THE INFLUENCE OF INTEGRATED INFORMATION SYSTEMS ON THE IMPLEMENTATION OF ADVANCED MANAGERIAL ACCOUNTING TECHNIQUES

Abstract

The main purpose of this research is to investigate the influence of integrated information systems (IIS) on the use of advanced managerial accounting techniques (AMAT). To analyze this relationship, we employed structural equation modeling (SEM) on empirical data obtained from a sample of 105 Croatian companies. Empirical findings obtained through SEM confirmed a significant positive influence of one of the IIS features, IIS analytical capabilities, on the application of AMAT. Other theoretically interesting independent variables (IIS age, IIS implementation quality, company size, and business environment uncertainty) were also included in the SEM; however, the evaluated SEM failed to provide a good fit to the data, and the parameters were not significant. The findings of this study provide useful guidance for both IIS developers and users, as they indicate that the implementation of IIS with a higher level of analytical capabilities results in a higher level of AMAT use.