AIS and XBRL – Designing With Best Practices Overview

Published by the Society for Alliance, Fidelity and Advancement (SAFA) 171

International Journal of Business and Management Science (ISSN 1985-692X)

www.safaworld.org/ijbms 12

Submission email: [email protected]

Chief Editor

Mohammad Safa

Special Issue Editor

Zuraidah Mohd Sanuasi

Universiti Teknologi MARA, Malaysia

Forces of Accounting Information System: Organizational Change and Governance of

A Malaysian Agricultural Company

a Kamaruzzaman Muhammad,

b Nor’Azam Mastuki,

c Faizah Darus,

d Erlane K Ghani*,

abcd

Universiti Teknologi MARA, Malaysia

*Corresponding author: [email protected]

1 Copyright @ 2017, Mohammad Safa: Unless otherwise noted, copyrights for the texts which comprise all issues

of the International Journal of Business and Management Science (IJBMS) are held by the copyright owner.

Items published by IJBMS may be freely shared among individuals, but they may NOT be republished in any

medium without written consent from the copyright owner. In order to discuss any relevant issues or acquire permission for reprint or reuse of data, please contact the editors at [email protected]. 2 Disclaimer: Facts and opinions published in the International Journal of Business and Management Science

(IJBMS) express solely the opinions of the respective author(s). Author(s) are responsible for citing sources and the accuracy of their references. The editors cannot be held responsible for any lacks or possible violations of

third parties‟ rights. If any misconduct found in any published items, the relevant party may contact the editors for

suggestions.

Forces of Accounting Information System ISSN 1985-692X

172 International Journal of Business and Management Science, 9(2): 171-193, 2019

Abstract: Understandably, organisation that experiences organisational change

faces different ways of change and means of solving issues surrounding such

change. Specifically, this study focuses on the change of accounting information

system (AIS) and governance in an agricultural company. A case study approach

using triangulation method is employed. A key finding in this study is that the

external forces; government‟s economic decision and regulator‟s guidelines wields

a significant impact on organisational stability and good governance. This impact is

not limited to a small fraction of an organisation, such as AIS, but extends to a

bigger fraction, such as the business model, corporate structure and listing of the

organisation.

Keywords: Accounting Information System; Organisational Change; Isomorphism,

Agricultural Company; Malaysia

INTRODUCTION

Organisational change arises when an organisation undergoes a transformation in

its operational structure and activities to improve performance. Understandably,

each organisation that experiences organisational change faces different ways of

change and means of solving issues surrounding such change. Organisational

change can be triggered by external forces, such as a government policy on a

particular industry. It can also be triggered by a change in the standards and

procedures of regulatory bodies, consistent with the coercive isomorphism of

institutional theory, which suggests an organisational change is often triggered by

the external parties they depend on (DiMaggio and Powell, 1983). Organisational

change can also be influenced by professionals and consultants who create norms

of practices, consistent with the normative isomorphism. In addition,

organisational change can be triggered by internal forces that occur within a

company, such as the implementation of new business strategies or the

restructuring of major functions, owing to the pressure of maintaining a

competitive edge and new ideas or practices. This situation is consistent with

mimetic isomorphism, which argues that an organisation tends to imitate another

organisation's practices because it believes the practices of the latter are more

efficient and beneficial. The effect of organisational change in a company, when

applied accordingly, often leads to desirable consequences for the users,

organisations and other interested parties, and ultimately, organisational success.

A question arises at the organisational level (OL). In reality, will a change at

the economic and political (PE) level, such as a government policy, affect an

organisation and lead to organisational change? If yes, does it impact the small

functions of the organisation, such as the structure of the accounting information

system (AIS)? In organisational change literature, studies have mainly focused on

organisational change from the management accounting perspective. These studies

provided some evidence from the perspective of the impact of adopting a new

management accounting system to the patterns of human behaviour within an

organisation (Anderson and Young, 1999; Shields, 1995; Argyris and Kaplan,

1994). Other studies on organisational change also discussed the evidence on the

obstacles to accounting change, such as human resistance to management

accounting change. Some studies examined the effect of privatisation on

Forces of Accounting Information System ISSN 1985-692X

International Journal of Business and Management Science, 9(2): 171-193, 2019 173

accounting change (Yonnedi, 2009). However, the impact of the government‟s

policy on a small function of an organisation, such AIS, remains largely

unexplored.

This study aims to increase our understanding on the forces of AIS

change in an agricultural company in Malaysia. The findings serve as

guidelines for business practices and contribute to the academic knowledge

and literature. The findings of this study provide insight to practitioners on

how the government involves private companies in stimulating the nation‟s

economic growth through changes in the economic fundamentals. This

study becomes more interesting because the economic policy reforms that

are being carried out through the ETP are drastic changes that have never

been undertaken in other countries. In addition, the findings in this study

also contribute to the information systems literature, particularly, on AISs.

Most of the studies that have focused on organisational change are within

the management accounting literature. Studies that have examined

organisational change and its impact on the AIS are sparse in number;

hence, there is a significant research opportunity in this area. The present

study has not only contributed to the accounting literature by introducing a

new dimension of organisational change from the AIS perspective but also

contributes to the AIS literature by incorporating the theories commonly

used in the management accounting literature. This study also goes beyond

the commonly examined issues relating to individual behaviour and extends

to organisational behaviour. The remainder of this paper is structured as follows. Section 2 provides the

literature review. Section 3 presents the overview of the company under study.

Section 4 discusses the research framework. Section 5 outlines the research design.

Section 6 analyses and discusses the findings. Section 7 concludes this study.

LITERATURE REVIEW

Research on organisational change has recently expanded to the AIS because of

the realisation that AIS encompasses technical and social contexts. Such

realisation has caused researchers to examine the impact of the organisational

change on not only the technical aspects of the AIS but also on the behaviours and

attitudes of people within the organisation. Organisational change in AIS can be

caused by many reasons (Yazdifar and Tsamenyi, 2005; Scapens, Ezzamel, Burns,

and Baldvinsdottir, 2003). A response to external forces, such as government laws

and political change, or internal pressures, such as the nature and complexity of

the organisation, can cause the AIS to change (Greenwood and Hinings, 1996).

Change is regarded as pressure from an organisation‟s external environment and

the actions of people in the organisation (Greenwood, Diaz, Li, and Lorente,

2010). The interaction between external and internal pressures shapes the process

of AIS change (Moll and Hoque, 2008; Scapens, 2006). Such outcome leads to the

interplay between internal and external pressures as a key element in the

accounting information change in an organisation.

Forces of Accounting Information System ISSN 1985-692X

174 International Journal of Business and Management Science, 9(2): 171-193, 2019

A body of organisational change literature identified that the interplay between

the external and internal pressures is important in understanding change. This body

identified the differences between exogenous and endogenous forces affecting

change (Liguori and Steccolini, 2012). The studies in this body of literature used

various frameworks to understand change. For example, Burns and Scapens (2000)

extended their framework to include the external environment and explained the

interaction between internal and external forces of change (NorAziah and Scapens,

2007; Ribeiro and Scapens, 2006). These studies, which are valuable contributions

to the field of management accounting change, focused on the process of change,

such as power, politics (Ribeiro and Scapens, 2006) and trust (NorAziah and

Scapens, 2007). However, they did not explain how the criteria and practices at the

inter- and intra-organisational levels are linked.

Dillard, Rigsby, and Goodman (2004) developed a theoretical framework

which incorporates institutional theory and Weber‟s ideas on rationality and power

and structuration theory. Dillard et al. (2004) model is particularly useful in

explaining the interplay between external and internal organisational forces in the

process of change. The framework provides a theory that explains how external

and internal forces are interlinked and shape the process of management

accounting change (Wanderley, Cullen and Tsamenyi, 2011; DiMaggio and

Powell, 1983). Dillard et al. (2004) suggested that the process of

institutionalisation moves in a cascading manner through three levels of socio-

historical relationships, namely, PE level, organisational field (OF) level and OL.

Their framework considers institutional theory by treating institutionalisation as a

political process that reflects the relative power of organised interests and the

actors around them. The first element of institutional theory argues that

organisations tend to conform to beliefs and values of other organisations which

would lead to homogenisation within an OF through isomorphism (Dillard et al.,

2004; DiMaggio and Powell, 1983). Isomorphism refers to a constraining process

that forces one unit in a population to be similar to other units (DiMaggio and

Powell, 1983), comprising of coercive, mimetic and normative isomorphism. The

second element of institutional theory is decoupling, which relates to organisations

varying their activities in response to practical considerations to resolve conflicts

between ceremonial rules and efficiency (Dillard et al., 2004).

CASE STUDY

ALPHA 3 company is used as the case in this study. The company is principally an

investment holding company with investments primarily in oil palm plantation and

its related downstream activities, sugar refining, trading, logistics, marketing,

rubber processing, research and development activities and related agribusiness

activities. ALPHA was established in 2007 initially as the commercial arm for the

overseas market of BETA 4 group. ALPHA has embarked on global expansion

3 For reasons of confidentiality, the real name of the company under case study is not disclosed and

„ALPHA‟ is used as a pseudonym instead. 4 BETA was established on July 1, 1956 under the Land Development Ordinance of 1956 as part of

the social engineering programme to eradicate poverty in rural communities through the land

resettlement scheme. BETA was initiated by the second Malaysian Prime Minister, the late Tun

Forces of Accounting Information System ISSN 1985-692X

International Journal of Business and Management Science, 9(2): 171-193, 2019 175

across several countries through share acquisition in foreign and local companies.

From 2009 to 2012, ALPHA invested in several foreign countries through the

share acquisition of foreign companies involved in fatty acids, oilseed crushing

facility and food-grade oil refinery. ALPHA‟s international operations are in the

upstream and downstream oil palm chain as well as diversified across the agri-

business value chain, particularly in the areas of oleo chemicals, soybean and

canola crushing. Through a foreign joint venture company, ALPHA has interests

in palm oil refineries and downstream processing facilities in Indonesia, China,

Turkey and South Africa.

Investment in Indonesia was made through an investment in a related

company which owns 42,000 hectares of oil palm estates in East and Central

Kalimantan, Indonesia. ALPHA also acquired shares in another company that

owns 14,385 hectares of land in West Kalimantan, Indonesia which was initially

intended for the development of an oil palm plantation. In Canada, ALPHA is

involved in processing canola seed and soybean and their related by-products

through its related companies. In the United States, ALPHA is involved in the

procurement, processing and supply of fatty acids through its related companies,

and it has sales and marketing offices in France and Spain. In Malaysia, ALPHA‟s

business is involved in plantation activities, mainly in operations of oil palm

plantation and rubber estates. ALPHA is also involved in downstream oil palm

refining activities. It is the leading refined sugar producer in Malaysia through its

subsidiary company.

ALPHA was listed on Bursa Malaysia through initial public offerings (IPO)

on 28 June 2012. Since then, ALPHA has been entrusted to take over the entire

business of BETA, which was previously handled by FAB. FAB was established

in 1995 as a subsidiary of BETA to rationalise its business activities as a

commercial land developer. FAB was also responsible for assisting the

settlers in replanting and providing management services to oil palm

holdings, such as terracing, replanting, crop establishment, fertilising, crop

management, harvesting and transportation of FFB to oil palm mills. ALPHA aims to be a leader in the global arena, with various diversified agro-

business activities. Consequently, the listing exercise led to a significant

organisational change in ALPHA.

This study uses the framework developed by Dillard et al. (2004) to explain the

interplays between forces of AIS change in ALPHA. The framework was

developed based on institutional theory. The current study stems from old

institutional economics (OIE) and new institutional sociology (NIS) to explain the

forces that eventually caused significant changes in the AIS structure of ALPHA.

It uses OIE to understand the development and modification of the AIS structure

within ALPHA. This study also relies on NIS, which focuses on the organisation

and its systems and practices (DiMaggio and Powell, 1991) and assumes that intra-

organisational structures and procedures are largely shaped by external factors.

Figure 1 exibits Dillard et al.‟s (2004) framework, which suggests that the

institutionalisation process moves in a cascading manner through three levels of

Abdul Razak, with technical and financial assistance from the World Bank to support the land

resettlement schemes (Scudder, 1985). The real name of BETA is not disclosed for confidential

reasons.

Forces of Accounting Information System ISSN 1985-692X

176 International Journal of Business and Management Science, 9(2): 171-193, 2019

socio-historical relationships, namely, PE, OF and OL. The PE level refers to

dissemination of general taken-for-granted norms throughout the society. The OF

level refers to translation of the social, PE parameters which are expressed in the

general taken-for-granted norms into the OF criteria. On the other hand, the OL

refers to OF practices which have provided the legitimacy and regulative basis for

action (Cruz, Perez, and Cantero, 2009).

Economic & Political Level (PE)

Power

Distribution

CPE

C‟PE Power

Distribution

Organisational Field Level (OF)

COF = f(CPE)

POF = f(COF)

P‟OF

C‟OF

Organisational Level

Innovators (I) PI = f(POF) &/or

f(COF)

Later Adoptors (LA) PLA = f(PI) &/or

f(COF)

Ci = criteria

Pi = practice

Additional Key for the Dillard et al. (2004) Framework:

CPE : Criteria at (Socio) Economic and Political Level

COF : Criteria at Organizational Field Level

POF : Practice at Organizational Field Level

PI : Innovators‟ Practice (at organizational level)

PLA : Late Adopters‟ Practice (at organizational level)

f : Function of

P‟OF : Reinforced/Revised/New Practice at Organizational Field Level

C‟OF : Reinforced/Revised/New Criteria at Organizational Field Level

C‟PE : Reinforced/Revised/New Criteria at (Socio) Economic and Political

Level

Figure 1: Research framework

Dillard et al. (2004) framework proposes that „the institutionalization process

occurs hierarchically by linking the PE level with the OF level. The PE level

establishes the most general and widely accepted norms and practices (taken-for-

Forces of Accounting Information System ISSN 1985-692X

International Journal of Business and Management Science, 9(2): 171-193, 2019 177

granted norms) influenced by politically developed symbolic criteria (CPE), such

as accounting principles, laws and regulations. These norms and practices tend to

be strongly influenced by power distribution and represent macro context for

resource allocation (Dillard et al., 2004, p. 512). The OF level includes

socioeconomic configurations, such as industry groups, professional bodies and

consultants. The social PE factors embedded in the PE level enter the OF level

through the OF criteria (COF), which are functions of the societal-level criteria

(CPE). COF grants legitimacy for the actions at the OF level, while CPE supports

a legitimacy for COF existence. The practices within the OF are functions of the

COF and provide a legitimate regulative base for action at OL.

The proposed research framework developed in this study explains that the organization practices in an organization are not only confined to internal factors

such as task-related or organizational operations but also extend to external factors

such as at the economic, political and organization field levels, which infuse the

organizational structures and procedures. The framework shows that the process of

organizational change moves in a sequential manner through the three levels of

socio-historical relationship. The organizational change starts with the pressure for

change from the PE level, which influences the actions of parties at the OF level

(external forces) and, subsequently, the intra-organizational level (internal forces)

(Wanderley et al., 2011).

METHODOLOGY

Qualitative research method was chosen to achieve the aim of this study. The

qualitative research method is appropriate for this study because the change in

status from a government-linked private company to a publicly listed company is

involved in a complicated socio-economic and political philosophy (Shanikat,

2008). The present research adopted a single-case study to focus on describing and

understanding the phenomenon in the organisational change. It chose the

explanatory case study approach to provide an in-depth explanation of the events

of organisational change, particularly the forces of transformation process in the

AIS structure of the company.

Multiple Data Sources

This study used archival records and documentation, such as the New

Economic Model (NEM) report, Economic Transformation Programme (ETP)

reports, history books of the company annual reports and company prospectus.

Other methods, such as informal observations of the operationalization of ALPHA,

were also employed. This study chose a semi-structured face-to-face interview to

facilitate understanding, allow flexibility and produce more relevant data (Smith,

Flowers, and Osborn, 1997). This interview method obtained a description of the

organisational change in relation to the AIS structure of the company. A semi-

structured interview comprises the discussion session where interviewees are

provided specific questions but are free to respond beyond the questions to

elaborate their opinions, knowledge, experience and argument on an issue relevant

Forces of Accounting Information System ISSN 1985-692X

178 International Journal of Business and Management Science, 9(2): 171-193, 2019

to the questions (Schram and Steen, 2001). Ten ALPHA officers from the middle

and top management positions participated in this study.

The questionnaire and the themes were developed based on a pilot study

wherein a preliminary content analysis of related documentations and

interview with the chief financial officer of ALPHA was conducted. A pilot

study was conducted in July 2013. The purpose of the pilot study was to get

some ideas in improving the design of the semi-structured questionnaire

that was to be used in the interviews. Open-ended questions were designed

in order to allow the interviewee in the pilot study to provide more ideas,

leading the researcher to incorporate these into the final questionnaire. An

appointment was made with one of the officers in a managerial position of

ALPHA in June 2013. Specifically, the officer holds the position of a

general manager of finance that has a vast knowledge and experience in

ALPHA. The officer has been working with ALPHA before and after

implementation of ETP and its listing. Emails were sent, and a series of

telephone conversations were undertaken with the officer prior to the

interview session. Documents stating the background of the research, the

research objectives, and the contents of the questionnaire were sent to the

officer before the interview session, for his easy reference. The officer

agreed to be interviewed and the interview session was carried out in his

office. The pilot study lasted for about one hour. The officer provided his

opinion on the questions posed in the semi-structured questionnaire. He

also expressed his views and opinions on the impact of listing on the

company's business model and its corporate structure. In addition, he

informed the researcher that AIS change had occurred. Upon completion of

the pilot study, the semi-structured questionnaire was further modified and

improved after taking into account the comments from the officer. The

outcome of the pilot study enhances the validity and relevancy of the

questions in the semi-structured questionnaire and, hence, increases the

ability to achieve the research objectives of this study. Developing a questionnaire according to the specific theme is a crucial step in

any qualitative research to produce useful, focused and robust findings. This

finding is consistent with Penn and Kyle (2007), who suggested that the

questionnaire is normally prepared according to a specified theme before the

interviews. The semi-structured questionnaire of this study consisted of three

sections which were prepared and segregated into specific themes to address the

research objective. Section A was composed of general questions related to the

interviewees‟ demographic profile. Section B dealt with the evolution of the

business model and corporate structure of BETA and ALPHA since their

incorporation. Section C focused on changes in the AIS structure, where the

interviewees were requested to describe the transformation of the AIS structure in

ALPHA. In this section, interviewees were asked to compare the AIS structure of

ALPHA before and after 2012, the year ALPHA was listed on Bursa Malaysia.

The interviewees were also asked to respond on the internal and external factors

that forced ALPHA to change its existing AIS structure.

Forces of Accounting Information System ISSN 1985-692X

International Journal of Business and Management Science, 9(2): 171-193, 2019 179

Data Collection

The data collection process involved three phases. The first phase involved the

pilot study to obtain information for designing the semi-structured questionnaire.

The second phase was a content analysis which was conducted on an on-going

basis throughout the study. The last phase was related to the actual interviews with

the interviewees. A pilot study was conducted in July 2013 to gather some ideas

for improving the design of the semi-structured questionnaire to be used in the

interviews. Open-ended questions were implemented to allow the interviewee of

the pilot study to provide additional ideas, which would lead the researcher to

other ideas emerging from the response of the interviewee.

This study also conducted a content analysis of related documents. Conducting

content analysis in this study not only allowed the researcher to confirm the

findings from the interviews but also provided further findings which were not

given by the interviewees in the interview session. The documents retrieved by the

researcher in this study were in the forms of hard and soft copies.

The semi-structured face-to-face interviews were conducted from September

2015 to October 2016. The interviews conducted were open, interactive and

conversational in nature. Permission was obtained before the interviewees were

approached. The interviewees were given a summary of the research objectives

and the lists of questions before the actual interview session. Each interview

session lasted between 35 minutes to 1 hour 20 minutes, depending on the issues

raised by the interviewees. All interviews were recorded on tape. A total of 10

interviews were undertaken with 10 individuals in eight separate visits. The

number of respondents in this study was appropriate because previous studies also

used approximately the same number of respondents. In addition, the respondents

were the AIS users who participated in developing accounting systems in ALPHA

in terms of providing feedback in the development stage of the systems.

RESULTS AND DISCUSSION

This study reveals that the AIS structure of ALPHA changed significantly after its

listing in 2012. The new AIS structure consists of SAP and the five new systems

with dates of „go live.‟ The development of the new systems started with a

Webcycle system, which was used in the shared service centre and went „live‟ in

April 2012. This was followed by the development of a Sunguard Integrity system

for the treasury function, which went „live‟ in July 2013. The online KPI for

accounting and reporting function was completed in October 2013. ALPHA

subsequently adopted the JustCommodity system for sugar and palm trading

management in March and July 2014, respectively. Lastly, the BPC system, which

was meant to enhance the accounting and reporting capabilities, went „live‟ in

January 2015. A further investigation found two types of forces led to the AIS

change in ALPHA, namely, external and internal.

Forces of Accounting Information System ISSN 1985-692X

180 International Journal of Business and Management Science, 9(2): 171-193, 2019

External Forces

The external forces of AIS change in ALPHA consist of ETP, the regulators and

the listing consultants hired by ALPHA during the listing process.

Economic transformation programme

The implementation of ETP in 2010 following the introduction of NEM was

the main contributor to the transformation of BETA and ALPHA. ETP is a private

sector-led transformation economic programme with 92% of the investments

coming from the private sector. By 2020, ETP is expected to contribute to the GNI

of approximately RM1.7 trillion across Malaysia by creating 3.3 million new jobs,

over 60% of which will be represented by the medium- or high-income salary

brackets through the implementation of 131 EPPs (Mansor, 2010).

Under the ETP, oil palm NKEA is a sector identified as the key growth engine

for the Malaysian economy. With over 4.9 million hectares of planted area, the oil

palm industry is a significant contributor to the Malaysian economy. Malaysia is

the world‟s largest exporter of oil palm and the second-largest producer of oil

palm after Indonesia (Yuen, 2012). With strong support from the government and

authorities such as the Malaysian Oil Palm Board, the oil palm sector has

experienced steady growth over the years. The rapid expansion of this sector since

the 1960s was encouraged by the Malaysian government to realise its potential. It

was consequently identified as one of the 12 NKEAs and a key growth engine for

economic advancement. Through ETP, the oil palm sector has a new focus to

improve its upstream productivity and enhance its downstream expansion (Yuen,

2012).

The ETP implementation has a direct impact on BETA and ALPHA because

their main activities are in oil palm plantation. ETP has indirectly forced the

companies to undergo major transformation, which involved changes in the

business environment, business model and corporate structure. Consequently, the

new arrangement was established where BETA continues its initial function to

look after the socio-economic benefit and development of the settlers. ALPHA

focuses on the business activities and goes for listing. All the business activities of

BETA previously handled by FAB are now entrusted to ALPHA. As noted by

Officer B:

I f we are busy doing business, ALPHA would not be able to look after the

settlers’ benefits. For this reason, the government needs to look after the

settlers’ socio-economic development, that is, through the BETA. ALPHA, on

the other hand, will focus on the business activities

Regulators and listing consultants

One of the most apparent transformation programmes that BETA has

undertaken is the listing of its subsidiary company, ALPHA, in 2012 on Bursa

Malaysia through an IPO. This move was in line with the GRiB of SRIs, where the

government has identified companies for disinvestment 5 . The listing of ALPHA

5 Divestment is a process of taking out monies from companies by selling the shares.

Forces of Accounting Information System ISSN 1985-692X

International Journal of Business and Management Science, 9(2): 171-193, 2019 181

was set to enhance its competitiveness because it had the resources to expand and

improve efficiencies. Through the listing, ALPHA raised capital for growth,

subsequently enabling the shareholders to realise their investment and enhance the

credibility and profile of the company as a publicly listed entity in the eyes of

customers, suppliers and the business environment. Officer A noted that the listing

of ALPHA was in line with Malaysia‟s path to becoming a high-income nation. He

noted that:

We have a clear vision for the coming 10 or 20 years. With ALPHA’s listing,

both local investors like Tabung Haji, PNB, KWSP and foreign investors will

be able to invest, and the profits will not only be shared by ALPHA settlers, but

by all Malaysians as well. We see two components in the transformation: the

social and economic development was on-going since 2010, and development

of ALPHA is in a balanced manner.

In Malaysia, the regulators that govern the listing process are the Securities

Commission (SC) and Bursa Malaysia. The SC reviews applications to be listed on

the Main Market, while Bursa Malaysia reviews applications to be listed on the

Ace Market. Bursa Malaysia manages two counters for listing purposes, namely,

the Main Market and Ace Market. The Main Market is for established companies

with a good track record profit and sizeable business, whereas the Ace Market is

for companies with excellent growth potential. Other regulatory authorities, such

as the Ministry of International Trade and Industry and Bank Negara Malaysia, are

also involved in the listing process. The involvement of these regulators depends

on where the shares are to be listed and the nature of the business.

To be approved for listing, a company must fulfil the criteria of two

benchmarks, namely, regulatory and market. Prior to granting approval, the SC

considers whether the company has met the regulatory benchmark in terms of

quality, size, operations and management experience and expertise. The SC also

considers the integrity of the company‟s directors and key personnel and ascertains

whether the listing proposals are against the public interest. On the other hand, the

market benchmark does not have a specific set of rules but is truly market-driven.

Although companies may have qualified using the regulatory benchmark, their

suitability for listing remains subject to the criteria under the market benchmark.

In the case of ALPHA, the company underwent the listing process involving

the SC and Bursa Malaysia. ALPHA applied for listing through the Main Market,

and the overall listing process took about one year. Officer D explained:

For ALPHA to be listed on the Main Market, ALPHA has to go through various

important steps, such as providing and fulfilling the listing checklist provided

by SC and Bursa Malaysia.

The listing consultants were appointed to advise and assist ALPHA in fulfilling

the listing checklist, such as preparing the company‟s prospectus and other

relevant documentation. With the help of the consultants, ALPHA was required to

provide relevant information and make adequate disclosures in the prospectus

articulating the company‟s historical performance and prospects. The listing

consultants played an important role in ensuring a successful listing process. In

Forces of Accounting Information System ISSN 1985-692X

182 International Journal of Business and Management Science, 9(2): 171-193, 2019

addition, the consultants were responsible for ensuring ALPHA met certain market

benchmarks so that the investors would become more confident and attracted to

the company. Thus, the listing consultants must assess the company‟s

performance, credibility and viability. ALPHA appointed a team of consultants

who have considerable experience and who understood ALPHA‟s business, its

strategic direction and the palm oil industry. As noted by Officer D:

We worked closely with the consultants appointed. These steps were taken to

ensure that the company fulfilled the listing requirements of the SC and Bursa

Malaysia. We appointed a team of professionals to assist us with the listing

process. We believed in their track records, experience and commitment. We

also assessed their ability to be effective underwriters. Appointing the right

consultants was important to ensure that we would be comfortable working

with them so that the listing process could become smooth and succeed.

ALPHA appointed CIMB Investment Bank Bhd and Maybank Investment

Bank Bhd as the joint principal advisors and joint managing underwriters. It also

appointed CIMB Investment Bank Bhd, Maybank Investment Bhd and Morgan

Stanley and Co. International Plc. as the joint global coordinators. Moreover,

ALPHA appointed CIMB Investment Bank Bhd, Deutsche Bank AG, Hong Kong

Branch, J.P. Morgan Securities Ltd., Maybank Investment Bank Bhd and Morgan

Stanley and Co. International plc as joint book runners for the institutional

offering. It likewise appointed 10 joint underwriters to take on the role and

responsibilities of underwriting the company‟s IPO.

Internal Forces

Two internal forces of AIS change occurred in ALPHA, namely, new business

model and corporate structure.

Business model

The business models of ALPHA before and after the 2010 ETP

implementation, which led to the listing of ALPHA in 2012 are the two significant

milestones that have caused ALPHA to make significant changes to its business

model. Through ETP, the government provided a new direction for all oil palm

companies to strengthen their upstream activities and venture more into

downstream activities. Such a direction aimed to ensure that the companies could

become globally competitive and encourage them to venture into agribusiness.

Following the ETP implementation, the government disinvested in ALPHA and

subsequently listed ALPHA on Bursa Malaysia in 2012. Since then, the business

model of ALPHA has undergone significant changes.

In phase 1, BETA was the financier of the land development projects. In phase

2, BETA itself became the land developer, developing the land with rubber and oil

palm estates. During phase 3, BETA, through its subsidiary FAB, was involved in

commercial plantation which focused more on upstream activities or oil palm

plantation activities producing FFB. Upon listing, BETA‟s business was entrusted

to ALPHA, with the objective of becoming an integrated and diversified

multinational company in agribusiness through acquisitions and smart partnership.

Forces of Accounting Information System ISSN 1985-692X

International Journal of Business and Management Science, 9(2): 171-193, 2019 183

The business model of ALPHA was consequently divided into four main clusters:

palm upstream, palm downstream, sugar and manufacturing, logistics and others

(MLO). Since 2012, ALPHA has been responsible for leading the group growth,

becoming a top global player, sustaining earnings, continuing to pay out

favourable dividends and subsequently supporting the ETP target to increase the

GNI per capita of the nation. With huge proceeds from its IPO, ALPHA has the

resources to enhance its upstream activities through acquiring new estates and

venturing into downstream activities of oil palm and other agricultural activities,

such as sugar and soya bean.

Corporate Structure of BETA and ALPHA

The implementation of ETP in 2010 and the listing of ALPHA in 2012 led the

BETA group to adopt a new business model, which subsequently resulted in the

restructuring of the entire corporation. The corporate structure of BETA and

ALPHA went into a series of restructuring processes, starting with the 49%

acquisition of share interest in FAB by ALPHA from BETA in 2012.

Subsequently, ALPHA acquired the remaining 51% in interest in FAB in 2013 to

further enhance its position in the oil palm sector, making ALPHA the sole

controlling interest in FAB. The annual report of ALPHA (2013) stated the

following:

Driven by positive commercial considerations to further solidify [its] position in

the palm oil sector, the company had obtained the remaining 51 per cent equity

interest in FAB in December 2013.

With this acquisition, ALPHA became a fully integrated oil palm plantation

company, which enabled it to attain operational efficiencies and synergies of the

plantation value chain within the group. The merging of ALPHA‟s strength in the

plantation and downstream businesses coupled with FAB midstream and

downstream activities is its strategy to become one of the top 10 agri-business

conglomerates in the world by 2020.

The new corporate structure of ALPHA group with 100% interest in FAB

consists of four business clusters to reflect the main business activities of ALPHA.

The four clusters are palm upstream, palm downstream, sugar and other businesses

comprising MLO headed by FAB.

DISCUSSION

ALPHA‟s listing on Bursa Malaysia in 2012 was facilitated by the listing

consultants. Since then, ALPHA has changed its business model and corporate

structure to accommodate the expansion of its business and responsibilities. Such

finding is consistent with DiMaggio and Powell (1983), who claimed that an

organisational structure that arises from the rules of efficiency in the marketplace

is now influenced by the institutional constraints imposed by the state and the

professions. The efforts to achieve rationality with uncertainty and constraint have

led to the homogeneity of structure (institutional isomorphism). They predicted

that isomorphism at the field level becomes more eminent in the situation where

Forces of Accounting Information System ISSN 1985-692X

184 International Journal of Business and Management Science, 9(2): 171-193, 2019

the field is dependent upon other organisations, which is arguably relevant to

ALPHA, and the increased interaction of the field with the state.

As a publicly listed company in the oil palm industry, ALPHA has the

responsibility to provide the best return for its shareholders and be a growth engine

for the country‟s economic advancement. Along with the other companies under

the scope of ETP, ALPHA must provide various opportunities in terms of new

jobs and investments so that Malaysia‟s economy can be improved and Vision

2020 can be achieved successfully. It must employ short- and long-term strategies

to ensure that the company is always relevant and sustainable in the marketplace.

ETP and listing have subsequently pressured the company to change its business

model and corporate structure. ALPHA has changed its business model from a

developer of commercial plantations focused only on palm upstream only into a

multi-national company involved in integrated and diversified multi-crop agri-

business.

With the demanding current business model, ALPHA must change its existing

corporate structure to align with the new business environment according to

several sectors for better management and increased focus across the industry

chain. The new organisational form (listing, new business model and corporate

structure) has forced ALPHA to become more efficient in every aspect, including

the provision of financial information. This change has indirectly influenced

ALPHA to upgrade its AIS structure. With ALPHA now a publicly listed entity,

many parties, such as Bursa Malaysia, financial analysts and other stakeholders,

are now looking for periodic financial reporting of ALPHA for various reasons.

Hence, the current study suggests that the NEM, ETP and the regulators, such as

Bursa Malaysia and SC, as well as professionals such as the listing consultants,

have influenced the changes in ALPHA‟s business model and corporate structure.

The new business model and corporate structure are then influenced by the

changes in AIS structure of ALPHA. From 2012 to 2015, the AIS structure of

ALPHA changed significantly from containing only SAP into a new structure with

five new systems. Therefore, this study suggests that the NEM and ETP, the

regulators and the professionals are the external forces for AIS change in ALPHA,

while the new business model and corporate structure are the internal factors.

The finding of this study is consistent with that of Dillard et al. (2004), who

suggested that the process of institutionalisation moves in a cascading manner

from the external to the internal forces. Figure 6 presents the research framework

developed based on Dillard et al. (2004) framework, which summarised the

interactions between the external and internal forces influencing the AIS change in

ALPHA. NEM and ETP at the PE level have been catalysts of the entire

organisational change in ALPHA since 2010. Through the NKEAs and SRIs under

the ETP, ALPHA was listed in 2012, and the regulators as well as the

professionals at OF level were involved in the listing process. The forces at the PE

and OF levels served as the external forces influencing the AIS change. In line

with the new form of organisational structure, ALPHA has changed its business

model and corporate structure at the OL to represent the internal forces of AIS

change in the company. As a publicly listed company, ALPHA aims to become a

global player with its new business model, and the corporate structure‟s span

through the supply chain in the industry has forced the company to upgrade its AIS

Forces of Accounting Information System ISSN 1985-692X

International Journal of Business and Management Science, 9(2): 171-193, 2019 185

structure. The goal of upgrading its AIS is to make the process and delivery of

financial information more efficient and effective.

This study shows that the intra-organisational structures and procedures of

ALPHA are largely shaped by external forces, particularly the ETP. Such finding

is consistent with previous studies which argued the importance of external forces

in influencing organisational change in an organisation (Hoque and Rossingh,

2006; Siti Nabila and Scapens, 2005) Consequently, the new business model and

corporate structure of ALPHA have caused the company to introduce new

practices, particularly in the AIS structure, which have eventually influenced the

routines and behaviours within the organisation. The interactions of the external

and internal forces are also consistent with institutional theory, specifically on the

coercive, mimetic and normative isomorphism. In coercive and normative

isomorphism, the change in companies involves pressures from other organisations

they are dependent on, including government mandates, contract law and financial

reporting requirements (DiMaggio and Powell, 1983). Arguably, ALPHA has

upgraded its AIS in order for financial reporting to be prepared and disseminated

in a more efficient manner to the various users, including Bursa Malaysia, whose

rules and regulations ALPHA is very much subject to.

CONCLUDING COMMENTS

This study aims to identify the external and internal forces and their interactions

which influence the change of AIS and governance in ALPHA. On the basis of

interviews and content analysis, this study provides evidence that the

organisational change in the AIS structure in ALPHA is influenced by external

forces such as NEM, ETP, regulators and listing consultants. The findings show

that government economic decisions; NEM and ETP contribute significantly to the

AIS change in ALPHA. Subsequently, these external forces influence ALPHA to

adopt the new business model and corporate structure, which in turn become the

internal forces of AIS change. Thus, the interactions between the forces flow in a

cascading manner, where the external forces influence the internal forces to

influence the AIS change in ALPHA. These interactions are consistent with

institutional theory, specifically on coercive, mimetic and normative isomorphism.

A key finding in this study is that the government‟s decision wields a

significant impact on organisational stability. This impact is not limited to a small

fraction of an organisation, such as the AIS, but extends to a bigger fraction, such

as the business model, corporate structure and listing of an organisation. For

example, the Malaysian government uses economic measures or imposes drastic

strategies to improve the economy. Indirectly, such actions force companies,

particularly those under the NKEAs, to join efforts to meet the economic targets

outlined by the government. Hence, companies must be prepared for changes

when a radical economic model is introduced by the government.

This study contributes to practice and academic literature in several ways.

Firstly, it provides practitioners enhanced understanding on how the government

exploits private companies to stimulate the nation‟s economic growth through

changes in the economic fundamentals. Moreover, this study becomes more

interesting when it discusses how the economic policy reforms introduced in ETP

Forces of Accounting Information System ISSN 1985-692X

186 International Journal of Business and Management Science, 9(2): 171-193, 2019

required a drastic change that had never been suggested by other countries

previously. The economy was required to grow by more than half of the current

stake in 2010 within 10 years. We note how the government used the PE power

involving many parties in determining the future direction of the country's

economic situation. Secondly, this study is distinct from other studies because it

focuses on the organisational change and its effect on the AIS structure of an

agricultural company. Furthermore, it is unique because the case study involves an

agricultural company of a government-linked company that transformed into a

publicly listed company. This study examines the nature of the Malaysian state,

the nature of a publicly listed company and the nature of an agricultural company.

The reason for the listing of ALPHA was initially driven by the economic reform

programme, while governmental interest in developing the agriculture industry

was driven by the economic significance of this industry. These issues make this

study the first of its kind in Malaysia.

This study has some limitations. Firstly, this study has limited generalisability

in the context of the structure and geographical area of the company. This study is

conducted using a Malaysian setting on an agricultural company involved in oil

palm plantation activities. Specifically, this study relies on ALPHA, a

government-linked company, in understanding the process of AIS change. Using

case study as the research approach, we are uncertain whether the findings shown

in this study can be applied more broadly to other companies of other industries

and countries. Secondly, the possibility of participant bias may influence the

findings of this study. The data collection is conducted through semi-structured

interview with the officers who are direct users of the AIS in ALPHA.

Consequently, this may cause the analyses and discussion of this case study to be

highly contextual in nature and potentially lead to a degree of bias. Hence, the

response obtained from the interviewees in this study cannot represent the views of

other stakeholders of the company.

Finally, all research irrespective of whether conducted using qualitative or

quantitative methodological paradigm will bear the risk of data validity and

reliability unless appropriate research methods are adopted and that in this study,

an appropriate research method such as data triangulation has been adopted which

has enhanced the validity and reliability of data collection and analyses. In other

words, this study has relied on two main ways in order to obtain valid and reliable

empirical evidence. The first way is the development of the questions for the

interviewees. The questions posed to the interviewees were adapted from Dillard

et al. (2004) and Burns and Scapens (2000) with some modifications to suit the

context of this study. There have been many studies that have also relied on the

questions developed in these two studies, hence, they can be considered as

exhaustively relied upon. The second way is the collection of data using a

triangulation method that allows evidence to be collected from a variety of sources

– interviews, document analysis and collections of archival records – up to

saturation point. Hence, the validity and reliability of evidence is improved.

In summary, the implementation of the ETP led ALPHA to be listed as a public

company in 2012 and subsequently it had to change its business model and

corporate structure in order to accommodate its expanding business activities and

operations. The new business environment required the company to improve

efficiencies in its overall business operations, including AIS structure. The

Forces of Accounting Information System ISSN 1985-692X

International Journal of Business and Management Science, 9(2): 171-193, 2019 187

evidence from this study shows that ALPHA has changed its AIS structure

significantly due to that. The main reason for upgrading the existing AIS structure

is to raise efficiency of information dissemination. That is, the implementation

government policies which ultimately caused APPHA to experience two-tiers of

organisational change. The findings of this study serve as a guideline for business

practices and contribute to the academic knowledge and literature. Within the

organisational change literature, studies have focused on a single-tier of

organisational change and mainly from the management accounting perspective.

Future research could extend this study by examining the issues related to

organisational change and the AIS in the context of a different industry or country.

ACKNOWLEDGMENTS

We would like to thank the accounting research institute, Universiti Teknologi

Mara, in collaboration with the Ministry of Higher Education Malaysia and also

the Institute of Quality and Knowledge Advancement, for providing the financial

support for this research project. We are indeed very grateful for the grant, without

which we would not be able to carry out the research.

REFERENCES

Anderson, S. and Young, M. (1999). The impact of contextual and process factors on the

evaluation of Activity Based Costing systems. Accounting, Organisations and Society,

24(1): 525-560.

Argyris, C. and Kaplan, R.S. (1994). Implementing new knowledge: The case of activity-

based costing. Accounting Horizons, 8(3): 83-105.

Burns, J. and Scapens, R.W. (2000). Conceptualising management accounting change: an

institutional framework. Management Accounting Research. 11(1):3-25.

Cruz, N.M, Perez, V.M. and Cantero, C.T. (2009). The influence of employee

motivation on knowledge transfer. Journal of Knowledge Management, 13(6): 478-

490

Dillard, J.F, Rigsby J.T. and Goodman, C. (2004). The making and remaking of

organization context –duality and the institutionalization process. Accounting, Auditing

and Accountability Journal, 17(4): 506-542.

DiMaggio, P.J. and Powell, W (1983). The iron cage revisited" institutional isomorphism

and collective rationality in organizational fields. American Sociological Review, 48(2):

147-160.

Greenwood, R. and Hinings, C.R. (1996). Understanding radical organizational change:

bringing together the old and the new institutionalism. Academy of Management

Review, 21(4): 1022-1054.

Greenwood, R., Diaz, A.M., Li, S.X. and Lorente, J.C. (2010). The multiplicity of

institutional logics and the heterogeneity of organizational responses. Organization

Science, 21(2): 521–539.

Hoque, Z. and Rossingh, B. (2006). Radical change and management Control in a Not-

for-profit Organisation: A Case Study Using Grounded Theory Approach in

Conjunction with Institutional Theory of Change (Paper presented at

the Interdisciplinary Perspectives on Accounting (IPA) Conference in Cardiff, UK,

July 2006).

Forces of Accounting Information System ISSN 1985-692X

188 International Journal of Business and Management Science, 9(2): 171-193, 2019

Liguori, M. and Steccolini, I. (2012). Accounting change: Explaining the Outcomes,

Interpreting the Process, Accounting change: explaining the outcomes, interpreting the

process. Accounting, Auditing and Accountability Journal, 25(1): 27 – 70

Mansor, N. (2010). National Economic and Advisory Council (NEAC) 2010, New

Economic for Malaysia, Part 1. Strategic Policy Directions NEAC, Kuala Lumpur

2010.

Moll, J. and Hoque, Z. (2008). New organizational forms and accounting innovation: the

specifier provider model in the Australian public sector. Journal of Accounting and

Organizational Change, 4(3), 243-269.

NorAziah, A.K. and Scapens, R.W (2007). Corporatisation and accounting change: the role

of accounting and accountants in a Malaysian public utility. Management Accounting

Research, 18(2): 209-247.

Penn, D. and Kyle, R. (2007). The Tennessee Education Lottery Scholarship: A Reward

for Past Achievement or Motivator for Future Performance? Middle Tennessee State

University, Mimeo.

Ribeiro J.A. and Scapens R.W. (2006). Institutional theories in management accounting

change: contributions, issues and paths for development. Qualitative Research

Accounting Management, 3(2): 94–111.

Scapens, R.W. (2006). Understanding management accounting practices: a personal

journey. The British Accounting Review, 38(1): 1-30

Scapens, R., Ezzamel, M., Burns, J. and Baldvinsdottir, G. (2003). The future direction

of UK management accounting practice, London: Elsevier/CIMA.

Shields, M.D. (1995). An empirical analysis of firms‟ Implementation Experiences with

Activity-Based Costing. Journal of Management Accounting Research, Fall(1): 148-

165.

Siti Nabiha, A.K. and Scapens, R.W. (2005). Stability and change: an institutionalist study

of management accounting change. Accounting, Auditing and Accountability Journal,

18(1): 44-73.

Schram, D.H. and Steen, G. (2001). The Psychology and Sociology of Literature (John

Benjamins Publishing: Amsterdam.

Shanikat, M. (2008). Organisational change and accounting information systems: a case

study of the privatisation of Jordan Telecom, PhD thesis, School of Accounting and

Finance, University of Wollongong.

Smith, J.A., Flowers, P. and Osborn, M. (1997). Interpretative phenomenological analysis

and health psychology‟. In L. Yardley (ed.), Material Discourses and Health. London:

Routledge

Wanderley C., Cullen, J. and Tsamenyi, M. (2011). Privatisation and Electricity Reforms

in Brazil: Accounting Perspective. Journal of Accounting in Emerging Economies,

1(1): 53-75.

Yazdifar, H. and Tsamenyi, M. (2005). Management accounting change and the changing

roles of management accountants: a comparative analysis between dependent and

independent organizations. Journal of Accounting and Organizational Change, 1(2):

180-198.

Yonnedi, E. (2009). Does privatization affect organizational change: A case of Indonesia.

Paper presented at the 10th Public Management Research Conference, Ohio State

University, 1–3 October.

Yuen, M.C. (2012). Malaysia: Economic Transformation Advances Oil Palm Industry,

Malaysian Palm Oil Board, September.

Forces of Accounting Information System ISSN 1985-692X

International Journal of Business and Management Science, 9(2): 171-193, 2019 189

Appendix E1

Questionnaire

MALAYSIAN AGRICULTURAL COMPANY

SUMMARY OF RESEARCH FOCUS

The questionnaire consists of Six (6) sections:

A. General questions – brief information of the respondents B. New Business model and New Corporate Structure C. Changes in Accounting Information Systems D. Resistance to Change E. Other matters F. Concluding Remarks

A. General Questions 1. How long have you been working in this company? 2. Can you share your job function? 3. Are you part of the team that develop the Accounting Information System

(AIS) and/or are you part of the team that use the AIS?

B. New Business Model and New Corporate Structure 4. Annual report 2012 of ALPHA stated that “We now have the resources to

be a global leader” and the Vision Statement is “to be the leading globally

diversified integrated agri-business”. Can you explain on this? What are

the strategies that have been incorporated in achieving the vision? Have

ALPHA change its business focus recently?

5. ALPHA has adopted a Global Strategic Blueprint which provides a direction of ALPHA in the long run. Can you explain about the Global

Strategic Blueprint? What are the focuses of ALPHA under this new

Global Strategic Blueprint?

6. Any relation of ALPHA‟s new business model, new corporate structure, new vision statement, Global Strategic Blueprint and listing of ALPHA to

the Malaysian Economic Transformation Programme (ETP)?

C. Changes in Accounting Information Systems (AIS) 7. Can you compare AIS structure of ALPHA before 2010 and in 2014?

Situation of AIS structure before and after listing in 2012.

8. What caused ALPHA to modify its existing AIS structure? It is due to: a. Malaysian Economic Transformation Programme (ETP)? b. New business model? c. New Global Strategic Blueprint? d. New vision statement? e. New corporate structure?

Forces of Accounting Information System ISSN 1985-692X

190 International Journal of Business and Management Science, 9(2): 171-193, 2019

f. Listing on Bursa Malaysia Stock Exchange in 2012 which requires the company to provide additional information and reporting?

g. Weaknesses of previous AIS structure? h. Improve integration function with another department? i. Government‟s requirement? j. New law and regulations? k. Competitive advantage? l. Cost saving? m. Other companies within plantation industry having the same AIS

structure?

n. Influences by group of people within or outside ALPHA such as IT professionals?

o. Improving monitoring function, or for more efficient data processing for decision making?

p. Any other reasons?

9. Can you explain the nature and process of changes in AIS of ALPHA, in term of?

a. Modification, addition, replacement, integration? b. Is it a one off or a gradual change and why? c. Are the changes temporary or permanent? d. Have the number of procedures in AIS increases/changes? e. Were there any changes to the daily process in AIS? f. What are the challenges faced during the transformation of AIS? g. How did the company resolve the challenges? h. Additional staff required? i. New equipment, software and security required? j. Format of reporting changed (content and depth of information)? k. Efficiency of information (number of processes involves in

information chain and provides support to meet deadlines more

effectively).

l. Cost incurred whether substantial figure or just an addition. Cost incurred on software as compared to hardware.

m. Does the development and modification of AIS involve consultants? n. Who were responsible in decision making in deciding whether to

maintain or modify or change the existing AIS?

o. Any meeting carried out to discuss and resolve issues and challenges? p. Any training carried out regularly? q. Did ALPHA produce new set of policies and procedures for the new

AIS?

r. Who were involved in the development of the policies and procedures of the new AIS structure? Any steering committee or project team set

up?

s. Any other aspect of changes

10. Can you briefly about the following AIS:

a. SAP b. Online KPI Reporting & Tracking

Forces of Accounting Information System ISSN 1985-692X

International Journal of Business and Management Science, 9(2): 171-193, 2019 191

c. Business Planning & Consolidation d. Sunguard Integrity e. Just Commodity f. WebCycle

(Function, implementation, integration, efficiency, cost, report and product)

11. Further explanation of the “Online KPI Reporting and Tracking” in term of:

a. Function of the system b. During development stage, any issues and constraints faced? How

about situation post development stage?

c. Benefits of the system. How can the system benefit the company as a whole? Improve efficiency of the information dissemination? Do you

consider the benefits of the system out weight the cost incurred?

d. Weaknesses of the system e. Did the system required for integration with other systems? Any

issues?

f. Comparison between before and after the implementation of the system.

g. How about staff‟s perception of the system? h. The process of change – Revolutionary or Evolutionary, Progressive

or Regressive and Formal or Informal

12. Further explanation of the “Business Planning and Consolidation” in term of:

a. Function of the system b. During development stage, any issues and constraints faced? How

about situation post development stage?

c. Benefits of the system. How can the system benefit the company as a whole? Improve efficiency of the information dissemination? Do you

consider the benefits of the system out weight the cost incurred?

d. Weaknesses of the system e. Did the system required for integration with other systems? Any

issues?

f. Comparison between before and after the implementation of the system.

g. How about staff‟s perception of the system? h. The process of change – Revolutionary or Evolutionary, Progressive

or Regressive and Formal or Informal

13. Further explanation of the “Sunguard Integrity” in term of: a. Function of the system b. During development stage, any issues and constraints faced? How

about situation post development stage?

c. Benefits of the system. How can the system benefit the company as a whole? Improve efficiency of the information dissemination? Do you

consider the benefits of the system out weight the cost incurred?

d. Weaknesses of the system

Forces of Accounting Information System ISSN 1985-692X

192 International Journal of Business and Management Science, 9(2): 171-193, 2019

e. Did the system required for integration with other systems? Any issues?

f. Comparison between before and after the implementation of the system.

g. How about staff‟s perception of the system? h. The process of change – Revolutionary or Evolutionary, Progressive

or Regressive and Formal or Informal

14. Further explanation of the “JustCommodity” in term of: a. Function of the system b. During development stage, any issues and constraints faced? How

about situation post development stage?

c. Benefits of the system. How can the system benefit the company as a whole? Improve efficiency of the information dissemination? Do you

consider the benefits of the system out weight the cost incurred?

d. Weaknesses of the system e. Did the system required for integration with other systems? Any

issues?

f. Comparison between before and after the implementation of the system.

g. How about staff‟s perception of the system? h. The process of change – Revolutionary or Evolutionary, Progressive

or Regressive and Formal or Informal

15. Further explanation of the “WebCycle” in term of: a. Function of the system b. During development stage, any issues and constraints faced? How

about situation post development stage?

c. Benefits of the system. How can the system benefit the company as a whole? Improve efficiency of the information dissemination? Do you

consider the benefits of the system out weight the cost incurred?

d. Weaknesses of the system e. Did the system required for integration with other systems? Any

issues?

f. Comparison between before and after the implementation of the system.

g. How about staff‟s perception of the system? h. The process of change – Revolutionary or Evolutionary, Progressive

or Regressive and Formal or Informal

D. Changes in AIS structure, Resistance and Management of Resistance 16. Management of resistance.

a. Are the staffs aware of the changes in AIS? b. How did they react to such changes? What are the staff‟s expectations

from the new AIS? More efficient, easier, faster or job stability?

c. Are there any resistance to adapt the changes in AIS? For example, absenteeism, confront or refusal the use the system.

d. Why did they resist to such changes?

Forces of Accounting Information System ISSN 1985-692X

International Journal of Business and Management Science, 9(2): 171-193, 2019 193

e. Was the resistance in group or individual? f. Was resistance coming from senior or junior staff? g. How did ALPHA handle the issue of resistance to change? Any staff

involved in development and implementation of new AIS? Feedbacks

from experienced staff are considered? Or staff involvement is only

limited to training? Any workshops organised by ALPHA related to

development of new AIS?

h. Did ALPHA provide interventions to provide understanding and accepting the modified/ new AIS?

i. Is the intervention formal (such as meeting and training) or informal (such as through social gathering)?

j. Did consultants appointed by ALPHA influence and assist BETA to overcome the resistance?

k. Do you consider resistance from staff is effective and caused the delayed in the process of development and implementation of new

AIS? Do you consider their resistance influence the design of the new

AIS?

l. Did they ultimately agree to the modified/new AIS? What do you think that cause them to ultimately agree? If they have not, what

cause them to still resist? Despite the resistance, have their resistance

to change reduce?

E. Other Related matters 17. ALPHA has recently acquired three companies, i.e. M Company Bhd, PU

Plantation Bhd and PT CN. Are they using the same system? Are these

systems integrated? If integrated, were there any issues arise in process of

integration? How ALPHA overcome the issues?

F. Concluding 18. Do you consider changes in existing AIS structure of ALPHA

significant?

19. Do you think the modified/new AIS are able to meet the provision of information required by ALPHA? Are there any further initiatives to

further improve the AIS?

THANK YOU FOR YOUR TIME AND SUPPORT

Copyright of International Journal of Business & Management Science is the property of International Journal of Business & Management Science and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.