What the study found
The study found that information technology capability is associated with better Accounting Information System quality and Financial Reporting Quality in Indonesian local governments. Accounting Information System quality was identified as the most important driver of financial reporting quality and as a key mediating link between technology capability and reporting outcomes.
Why the authors say this matters
The authors conclude that financial reporting improvements are not driven only by technology or human resources alone, but by their integration through effective accounting systems. They also state that the findings offer practical insights for policymakers to strengthen digital capacity and improve accountability in local government financial management.
What the researchers tested
The researchers examined how information technology capability influences Accounting Information System quality and Financial Reporting Quality in Indonesian local governments. They used survey data from 735 public sector employees and analyzed the relationships with Partial Least Squares Structural Equation Modeling (PLS-SEM).
What worked and what didn't
Information technology capability, reflected in government commitment and individual IT competence, knowledge, and experience, significantly improved both Accounting Information System quality and Financial Reporting Quality. Accounting Information System quality also emerged as the strongest driver of financial reporting quality and as a mediator between IT capability and reporting outcomes. The abstract does not report any effects that failed to appear.
What to keep in mind
The available summary does not describe detailed limitations. The study is based on survey data from Indonesian local governments, so the findings are framed within that public-sector context.
Key points
- Information technology capability was linked to better Accounting Information System quality.
- Information technology capability was also linked to better Financial Reporting Quality.
- Accounting Information System quality was the strongest driver of financial reporting quality.
- Accounting Information System quality mediated the relationship between IT capability and reporting outcomes.
- The study used survey data from 735 public sector employees in Indonesian local governments.
Disclosure
- Research title:
- IT capability improves accounting system quality and reporting quality
- Authors:
- Ahyar Muhammad Diah, La Ode Hasiara, Dadang Lesmana, Sugeng Raharjo, Yesi Aprianti, Rizky Yudaruddin
- Institutions:
- Mulawarman University, Mulawarman University, Mulawarman University, Politeknik Negeri Samarinda, Regional Development Agency, Universitas 17 Agustus 1945 Samarinda, Universitas 17 Agustus 1945 Samarinda
- Publication date:
- 2026-04-08
- DOI:
- W7151802949
- OpenAlex record:
- View
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