Edition: Lingga Jaya Azhar Susanto. 2013. Accounting Information Systems: Development of Risk Control Structure. First Edition: Lingga Jaya. Baltzan, Paige. 2012. Business Driven Information Systems. Third Edition. New York: McGraw Hill. International Edition. Beest, Ferdy van, et al.2009. Quality of Financial Reporting: Measuring Qualitative Characteristics. Netherland: Nijmegen Center for Economics Nice Working Paper 09- 108 April 2009 Institute for Management Research, Radboud University Nijmegen, HK Nijmegen. Bidgoli, Hossein, (2004). Ensiklopedia Internet, Volume 1, John Wiley & Sons, Inc hal. 707. Cooper, Donald., Schindler, Pamela. 2003. Business Research Method. Eighth Edition.McGraw-Hill/Irwin Education (Asia). International Edition. Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of information Technology. MIS Quarterly, Society for Management Information Systems 13(3). hal 319-340. DeLone, W.H., McLean, E.R. 1992. Information Systems Success: The quest for the dependent variable. Information Systems Research, 3(1), 60-95. DeLone, W.H., McLean, E.R..(2003). DeLone and McLean Model of Information Systems Success: A Ten-YearUpdate. Journal of Management Information Systems 19 (4). Hal 9- 30. Dull, B. Richard, Gelinas.Jr U.J., Wheeler, P.R 2012. Accounting Information System. Foudations in Enterprise Risk Management. International Edition. South Western Cengage Learning. Eppler, M. J. 2003. Managing Information Quality: Increasing the Value of Information in knowledge-Intensive Products and Processes: Springer. Hall, A. James. 2011. Accounting Information Systems. 7th Edition. Singapore: South Western. Hau TTV, Kuzic J (2010). Change Management Strategies For The Successful Implementation Of Enterprise Resource Planning Systems.In 2010 Proc. Ofthe IEEE Second Int. Conf. on Knowledge and Syst.Eng., Hanoi, IEEE,Hanoi Vietnam ,October 07-October 09 2010: 178-182. Huang,K.T.,et al.1999. Quality information and knowledge. Upper Saddle River New Jersey 07458: Prentice Hall PTR. Joko Widodo. 2016. President: Accelerate Improved Quality of Public Services. https: // www. .go Kominfo id / content / detail / 7399/29 04-2016 Laudon, Kenneth C. and Laudon Jane P. 2012. Management Information Systems Managing The Digital Firm, 10th Edition. Pearson Education Inc. Pearson Prentice Hall. Lupasc, Adrian et al. 2009. New Valences for the Financial-Accounting System. The Annals of “Dunarea de Jos” University of Galati Fascicle I – 2009. Economics and Applied Informatics. Years XV - ISSN 1584-0409  European Journal of Accounting, Auditing and Finance Research Vol.4, No.7, pp.43-50, July 2016 ___Published by European Centre for Research Training and Development UK (www.eajournals.org) 49 ISSN 2054-6319 (Print), ISSN 2054-6327(online) Markus, M. L., & Tanis, C. (2000). The Enterprise System Experience - From Adoption to Success. In Zmud R.W. (Ed.), Framing the domains of IT management: Projecting the future through the past (pp. 173–207). Cincinnati,OH: Pinnaflex Educational Resources. McLeod, Raymond and Schell, George P. 2008. Management Information Systems,Tenth Edition, Upper Saddle River New Jersey 07458: Pearson/Prentice Hall. McLeod Raymond Jr. 2007. Management information System. Seventh Edition. Indonesian version. Jakarta: PT.Prenhallindo Muhamad Chatib Basri .2014. SKK Migas-MoF Ready to Build Integrated Information Systems: Migasreview.com. O’Leary, D. E. (2000). Enterprise Recourse Planning Systems: Systems, Life Cycle.Electronic Commerce and Risk. New York: Cambridge University Press. Ponte, Enrique Bonsón., and Pilar, María. 2000. The Improvement of Accounting Information Systems through the Integration of Emerging Technologies, Journal Revista de Contabilidad - Spanish Accounting Review. Pornpandejwittaya & Pairat. 2012. Effectiveness of AIS: Effect on Performance of Thai- Listed Firms In Thailand. International Journal of Economics and Finance. July, 2012. Vol 12 Issue 3. Romney, Marshall, and Paul Jhon Steinbart. 2012. Accounting Information Systems, Twelfth Edition. Upper Saddle River, New Jersey, 07458 : Pearson Education, Inc Saarinen, T. (1996). An Expanded Instrument For Evaluating Information System. Information & Management, 31(2), 103. Retrieved from Business Source Complete database. Sacer, Ivana M., Zager K., and Tusek B. 2006. Accounting Information System’s Quality as The Ground For Quality Business Reporting, IADIS International Conference e- commerce, ISBN :972-8924-23-2 Sajady, Hossien et al. 2008. Evaluation of the Effectiveness of Accounting Information Systems. Melalui www.srlst.com/ijist/ijism-vol 6 No. 2/ijsm 62-49-59.pdf Salehi, Mahdi., Rostami, Vahab., and Abdolkarim Mogadam. 2010. Usefulness of Accounting Information System in Emerging Economy: Empirical Evidence of Iran International Journal of Economics and Finance Vol. 2, No. 2; May 2010. Seddon, P.B. 1997. Information system research. Vol. 8 No.3,Pp.240-253 Sekaran, Uma, and Roger Bougie. 2013. Research Methods for Business, A skill Building Approach, sixth edition, New York: John Willey and Sons, Ltd Publication. Shanks, G., Parr, A., Hu, B., Corbitt, B., Thanasankit, T., & Seddon, P. (2000). Differences in critical success factors in ERP systems implementation in Australia and China: A cultural analysis. Proceedings of the 8th European Conference on Information Systems, Vienna, Austria (pp. 537-544). Retrieved from http://citeseerx.ist.psu.edu/viewdoc /summary/ doi= 10.1.1.133.4427 Shipper, K. and Vincent, L. 2003. Earning Quality, Accounting Horizons, Supplemen, 97-110. Sri Mulyani NS. 2009. Hospital Management Information System Analysis and Design. Abdi Sistematika. Bandung Sri Mulyani NS. 2007. Methods of Analysis and Design System Abdi Sistematika. Bandung Strong, D.M., Y.W. Lee, and R.Y. Wang. 1997. Data quality in context., Communications of the ACM, 1997. 40(5): p. 103-110. Sugiyono. 2009. Quantitative Research Methods, Qualitative and R & D. Bandung: Alfabeta. Wixom, Barbara and Todd, Peter. 2005. A Theoritical Integration of User Satisfaction and Technology Acceptance. Information systems Research. Vol.16, No.1, March 2005, pp 85-102. ISSN 1047-7047 Wongsim, Manirath, and Gao, Jing. 2011. Exploring Information Quality in Accounting Information Systems Adoption. IBIMA Publishing, Communications of the IBIMA.  European Journal of Accounting, Auditing and Finance Research Vol.4, No.7, pp.43-50, July 2016 ___Published by European Centre for Research Training and Development UK (www.eajournals.org) 50 ISSN 2054-6319 (Print), ISSN 2054-6327(online) Melalui<http://www.ibimapublishing.com /journals/CBIMA/cibima.html.Vol.2011, Article ID 683574. Xu, Hongjiang. 2009. Data quality issues for AIS’ implementation: Systems, stakeholders, and organizational factors, Journal of Technology Research