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Accounting and Information Systems in Irish Family SME: Professionalisation Effects

Author

Listed:
  • Martin Quinn

    (Queen’s Management School, Queen’s University, United Kingdom)

  • Peter Cleary

    (Cork University Business School, University College Cork, Ireland)

  • Catherine Batt
  • Pall Rikhardsson

    (Copenhagen Business School, Copenhagen, Denmark)

Abstract

Research Question - Does the use of IS in family businesses differ significantly from non-family businesses? Does professionalisation of accountants positively impact the use of IS, and is there a difference between family and non-family businesses? Motivation - Research indicates family businesses have more limited implementation and use of information systems (IS) coupled with less accounting and control. As accounting is a primary user of IS, this paper explores if professionalisation of accounting may explain such reported differences in IS use. Idea - This study tests two hypotheses around IS use and professionalisation of accounting. Using a more refined measure of professionalisation of accounting than previous. Data - Data was collected from a survey of CFOs in a country with a strong family business tradition and strong professional accounting bodies. A response rate of 30% was achieved. Tools - A Mann-Witney test coupled with binary and multi-nominal regressions were used to test the hypotheses. Findings - Although professional accountants’ presence is a significant explanatory variable, the results show no significant difference in IS use between family and non-family-owned firms. However, contrary to similar studies in countries without strong professional accounting bodies, the analysis suggests that professionalisation is a significant explanatory factor in the similarities found. Contribution - By applying a more refined measure of professionalisation of accounting, this study provides a useful basis for further exploration of the professionalisation of the accounting function in family firms and links to IS use.

Suggested Citation

  • Martin Quinn & Peter Cleary & Catherine Batt & Pall Rikhardsson, 2021. "Accounting and Information Systems in Irish Family SME: Professionalisation Effects," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 20(3), pages 454-476, September.
    • Handle: RePEc:ami:journl:v:20:y:2021:i:3:p:454-476
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    More about this item

    Keywords

    information systems (IS); accounting; family businesses; professionalisation;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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