Structural Equation Modeling of Factors that Affected on Accountability Office Performance in Thailand

Transcription

1 International Journal of Finance and Accounting 2015, 4(4): DOI: /j.ijfa Structural Equation Modeling of Factors that Affected on Accountability Office Performance in Thailand Benjapat Wutthanakul *, Chanidapa Deesukanun Department of Accounting, Bangkok Thonburi University, Thailand Abstract The purpose of this study is to investigate the factors affecting financial of accountability office in Thailand and to analyze the structural equation model of the factors affecting the success of the operation of accounting quality in Thailand. Concept idea of the framework was brought from literature review, which shows the relationship of the 3 variables. 1) Knowledge management. 2) Management of services. 3) Financial performance. The sample consisted of 400 accountant of accountability office in Thailand. The researcher used random sampling system to collect data by questionnaire. The data were analyzed using structural equation modeling analysis. The results showed that the factors of knowledge management and service management, affecting financial of accountability office in Thailand and found that the model was fit to the empirical data at the level of significance 0.01, which both variables on the performance of direct finance. Keywords Performance financial, Knowledge management, Management services 1. Introduction Service industry plays an important role in the economics of the world including Thailand. Services sector can make money in developed countries like the United States 73% of gross domestic product of the country. However this happens all over the world, and especially the free trade of the world, which make new trade in services to support the expansion of trade and investment from such causes then. The rate of service charge is much higher. It is estimated that the high service costs about fifty percent of household expenses, which this trend appears in both developed countries and developing country. This trend is expected to continue to rise passive (Department of industrial: 2013) [1]. For business accounting office are getting the tendency of a good market because the government promote and support the cover element of small and medium enterprises or SMEs makes a number of enterprises more and more. The increase in the number of foreign businesses to invest in Thailand, according to the Department of revenue increase their efficiency of tax inspection such as beginning to use computer data processing and check the tax businessman profile so they begin to pay attention to the tax correctly and the importance of accounting now concerned so the use of services from accounting offices are getting bigger. (Faculty of Commerce and accountancy, Thammasat University, the 2011) [2]. * Corresponding author: benjapat_acc@yahoo.com (Benjapat Wutthanakul) Published online at Copyright 2015 Scientific & Academic Publishing. All Rights Reserved From the current employment services from outside (Outsourcing Service) as many entrepreneurs born, there is a need of organization with the functions of service work in accounting, taxation and other services Including business planning services in order to reduce the cost in the management. The entrepreneurs have more time by performance only main administration that needed only experts to response for their own job. For those who have special knowledge are needed by increasing of the demand on the market. We spot opportunities, and the importance of service in accounting, taxation, and other services. Comprehensive efficiency of those services made the accounting office to maintain quality control system to provide confidence to make sure that office and staff abide by the professional standard and legal requirements involved. Whether it is the large office of account or medium or small accepted that regulations, In order to accounting standard and quality operation account equal and prevent gaps between the office of each size to step into international standard. In Thailand, accounting office are mostly small and medium sizes (or Non Big 4 Firms) which has been impacted of trade liberalization in terms of both the availability of each office. The rising cost of improvements and changes to step into the competition and the accounting office has alertness to prepare itself, to achieve desired. But at the same time the accounting office, many of which face the problem of trade liberalization due to it is not ready both in manpower budget and planning and policy and communication within the office, also tracking performance, information technology, etc., especially the small accounting office, (Bangkok: http: / / [3].

2 International Journal of Finance and Accounting 2015, 4(4): Figure 1. Framework research From the origin and importance above, the researcher that hurdled to the operation key is ready in information technology, the business environment and the service quality of SMEs so the researcher wants to study the structural equation modeling of factors that affected on accountability office performance in Thailand, including the knowledge management and management of services. 2. The Purpose of the Research The research on the structural equation models of factors affecting the financing of the accountability office in Thailand are to. 1. To study the factors affecting financial of accountability office in Thailand. 2. To confirmatory factor analysis of the factors affecting the quality of financial accountability office in Thailand. 3. Framework The concept research objective is to study the factors affecting the performance of the office of financial accounting in quality, and to analyze the structural equation model of the factors affecting the success in the implementation of the accounting quality in Thailand. To bring the development concept by creating a framework for research. Service management, the concept and the theory of Ziethaml Parasuraman and Berry (1990) [4] the concept of academic group focus on quality and service excellence or about superiority of the service. Seriously. Knowledge management. The concepts and theories of knowledge management process and SECI Model of Nonaka Takeuchi (1995) [5] proposes that the knowledge of people, can be divided into 2 types. These include knowledge explicitly (Explicit Knowledge) and tacit knowledge (Tacit Knowledge) the knowledge of both types are important to the organization. Financial performance by using the concept of index balance success (Balanced Scorecard: BSC) of Kaplan & Norton. (1992) [6] the measured from the financial perspective (Financial perspective) due to a point or success in the whole of measurement in view of others. The expansion of its existing customers, market penetration market development. Cost reduction / cost, which can show the popular illustration. 4. Methodology In this research tested the hypothesis that consists of framework the relationship of the variables are as follows. 1. Knowledge management is positively related to financial performance. 2. Services management is positively related to financial performance. 3. Knowledge management has positive relationship with management services. The method of the research. The descriptive research is used in this research to find the facts in the present. The exploratory research is used to define relation survey between variables. Secondary information data collect is from reading to gather information from books, articles, and research data is collected from the primary data 400 example (sample survey reach) which the majority of researchers consider that the sample size is suitable to represent the business accounting quality for determine the size of samples for use in a multivariate analysis used in the analysis of latent variables in a structural equation model (Structural. Equation Modeling-SEM) Tabachnick and Fidell (2001) schedule about sample size should be at least 400 samples. In

3 216 Benjapat Wutthanakul et al.: Structural Equation Modeling of Factors that Affected on Accountability Office Performance in Thailand accordance Taro Yamane (1973) said that if the population is large, at least a sample study 400samples at the sampling error at 5 percent. Research instruments The query is the rating scale 5 level according to the gauge Likert Rating Scale (Likert scale). Query performance in Finance (Kaplan & Norton 1992) [6] consisting of 3 factors that are earnings growth, market penetration and maintaining existing customers that were 3 items of questions, new market development with 2 items of questions and 3 items of the reduction the cost / expense: total 8 items. The knowledge management questionnaire (Nonaka & Takeuchi 1995) [5] consists of 3 factors, development knowledge of 5 questions, using the information technology 4 questions, and knowledge of the personnel 4 questions: total 13 items. Data management service (Ziethaml Parasuraman and Berry 1990) [4] consists of 3 factors is the general services of 6 items, measuring quality of service of 7 items and measurement model of service 7 items: total 20 items. Data analysis Using the statistical software to analyze descriptive statistics basic (Descriptive Statistics) percentage in the measurement of personal characteristics of the respondents mean and standard deviation (SD.). Check the hypothesis model relationship structural model (Structural Model) to test the consistency of the model with empirical data by using the software package LISREL (LISREL Version 8.80) to analyze the harmony of the model (Goodness of Fit) which ratio chi-square with degrees of freedom ( 2 /df). The root mean square difference (RMSEA) estimated relative consistency (Relative Fix Index) the Normed Fit Index. (NFI) and Comparative Fit Index (CFI) and the root of the root mean square of the left index standardization (SRMR). In the reference summary statistics to answer hypotheses, with path analysis (Path analysis) by using linear structural relationship model. The LISREL model (Linear Structural Relationship Model or LISREL Model) by using the principle of structural equation analysis (SEM) program. LISREL the direct influence (Direct Effect) and indirect (Indirect Effect) and the total effect (Total Effect) of knowledge management. Service management and financial performance are the factors of individual variables, with confirmatory factor analysis in a variable. 5. The Result Found that the harmony of the index model cause factors affecting the performance of the financial accounting office quality testing the consistency of the causal model of the factors affecting the operation of the office of financial accounting quality in the consistency of the model is determined by the chi-square 2 /df. GFI AGFI CFI RMSEA RMR showed that the model was fit to the empirical data, the easy to drinking from Supamart Ungsuchort, Somtawin Vijitwanna and Ratchaneekool Pinyopanuwat, (2011: 29) [7] Said the acceptable value of validity analysis causal relationship were not significant, chi-square 2 /df is less than 2.00 value. RMSEA RMR less 0.05 value GFI AGFI NFI CFI 0.95 and more. means through the test results the index used to check consistency and harmony of the seating with empirical data (source of criteria: Supamart Ungsuchort, Somtawin Vijitwanna and Ratchaneekool Pinyopanuwat, 2011, P ) [7] When considering the influence of direct and indirect affecting the variables performance of finance. It was found that the variables the direct influence are knowledge management (KM) and management services (SV) with the size and influence of 0.24, 0.43 respectively, which is the influence level of performance 0.01 besides financial also influenced indirectly from knowledge management (KM), with an effect size of 0.20 which is the influence level of Table 1. Index used to check consistency and compatibility of the data management model of giant Number value criterion A first adjustable A last adjustable P-value More than /df Less than RMSEA NFI 0.95 up CFI 0.95 up RMR Less than GFI 0.95 up AGFI 0.95 up

4 International Journal of Finance and Accounting 2015, 4(4): Figure 2. Structural equation models of the factors affecting the financing of quality of accounting office in Thailand (from using computer program) numbers from the estimated cost: Chi-Square =, =, DF 23 p-value =, =, RMSEA Table 2. Statistical comparative analysis route influence between variables Dependent variable Service quality (SV) overall operation (PER F) The independent variable TE IE DE TE IE DE Knowledge management (KM) 0.46** ** 0.44** 0.20** (0.05) - (0.05) (0.05) (0.03) Management services (SV) ** (0.06) - SEM SV PER F R-SQUARE ** (0.04) 0.43** (0.06) Note * * p-value < 0.01, * p-value < 0.05 numbers in the nail is the standard deviation (SE), DE = direct relationship, relationship, IE = indirect. TE = relationship included. 6. Discussion Financial performance has direct influence from the knowledge management significance level, The path coefficient of 0.24 (Hypothesis 1), which the research results are consistent with the research of Lawson Sheron, (2003) [8] was presented. Knowledge management help the organization to succeed and to increase the competitive advantage as well and in accordance with the Ba 2004; Lee, and. Suloco 2007; Trevor 2006 It is found that the knowledge management can make the performance of the business. Success, as well as Adekunle (2003 p.99), [9] the research on Knowledge Management and Global Diversity: A Framework. To Support Organizations in Developing Countries found that the knowledge management. What has become very important in creating a sustainable competitive advantage of business organizations. Management services have positive influence on the performance of financial variables, The path coefficient of 0.24 (Hypothesis 2). So when the accounting office with general services measurement of quality of service, the measurement model of service level will make the financial accounting office's performance in a higher level. The results of this research in accordance with the structures of Chang & Fong. (2010) [10] found that the quality of service, affect the satisfaction and loyalty of customers. The operation and good service as a source of competitive advantage and contribute to the long-term operation of business as well as Jiju Anthony s research (2004) [11] found that service quality has a positive relationship with the performance of the business while Battor & Battor. (2010) [12] found the ability to customer relationship management (CRM) in the field of focus on building a relationship with customers, the process of the

5 218 Benjapat Wutthanakul et al.: Structural Equation Modeling of Factors that Affected on Accountability Office Performance in Thailand business,information about the customer relationship with the performance of the business (the ability making profit, return on investment, market share, customer satisfaction, customer retention and growth of sales). From the analysis also found that management service has been influenced by indirectly from the variable knowledge management on accounting office quality is development knowledge. The uses of information technology and expert staffs make the accounting quality capability service management on a higher level. Thus, this corresponds to the Chen & Ching (2002) [13], Coltman (2010) [14] mentioned in the same manner. The implementation of customer relationship management (CRM) is used in business. The ability of information technology, the single factor is not enough to make a good business performance requirement about the correct understanding of customer information is what makes good business can decide on the basis of having enough information. In conclusion, this research study has knowledge about performance in view of financial accounting quality. The company should pay attention to the knowledge management, and management services. 7. Suggestions from the Results of the Research Suggestions on the management. In order to accounting estimates, administrators, which is responsible for business management should give priority to use it as a tool to raise the level of business performance The accounting office should pay attention to the cause factors both 2 factors are knowledge management and management service, because cause factors both 2 such factors influencing the operation of finance. Which led to the accounting office have a competitive advantage, and has good performance in which the information model of the factors affecting financial of accounting quality of their validated with empirical data and information office accounts can be used as a guideline to increase the financial performance. Suggestion for the next research. The purpose of this thesis is the quantitative research so the data is on a wide scale, but not deep down in details. Those interested may bring the concept to do the research mixes or focus on the qualitative research. The study variables, knowledge management Service management is to increase the performance of more sustainable accounting office in the next research should study other factors that affected on the performance both as an industry, finance and money such as customer satisfaction, etc. REFERENCES [1] Department of industrial, (March-April), get ready SMEs to AEC ASEAN Economic Community in the Journal of industrial promotion. That year2011, p 5. [2] Thammasat University A list of book keeping.faculty of Commerce and accountancy, Thammasat University, the 2011 [3] Bangkok Business, 2013, The development of the accounting profession Thailand when economic liberalization, Journal University; Executive Journal 2013, p 20. from online Desember14, 2014]. [4] Parasuraman, A., Berry, L.L. & Zeithaml, V.A. (1990). Delivering quality service: Balancing customers pereceptions and expectations. New York: Free. [5] Nonaka I., Takeuchi H., (1995). The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation. Oxford University Press. New York. [6] Kaplan, R., & Norton, D. (1992). The balanced scorecard - measures that drive performance. Harvard Business Review, 70, [7] Supamas Angsuchoti, Somtawin wijitwanna, & Ratchaneekool pinyopanuwat (2011). Statistical analysis. For the social and behavioral sciences research: techniques to use the program. LISREL (type II 3) Bangkok: thrive well stable printing. [8] Lawson, Sheron (2003). Examining the relationship between organizational culture and knowledge management. Nova Southeastern University. United States Florida. [9] Adekunle, O. O. (2003). Knowledge Management and Global Diversity: A Framework to Support Organizations in Developing Countries. Finland: Department Information Technology. University of Turkey [10] Chang, N.J., & Fong, C.M. (2010). Green product quality, green corporate image, green customer satisfaction, and green customer loyalty. African Journal of Business Management, 4(13), [11] Jiju Antony. (2004) Design of Experiments for Engineers and Scientists. Oxford: Butterworth-Heinernann. [12] Battor, M., & Battor, M. (2010). The impact of customer relationship management capability on innovation and performance advantages: Testing a mediated model. Journal of Marketing Management, 26(9-10), [13] Chen, J.S., & Ching, R.K.H. (2002). 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