Investigating the Role of Accounting Information Systems in Enhancing Financial Performance: The Case of the Ethiopian Insurance Industry
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Date
2024-06-12
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A.A.U
Abstract
The Ethiopian insurance industry has made notable growth since the mid of ‘90s, highlighting the need for sound financial performance. This thesis investigated the role of accounting information systems (AIS) in enhancing these practices within the industry. Besides this, this research explored the current state of AIS adoption. It also examined existing challenges, and evaluates the perceived impact of AIS on general financial management areas. The study combined quantitative data analysis with qualitative insights gathered through interviews and survey questionnaire with 68 executive level insurance professionals by employing a mixed-method approach. Literature has it that effective AIS implementation can lead to improved accuracy, efficiency, and transparency in financial data. This improvements guarantees better financial performance. However, challenges such as system integration, user skill gaps, and inadequate data security could hamper full adoption of the information system. This thesis employs Resource Based View of Firm Theory, DeLone and McLean Information System Success Model, Technology-Organization-Environment, Technology Acceptance Model, and Profit Maximization Theory as a theoretical framework. The findings of the study rejected the alternative hypothesis while upholding the null hypothesis which states: there is no significant relationship between Accounting Information System and Financial management performance within the context of the Ethiopian Insurance Industry, at 0.05 significance level.
Keywords: Financial Performance, Resource Based View of Firm Theory, DeLone and McLean Information System Success Model, Technology-Organization-Environment, Technology Acceptance Model, Profit Maximization Theory