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Advances in Social Sciences Research Journal – Vol. 8, No. 6

Publication Date: June 25, 2021

DOI:10.14738/assrj.86.9876. Okon, E. E., Otuza, C. E., & Dada, S. O. (2021). Effect Of Human Resource In Accounting Information System On Management

Decision-Making In Seventh-Day Adventist Institutions In Eastern Nigeria. Advances in Social Sciences Research Journal, 8(6). 117-

129.

Services for Science and Education – United Kingdom

Effect Of Human Resource In Accounting Information System On

Management Decision-Making In Seventh-Day Adventist

Institutions In Eastern Nigeria

Edet Eyibio Okon

Clifford University, Owerrinta, Abia State, Nigeria

C. Evans Otuza, PhD

Clifford University, Owerrinta, Abia State, Nigeria

Samuel O. Dada, PhD

Babcock University, Ilishan-Remo, Ogun State, Nigeria

ABSTRACT

The constant changes in the business environment, both domestic and

international, have brought about great challenges on management of business

organizations. Despite huge investments in accounting information systems,

several organisations have not realized the full potential benefits of using these

systems because of persistent failures. This study therefore investigated the effect

of human resources in accounting information system on management decision- making in Seventh-day Adventist institutions in Eastern Nigeria Union Conference.

This study adopted a cross-sectional survey research design. The population of this

study was 250 accounting officers (Management, and General Administration) in

the 24 entities. The sample size was total enumeration of all the 250 employees. A

structured and validated questionnaire was used for data collection. The response

rate was 84.4%. Data was analyzed using inferential statistics (simple linear

regression analysis). The findings revealed that human resources in AIS has a

positive and significant effect on management decision-making in Seventh Day

Adventist Institutions in the Eastern Nigeria. Based on the findings of this study, the

study recommended that institutions should give devoted attention on factors that

will promote human resource development in the institutions, as this is capable of

contributing positively on the management of the organization, which include

informed decision-making.

Keywords: Accounting information system (AIS), Human resource (HR), Management

decision making (MDM), Information systems (IS)

INTRODUCTION

The drive for business sustenance, improvement, development, and expansion in the

contemporary society has called for managers to consider further management strategies

focused at improving decision making in the organizations. One of such strategies is the

installation of accounting information system in the business organizations.

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Advances in Social Sciences Research Journal (ASSRJ) Vol. 8, Issue 6, June-2021

Services for Science and Education – United Kingdom

The constant changes in the business environment, both domestic and international, have

brought about great challenges on management of business organizations (Sinha, 2020;

Shagari, Abdullah, & Saat, 2017). There are increasing high levels of competitions and much

uncertainty. There are challenges in technology and the technological development itself has

linked business activities into a global village. Amidst these challenges, accounting has come to

play a pivot role as the main language of all businesses and organizations (Hummel, & Horisch,

2020). Managers need accounting information on which to base their decisions if they are to

move their businesses forward for greater success. The quality of the decisions taken will

depend on the quality of the accounting information generated from the installed accounting

system (Phornlaphatrachakorn, 2020).

Poor accounting information system in organizations has led to failures in organizations. The

major reason for the collapse of some big corporations across the globe such as Enron,

WorldCom, and AIG were creative accounting and manipulation of financial statements (Dan,

2017; Inanga, & Sen, 2014; Zimbelman, Albrecht, Albrecht, & Albrecht, 2012; Jennings, 2009).

In 2002, Enron, a major energy company, collapsed as a result of manipulation of accounting

figures in relation to share price manipulation. In 2005, AIG was investigated for accounting

fraud and non-adherence to corporate governance issues. As a result of this scandal, the

company lost over $45 billion worth of market capitalization. Dewi, and Hoesada (2020) stated

that the financial statements reported should be understandable, relevant, reliable, and

comparable. When the financial statements is misleading through creative accounting or

earning management it will no longer represent the true and fair view of the financial

performance and position of the reporting entity, which will result in making the various

stakeholders to take erroneous decisions and even suffer economy damages and hardship.

Globally, when financial inappropriateness or corporate failure occurs, auditors and

accountants are usually accused of either guilty of professional negligence of due care, unethical

practice, compromise or collusion. This had been seen in many cases, for example Enron,

WorldCom, Lever Brothers Nigeria, Cadbury and a host of others. Investigations into the

Cadbury corporate fraud indicted Akintola Williams & Deloitte (AWD) of falsifying its financial

and accounting reports by inflating its profit figure by millions of Naira (Salaudeen, Ibikunle, &

Chima, 2015; Akanbi, 2017). Mmadus and Akomolafe (2014) stated that another similar case

to Cadbury's is that of Afribank Nigeria PLC. Afribank's financial reports presented high profits

amid accusation by its former Managing Director that the Board of Directors conspired with its

auditors to cook the books.

Similarly, Eromosele (2015) posit that in Nigeria precisely October 2006, the board of directors

of Cadbury Nigeria Plc. discovered “overstatement” in its accounts, which spanned for many

years. The company lost N15 billion as a result of the financial manipulation. In 2009, several

CEOs of banks in Nigeria were sacked as a result of manipulation of financial figures, share price

manipulation, non-adherence to corporate governance codes and distortion of the financial

statement (Okpo, 2020).

An accounting system is effective when it automatically calls management attention to the areas

that needs investigation.At the same time, management need to exploit the accounting

information in their operations, decision-making, and execution, without which even the best- designed strategies become useless (Lingga, 2020). Accounting Information System (AIS) is

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Okon,E. E., Otuza, C. E., & Dada, S. O. (2021). Effect Of Human Resource In Accounting Information System On Management Decision-Making In

Seventh-Day Adventist Institutions In Eastern Nigeria. Advances in Social Sciences Research Journal, 8(6). 117-129.

URL: http://dx.doi.org/10.14738/assrj.86.9876

vital to the survival of all organizations, be it profit or non-profit. It is useful for organizing,

planning, executing, and controlling of business operations. Accounting plays a role of score- keeping, attention directing and problem solving. In general, accounting information is useful

both for internal users and the external users or the general public in their various decisions.

According to Lingga, (2020), Accounting Information System is vital to all organizations and

perhaps, every organization whether profit or non-profit, needs to maintain an accounting

information system as no organization is exempted from decision-making in their operations.

Management decision making in a firm may be deficient and ineffective in addressing routine

administration and core financial policy issues that could lead to development, growth and

positive business performance, if the accounting information system of the firm is ineffective.

Accounting Information System (AIS) is pivotal in modern organizations for planning,

organizing, staffing, directing, and controlling organizations towards achieving the stipulated

goals and objectives of the firm. Most firms have been able to improve the AIS with the latest

accounting packages for day-to-day activities of the firm (Ngwenya, Chishiri, & Ncube, 2014).

In an increasingly information-focused world, commercial, social and even personal decisions

require more reliable, timely and relevant information (Etemad, Wilkinson, & Dana, 2010). The

administrative sciences are replete of many studies related to the accounting information

system. These studies have been conducted in various areas, environments, and countries.

Olaofe-Obasesin (2020) studied effects of accounting information system on organization

performance in Nigeria; Ha (2020) studied the impact of organizational culture on the

accounting information system and operational performance of small and medium sized

enterprises in Ho Chi Minh City, Vietnam; Lingga (2020) researched on user competency to the

effectiveness of accounting information system in banking sector; Utomo, Suhartono, and

Machmuddah (2020) studied the effect of accounting information systems to facilitate supply

chain management in retail companies in Indonesia; Swalhah (2014) carried out a study

applied to Jordanian banks; another study examined the impact of AIS on the Islamic banks of

Jordan (Alrabei, 2014); Samuel (2013) conducted a study on automobile companies in Kenya;

El-Dalabeeh and Al-Shbiel (2012) did a study at Hospital of King Abdullah University; Soudani

(2012) investigated the usefulness of AIS for effective organizational performance in listed

companies of Dubai financial market. All these studies were conducted in the banking, health

and hospitality industry with paucity of research in faith-based institution; therefore, the need

to fill this gap. It is in light of this that this study investigated the effect of human resources in

AIS on decision making of Seventh-day Adventist institutions in Eastern Nigeria.

Most firms have been able to improve the AIS with the latest accounting packages for day-to- day activities of the firm (Ngwenya, Chishiri, & Neube, 2014). Despite all these packages, there

exist some challenges that have affected the accounting information systems of most firms.

These include inadequate training of employees, lack of proper placement of employees and

departmentalization of duties, inadequacies in the generated financial statements and report,

inability to generate information for varied managers needs, including those facing hostile

business environment, and in managing shortage of resources. These challenges have led to

poor decision making in the several institutional settings (Meiryani, Isa, & Candra, 2020).

In light of the foregoing, the main objective of this study was to examine the effect of human

resources in AIS on management decision-making in Seventh-day Adventist institutions in