MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ----- Phan, Thi Bao Quyen A DEVELOPMENT OF ENTERPRISE RESOURCE PLANNING SUCCESS MODEL FOR ACCOUNTING PROFESSIONALS A DOCTORAL THESIS Ho Chi Minh City, 2020 luan an MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ----- Phan, Thi Bao Quyen A DEVELOPMENT OF ENTERPRISE RESOURCE PLANNING SUCCESS MODEL FOR ACCOUNTING PROFESSIONALS Major: Accounting Code: 9340301 A DOCTORAL THESIS Supervisors: 1. Associate Professor, Dr. Vo, Van Nhi 2. Nguyen, Thi Kim Cuc Ho Chi Minh City, 2020 luan an i STATEMENT OF AUTHENTICATION I certify that any content in this thesis has not previously been submitted for a degree at this or any other institution.
I also certify that the dissertation is prepared by me. Any help that I have received in my research work has been acknowledged. In addition, I certify that all sources and literature used are adequately indicated in the reference. Phan Thi Bao Quyen luan an ii ACKNOWLEDGEMENTS The effort to complete this thesis would not have been possible without the contribution of a number of persons and organizations.
First and foremost, I would like to express my deepest gratitude to my two supervisors, Associate Professor, Dr. Vo Van Nhi and Dr. Nguyen Thi Kim Cuc for their support and guidance. Especially Associate Professor, Dr.
Vo Van Nhi, my principal supervisor, his encouragement keeps me going even through the most difficult moments of this study. I would like to offer my gratitude to University of Economics Ho Chi Minh City, and acknowledge the supports I have received from the School of Accounting at University of Economics Ho Chi Minh City. I would like to thank Associate Professor, Dr. Nguyen Xuan Hung and Dao Tat Thang for facilitating me completing the PhD thesis on time.
I would like to thank my colleagues in Accounting Information System Division for their encouragement during my PhD journey. I would like to give a special thank to Dr. Nguyen Phuoc Bao An for providing me constructive feedback and making me trust myself that I am capable to finish this stressful research project. I also would like to thank Dr.
Nguyen Bich Lien for her comments on system-use concept of the ERP success model for accounting professionals, which is a motivation for discovering a more appropriate system-use concept in the ERP ongoing context. In my daily work, I would like to thank Dr. Luong Duc Thuan, Dr. Pham Tra Lam, Nguyen Quoc Trung and Nguyen Huu Binh for supporting me to perform lecturing-tasks in order to facilitate my researching.
I am so grateful to Dr. Nguyen Thi Thu for her enthusiasm for my research-method-related- queries. I would like to acknowledge the advices and the comments on how to effectively adopt the Smart-PLS software to analyze the collected data from Dr. Nguyen Phong Nguyen.
I really appreciate his experience of such a useful tool. I would like to thank the help of Dr. Trinh Hiep Thien for his assistance in distinguishing between reflective and formative constructs. I also would like to thank Nguyen Thao Nguyen for her counseling on confirmation factor analysis.
luan an iii My thanks also go to academics from UEH and informants from participant organizations that have assisted me to complete the pre-testing, pilot testing and main survey, whose names cannot be disclosed owning to confidentiality agreements. I would like to thank my brothers and sisters, as well as my friends, in particular, Phan Quoc Hieu, Dr. Pham Thanh Ha, Phan Quoc Lan, and Nguyen Thi Thu Nguyet. Their help, support, and friendship keep me balance every up and down moment and make the completion of this thesis more interesting and enjoyable instead of pressure only or sometimes boringness.
I give special thanks to my parents, especially my wonderful mom, who have always stayed by me, encouraged me to pursue my academic career, as well as assisting me to take care my children. Without their support and sacrifice, this work would have been stalled. For this reason, this thesis is dedicated to both of you. Last but not least, I would like to thank my husband and my little daughters.
Your love, support and continual understanding have made this adventure possible. Therefore, this thesis is also dedicated to all of you. luan an iv TABLE OF CONTENTS STATEMENT OF AUTHENTICATION I ACKNOWLEDGEMENTS II TABLE OF CONTENTS IV ABBREVIATIONS VIII LIST OF TABLES IX LIST OF FIGURES XI ABSTRACT XII CHAPTER 1 INTRODUCTION 1 1.2 Background of research 1 1.3 Motivations for research 2 1.1 Motivation 1 - ERP research 2 1.2 Motivation 2 – Behavioral Accounting Research (BAR) 5 1.3 Combination of ERP research and Behavioral Accounting research (BAR) 9 1.10 Chapter summary 18 CHAPTER 2 LITERATURE REVIEW 19 2.2 Enterprise Resource Planning 20 2.2 Evolution of ERP 22 2.3 Advantages and disadvantages of ERP 23 2.4 The ERP lifecycle 25 2.3 ERP Success Models 25 2.1 Challenges of measuring ERP success 25 2.2 A summary of ERP Success Models from 1990 up to present 27 2.3 Issues with the existing ERP success studies 43 2.4 Differences between the current study and the eleven previous ESMs 46 2.5 Review of ERP success studies in Vietnam 47 2.4 Review of ‘rich construct(s)’ enabling to overcome unanswered validity-setting-related issues 45 2.5 Chapter summary 47 CHAPTER 3 CONCEPTUAL FRAMEWORK, CONSTRUCT CONCEPTUALIZATION AND HYPOTHESES 49 3.1 Chapter introduction 49 luan an v 3.2 Theories used in the ESMAP 49 3.1 D&M IS success model (DeLone & McLean, 1992) 49 3.2 IS-continuance theory (Bhattacherjee, 2001) 50 3.3 Principle “fitness for use” (J.4 How to combine three theories to form the ESMAP 54 3.3 Conceptual ESMAP, construct conceptualization and hypotheses 54 3.2 Relationships among constructs of organizational-level impacts 55 3.3 Perceived qualities and benefits; and organizational-level impacts 61 3.4 Chapter summary 62 CHAPTER 4 RESEARCH METHODOLOGY 63 4.1 The nature of the phenomenon being studied 64 4.2 Research approach selection 65 4.1 Selecting the type of research method 65 4.7 Chapter summary 82 CHAPTER 5 DATA ANALYSIS 83 5.2 Step 1: Data preparation 84 5.1 Data screening and cleaning 86 5.2 Straight lining check 86 5.3 Testing for outliers 86 5.3 Step 2: Instrument preparation 88 5.1 Instrument reliability assessment 89 5.2 Instrument validity assessment 89 5.4 Step 3: Testing the ESMAP 97 5.1 Analysis technique selection 97 5.2 Measurement model assessment 99 5.3 Structural model assessment 104 5.5 Chapter summary 122 CHAPTER 6 DISCUSSION OF FINDINGS 124 6.3 An overview of the relationship between accountant performance and organizational performance 128 6.1 Discussion on organizations’ perceptions of organizational performance 128 luan an vi 6.2 Discussion on organizations’ perceptions of accountant performance 130 6.3 Discussion on direct impact of accountant performance on organizational performance 131 6.4 Use and its outcomes 131 6.1 Discussion on organizations’ perceptions of use 131 6.2 Discussion on appropriateness of effective use in the ERP context 132 6.3 Discussion on direct impact of effective use on accountant performance 133 6.4 Additional discussion on indirect impact of effective use on organizational performance 133 6.5 Satisfaction and its outcomes 134 6.1 Discussion on organizations’ perceptions of satisfaction 134 6.2 Discussion on direct impact of satisfaction on accountant performance 135 6.3 Additional discussion on direct and indirect impact of satisfaction on organizational performance 135 6.6 System quality and its direct impacts on use and satisfaction 136 6.1 Discussion on organizations’ perceptions of system quality 136 6.2 Discussion on direct impact of system quality on use 137 6.3 Discussion on direct impact of system quality on satisfaction 137 6.7 Information quality and its direct impacts on use and satisfaction 138 6.1 Discussion on organizations’ perceptions of information quality 138 6.2 Discussion on direct impact of information quality on use 138 6.3 Discussion on direct impact of information quality on satisfaction 139 6.4 Discussion on the role of information quality in D&M IS success model (1992) 139 6.5 Discussion on the role of information quality in the ESMAP 139 6.8 Perceived accounting benefit and its outcomes 140 6.1 Discussion on organizations’ perceptions of perceived accounting benefit 140 6.2 Discussion on operationalization of perceived accounting benefit 141 6.3 Discussion on direct impact of perceived accounting benefit on use 143 6.4 Discussion on direct impact of perceived accounting benefit on satisfaction 144 6.5 Additional discussion on direct and indirect impacts of perceived accounting benefit on accountant performance and organizational performance 144 6.9 Other advanced discussions on the ESMAP 146 6.1 Differences of the ESMAP by the length of ERP system 146 6.2 Differences of the ESMAP by organizational size 147 6.3 Differences of the ESMAP by ERP vendors 147 6.10 Chapter summary 148 CHAPTER 7 CONCLUSION 149 7.2 Research questions revisited 149 7.1 How is the ERP success model for accounting professionals formed in order to improve accountant performance, which in turn enhances organizational performance? 150 7.2 How is the ERP success model for accounting professionals (ESMAP) validated? 150 7.3 Contributions of the study 151 7.4 Limitations of the study and area for further research 155 7.5 Delineations and further research 156 7.6 Final concluding remarks 157 LIST OF PAPERS 159 REFERENCE 160 luan an vii APPENDICES 183 Appendix 2.1 Eleven previous ERP success models 183 Appendix 4.1 Advantages of using survey method in the current study 190 Appendix 4.2 Identifying formative and reflective constructs 191 Appendix 4.3 Evidence in relation to the expert panel’s feedback on the preliminary questionnaire 193 Appendix 4.4 The original Part A of the preliminary questionnaire 195 Appendix 4.5 A summary of changes in Part B of the preliminary questionnaire after analyzing feedbacks from the expert panel 195 Appendix 4.6 The questionnaire after pre-testing 196 Appendix 4.7 Questionnaire translation process in the current study 200 Appendix 4.8 List of interviewees and demographic information 201 Appendix 4.9 Pilot study responses from three target informants 202 Appendix 4.10 The Vietnamese questionnaire after pilot testing 203 Appendix 4.11 Bias issues consideration and how to minimize them 207 Appendix 4.12 Sample size Calculator v2.0 for Cronbach’s Alpha Test 210 Appendix 4.13 The result of calculating the minimize sample size by G*Power software 211 Appendix 4.14 Sample size recommendation in PLS-SEM for a Statistical Power 80% (Hair Jr et al.15 A covering letter 212 Appendix 5.1 Summary of Deleted Cases 213 Appendix 5.2 Result of Outlier Testing 214 Appendix 5.3 Independent Sample T-test for Non-response Bias 219 Appendix 5.4 Total Variance Explained for Common Method Bias Test 224 Appendix 5.5 Development of the final sample 226 Appendix 5.6 Instrument reliability assessment 227 Appendix 5.7 Sample characteristics consideration 229 Appendix 5.8 Process of interpreting the factors 234 Appendix 5.9 EFA Test Results - Scales without modifications 235 Appendix 5.10 Summary after Factor Analysis 236 Appendix 5.1 Results of fit consideration of higher-factor instruments – PAB 237 Appendix 5.2 Results of fit consideration of higher-factor instruments - USE 238 Appendix 5.12 Cross-factor loadings 239 Appendix 5.13 Internal consistency and convergent validity results of the first order factor “PAB_operational” after eliminating indicator PAB18 240 Appendix 5.14 Decision-making process for keeping or deleting formative indicators basing on outer weight and outer loading Hair Jr et al.15 Results of alternative models analysis 242 Appendix 6.1 Demographic characteristics of surveyed companies 245 Appendix 6.2 Demography characteristics of ERP system 246 Appendix 6.3 Demographic characteristics of informants 247 Appendix 6.4 Comparing sample means 248 Appendix 6.5 Testing the D&M IS Success model (1992) without PAB 251 Appendix 7.