Revista de Contabilidad Spanish Accounting Review 18 (1) (2015) 3243
www.elsev ier .es / rcsar
REVISTA DE CONTABILIDADSPANISH ACCOUNTING REVIEW
elationship between management information systemsnd corporate performance
os Antonio Prez-Mndez, ngel Machado-Cabezas
ecturer University of Oviedo (Spain), Facultad de Economa y Empresa, Oviedo, Spain
r t i c l e i n f o
rticle history:eceived 31 July 2013ccepted 25 February 2014vailable online 22 July 2014
eywords:anagement information systems
OIlusterLSew management techniques
a b s t r a c t
The literature review on the success of management information systems (IS) provides empirical evidencethat mere investment in IS and New Management Tools (NMTs) does not guarantee better businessresults. Aiming to contribute to the knowledge of the factors explaining the success of IS implementation,this paper classifies them through cluster analysis, with a sample of Spanish companies according to thevaluation given by their finance directors (CFOs) to the quality of such systems and their use for strategicpurposes. This classification helps to answer three questions: do companies that better rate their ISimprove their performance? How do IS quality and strategy affect results? Is there a positive relationshipbetween the use of NMTs and improvement in performance?
Through the non-parametric KruskalWallis test and a partial least squares (PLS) model results areyielded that support the first question and show the positive effect of the IS quality and strategy onimproving corporate profitability. Logistic regression showed an interaction between the use of NMTsand the IS strategic approach with positive effects on improving profitability.
The results of this study have significant implications for companies, suggesting that investment innew IS and NMTs must be coupled with a clear sense of strategy.
2013 ASEPUC. Published by Elsevier Espaa, S.L.U. All rights reserved.
Relacin entre los sistemas de informacin de gestin y el resultadoempresarial
alabras clave:istemas de informacin de gestinOIlusterLSuevas herramientas de gestin
r e s u m e n
La revisin de la literatura sobre el xito de los sistemas de informacin de gestin (IS) aporta evidenciaemprica que senala que la mera inversin en IS y en nuevas herramientas de gestin (NMT) no garan-tiza la mejora de los resultados empresariales. Con el fin de contribuir al conocimiento de los factoresexplicativos del xito de los IS, este trabajo realiza una clasificacin de los mismos a travs de un anlisiscluster para una muestra de empresas espanolas en funcin de la valoracin realizada por los directoresfinancieros (CFOs) sobre la calidad de tales sistemas y su uso con fines estratgicos. Esta clasificacin con-tribuye a responder a tres cuestiones: mejoran ms su rentabilidad las empresas con mayor valoracinen su IS?, cmo afectan la calidad de los sistemas de informacin y su enfoque estratgico a los resultadosempresariales?, existe una relacin positiva entre el uso de NMT y la mejora de los resultados?
A travs del test no paramtrico de Kuskal-Wallis y de un modelo Partial Least Squares (PLS) los result-ados dan soporte a la primera cuestin, al igual que muestran un efecto positivo de la calidad de los IS yde su enfoque estratgico sobre la mejora de la rentabilidad empresarial. La regresin logstica encuentra
una interaccin entre el uso de NMT y el enfoque estratgico del IS con efectos positivos sobre la mejora
de la rentabilidad.
Los resultados de este trabajoen nuevos IS y NMT debe reali
Corresponding author.E-mail address: firstname.lastname@example.org (. Machado-Cabezas).
http://dx.doi.org/10.1016/j.rcsar.2014.02.001138-4891/ 2013 ASEPUC. Published by Elsevier Espaa, S.L.U. All rights reserved.
presentan implicaciones relevantes para las empresas, ya que la inversinzarse con sentido estratgico.PUC. Publicado por Elsevier Espaa, S.L.U. Todos los derechos reservados.
J.A. Prez-Mndez, . Machado-Cabezas / Revista de Co
The objective of management accounting is to provide timelynd value-relevant information to managers to help them takehort and long-term decisions (Gupta & Gunasekaran, 2005).
Nowadays, the environment is extremely competitive and glob-lised, and technologies are evolving constantly. Firms need moreffective and sophisticated management accounting systems touccessfully face the new conditions and improve their financialerformance (Al-Omiri & Drury, 2007; Gupta & Gunasekaran, 2005;ibby & Waterhouse, 1996; Mia & Clarke, 1999).
In recent years, increasing global competition has intensified thehallenges faced by managers, and many experts warn that man-gement accounting needs to adapt to meet managers changingeeds if it is to maintain its relevance (Chenhall & Langfield-Smith,998a). Many innovations in management accounting have been
ntroduced in response, in an attempt to improve its utility.Traditional techniques in management accounting, such as sec-
ions costs, budgets, standard costs, and direct costs have beenombined with more recent techniques over the last three decades.here is no universal consensus on which techniques consti-ute New Management Tools (NMTs) (Cadez & Guilding, 2008).evertheless, most authors consider as NMTs or non-traditional
echniques: activity-based costing (ABC), activity-based manage-ent (ABM), balanced scorecard (BS), just in time (JIT), total
uality management (TQM), target costing (TC), strategic manage-ent accounting (SMA), lifecycle costing (LCC), benchmarking and
heory of constraints (TOC). The prevalence of these techniquesndicates that firms need increasingly accurate and sophisticated
anagement information systems (IS) that adapt to managershanging needs.
Researchers assume that managers, as rational agents, arenlikely to adopt a management IS that does not help them improveheir firms financial performance (Chenhall, 2003). Thus, manage-
ent information will conceivably help improve decision-makingnd, as a consequence, financial performance. Likewise, firms thatate their management IS highly will conceivably adopt NMTs to areater extent, with the ultimate objective of maintaining and/ormproving their financial performance. The current piece of workollows the approach of the abovementioned contributions to theccounting literature and considers that a management IS is suc-essful if it enables the firm to take better decisions and improvets financial performance.
Internal accounting IS differ between companies, for example, inerms of quality, level of use and strategic relevance. Studies in theccounting literature tend to focus on the impact of specific man-gement techniques on financial performance, while few look athe evaluation firms make of their own IS and the relation of theseo financial performance. Empirical evidence shows that invest-
ent in NMTs does not guarantee better results. The mechanismshrough which IS affect a firms performance are therefore under-xamined. This study aims to contribute to this line of research bynalysing to what extent quality and the strategic approach of ISmprove firms performance, evaluating the effect that the use ofMTs has on performance.
This study evaluates the management IS of a sample of Spanishrms on the basis of the scores that their financial directors (CFOs)ive in two areas: quality of IS (IS quality) and strategic use of the ISIS strategy), which are identified in a principal components analy-is. We use these elements to accomplish a cluster analysis, whichdentifies three different types of firms depending on their manage-
ent IS. This typology of firms is then used to answer the following
Do firms whose management IS scores highly improve their per-formance?
dad Spanish Accounting Review 18 (1) (2015) 3243 33
- How do IS strategy and IS quality affect firms performance?- Does a positive relationship exist between the use of NMTs and
The following section analyses the success of IS, their relation-ship with economic results and the effect of new tools or techniques(henceforth techniques, NMTs). Then, the research hypothesesand the methodology followed are described, including the sampleand the variables used. The fifth section presents the results of theempirical study, while the final section offers the most importantconclusions of the research and its limitations.
This article deals manly with three basic concepts: the successof IS, financial performance, and the relation between NMTs andperformance. First, we will analyse the literature dealing with suc-cess in IS, focusing on its effect on corporate results. NMTs are alsotaken into account.
Success of information systems
This work aims to evaluate the success of managemen