The use of Accounting Information System as a tool in Strategic Decision Making: Evidence from the Sri Lankan Accommodation Industry

Abstract

Organizations use information generated from the accounting information system extensively in strategic decision making. In this study, the relationship between strategic decision making and the use of accounting information system in the Sri Lankan accommodation industry is analysed. Specifically, this study analyses the use of accounting information in marketing, investment, and human resource related strategic decisions in the Sri Lankan accommodation sector. Sample for the study are all five star hotels in the country i.e. approximately 18 hotels. The main data collection instrument used in this study was a structured questionnaire. The questionnaire was distributed to Chief Financial Officers in the sample hotels. Findings from the study revealed that accounting information system is used extensively by firms in Sri Lanka’s accommodation industry. Further, findings also revealed that accounting information system is used mainly in marketing and investment related strategic decisions, followed by decisions related to the strategic direction, and human resources. Key Words - Accounting Information, Accommodation Industry, Five Star Hotels, Marketing, Strategic Decisions