Effect of AIS on planning process effectiveness: a case of SMEs in a less developed nation

Abstract

Purpose This paper aims to examine the influence of accounting information system (AIS) success on planning process effectiveness (PPE) in small- and medium-sized enterprises (SMEs) of Yemen, a less developed nation (LDN). Design/methodology/approach This study developed a theoretical model based on IS success model (DMISS2003). The model’s components were tested using structural equation modeling via SmartPLS on a sample of 325 SMEs. Findings The empirical results imply that AIS success positively affects PPE if SMEs focus on AIS information quality, system quality, user satisfaction and usage. Research limitations/implications This study focused on SMEs in Yemen. Thus, it can be expanded to include different other countries. Practical implications The results of this study could be considered by owners and managers of SMEs, policymakers and AIS designers/vendors. This study could provide them insight into the role of AIS success in promoting PPE in SMEs. This study could assist policymakers in analyzing the work of SMEs and assessing their success, referring to AIS. Moreover, knowing the most critical determinants of AIS success could direct designers’/vendors’ efforts toward upgrading and improving the present AIS. Social implications Government policymakers in LDNs considering how to motivate SME development in their nation should be aware of the significance of AIS success and implementation among SMEs and its role in the nation’s economic development. Originality/value This research is one of the first that investigates the impact of AIS success on PPE in SMEs. Current literature largely lacks the investigation of such an impact, especially among SMEs in LDNs such as Yemen. Most AIS’s prior research focused on SMEs in developed nations, which may not fully apply to LDNs such as Yemen. Indeed, no existing literature is available where AIS success impacts PPE in SMEs of LDNs. In this respect, this study claims its uniqueness.