PHÁT TRIỂN mô HÌNH sử DỤNG THÀNH CÔNG hệ THỐNG HOẠCH ĐỊNH NGUỒN lực DOANH NGHIỆP CHO các CHUYÊN GIA kế TOÁN tt tiếng anh

Last but not least, the research provides valuable implications for organization management on how they can successfully manage accounting department as well as accounting professionals

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

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Phan Thi Bao Quyen

A DEVELOPMENT OF ENTERPRISE RESOURCE PLANNING SUCCESS MODEL FOR ACCOUNTING PROFESSIONALS

Major: Accounting Code: 9340301

A DOCTORAL THESIS SUMMARY

Ho Chi Minh City, 2020

Accounting at the University of Economics Ho Chi Minh City

Supervisors:

 Associate Professor, Dr Vo, Van Nhi

 Dr Nguyen, Thi Kim Cuc

Reviewer 1: Reviewer 2: Reviewer 3:

This thesis is accepted by the School of Accounting and School of UEH Graduate in partially fulfillment of the requirements for the degree of Doctor

of Philosophy in Accounting:

Enterprise Resource Planning (ERP) system is commercial software that automates and integrates many or most of a firm’s business processes It allows to access to integrated data cross the entire enterprise according to real-time (Davenport, 1998) Therefore, ERP system is expected to increase productivity via processes standardization, to improve decision-making ability via information integration throughout the whole enterprise, to enhance cooperation between organizational entities by connecting them smoothly, and the most important, to maintain competitive advantage once these benefits are satisfied (Davenport, 1998) These promises are possibly a close explanation of its increasing popularity Namely, Fortune 500 companies are trusting ERP system1 and it is also a solution that large-sized organizations in Vietnam select and adopt more growingly2

Nevertheless, instead of achieving impressive benefits from their ERP systems, some firms have faced difficulties in gaining the benefits they expected Therefore, as suggested by Markus and Tanis (2000), for both researcher and executives, one of the initial interested-questions is whether investments in ERP will pay off Several organizational-level econometric studies conducted (M C Anderson, Banker, & Ravindran, 2003; Hitt, Wu, & Zhou, 2002) give

an answer that it is likely yes – on average However, the impacts vary from enterprise to enterprise, even from module to module (Nicolaou, 2004a) in which accounting-related modules are in charge of changed-focuses Kanellou and Spathis (2013) perform the relevant literature and conclude that ERP implementation has a considerable impact on accounting department of the business organizations Hence, the executives’ next questions are probably to

be, how can I maximize the positive impacts on accounting department? Is there some way to predict what the ultimate impacts of ERP systems on accounting professionals will be in order to achieve a goal of enhancing organizational performance?

1 This information is quoted from website google-sap-cloud/

http://fortune.com/2017/09/13/amazon-microsoft-2 This information is quoted from Vietnamese E-commerce Indicator Report in 2018.

on D&M IS success model (DeLone & McLean, 1992), IS-continuance theory (Bhattacherjee, 2001) and the principle “fitness for use” (J M Juran, 1988) to develop the ERP success model for accounting professionals in order to make them more productive, which in turn improves performance of implemented organizations The theoretical and empirical results indicate that organizational performance is, indeed, influenced by the extent to which accounting experts effectively utilize ERP systems in the adoption and ongoing context

This study makes an original contribution to both of theory and practice through forming and validating the ERP success model for accounting professionals only In a little more detail, it provides empirical evidence regarding Hunton’s accounting value chain (2002) In addition, it discovers and proves effective use as the most appropriate system-use concept so far Moreover, it makes an effort to investigate outcomes of accounting benefits perceived from ERP system, which related-studies are much further under-researched Last but not least, the research provides valuable implications for organization management on how they can successfully manage accounting department as well as accounting professionals in an attempt to maximize ERP’s impacts on organizational performance, which executives have paid much attention to for recent years but have not yet found out the answer so far Key words: ERP success model, accounting professionals, perceived accounting benefits, system use, the principle "fitness for use"

CHAPTER 1 INTRODUCTION 1.1 Chapter introduction

The purposes of this chapter are to describe a broad overview of the research 1.2 Background of research

This study is conducted in the context, which the ERP system has already been one of the most popular business-management-applications in organizations all over the world and begins to be increasingly adopted in Vietnam

1.3 Motivations for research

1.3.1 Motivation 1 - ERP research

Huang and Yasuda (2016) summarize that a field of critical success factors is one of the most mentioned ERP-related topics The CSF researches have typically addressed several different issues In most cases, typical CSF studies have consistently identified a set of core factors critical to the success of ERP implementations However, the few researchers are interested in building ERP success models as untypical CSF studies Finney and Corbett (2007) lament the fact that most of recent ERP CSF research (both typical and untypical CSF type) has generally taken from a macro perspective or a view of multiple top mangers, the perspectives of key or single stakeholders are often missing For these reasons, a call for developing a model measuring ERP success from stakeholders’ perspective has been established for recent years

1.3.2 Motivation 2 – Behavioral Accounting Research (BAR)

Behavioral accounting research (BAR) is defined as the study of accounting professionals’ behavior or non-accountants’ behavior influenced by accounting functions, and/or report system, and/or creating accounting information (Hofstedt & Kinard, 1970) This thesis focuses on “study of accountants” due to its increasing concern in BAR literature; the more growingly intertwined relationship between accountants and ERP system; and their valuable contributions in IS-adopting business organizations

1.3.3 Combination of ERP research and BAR

Because of its accounting benefits, ERP requires accounting expertises to change their role in order to make broader contribution to the company, such as

reporting on non-financial measures, auditing information systems, implementing management controls within information systems, and providing management consulting services (Grabski, Leech, & Schmidt, 2011) Therefore, the thesis will combine ERP CSFs research with the study of accountants to formulate a research topic That is to discover how to assess ERP success for accounting professionals from accounting professionals’ perspective themselves,

or, developing an ERP success model for accounting professionals (ESMAP) 1.4 Research objective

The primary objective of this research is to develop and test ERP success model for accounting professionals at organizational level

1.5 Research questions

The managerial question of this thesis is that “How can the ESMAP be designed

in an attempt to improve accountant performance, which in turn enhances organizational performance?” Two research questions extracted from the managerial question are sequent that: “How can the ESMAP be formed in an attempt to improve accountant performance, which in turn enhances organizational performance?” and “ How can the ESMAP be validated?” 1.6 Justification

From a theoretical perspective, this study is significant and worth First, the ESMAP more provides empirical evidence on the accounting value chain of Hunton (2002) Second, it should be noted that almost previous studies pay attention on perspectives of multiple stakeholders on ERP success while this study focuses on perceptions of accounting professionals only Third, perceived accounting benefit concept is firstly validated in the complex model as the ESMAP Finally, the ESMAP focusing on the post-implementation stage adds more insights into the paucity of research on ERP system after implementation (Grabski et al., 2011)

This study is also an essential from a practical standpoint The ESMAP is precious as it guides accounting professionals how to become productive under ERP settings Furthermore, the ESMAP guides organization management how

to predict, access and improve organization’s accountant performance to achieve the advanced organizational performance for their organizations

Finally, organization will obtain beneficial outcome when individual benefits are positive influenced

1.7 Methodology

This study makes use of positivism paradigm and quantitative research method

It is divided into two phases: forming the ESMAP, and validating the ESMAP

To start with, it reviews related literature and finds suitable foundational theories to propose the ESMAP with its 9 hypotheses and its constructs-conceptualization Then, the empirical survey data is obtained from an expected sample of 300 organizations in Vietnam adopting the ERP system for at least one year The ESMAP’s constructs operationalization and their validation are subsequently conducted via SPSS 24.0 and AMOS 20.0 Finally, the theoretical model and hypotheses of the ESMAP are tested using PLS-SEM analysis technique with the support of Smart PLS 3.2.7

1.8 Research scope

This study is conducted in Vietnam The ‘ERP success’ term in the current study is referred to how to adopt ERP system to improve effectiveness in implemented enterprises The study unlimited considers various ERP packages including foreign and local brands because varying in system’s types, to some extent, may increase software-related generalizability of this study The thesis’s unit of analysis is at organizational level

1.9 Thesis structure

Figure 1.1: A systematic procedure for designing the ESMAP

1.10 Chapter summary

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CHAPTER 2 LITERATURE REVIEW 2.1 Chapter introduction

Chapter 2 introduces the basic literature of Enterprise Resource Planning, a review of the existing ERP Success Models, and a review of ‘rich construct(s)’ 2.2.1 Defining ERP

Based on different ERP-related definitions of Davenport (2000), Soh, Kien, and Tay-Yap (2000), Nah, Lau, & Kuang (2001), and Loh & Koh (2004), it could be conducted that an ERP is a packaged complex business software designed to integrate business processes and functions through using single database in order

to be able to permit the sharing of common data and information in real time 2.2.2 Evolution of ERP

2.2.3 Advantages and disadvantages of ERP

ERP system's advantages include reliable accessibility, avoiding duplication of data, transportation and reduction of turnaround time, minimizing cost, flexibility, more capability of expansion, enhanced and active long-term maintenance, association with parties on a global scale, and increasing e-commerce, e-business (Mohammad A Rashid et al., 2002)

ERP system's disadvantages consist of spending a lot of time to implement a system, costly price, matching between ERP and organization’ business processes, dependence on ERP vendor, multi-features system and its complexity nature, global scalability, and capability of ERP extension (Mohammad A Rashid et al., 2002)

2.2.4 The ERP lifecycle

This research chooses Change et al.’s (2000) approach to divide the ERP lifecycle into three principal phases: pre-implementation, implementation and post-implementation

2.3 ERP Success Models

2.3.1 Challenges of measuring ERP success

In the context of this thesis, except for efforts to reflect complex nature of the ERP system, evaluating intangible success of ERP system is focused rather than its tangible benefits

2.3.2 A summary of ERP Success Models from 1990 up to present

Although a history of ERP evolution has lasted almost three decades, the quantity of these ERP success studies up to present is eleven, actually not much The common points of most of such models are to utilize system quality, information quality, and user satisfaction as measure of ERP success Based on this analysis, it could be said that the D&M IS Success model (1992) is considered as underlying theory of most of existing ERP success models The study are also going to adopt it as our underlying theoretical framework when developing the ESMAP

2.3.3 Issues with the existing ERP success studies

Issues with the existing ERP success studies are a lack of research in ERP ongoing system success evaluation, considering appropriateness of additional construct(s) which is embedded into the chosen ESM, essentialness of system use construct in the ESM, the completeness of D&M IS success model’s success dimensions, the match between construct measurements and characteristics of contemporary ERP system, the call for understanding perspective of a particular stakeholder (i.e., accounting professionals), the call for combining the D&M IS success model with appropriate underlying theories, and recommendations of empirical testing the ERP success model

2.3.4 Differences between the current study and the previous ESMs This research is valuable and worth as it covers all the existing issues in the previous ESMs

2.3.5 Review of ERP success studies in Vietnam

The current study is to develop an ERP success model for accounting professionals in order to guide them how to become increasingly productive enabling enhanced organizational performance when adopting ERP For this, it

is obvious that the research idea is entirely different from all four previous

ERP-related studies in Vietnam (Hiền & Trung, 2014; Thanh, 2015; Thọ, 2013; Thông, 2017) It can be stated that the current research topic is not a duplicate

of any ERP-related studies in Vietnam, and thus, it is unique in Vietnam 2.4 Review of ‘rich construct(s)’ enabling to overcome unanswered validity-setting-related issues

Through an extensive review, a construct of accounting benefits perceived from ERP system is under discussion The author selects conceptualization and operationalization of Kanellou and Spathis (2013)’s scale as it is validated by testing the relationship between it and user satisfaction

2.5 Chapter summary

- CHAPTER 3 CONCEPTUAL FRAMEWORK, CONSTRUCT CONCEPTUALIZATION AND HYPOTHESES 3.1 Chapter introduction

This chapter covers two last steps of phase one of the process on how to design the ESMAP, which is presented in Chapter 1

3.2 Theories used in the ESMAP

3.2.1 D&M IS success model (DeLone & McLean, 1992)

This study chooses the D&M IS success model (1992) as an underlying model

of the ESMAP

3.2.2 IS-continuance theory (Bhattacherjee, 2001)

The IS-continuance theory is chosen to clarify the links between system quality, information quality, perceived accounting benefit and satisfaction

3.2.3 Principle “fitness for use” (Juran, 1988)

According to the principle “fitness for use”, the author assumes that the ESMAP aims to guarantee ERP system quality in order to enable to maximize ERP’s

“economic benefits” For this assumption, accounting professionals (“who”), based on system quality, information quality, perceived accounting benefit (“what” available), exploit effectively ERP system (“how” element, which refers

to its use and satisfaction – users’ feeling when using ERP system) to achieve

“economic benefits”, including improved accountant performance (ERP’s

impacts on accounting experts) and enhanced organizational performance, (ERP’s impact on organizations) that accountants expect when using the ERP system Therefore, system quality, information quality and perceived accounting benefit are antecedents of use and satisfaction while accountant performance and organizational performance are their outcomes

3.2.4 How to combine three theories to form the ESMAP

Based on the D&M IS Success model, IS- continuance theory is adopted and adapted to clarify path relationships between system quality, information quality and perceived accounting benefit in sequence and use as well as and satisfaction After all, the principle “fitness for use” is utilized to connect the appearance of all constructs in the ESMAP

3.3 Conceptual ESMAP, construct conceptualization and hypotheses 3.3.1 Conceptual ESMAP

Figure 3.1: The research model (the ESMAP) 3.3.2 Relationships among constructs of organizational-level impacts

3.3.2.1 Organizational performance

Organizational impact is described as “the benefits that the organizations gets from its ERP system, often measured by the extent to which customer service, decision-making process, and so forth have been enhanced” (Ifinedo, Rapp, Ifinedo, & Sundberg, 2010, p 1140)

3.3.2.2 Accountant performance

According to Hsu, Yen, and Chung (2015), this study considers accountant performance as accounting professionals’ perceptions of the importance and usefulness of the ERP system that affect their capabilities and effectiveness H1 Accountant performance has a positive influence on organizational performance

3.3.2.3 Use

According to Deng, Doll, and Truong (2004), use in this study is referred to how effectively an ERP system is used for the fundamental organizational functions such as problem-solving/ decision-making, work integration, and work planning

H2 Use (effective ERP use) has positive influence on accountant performance

3.3.2.4 Satisfaction

According to Hsu et al (2015), satisfaction in this context is referred to “the extent to which accounting professionals perceive a match between their requirements and ERP functionality.”

H3 Satisfaction has positive influence on accountant performance

3.3.3 Perceived qualities and benefits; and organizational-level impacts

3.3.3.1 System quality

Hsu et al (2015) refer system quality as performance characteristics of the ERP system in relation to system-related quality and task-related quality Accordingly, the author selects system-quality-definition of Hsu et al (2015) for the current study

H4a System quality has positive influence on use

H4b System quality has positive influence on satisfaction

3.3.3.2 Information quality

Hsu et al (2015) refer information quality as characteristics of the output provided by the ERP system with regard to contextual quality and representative quality Accordingly, the author selects information-quality-definition of Hsu et al (2015) for the current study

H5a Information quality has positive influence on use

H5b Information quality has positive influence on satisfaction

3.3.3.3 Perceived accounting benefit

According to Kanellou and Spathis (2013), perceived accounting benefit in this study is defined as accounting-related performance characteristics of the ERP system in relation to five accounting-related aspects such as IT accounting benefits, operational accounting benefits (time), organizational accounting benefits, managerial accounting benefits, and operational accounting benefits (cost)

H6a Perceived accounting benefit has positive influence on use

H6b Perceived accounting benefit has positive influence on satisfaction 3.4 Chapter summary

- CHAPTER 4 RESEARCH METHODOLOGY 4.1 Chapter introduction

This chapter is to explain and justify the research methodology used to address the second research question “how is the ERP success model for accounting professional tested?”

4.2 Research approach

4.2.1 The nature of the phenomenon being studied

This study matches deductive approach and empirical research

4.2.2 Research approach selection

The quantitative method is primarily adopted to answer the main research question “How can ESMAP be designed to improve accountant performance, which in turn enhances organizational performance?”

4.3 Philosophical worldview

Creswell (2009) proposes that positivism is the research paradigm appropriate for developing and testing the study’s model against empirical data

4.4 Research design

4.4.1 Selecting the type of research method

Survey method with questionnaire technique is adopted in this study

4.4.2 Time horizons

This is longitudinal study as it represents events over a given period (Saunders, Lewis, & Thornhill, 2003)

4.5 Research method

The section is to explain how survey research process is conducted in this study

in the step-by-step manner, namely:

 Instrument design (Section 4.5.1)

 Sample design (Section 4.5.2)

 Data collection (Section 4.5.3)

 Data preparation (see Section 5.2)

 Assess reliability and validity of each construct separately (Section 5.3)

 Assess measurement model of the all constructs in the ESMAP (Section 5.4)

 Assess structural model of the ESMAP (Section 5.4)

 Discussion on the research findings of the ESMAP (Chapter 6)

 Interpretation of the ESMAP’s contributions, theory and practice (Section 7.3)

4.5.1 Instrument design

4.5.1.1 Measure choices of constructs

Table 4.1: Conceptualization and operationalization of the constructs

System Quality Performance characteristics of the ERP system in relation to

system-related quality and task-related quality (Hsu et al (2015)

System Quality is measured with 8 items according to Hsu et al (2015) Information

Quality

Characteristics of the output provided by the ERP system with

regard to contextual quality and representative quality (Hsu et al

(2015)

Information quality is measured by using a 5-item scale adapted from Hsu et al (2015)

Perceived

Accounting

Benefit

Accounting-related performance characteristics of the ERP system

in relation to five accounting-related aspects such as IT accounting

benefits, operational accounting benefits (time), organizational

accounting benefits, managerial accounting benefits, operational

accounting benefits (cost) (Kanellou & Spathis, 2013)

Perceived-accounting-benefit instrument developed by Kanellou and Spathis (2013) includes 5 dimensions and 18 items Use In organization, an ERP system is used to perform important

organizational functions such as problem-solving/

decision-making, work integration, and work planning Use refers to how

effectively an ERP system is used for theses organizational

functions (Adapted from Deng et al (2004))

This study employs Deng et al (2004)'s eleven items aggregated into four congeneric indicators

Satisfaction The extent to which accounting professionals perceive a match

between their requirement and ERP functionality (Hsu et al

(2015)

User satisfaction measure of Hsu et

al (2015) with a 4-item scale is selected

Accountant

Performance

Accounting professionals’ perceptions of the importance and

usefulness of the ERP system that affect their capabilities and

effectiveness (Hsu et al (2015)

A 4-item scale of Hsu et al (2015) and Gable et al (2008) is adopted to measure accountant performance Organizational

Performance

The benefits that the organization gets from its ERP system, often

measured by the extent to which customer service,

decision-making processes, and so forth have been enhanced (Ifinedo et al

(2010)

Items used for organizational performance are obtained from Ifinedo et al (2010)

4.5.1.2 Identifying formative and reflective constructs

According to Jarvis et al.’s (2003), System quality and information quality are modeled as second-order formative – reflective constructs Perceived Accounting Benefit is a second-order reflective-reflective construct Use is