Effect of Teamwork on the Quality of AIS and Organization

Performance
Anique Ahmed Butt
27957
(MS Accounting & Finance)
Riphah International University
G-7 Islamabad
Spring 2019
Email:Anique_butt2006@yahoo.com

Abstract
Purpose: The purpose of this study is to investigate the effect of teamwork on the quality of AIS
and performance of the organization.
Design/methodology/approach: To meet the objective, we have develop our model in which we
have used teamwork (Communication) as an independent variable whereas AIS quality has a
mediating role that ultimately effects the organization performance which is dependent variable.
To overcome the adverse effect of teamwork we are using Transformational leadership as a
moderator. We have measured our variables by conducting a survey which is a quantitative
method for collecting data. The targeted population of our instrument will be some banks of
Islamabad and the responses will be taken from 250 participants of banks. For the data analysis
we will use SPSS tool and check the reliability of our instrument by using Cronbach alpha.
Findings: Our results are twofold: if teamwork is strong and team members have good
coordination and communication then it will have positive effect on the AIS quality and hence
positively affect the organization performance. Similarly, if teamwork is poor then it will cause
negative effect on AIS quality.
Research limitations/implications: In literature, it has been observed that other factors i.e.
physical environment, nature of the AIS and user focus has also some hidden or intermediate
effects on AIS quality. In future, we will investigate and measure more factors other than
teamwork and examine their effect on AIS quality and organization performance.
Originality/value: We have reviewed a paper which has mentioned that teamwork has an effect
on the quality of AIS but author has not showed the impact of teamwork on AIS quality. So, we
are extending that study and our focus is on how teamwork effect the AIS quality and
organization performance.
Keywords: AIS quality, teamwork, organization performance, transformational leadership.
 1. Introduction
All organizations rely on information systems for their management and operation. AIS is one of
the most critical systems in any organization which is used to collect, record and process data to
produce information for decision-making. Effective decision making is key to organizational
performance (Ali, Bakar, & Omar, 2016). Some concepts associated with accounting information
system are (Allahverdi, 2011):
“Accounting information system is a data processing process providing the information that will
be needed for the users of information in the business enterprises in planning, controlling and
maintaining the activities of business enterprises”.
“Accounting information system is an information system collecting, processing and storing the
data related to the economic activities of business enterprises for the parts to make a decision
about the business enterprises”.
“Accounting information system is an information system presenting with the financial tables for
the necessary information to the external financial information users”.
According the common definition appearing as a result of above definitions, AIS is an
information system collecting the data belonging to financial attributed transactions creating
variation on the entities of business enterprise and capital and debts, which are the resources of
these entities; turning into information by processing the data collected; and reporting the
appearing information (Allahverdi, 2011).
Many researchers have pointed out that the success or failure of an organization in achieving its
objectives depends on the quality of the AIS. The quality of accounting information is essential
to make quality decisions (Wisna). Almost all information systems suffer from some level of
quality problems. Costs stemming from data quality are substantial for many organizations.
Around 75% of organizations have identified costs originating from poor-quality data. The use of
AIS supports organizational processes, and expectedly influence its organizational performance
(Ali et al., 2016). Organizational performance is defined as the efficiency and effectiveness of
quantifying process of action that increases the organizational productivity (Hyvönen, 2007).
Teamwork has been found as one of the factor that affect the quality of the AIS (Xu & Quality,
2015). Teams are an essential component of successful organizations today—and building and
motivating teams are necessary pursuits to attain that success. Teams require continuous
nurturing and interaction to maintain high performance throughout their temporary lives
(Sohmen & Development, 2013). It has been identified that poor communication is harmful to
effective teamwork (O'connor et al., 2016). Due to poor communication of team members the
quality of AIS decreases and ultimately effects the performance of the organization. Strong
leadership can pull a motivated team to success (Sohmen & Development, 2013).
Leadership is one of the factors affecting the quality of AIS. Leadership is about influencing,
motivating and enabling others to contribute toward the effectiveness and success of the
organizations of which they are members. The capabilities that can prepare a well-rounded leader
can be distilled into a composite, Five-Dimensional Leadership Competency Model consisting of
the following (Sohmen & Development, 2013): (1) Transformational; (2) Transactional; (3)
Organic; (4) Contemporary; and, (5) Ethical.
(1) Transformational leaders are individuals who have the ability to influence a team to meet
the organization’s strategic goals. These leaders encourage and enable the performance of an
organization that is characterized by a culture based on integrity, transparency, and genuine
respect for others. Such leaders inspire followers to perform beyond their expectations. They
also foster healthy working relationships. The net result is a continual empowering of motivated
team members to accomplish goals with visible enthusiasm.
(2) Transactional leaders transact work with team members in exchange for tangible and
intangible rewards for delivering the assigned tasks. Under transactional leadership, followers
are impelled by rewards made by the leader rather than from fear of consequences. Transactional
leaders set the stage for positive results that are achieved by communicating the strategic goals,
which are equally matched with the team’s talents and capabilities.
(3) Organic leadership enables greater interaction among team members, and greatly
strengthens the working relationships among the team members. Individuals collaborating or
working in an organic structure are thus bonded together by a shared vision and values. A leader
using this style empowers and mentors motivated team members to cultivate their own
leadership skills.
(4) Contemporary leaders are essentially democratic inn their approach, and use influence and
persuasion rather than fear to lead the team. To ensure successful outcomes, contemporary
leaders manage ambiguity and paradox: spearhead change and manage stability; establish vision
and accomplish objectives; break traditional, outmoded rules, and, monitor conformance. The
contemporary leader utilizes structure to guide the team effectively to meet the organization’s
strategic objectives and stakeholder expectations.
(5) Ethical leaders inspire respect by setting a fine example of integrity for team members and
stakeholders. Ethical leadership focuses on how leaders responsibly use their social power in the
decisions they make, actions they engage in, and in the ways they influence others.
It should be noted that the Five-dimensional Leadership Competency Model incorporates a
complex of complementary leadership styles that can be used individually as the situation
demands (Sohmen & Development, 2013). In our study we will use transformational leadership
to influence a team and communication between them so that organization performance can be
improved.
The concept of transformational leadership explains how leaders can change their organizations
by creating communication and visions so as to transform and inspire their employees to fight for
the visions. Transformational leaders are those who are capable of improving values and
motivating employees to do more than expected (Bettis & Hitt, 1995). Leadership can pull a
motivated team to success. Strong leadership cannot hope to achieve success with an
incompetent and unmotivated team.
 2. Literature review:
2.1. Teamwork:
“Teamwork is the process of working collaboratively with a group of people in order to achieve
a goal”(Agarwal, Adjirackor, & Accountancy, 2016).
It means working as a team and have sufficient communication, between different departments
and within departments, and between different professionals, such as accounting and IT. It is
define as a cooperative process that allows ordinary people to achieve extraordinary results.
Communication is a key for teamwork which is defined as an exchange of information, feedback
or response, about ideas and feelings. It has also been described as the most important element to
the successful interchange between firms.
2.2. Accounting Information System quality:
AIS is a collection of computer-based electronic systems used for collecting, storing and
processing of financial and accounting data in view of supporting organizational decision making
process. Many researchers have pointed out that the success or failure of an organization in
achieving its objectives depends on the quality of the accounting information systems. Poor
information quality may have adverse effects on decision making.
The essential role of a quality AIS is that accounting information system is an integrated
framework in hiring physical resources to transform economic data into financial information in
operating and managing company activities, and reporting company achievements to interested
parties (Wisna).
2.3. Organization performance:
“Organizational performance is defined as the efficiency and effectiveness of quantifying
process of action that increases the organizational productivity” (Ali, Bakar & Omar, 2016).
2.4. Transformational leadership:
Leadership is about influencing, motivating and enabling others to contribute toward the
effectiveness and success of the organizations of which they are members. Transformational
leadership has the potential to have a substantial impact on the overall performance of the
organization.
2.5. Research Model and Hypothesis Development:
In Fig. 1 we outline the model which we have propose for our study. We have taken teamwork as
an independent variable which is one of the important factors that has an effect on the quality
of the AIS (Xu & Quality, 2015). Communication is the key for teamwork and it is defined as an
exchange of information, feedback or response, about ideas and feelings. If communication is
poor then there will be lack of clear and open communication between team members. It has
been identified that poor communication is harmful to effective teamwork (O’connor et al.,
2016). Due to poor communication of team members the quality of AIS decreases and ultimately
effects the performance of the organization which is dependent variable.
AIS Quality acts as a mediator between teamwork and organization performance. Similarly,
transformational Leadership is used as a moderator in our model and positively affect the
quality of AIS. It can be defined as a process which influence others by communicating ideas,
getting acceptance from them and motivating followers to support and implement ideas to
achieve organizational goals.

H6

Leadership

H5 H4

Organization
Teamwork AIS Quality
Performance
H2 H3

H1

Fig. 1 Research model

H1: Teamwork has significant positive effect on organizational performance.

H2: Teamwork has an impact on the quality of AIS.
H3: AIS quality positively influences organizational performance.
H4: Quality of AIS has mediating role between teamwork and organization performance.
H5: Leadership affects the quality of AIS.
H6: Leadership has a moderating role between teamwork and AIS Quality.
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