Available online at www.sciencedirect.

com

ScienceDirect
Procedia Economics and Finance 31 (2015) 885 – 895

INTERNATIONAL ACCOUNTING AND BUSINESS CONFERENCE 2015, IABC 2015

Accounting Information System and Decision Useful Information

Fit Towards Cost Conscious Strategy in Malaysian Higher
Education Institutions

Shazalina Mohamed Shuhidana, Nor’azam Mastukib, Wan Mohd Nazif Wan Mohd
Noric*
a
Lecturer, Faculty of Accountancy, Universiti Teknologi MARA Terengganu, Malaysia
b
Lecturer, Faculty of Accountancy Universiti Teknologi MARA Puncak Alam, Malaysia

Abstract

In exploring the Accounting Information System (AIS) in Malaysian Higher Education Institutions (HEIs), this study investigates
the alignment between the characteristics of decision useful information requirements and AIS capacity in the decision-making
process among Malaysian Higher Education Heads of Department, and its impact on cost conscious strategy is also examined.
Using a survey, data from 11 public universities in Malaysia were collected on the characteristics of decision useful information.
This study attempts to fill the gap of the alignment between the characteristics of information requirements and information
processing capacity. The central idea is that, to have a significant impact on the organizational performance that is cost conscious
strategy, organizational characteristics of information processing capacity must suit its information requirements. In addition, this
study will explore the impact of the alignment between organizational information requirements and the information processing
capacity on the success of AIS implementation, and also the relationship between AIS success and organizational performance.

©
© 2015
2015 Published by Elsevier
The Authors. B.V.
Published byThis is anB.V.
Elsevier open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of Universiti Teknologi MARA Johor.
Peer-review under responsibility of Universiti Teknologi MARA Johor
Keywords: Decision Useful Information Quality, Cost Conscious, Information Characteristics, Information capacity and information requirement.

1. Introduction

The federal government of Malaysia has proposed new funding mechanisms that are applicable to all Malaysians

* Corresponding author. Tel: +6013-9205392

E-mail address: - shazalin@tganu.uitm.edu.my

2212-5671 © 2015 Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of Universiti Teknologi MARA Johor
doi:10.1016/S2212-5671(15)01186-7
886 Shazalina Mohamed Shuhidan et al. / Procedia Economics and Finance 31 (2015) 885 – 895

Public HEIs. These mechanisms are expected to generate funds from different sources so that the academic quality
in teaching, development, equity and efficiency of higher education, can be developed without relying solely on the
government funding.
Among the strategies to cope with the new funding reform is to have an effective information system in place, in
which AIS is part of the information system. The benefits of AIS can be evaluated by its impact on the improvement
of the decision-making process. It is important to ensure that there is a fit between the characteristics of information
needed and the information supplied by AIS towards the decision-making process in HEIs. Thus, this study will
explore the relationship between the fit and the organizational performance focusing on the cost conscious strategy.

2. Problem Statement

Since the inception of the funding reform strategy in 2010, HEIs needs to implement a lot of strategies to achieve
its objectives. One of the strategies is to have an effective information system in place, where AIS is part of the
information system. In order for the HEIs to achieve their objectives, they have to ensure the successful
implementation of AIS. The information derives from AIS can be used for decision- making purposes. Poor
accounting information will jeopardize the administrative effectiveness, which may lead to wrong decision-making
and eventually causing failure of the strategy.
There was no quantifiable benchmark recorded and this restricts one’s effort to analyze the characteristics of
information for the decision-making purposes. Furthermore, the critical success factors that drive the fit between the
information needed and the supplied by AIS to the department head in HEIs are yet to be fully-identified. As a
result, the effectiveness of AIS in the Malaysian HEIs remains unattended.

3. Research Objectives and Research Questions

The aim of this research is to explore the fit between the characteristics of information needed by the user and the
characteristics of information supplied by AIS towards the decision-making in the cost conscious strategy. The
research objectives to be addressed in this research are:

x To examine the relationship between AIS characteristics(Information quality, System quality and Service quality)
and decision useful information fit
x To examine the relationship between task characteristics(Analyzability and variability) and decision useful
information fit
x To explore the characteristics between AIS and decision useful information fit: fit-as-matching perspective
x To examine the relationship between decisions useful information fit and cost conscious strategy

The following research questions are considered necessary to meet the research objectives outlined above.

x Is there any significant relationship between AIS characteristics (Information quality, System quality and Service
quality) and decision useful information fit?
x Is there any significant relationship between task characteristics (Analyzability and variability) and decision
useful information fit?
x Does AIS fit decision useful information characteristics?
x Is there any significant relationship between decision useful information fit and cost conscious strategy?

4. Research Methodology

The present research adopts a quantitative survey research method. This particular method is considered
appropriate due to the following reasons. Firstly, the main objective of this present research is to determine the fit
between the characteristics of information needed by the user and the characteristics of information supplied by AIS
 Shazalina Mohamed Shuhidan et al. / Procedia Economics and Finance 31 (2015) 885 – 895 887

towards the decision-making in the cost conscious strategy. The data of this research comes from the AIS users who
are working in Higher Education Sectors.
Secondly, this survey method requires that the important variables have to be known first. A comprehensive
review of literature indicates that there were many studies in decision-making and accounting that could be used to
identify the important variables(Nicolaou, 2000; Benford and Hunton, 2000; Abernethy & Vagnoni, 2004;Sajady,
Dastgir, & H. Hashem Nejad, 2008;Salehi & Abdipour, 2011; G. A. Gordon & Fischer, 2011).
Thirdly, many previous researches (Avital & Te’eni, 2009; Huscroft, 2013; N. A. Ismail & King, 2007; Kelton,
Pennington, & Tuttle, 2010; Kuo & Lee, 2011; Larsen, Sorebo, & Sorebo, 2009) on fit or alignment have used the
quantitative survey approach. By adopting the same approach in this present research, it enables comparison to be
made among the researches done.

4.1 The population, sample and sampling design

This research used the non-probability sampling or purposive sampling. This is a valuable kind of sampling to
obtain data from a specific respondent who can provide the paramount data in answering the research questions
(Sekaran, 2003). In order to select the appropriate sample, a proportionate stratified random sampling was used.
According to Sekaran (2003), this particular sampling design ensures that each important segment of the population
is represented, and more valuable and differentiated information is obtained with respect to each group.
The target populations for the present research are the AIS users of the public universities in Public Institutions of
Higher Learning sectors who use the information from AIS to make decisions in their daily operations. They are the
management teams, who are the heads of department, faculty, section or unit. To date, there are 20 public
universities in the country consisting of five (5) research universities, four (4) comprehensive universities and 11
focus universities. For the purpose of this research only 11 universities have being selected due to the accessibility
and the use of AIS among the heads of department, faculty, section or unit.
The total number of those in charge for decision-making purposes in each of the departments from the 11 public
universities in Malaysia is 423 based on the number of heads of department, faculty, section or unit in each of the
public universities. According to Krejcie and Morgan’s (1970) Sampling Table, the sample size for 420 is 201.

Table 1 Sample Size

Universities Population size % of N Sample size (n)

(N)

Research Universities
33 7.80% 16
1. Universiti Malaya (UM) 47
49 11.11% 22
2. Universiti Sains Malaysia (USM) 51
3. Universiti Kebangsaan Malaysia (UKM) 11.58% 23
37
4. Universiti Putra Malaysia (UPM) 217 12.06% 24
5. Universiti Teknologi Malaysia (UTM)
8.75% 17

Comprehensive universities

1. Universiti Teknologi MARA (UiTM) 58 13.71% 27

Focus Universities

9.93% 20
888 Shazalina Mohamed Shuhidan et al. / Procedia Economics and Finance 31 (2015) 885 – 895

42 7.57% 16
1. Universiti Utara Malaysia (UUM)
32
2. Universiti Pendidikan Sultan Idris (UPSI) 6.62% 14
28
3. Universiti Tun Hussein Onn Malaysia 6.15% 12
26
(UTHM)
20 4.73% 10
4. Universiti Malaysia Pahang (UMP)
158
5. Universiti Sains Islam Malayia (USIM)

423 100% 201

Total

5. Research Framework

AIS Characteristics
x Information Quality
x System Quality
x Service Quality

Decision Useful
Organizational Performance
Information Fit
x Cost Conscious Strategy

Task Characteristics
x Analyzability
x Variability

Fig1: Proposed Research Framework:

Adapted from : (Ali, Anbari, & George, 2008)
Concept of Fit: Task-Technology-Fit model (Goodhue & Thompson, 1995)
Fit as Matching: Matching (Venkatraman, 1989)

6. Literature Review

6.1 Funding Reform in Malaysian Higher Education Institutions

The HEIs sector has gone through a great deal of changes, as part of the New Public Management Movement
(Hood, 1995). These changes are divided into three types:

x Changing from an elitist system to offering mass education;

x Changing from not paying any fee, to paying fees, and finally to increasing major fee;
x Changing from focusing nationally to competing globally.

The education sector has always earned the highest national development budget which symbolizes the
 Shazalina Mohamed Shuhidan et al. / Procedia Economics and Finance 31 (2015) 885 – 895 889

commitment of the Malaysian government towards education. In the case of Malaysia, prior to the reforms, funding
and resource allocation mechanisms in Malaysia still depended on the traditional approach of negotiation between
public universities and the Ministry of Higher Education. The feasibility study in 2004 introduced a transparent
funding formula, in which the performance-based funding model could save the Ministry of Higher Education 10 to
30 per cent operating budget of the public universities resource (MOHE, 2010).
In Malaysia for example, the education funding is allocated according to the annual budget and in the recent 2012
budget proposal, an amount of RM50.2 billion had been granted to the education sector (Ministry of Finance, 2011).
Sato (2007) finds that Malaysian public universities are now moving away from the government budget to self-
funding and this has led to the delivery of better services and the ability to generate more income. The government
has announced the reduction of universities funding in the Tenth Malaysian Plan (Economic Planning Unit, 2010a).
Thus, in the context of the Malaysian HEIs, the Federal Government has introduced and implemented funding
reforms aimed at increasing the accountability and transparency of managing public money. Besides introducing
funding reforms, the Federal Government has also announced the initiative to implement Public Based Funding
mechanisms under the Tenth Malaysian Plan, 2011-2015 (Economic Planning Unit, 2010a; Economic Planning
Unit, 2010b). As stated in this document, the implementation of the system will be based on two fixed and variable
components. The fixed components do not vary with the performance, and the variable component is based on the
Rating System for Malaysian Higher Education Institutions. The purpose of this mechanism is to provide a more
transparent funding system to improve the quality of HEIs, in which performance indicators are used to measure
their performance.
HEIs need to transform themselves in order to meet the challenges due to the funding reform by realigning their
organizations with the environment, redesigning themselves to achieve new goals, redefining staff roles and
responsibilities, and reengineering their organizational processes. The success of implementing the new systems
requires the support from all university communities and stakeholders (Strehl, Reisinger & Kalatschan, 2007).
Apart from greater accountability and flexibility, the reform agenda should also include delegating more
autonomy to HEIs in running their operations and making decisions. There has been a growing emphasis on the
performance orientation as well as decentralization to balance the diversification of financing, accountability, and
autonomy in higher education. Consequently, there is a move towards decentralization of authority as HEIs have
entered into a new phase of market-oriented reform (Kelchtermans and Verboven, 2008).

6.2 Accounting Information System in HEIs

AIS is one part of the management information system, which gathers, classifies, processes, analyzes, and
provides financial information to external parties and management for decision-making (Moscove & Simkin, 1982).
AIS is the core system of an organization and it involves data from every department and functions in the entity
(Gordon & Seller, 1984) and its output is considered the primary source of information needed in the decision-
making process. AIS is a system that collects, records, stores, and processes data to produce information for
decision-makers (Romney & Steinbart, 2006). In today’s complex and dynamic business environment, information
technology is used to support AIS to produce beneficial information for decision-making. IT is currently important
for the AIS to satisfy the information requirements of the decision-makers.
Accounting systems and accountability rely on relevant information on cost, performance, standards and targets
given timely to key decision-makers. The key decision-makers are those who exercise the power to decide on the
use of resources and the performing of services. In HEIs the performing of services is related to the act of teaching
and research. Accountability refers to the giving and claiming of reasons for conduct (S. Ismail, Barizah, & Bakar,
2011).
To date, AIS appears to be the only tool that is able to deliver information to service sector organizations that
satisfies their primary functions. It is possible to achieve this by determining an institution’s major processes or
activities; determining the activity cost or performance; determining the output or output measure; tracing the
activity cost to various cost objects such as services, courses or programs and students; and evaluating process or
activity effectiveness and efficiency (Ainun & Bakar, 2013).
Therefore, in light of the recent cuts in government funding and numerous other challenges facing HEIs, it is high
time for HEIs to have accurate and precise knowledge of all their costs. This requires accurate and timely cost
information on all of the HEIs activities. To achieve this, HEIs must know the characteristics of information needed
by the users for their decision-making purposes. Furthermore, HEIs could use AIS approach as a tool to match the
890 Shazalina Mohamed Shuhidan et al. / Procedia Economics and Finance 31 (2015) 885 – 895

utilization of resources with faculty missions; obtain a better sense of the effectiveness of academic staff’s time and
effort differentiation within faculties; discuss with deans and department heads the efficient and most effective
allocation of resources to meet the needs of the faculty, department, and university; organize the information in a
way that make sense across units; and act as an essential public relations tool (Cox, Downey & Smith,1999.).
The results from several case studies suggest that AIS can successfully be implemented in an academic
environment. For example, Gordon and Charles (1998) reported that several universities in the United Kingdom that
have implemented AIS found the use of AIS has helped them with tighter financial management and resource
allocation. Ernst & Young with the cooperation of several Australian universities have published AIS methodology
to be used in the Australian higher education institutions (Robertson et al., 1998). Granof et al. (2000) demonstrate
how AIS can be used by universities and other governmental organizations to manage costs more effectively.
According to (Selamah, 2011) public sector organizations can be described as the rational means-end paradigm to
achieve cost efficiency savings and effectiveness improvements. In this perspective, the management control
systems can be defined as processes consisting of elements such as planning and control, where strategic planning is
based on a long term and broad focus, and the task control activities which are day-to-day responsibilities on the
operational level. In order to achieve a well-functioning control system, these levels should be integrated with
relevant performance measures.
Having an effective AIS in HEIs is pertinent in order to provide the management with the necessary information
and feedback for the university’s value creation (S. Ismail et al., 2011). According to Malmi (1999) such
information is critically important in producing the right information for decision- makers. Similarly, other
researchers (Chen, Wang and Young, 2009) also emphasize the strong relationship between having accurate cost
information and successful organizational change process. Nonetheless, not much has been done on the design of an
effective costing system in HEIs.

6.3 Accounting Information in Decision-making

Accounting information may help managers to understand their tasks more clearly and reduce uncertainty before
making their decisions (Chong, 1996). Accounting information plays an important role in the business. The basic
objectives of accounting are to provide financial information to the managers, owners and the stakeholders who are
interested in an organization and to help them reduce uncertainty in decision-making (Romney, 2009). Uncertainty
is a lack of information compared to what a decision-maker needs to make a decision and the less managers are able
to predict the outcomes from their actions, the more uncertainty there is (Heidhues, 2008).
Bodnar and Hopwood (2004) discuss various factors involved in financial control over computer-based
accounting information systems and describe the nature of management decisions, elaborate on the types of
decisions that managers make and describe various reports used for management planning and control. Indeed, a
wide variety of people within and outside the organization uses accounting information for decision-making.
The study by Majed, A. A (2011) determines the effect of electronic commerce on the accounting information
system development in Jordan. The data analysis found out that accountants in Jordanian hotels have positive
attitudes towards information technology, and the use of the internet in accounting works. They agree that the hotels
depend on E- Commerce and the customers get their orders by using the website. Heidhues & Patel (2008) research
has significant implications on the international application of management accounting procedures and practices in
the decision-making processes. Multinational enterprises, governments and researchers would benefit from such
insights into the utilization of accounting information in various national contexts.
Burchell et al. (1980) discuss the different roles of information in decision-making depend on the level of
uncertainty. These roles are defined along two dimensions: uncertainty of objectives and uncertainty of cause and
effect. Accounting information is one type of information that can be used as a ‘learning machine’. Accounting
information can help to evaluate how objectives might be achieved by quantifying the financial impact of each
alternative available to the decision. Sajady, H., Dastgir, M., & H. Hashem N. M. S. (2008) study the effectiveness
of accounting information systems of finance managers of listed companies at Tehran stock exchange. The results
indicated that the implementation of AIS in these companies has improved managers’ decision-making process,
internal controls, and the quality of the financial reports and facilitate the process of the company’s transactions.
AIS is required by the managers at all levels in the process of planning, controlling and making short-term and
long-term decisions. In short-term decision-making, managers needs to look into both fixed and variable costs while
long-term decisions are made by the top-level executives for the future course of action. Accounting information is
 Shazalina Mohamed Shuhidan et al. / Procedia Economics and Finance 31 (2015) 885 – 895 891

not likely to be useful for every decision problem because it has specific advantages and disadvantages. Managers
often consider that accounting information provided is not very useful for decision-making and they would like to
have better information (Sullivan and Smith, 1993).
Rajeev S (2008) has specified that AIS plays a major role in reducing operational inefficiency and improving
decision-making in many areas of governance. AIS is one of the concepts that can empower the governing bodies to
administer the progress of the education plan in the whole country and serve various stakeholders in a much better
manner. An accounting function within the higher education that utilizes true accounting data would decrease the
susceptibility of decisions based on the internal politics or subjective information and increase the probability of
linking decision-making and strategy to the higher education mission.
Decision-making and its role in organizations can be viewed in a number of ways. Kreitner (1999) believes good
management can be defined in terms of good coordination of an organization’s employees. Moorhead and Griffin
(2000) posit that decision-making is one of the first and crucial steps in management and the criteria of decision-
making and its nature varies in terms of kinds and types. Continuous improvement requires a systematic need for
timely, relevant, objective information and analysis (Sayers, 2006). Through accounting, the effects of strategic
decisions are more transparent in terms of the impact of decisions on effectiveness and efficiency. AIS enables
better analysis and decision-making in the organization, in which it can reduce the cost allocation (G. A. Gordon &
Fischer, 2011).
According to Salehi (2011), AIS assists a company to conduct its operations and activities as well as provides
information to the variety of interested users. It is seen as the combination of technology and human interaction that
could be employed by small business companies to achieve an efficient and excellent operation. The role of
management is crucial in decision-making process associated with AIS and it helps to ease the accountant’s task of
record keeping for which computerized accounting and accounts management are more customized. Thus, AIS
contributes to the accuracy of information and time efficiency which in turn, leads to cost efficiency. The revolution
of information technology has increased the accounting efficiency since AIS based software has made things
smarter and cost effective.
The implementation of AIS for public organizations enables the management to improve decision- making,
internal controls and financial information as well as produces the financial reporting and statement on a
standardized format and timely basis to the stakeholders. Markus and Lynn (2009) show that the successful
implementation of AIS requires, among others, an AIS to be fit with the culture, i.e. the norms and value system that
characterize the organization. The study also suggests that the systems will be useful when the information provided
by them is used effectively in the decision-making process by users.
A study by Huber (1990) shows that, AIS leads to a better coordination in an organization which, in turn,
increases the quality of decision-making. Some studies in accounting show that the effectiveness of AIS depends
upon the quality of the output of the information system that can satisfy users' needs. Kim (1998) suggests that the
quality of information generated from AIS is very important for management, in that, the usage of AIS depends on
the users’ perception of the quality of information. In turn, the quality of information depends on the characteristics
of the information towards the decision-making purposes.

6.4 Decision Useful Information characteristics

If accounting information is to be relevant in decision-making, the key decision-makers should get information
which they find necessary and important. In organizations with a high degree of uncertainty and equivocality, the
interpretation of AIS with the function of providing decision-makers with appropriate information has the important
role of enhancing the quality of the information (Jawabreh & Alrabei, 2012). AIS is an important organizational
mechanism that is critical for effective decision-making in an organization. According to (Gordon & Miller, 1976),
the effectiveness of AIS depends on the ability of the information provided from the system to meet the requirement
of the user.
Accounting literature argues that strategic success is considered an outcome of AIS design (Langfield-Smith,
1997). There was also a study analyzing the role of AIS in strategic management, examining the attributes of AIS
under different strategic priorities (Mancini, Vaassen, & Dameri, 2013). The effect on the performance of the
interaction between certain types of strategies and different designs of AIS has also been analyzed.
AIS provides information for internal and external users. One of the most important categories of financial
892 Shazalina Mohamed Shuhidan et al. / Procedia Economics and Finance 31 (2015) 885 – 895

information produced by AIS is the financial statements that provide external users with the information needed to
make decisions. To make the reported financial information useful, AIS must provide meaningful information to the
users in making rational decisions.
In the Statement of Financial Accounting Concepts No. 2, the Financial Accounting Standards Board (FASB)
defines accounting as an information system and the primary objective of accounting is to provide information
useful to decision-makers (FASB, 1980). The FASB has identified the qualitative characteristics of accounting
information to ensure that information reported in the financial statements is of adequate quality to assist users in
making decisions.
These qualitative characteristics were revised in 2010 by the International Accounting Standards Board (IASB)
and FASB (FASB 2010; IASB 2010). As a result, it is now a hierarchy of qualitative characteristics: fundamental
and enhancing. To be useful for decision-making, information must have the two fundamental characteristics. The
enhancing characteristics are not essential, but they can improve the usefulness of the information (Rankin, Stanton,
McGowan, Kimberly & Tilling, 2012). Under the new conceptual framework, the two fundamental qualitative
characteristics are relevance and faithful representation.
In order to assess whether accounting information is decision useful, a number of qualitative characteristics are
identified from the accounting literature. Hendriksen and Van Breda (1992) define qualitative characteristics as
attributes of accounting information which tend to enhance its usefulness. These qualitative characteristics should be
strong, persistent, implementable and liable to objective verification.
In their conceptual framework, the FASB (1980) distinguishes between two categories of qualities, namely user-
specific and decision-specific qualities. User-specific qualities refer to aspects such as understandability and
decision-useful qualities by the users. These qualities of users determine the level of complexity of information that
should be reported. Decision-specific qualities are concerned with the qualities required of information such as
relevance and faithful representation.
Relevance refers to the capacity of information to influence the decision-making process of users. It enables users
to make predictions about the future and to confirm or revise previous estimates. In order for information to be
relevant, it should be made available to the users before it loses its capacity to influence their decision-making. In
other words, it should be provided on a timely basis. The decision useful information characteristics or fundamental
qualitative characteristics are most important as they determine the content of financial reporting information. The
enhancing qualitative characteristics can improve decision usefulness when the fundamental qualitative
characteristics are established.
In order to be a faithful representation, information should maintain an agreement between the measure and
description and the actual phenomenon which it purports to represent. In order to be verifiable it should be possible
to substantiate and confirm the information independently. Neutrality implies on the one hand that the preparer of
information is not biased towards a predetermined result and on the other that the information is not reported in a
manner that it may unduly influence the decisions of users in a particular direction.
In order to make sure the information is effective and efficient there should be the cost versus benefit assessment.
This constraint implies that the cost of providing information should not exceed the benefits derived by the users.
Although costs can usually be quantified, the measurement of the benefits of information is on the whole more
problematic. To assess this constraint, continuous feedback is required on the effectiveness and efficiency of a
system. This assumes that the accounting information systems are viewed as an open system. Materiality forms the
threshold for the recognition of information. Only material information is included in the financial statements.
Materiality is however not only limited to size but also the nature of the underlying transaction or event and the
impact that such information may have on the user decisions.
One of the strengths of the FASB hierarchy is that it adapts a customer-oriented approach. The hierarchy
commences with the users of accounting information and their specific qualities, suggesting that this should form
the basis for determining the decision- specific qualities. The hierarchy does not, however, emphasize the
continuous feedback and repositioning required between the preparers of information. On the other hand, the goals
of financial statements and the accounting sources require special features for financial statements to be used by
investors and other users. These features are called “qualitative features of accounting information” which include
relevance, reliability, and comparability.

6.5 The Decision-making information Fit

 Shazalina Mohamed Shuhidan et al. / Procedia Economics and Finance 31 (2015) 885 – 895 893

The present research discusses decision-making information Fit. According to Venkatraman (1989), there are
various ways of measuring fit. Choosing the appropriate method depends on the specificity of the theoretical
relationships and whether the concept of fit is anchored to a particular criterion. Cragg et al. (2002) measure fit
between IT strategy and business strategy by using the matching and the moderation perspective of fit. Ismail and
King (2005) focus on measuring the fit between AIS requirements and AIS capacity using the same perspectives of
fit.
Similarly, using fit-as-matching perspective, the present research explores decision-making information Fit. This
fit perspective is adopted because it has been used by a number of researchers in both accounting and IS literatures,
while other perspectives are still in their exploratory stages and require further development (Cragg et al., 2002).
Specifically, decision-making information fit is explored by comparing the measurement of decision-making
information fit deviation score analysis.

7. Conclusion

In general, this research has focused on the following questions

x Is there any significant relationship between AIS characteristics (IQ, SQ and SEVQ) and decision useful
information fit?
x Is there any significant relationship between task characteristics (Analyzability and variability) and decision
useful information fit?
x Does AIS fit decision useful information characteristics?
x Is there any significant relationship between decision useful information fit and cost conscious strategy?

In order to answer these research questions, several objectives have been specified and their related hypotheses
were proposed. Following the suggestion by Venkatraman (1989) and previous researchers focusing on fit or
alignment in IS research, partial least square techniques using the Smart PLS software were used to test the
proposed hypotheses. A major contribution of the present research is that it examined the relationship between
Information Characteristics Fit and cost conscious strategy. Most importantly, this research is the only research
reports this relationship between the operational fit in the context of decision-making and AIS among heads of
department in Malaysian HEIs .

References
Abdullah, F., 1998. Budget-Related Behaviour and Performance Goals of Cost Centre Managers in Public Institute of Higher Learning in
Malaysia.
Abernethy, M. A., Vagnoni, E., (2004). Power, organization design and managerial behaviour. Accounting, Organizations and Society, 29(3-4),
207–225.
Ainun, A. M., Bakar, M. A., 2013. Corporatisation of Malaysian Public Universities : A Case Study. Journal of the Asian Academy of Applied
Business, 2(1), 1–19.
Avital, M., Te’eni, D., 2009. From generative fit to generative capacity: exploring an emerging dimension of information systems design and
task performance. Information Systems Journal, 19(4), 345–367.
Braam, G., Beest, F., 2013. A Conceptually-Based Empirical Analysis on Quality Differences Between UK Annual Reports and US 10-K
Reports. Journal of Modern Accounting and Auditing, 9(10).
Burchell, S. C., Clubb, A., Hopwood .J., Nahapiet., 1980. The roles of accounting in organizations and society. Accounting, Organizations and
Society. 5(1), 5-27.
Bodnar, G, H., Hopwood, W, S., 2004 . Accounting Information Systems, Ninth Edition. Upper Saddle River, New Jersey 07458: Pearson
Education Inc.
Bartov, E., Goldberg, S., Kim, M., 2005. Comparative value relevance among German, U.S. and International Accounting Standards: A German
stock market perspective. Journal of Accounting, Auditing and Finance, 20(2), 95-119.
Chen, S., Wang, H.,Yang, K., 2009. Establishment and application of performance measure indicators for universities. The TQM Magazine,
21(3), 220-235.
Chong, V. K., 1996. Management Accounting Systems, Task Uncertainty and Managerial Performance: A Research Note. Accounting,
Organizations and Society, 21(5), 415–421.
Cox, K. S., Downey, R. G.,Smith, L. G., 1999. ABCs of Higher Education – Getting back to the Basics: An Activity-Based Costing Approach to
Planning and Financial Decision Making, Association for Institutional Research Proceedings, Seattle:Washington. May.
894 Shazalina Mohamed Shuhidan et al. / Procedia Economics and Finance 31 (2015) 885 – 895

Cragg, P. B., King, M. R., Hussin, H., 2002. IT allignment and firm performance in small manufacturing firms. Journal of strategic information
systems , 109-132.
Economic Planning Unit 2010, Rancangan Malaysia Kesepuluh (RMKe-10), Putrajaya, 6 September 2010,
<http://www.epu.gov.my/rmkesepuluh>.
EPU 2010a, Rancangan Malaysia Kesepuluh (RMKe-10), Economic Planning Unit, 25 August 2010, <http://www.epu.gov.my/rmkesepuluh>.
Financial Accounting Standards Board (FASB)., 1980. Qualitative Characteristics of Accounting Information. Statement of Financial Accounting
Concepts No. 2. Stamford, CT: FASB.
FinancialAccounting Standards Board (FASB)., 2010. Exposure Draft: Leases. (Stamford, CT).
Francis, J., LaFond, R., Olsson, P.,Schipper, K., 2004. Cost of Equity and Earnings Attributes. The Accounting Review, 79(4), 967-1010.
Gordon, G. A., Fischer, M., 2011. Accounting Strategy to Improve Public Higher Education Management. Journal of Accounting and Finance,
11(3), 11–25.
Gordon, L. A., Miller, D., 1976. A Contigency Framework for the Design of Accounting Information System. Accounting, Organizations and
Society, 1(1), 59–69.
Gordon, L. A., Sellers, F. E., 1984. Accounting and budgeting systems: The issue of congruency. Journal of Accounting and Public Policy, 3(4),
259–292.
Gordon, G. , Charles, M., 1998. Unraveling Higher Education Costs, Planning for Higher Education, 26, 24-26.
Granof, M.H., Platt, D.E., Vaysman, I., 2000. Using Activity-Based Costing to Manage More Effectively, Grant Report.
Heidhues, E., Patel, C., 2008. The Role of Accounting Information in Decision Making Process in a German Dairy Cooperative. In International
conference on accounting and business, Shanghai 46.
Hendriksen, E. S., Van Breda, M. F., 1992. Accounting theory. 5th ed. Boston, Mass.: Richard D Irwin.
Huscroft, J. R., 2013. Task-technology fit for reverse logistics performance. International Journal of Logistics Management, The, 24(2), 230–246.
Hood, C., 1995. The new public management’ in the 1980s: variations on a theme. Accounting, Organization and Society, 20(2), 93-109.
Huber,G. P., 1990. A Theory of the Effects of Advanced Information Technologies on Organizational Design, Intelligence, and Decision Making.
The Academy of Management Review, 15, 1. (Jan., 1990), 47-71.
Ismail, N.A., King M., 2005. Firm performance and AIS alignment in Malaysian SMEs. Int. J. Accoun.Inform. Syst., 6: 241-259.
Ismail, N. A., King, M. 2007. Factors influencing the alignment of accounting information systems in small and medium sized Malaysian
manufacturing firms. Journal of Information Systems and Small Business, 1(1), 1–20.
Ismail, S., Barizah, N., Bakar, A., 2011. Reporting practices of Malaysian public universities : The extent of accountability disclosure. Africal
Journal of Business Management, 5(15), 6366–6376.
Jawabreh, O. A., Alrabei, A. M., 2012. The Impact of Accounting Information System in Planning, Controlling and Decision-Making Processes
in Jodhpur Hotels. Asian Journal of Finance & Accounting, 4(1), 173–188.
Kim, C., Suh, K., Lee, J.,1998. Utilization and user satisifaction in end-user computing : A task contingent model. Information Resources
Management Journal, 11(4), 11–24.
Langfield-Smith, K. , 1997. Management control systems and strategy: A critical review. Accounting, Organizations and Society, 207–232
Lipe, R.,1990. The relation between stock returns and accounting earnings given alternative information. The Accounting Review, 65, 49-71.
Kelton, A. S., Pennington, R. R., Tuttle, B. M., 2010. The Effects of Information Presentation Format on Judgment and Decision Making: A
Review of the Information Systems Research. Journal of Information Systems, 24(2), 79–105.
Kelchtermans, S & Verboven, F. ,2008. Regulation of program supply in higher education: Lessons from a funding system reform in Flanders.
CESifo Economic Studies, 54,(2), 204.
Kuo, R.-Z., Lee, G.-G., 2011. Knowledge management system adoption: exploring the effects of empowering leadership, task-technology fit and
compatibility. Behaviour & Information Technology, 30(1), 113–129.
Krejcie, R. V., Morgan, D. W., 1970. Determining sample size for research activities. Educational and Psychological Measurement, 30, 607-610.
Kreitner R., 1999. Management (7th Edition and 1st Indian edition). Delhi: AITB.
Larsen, T. J., Sorebo, A. M., & Sorebo, O., 2009. The role of task-technology fit as users’ motivation to continue information system use.
Computers in Human Behavior, 25(3).
Majed, A. A., 2011. The E-Commerce Impact on Improving Accounting Information System in Jordanian Hotels. International Research Journal
of Finance and Economics, 75, 14-23.
Malmi, T., 1999. Activity-based costing diffusion across organizations: an exploratory empirical analysis of Finnish firms‟, Accounting,
Organizations and Society, 24, 649-672.
Mancini, D., Vaassen, E. H. J., Dameri, R. P., 2013. Accounting Information Systems for Decision Making. (D. Mancini, E. H. J. Vaassen, & R.
P. Dameri, Eds.)Lecture Notes in Information Systems and Organisation,3, 1–11. Berlin, Heidelberg: Springer Berlin Heidelberg.
Markus , M., Lynn Q., 2009. Using ICTs in teaching and learning: Reflections on professional development of academic staff, International
Journal of Education and Development using ICT, 5(5).
Ministry of Higher Education., 2006. The report by the committee to study, review and make recommendations concerning the development and
direction of higher education in Malaysia: Ministry of Higher Education.
Ministry of Higher Education., 2007a. Pelan strategik pengajian tinggi negara melangkau tahun 2020. Putrajaya.
Ministry of Higher Education., 2007b. National higher education action plan 2007-2010. In M. o. H. Education (Ed.). Putrajaya.
Ministry of Higher Education., 2010. Perangkaan pengajian tinggi Malaysia 2010. In B. P. d. Penyelidikan (Ed.). Kuala Lumpur: Bahagian
Perancangan dan Penyelidikan, Kementerian Pengajian Tinggi Malaysia.
Ministry of Finance., 2011. OBB Insight, Ministry of Finance, Malaysia, Putrajaya.
Moscove, S.A., Simkin, M.G. , 1984. Accounting information systems. New York, NY: John Wiley & Sons, Inc
Moorhead G, Griffin W, R., 2000. Organizational Behavior: Managing people and organization 5th Edition. Delhi: AITB.
Nicolaou, A. I., 2000. A contingency model of perceived effectiveness in accounting information systems : Organizational coordination and
control effects. International Journal of Accounting Information Systems, 1, 91–105.
Rankin, M, Stanton, P, McGowan, S, Ferlauto, K,Tilling, M., 2012. Contemporary issues in accounting (1st Ed.). Australia: John Wiley & Sons
Australia, Ltd.
 Shazalina Mohamed Shuhidan et al. / Procedia Economics and Finance 31 (2015) 885 – 895 895

Romney,M,B, Steinbart, P.J.,2009. Accounting information systems, Peason Prentice Hall

South African Institute of Chartered Accountants., 1990. AC 000: Framework for the University of Pretoria.etd preparation and presentation of
financial statements. Johannesburg: the Institute.
South African Institute of Chartered Accountants., 1998. AC 101: Presentation of financial statements. Johannesburg: the Institute.
Sajady, H., Dastgir, M.H., Hashem, N. M. S., 2008. Evaluation of the Effectiveness of Accounting Information Systems. International Journal of
Information Science and Technology, 6(2), 49–59.
Salehi, M., Abdipour, A. (2011). A study of the barriers of implementation of accounting information system: Case of listed companies in Tehran
Stock Exchange . Journal of Economics and Behavioral Studies, 2(2), 76–85.
Sato, M., 2007. Dilemmas of public university reform in Malaysia, 63., Monash University Press, Clayton, Vic.
Sayers, K. W., 2006. Information and Inattentiveness in Higher Education, College and University, January.
Selamah, W. S.,2011. Current status of Public Sector Accounting in Malaysia and the way forward. Jabatan AKAUNTAN NEGARA. 35.
Sekaran, U. , 2003. Research Methods for Business: A Skill Building Approach (Fourth Edition). New York John Wiley & Sons, Inc.
Schipper, K., Vincent, L., 2003. Earnings Quality, Accounting Horizons, 17, 97-110.
Strehl, F.R., Kalatschan., 2007a. Funding systems and their effects on higher education system, OECD Education Working Papers.
Sullivan, A.C., Smith, K.V., 1993. What is really happening to cost management systems in U.S. manufacturing?. Review of Business Studies
2(1), 51–68.
Venkatraman, N. , 1989. The concept of fit in strategy research: toward verbal and statistical correspondence. Academy of Management Review,
14(3), 423-444.