A Study of the Effects that Management Policies and Accounting and Information Systems of Small and Medium Businesses Have on Business Performances
Authors:   Asia-Europe Perspective Association, Seo Byung-Woo 
Published: June 2018

Nowadays each country in the world is trying to solve economic problems by making jobs and increasing its exports, while it is stabilizing the industrial structure by promoting small and medium businesses. But there are large expenses and barriers on the road to the small and medium businesses' production of goods and success in the markets. Therefore, there should be the choice of proper policies and accounting information systems in order that small and medium businesses may make successes.
This research's purpose is to analyze how small and medium businesses' management strategies have influences on management performances, what influences accounting and information systems have on management strategies or performances, and to investigate what relationships they have to small and medium businesses' success elements with study hypotheses. First, this research tried to empirically analyze what influences businesses' accounting information systems and management strategies' variables have on management performances. Second, this research tried to grasp what relationship accounting and information systems and management performances have with small and medium businesses' financial performances and non-financial performances. The definition of small and medium businesses is a quantity-based definition, which regulates the number of employees, the general amount of asset, the general sales, etc. but any definition or regulation cannot completely distinguish large companies from small and medium businesses. For that reason, when regulating small and medium businesses with the number of employees, this research shall define the companies with less than 300 employees as small and medium businesses. This research is carried out with both theoretical study and empirical study, which is divided into the theoretical study focusing on the existing studies and the empirical study for 259 CFO's and CEO's of small and medium businesses. This research set up the following hypotheses so that the researcher could study the relationship between the hypotheses and competition strategies and management performances in terms of the users' satisfaction with the information that the accounting information system produces.
1. The accounting and information system will have positive influences on management strategies.
2. The differentiation management strategies will have positive influences on management performances.
3. The cost advantage management strategies will have positive influences on management performances.
The data analysis to prove the hypothesis is trying to analyze the frequency in order to grasp the attributes of the already collected data. Next, the analysis is trying to do the trust verification by using Cronbach's alpha number in order to examine the trust of the collected data. The analysis is trying to carry out the propriety verification by using the factor analysis in order to make sure if the contents of survey questions are correctly recognized by answerers, and if the surveyed contents are correctly measured. Based on the results of the trust and propriety analysis, this research will make use of Lisrel 8.0 program by the relationship analysis in order to verify the hypothesis fixed in the theoretical background.
The investigation result of the study hypotheses show that accounting information systems have influences on management strategies. Especially, they have larger influences on the cost advantage policy. Business policies have significant influences on management performances, and the cost advantage policy seems to have significant influences on financial performances, and the differentiation strategy seems to have significant influences on non-financial performances.