Organizational culture, accounting information system and financial performance of financial institutions in Uganda

Abstract

This study examined the mediating effect of accounting information system on the relationship between organizational culture, and financial performance of financial institutions in Uganda. The study applied a cross sectional research design, and a quantitative approach. Data were collected from 35 financial institutions as a target population with the accessible unit of inquiry being 105 employees consisting of managers, credit administrators (loan officers), and supervisors. Data were collected with the aid of closed ended questionnaire and Statistical Packages for Social Sciences was used for analyzing data from which frequency tables, descriptive statistics, reliability, validity, correlation, and regression results were obtained. Med graph application for testing mediation effect was used. The study findings revealed that there is a positive and statistically significant relationship between organizational culture, and financial performance; organizational culture and accounting information system; accounting information system and financial performance. The study also revealed that accounting information system partially mediates the relationship between organizational culture, and financial performance. The study therefore, recommends that efforts to improve financial performance depends on an appropriate and effective organizational culture and adoption of an automated Accounting Information System.