Contingency Factors and Accounting Information System Design in Jordanian Companies

This paper examines the relationship between three contingency factors and the sophistication of AIS design. Questionnaires were distributed to 220 companies listed on Amman Stock Exchange, Jordan. The results reveal significant and positive relationships between four dimensions of IT sophistication and AIS design, and between two dimensions of business strategies and AIS design. However, no significant relationship was found between environmental conditions and the sophistication of AIS design. Interestingly, findings from this study reveal managerial IT sophistication, informational IT sophistication and functional IT sophistication are more important than technological sophistication in influencing AIS design. On the other hand, cost leadership strategy was found to be more important than innovation differentiation strategy in influencing AIS design. Overall, cost leadership strategy appears to be the most important factor that influences the sophistication of AIS design. Findings from this study imply that the sophistication of AIS design can be achieved by investing not only in the technological aspect of IT implementation but more importantly its managerial, informational and functional sophistication. Findings from this study have deepened current understanding of AIS design and its influence factors, and provided useful insights into the sophistication of IT development in Jordan. More importantly, it opens up possibilities for further studies of AIS in Jordan and other Middle East countries, and on a global basis.