IDEAS home Printed from https://ideas.repec.org/a/ers/ijfirm/v14y2024i2p113-130.html
   My bibliography  Save this article

The Role of Accounting Information System (AIS) in the Public Sector Budgetary Decision-Making Processes: Evidence from Bangladesh

Author

Listed:
  • Niluthpaul Sarker
  • Md. Jamil Sharif

Abstract

Purpose: This study explores the role of Accounting Information Systems (AIS) in public-sector decision-making processes within the context of Bangladesh. The study has three primary objectives: to examine the role of AIS in budget planning, approval, and implementation. Design/Methodology/Approach: This study adopts an exploratory approach, collecting data from both primary and secondary sources. The objectives were logically addressed using evidence to analyze the role of AIS based on an input-output framework. Findings: The study revealed that the Accounting Information System (AIS) alone is not sufficient for an effective budgetary process. Budget planning is influenced by the strategic goals of ministries and political agendas. In contrast, the budget approval process is formal, legal, and largely routine. Notably, the use of AIS, particularly through the IBAS++ system, streamlines the process and minimizes time delays. However, the implementation process remains problematic due to significant variances between actual and budgeted outcomes. Practical Implications: The study highlights that budgets in state government policies are often used symbolically rather than instrumentally, primarily due to political affiliations. Modernizing the Accounting Information System (AIS) in public sector financial management can enhance accounting accuracy, accountability, and governance, particularly in developing economies like Bangladesh. Originality/Value: The effective use of information technology enhances service quality, streamlines administrative processes, reduces delays, minimizes budget variances, and improves public service delivery. While service quality in the public sector is not fully satisfactory, there is significant potential for advancing technology and ensuring its proper utilization in public services. This study contributes to the existing literature and opens avenues for future research. However, its scope is limited by the unavailability of secondary data and restricted access to government officials for in-depth interviews.

Suggested Citation

  • Niluthpaul Sarker & Md. Jamil Sharif, 2024. "The Role of Accounting Information System (AIS) in the Public Sector Budgetary Decision-Making Processes: Evidence from Bangladesh," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 14(2), pages 113-130.
    • Handle: RePEc:ers:ijfirm:v:14:y:2024:i:2:p:113-130
    as

    Download full text from publisher

    File URL: https://journalfirm.com/journal/388/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pawan Adhikari & Frode Mellemvik, 2011. "The rise and fall of accruals: a case of Nepalese central government," Journal of Accounting in Emerging Economies, Emerald Group Publishing Limited, vol. 1(2), pages 123-143, July.
    2. Diamantopoulos, Adamantios & Souchon, Anne L., 1999. "Measuring Export Information Use: Scale Development and Validation," Journal of Business Research, Elsevier, vol. 46(1), pages 1-14, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:bfv:journl:037 is not listed on IDEAS
    2. Leonidou, Leonidas C. & Theodosiou, Marios, 2004. "The export marketing information system: an integration of the extant knowledge," Journal of World Business, Elsevier, vol. 39(1), pages 12-36, February.
    3. Nguyen, Tho D. & Barrett, Nigel J. & Fletcher, Richard, 2006. "Information internalisation and internationalisation--Evidence from Vietnamese firms," International Business Review, Elsevier, vol. 15(6), pages 682-701, December.
    4. Leonidou, Leonidas C. & Katsikeas, Constantine S., 2010. "Integrative assessment of exporting research articles in business journals during the period 1960-2007," Journal of Business Research, Elsevier, vol. 63(8), pages 879-887, August.
    5. Keszey, Tamara, 2018. "Trust, perception, and managerial use of market information," International Business Review, Elsevier, vol. 27(6), pages 1161-1171.
    6. David Eshun Yawson, 2020. "Understanding Consumer Information Use in Small Businesses: The Determinants and Performance Outcomes," International Review of Management and Marketing, Econjournals, vol. 10(5), pages 50-62.
    7. Muhammad Usman & Muhammad Bilal Kayani & Faisal Haroon & Muhammad Aslam Khan, 2012. "The Impact of Marketing Mix and Market Orientation on Export Performance," Journal of Economics and Behavioral Studies, AMH International, vol. 4(1), pages 66-71.
    8. Sánchez, José M. & Vélez, María L. & Ramón-Jerónimo, María A., 2012. "Do suppliers' formal controls damage distributors' trust?," Journal of Business Research, Elsevier, vol. 65(7), pages 896-906.
    9. Utz Schäffer & Michael Zyder, 2007. "Eine Analyse des moderierenden Einflusses der Faktoren Wettbewerbsintensität, Marktdynamik und dezentrale Autonomie auf die erfolgreiche Gestaltung der Budgetierung," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 18(1), pages 7-33, April.
    10. Alexandru Adrian Ţole & Nicoleta Cristina Matei, 2016. "Executive Information Systems’ (Eis) Structure And Their Importance In Decision-Making. A Comparison Between Decision Support Computer Systems," Romanian Economic Business Review, Romanian-American University, vol. 10(1), pages 194-207, May.
    11. José Manuel Hurtado & Inés Herrero, 2024. "Board of directors and firm resilience from a social capital perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 2770-2782, July.
    12. Walter Amuko & Stephen W. Kalule & Walter Odongo, 2023. "The relationship between market information and entrepreneurial orientation: the case of smallholder honey producers in Northern Uganda," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-17, December.
    13. Angell, Robert J. & Megicks, Phil & Memery, Juliet & Heffernan, Troy W., 2014. "Older shopper types from store image factors," Journal of Retailing and Consumer Services, Elsevier, vol. 21(2), pages 192-202.
    14. Jeong Hugh Han & Hyun-Yong Park, 2019. "Sustaining Small Exporters’ Performance: Capturing Heterogeneous Effects of Government Export Assistance Programs on Global Value Chain Informedness," Sustainability, MDPI, vol. 11(8), pages 1-24, April.
    15. Mogos Descotes, Raluca & Walliser, Björn & Holzmüller, Hartmut & Guo, Xiaoling, 2011. "Capturing institutional home country conditions for exporting SMEs," Journal of Business Research, Elsevier, vol. 64(12), pages 1303-1310.
    16. Josée St-Pierre & Marie-Christine Longe Monnoyer & Martine Boutary, 2006. "Le rôle des TIC sur le degré d'exportation des PME : une étude exploratoire," Post-Print hal-02551395, HAL.
    17. Josée St-Pierre & Marie-Christine Monnoyer & Martine Boutary, 2006. "Le rôle des TIC sur le degré d'exportation des PME : une étude exploratoire," Post-Print hal-01704728, HAL.
    18. Kahia, Montassar, 2017. "The key factors of export intensity in Tunisia: A Logistic regression with random effect model," MPRA Paper 77278, University Library of Munich, Germany.
    19. Stoian, Maria-Cristina & Rialp, Alex & Rialp, Josep, 2011. "Export performance under the microscope: A glance through Spanish lenses," International Business Review, Elsevier, vol. 20(2), pages 117-135, April.
    20. M. Rozaidy & A. K. Siti-Nabiha, 2023. "Reconstructing identity and logic through the implementation of accrual accounting in Malaysia: an intra-organisational analysis," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(1), pages 331-370, March.
    21. Christophe Haon & David Gotteland & Marianela Fornerino, 2009. "Familiarity and competence diversity in new product development teams: Effects on new product performance," Marketing Letters, Springer, vol. 20(1), pages 75-89, March.

    More about this item

    Keywords

    Accounting Information System (AIS); budgetary decision; public sector; financial management.;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijfirm:v:14:y:2024:i:2:p:113-130. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://journalfirm.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.