How Information Systems and Non-Financial Data Influence Business Success

The present study creates and tests a model that explores how the quality of accounting information systems, internal control systems, and non-financial information affect success at the organizational level (i.e., success in decision-making and non-financial performance). Data from managers of 252 organizations in West Java, Indonesia, were analyzed using covariance-based structural equation modeling through linear structural relations software. It has been found that the quality of accounting information systems, internal control systems, and non-financial information has a positive relationship with decision-making performance and non-financial performance. This result implies that better internal information systems and controls, as well as non-financial information, are also useful for improving decision-making and performance in the organization. This study adds to research on the influence of accounting information system quality, internal control, and non-financial information on organizational performance and success. The pattern of results is consistent with a pathway in which internal control system quality and accounting information system quality enhance non-financial information quality, which is associated with improved decision-making success and non-financial performance.   The implications of this study are useful in guiding the accounting and information management practices towards enhancing the quality of accounting information systems, internal control systems, and non-financial information. It is expected that, when advanced, the tool would provide at least a more expansive and elaborate understanding of these complex relationships, thereby enriching our knowledge and theoretical base in accounting.