The Role of Accounting Information System on the Quality of Managerial Decision Making in Local Governmental Organizations: The Case of Jimma Zone, Oromia National Regional State, Ethiopia

Abstract

Accounting information system is the most important information system widely used in the managerial decisions and influenced on organization performance. The purpose of this study is to examine the role of AIS on the quality of managerial decision-making. To achieve the objective of the study both explanatory and descriptive research designs were adopted. A Sample of 214 respondents was selected by using multistage sampling technique. The data was collected through structure questionnaire and interview. Data analysis was made using descriptive and inferential statistics. Results indicate that the use of AIS has significant effect on the quality of managerial decision-making. Pearson correlation analysis result showed that accuracy, timeliness, completeness, accessibility and interpretability of accounting information were positively correlated to quality of managerial decision-making. Multiple regression analysis also revealed that 62% of the variation in the quality of managerial decision-making was explained by five important variable namely accuracy, timeliness, completeness, accessibility and interpretability. It is recommended that the government is expected to be able to improve and apply the right policy to overcome the weaknesses in IBEX system in order to increase resulted information quality and eventually would affect the quality of managerial decision-making. Furthermore, the study recommended that local governmental organizations have to computerize their AIS system that is used to generate accounting and financial reports.