Organizing the cost management accounting information system in Vietnamese leather and footwear enterprises

price, selling expenses, and management expenses (Fontinelle, 2011) 2.3.4. Software organization The software structure of the cost management AIS includes the computer programs used to store, retrival, process and analyze the cost management accounting data of the company. Before the birth of computers, the cost management AIS had been instructed for use and the systems are based on paper, however, most companies currently use computer software as a basis for the cost management AIS (Fontinelle, 2011). 2.3.5. Organization of infrastructure and information technology According to Azhar Susanto (2008), hardware is a physical device used to collect, import, process, store and retrieve data in the form of information. Hardware includes processor, memory, control card; Input device and output device.  2.3.6. Organization of internal control system The cost management AIS contains confidential information belonging to the company, employees and customers. This data may include information on salary, credit card numbers, etc. All data in the cost management AIS must be coded and access to the system should be recorded and monitored. In addition, the system’s activities should be monitored (Fontinelle, 2011). 2.4. Organizing the accounting information system in general and the cost management accounting information system in particular 2.4.1. Human organization The human organization in cost management AIS should also include components such as the designer of the cost management AIS, the developer of the cost management AIS, the supporter of the cost management AIS and the users of the cost management AIS. 2.4.2. Organization of procedures and guidelines The procedures and guidelines of the cost management AIS are the methods used by the system to collect, store, retrieve and process data. They are manual and automatic methods. Data may derive from internal sources (e.g. employees) and external sources (eg, online orders from customers). The procedures and guidelines will be coded into the software of cost management AIS; The staff should be trained with working procedures and guidelines through materials and pratice. Working procedures and guidelines must be consistently followed in order to be effective (Fontinelle, 2011). 2.4.3. Data organization Data organization of the cost management AIS can use one of the following three data organization models: grading data organization model, network model, data relationship description model (Wang, 2003). 2.4.4. Software organization Burch (1989) pointed out two main criteria to consider and select an accounting system that includes software functions and specific accounting functions consistent with a particular business. 2.4.5. Organization of infrastructure and information technology Information technology infrastructure is only a preferred name for the hardware used to operate the cost management AIS. According to Azhar Susanto (2008) hardware is a physical equipment used to collect, enter, process, store and retrieve data in the form of information. Hardware includes the processor, memory, control card, input equipment and output equipment. 2.4.6. Organization of internal control system The enterprise can also apply COSO model (The Committee of Sponsoring Organizations of the Treadway Commission) COSO to organize internal control for the cost management AIS. The contents of COSO model include 5 components: (1) Control environment, (2) risk assessment, (3) control activities, (4) information and communication, (5) monitoring. (Marshall B. Romney et al., 2013). 2.5. The quality of cost management accounting information and the factors affecting the quality of cost management accounting information 2.5.1. Quality of cost management accounting information 2.5.2. Factors affecting the quality of the cost AIS 2.5.2.1 Human organization factors 2.5.2.2 Factor constituting and organizing the procedures and guidelines for collecting, processing and storing data. 2.5.2.3 Data organization factors 2.5.2.4 Organizational factors for selecting and using data processing software 2.5.2.5 Information technology infrastructure organizational factors 2.5.2.6 Organizational factors of internal control system 2.5.2.7 Cultural characteristics and organizational structure 2.6. Research model and testing tools 2.6.1. Research model 2.6.1.1 Research hypothesis H1: Human organization factors for the cost management AIS systems affect the information quality supplied to the manager. H2: Factors constituting and organizing the procedures and guidlines for using the cost management AIS affect the information quality supplied to the manager. H3: Data organization factors of the cost management AIS affect the information quality supplied to the manager. H4: Organizational factors for selecting and using software in the cost management AIS affect the information quality supplied to the manager. H5: Information technology infrastructure organizational factors for the the cost management AIS affect the information quality supplied to the manager. H6: Organizational factors of internal control system in the cost management AIS affect the information quality supplied to the manager. H7: Cultural characteristics and organizational structure in the cost management AIS affect the information quality supplied to the manager. 2.6.1.2 Research model Based on the assumptions presented, a model of the research into organizational factors affecting the quality of the cost management accounting information is proposed as follows: Proposed research model. 2.6.2 Testing tool Data analysis using a data processing tool - SPSS 22.0 software afffirms the factors as well as the values and reliability of the scales of organizational factors affecting the quality of cost management accounting information quality supplied to the manager in Vietnamese leather and footwear enterprises, verify the suitability of the research model and the hypotheses designed and proposed in quantitative research. 2.6.3 Building a scale The scale used in the dissertation is based on the theory and studies presented in sections 2.5 and 2.6.1. These scales are inherited and adjusted to be consistent with the study in Vietnamese leather and footwear enterprises. The scales are coded and the source of scales, variables (contents of the question) are detailed in Appendix 2.1. CHAPTER 3: RESEARCH RESULTS OF THE REAL STATE OF ORGANIZING THE COST MANAGEMENT ACCOUNTING INFORMATION SYSTEM IN VIETNAMESE LEATHER AND FOOTWEAR ENTERPRISES 3.1. Overview of Vietnamese leather and footwear enterprises 3.1.1. General introduction to Vietnam leather and footwear industry The export turnover of the whole industry reached USD 16.2 billion in 2016, reached USD 17.93 billion in 2017, the export turnover of the whole industry in 2018 reached USD 19.5 billion, the expected export turnover of the whole industry in 2019 will reached USD 22 billion. Production capacity is still mainly export processing, the design capacity is still weak with lack of synchronization in production development and supply of raw materials. About 70% of enterprises depend entirely on the source of technical equipment, technology, product design and foreign markets (Vietnam Leather, Footwear and Handbag Association, 2016a). 3.1.2. Characteristics of business organization of footwear enterprises operating in Vietnam 3.1.2.1. Characteristics of production and business activities Thu Ha and Lien Hoa (2013) determined that Vietnam’s leather and footwear industry mainly has 4 production methods: pure processing; FOB production (purchasing raw materials and semi-finished products); production for foreign brands, consumption in export markets; production according to OBM (Vietnam’s original brand product). 3.1.2.2. Characteristics of production technology of leather and footwear industry According to the results of the survey, the leather and footwear manufacturing enterprises currently produce 3 types of main products including leather shoes, sports shoes and pressed shoes. This result is also consistent with Nguyen Thi Dao (2016) when surveying the leather and footwear enterprises in Hai Duong province. 3.1.2.3. Characteristics of organization and management in leather and footwear enterprises According to the survey results of the research on the general characteristics of the organization and management structure in Vietnamese leather and footwear enterprises organized according to the functional online structure, this conclusion has the same results with the research of Nguyen Thi Dao (2016) on the leather and footwear enterprises in Hai Duong province. 3.1.2.4. Characteristics of organization of accounting management apparatus in leather and footwear industry According to the survey results of the research, the general characteristics for the accounting apparatus of the leather and footwear enterprises is organized according to the centralized accounting model. The whole accounting work is done in the accounting department of enterprises, at the workshop, only statistics employee is arranged. The enterprises do not organize separated management accounting for 100%. 3.2. Real state of organization of the cost management accounting information system in Vietnamese leather and footwear enterprises 3.2.1. Real state of organization of the cost management accounting information system apparatus 3.2.1.1. The model for organization of the cost management accounting information system Researching the actual situation of the management accounting organization in general and the actual situation of cost management AIS organization shows that the enternprises have not built a management accounting department in the accounting system but the financial accounting department is performing the tasks of management accounting in general and the tasks of the cost management accounting department in particular. Therefore, the leather and footwear enterprises are organizing the cost management AIS in the case of HTTT KTQT as a part of the AIS. 3.2.1.2. The method for organization of the cost management AIS According to the survey data of 197 survey forms at 197 leather and footwear enterprises, 100% of the leather and footwear enterprises fully utilize the processes in the cost management AIS. However, the organization of data flow diagrams for processes has not been paid attention to by the leather and footwear enterprises, the results of organizing data flow diagrams are shown in Table 3.3. The results of the survey on the data flow diagrams organization in the cost management AIS show that 100% of the leather and footwear enterprises do not organize and disseminate the data flow diagram to all employees of the accounting department in general and the employees in charge of cost management accounting in particular. 3.2.2. Real state of organization of the cost management AIS 3.2.2.1. Human organization Through the survey results, in-depth interviews with financial directors, chief accountants, general accountants at leather and footwear enterprises, we may see that: "Most of the enterprises have not organized separate accounting management apparatus, but only the division (accountants) takes over the duties of the accounting management in general and the cost management accounting in particular." Results of the research into the real state of the human organization of the cost management AIS in the leather and footwear enterprises has shown that, although the leather and footwear enterprises have not yet organized the accounting management apparatus in general and the cost management accounting in particular, the enterprises still have accountants who performs the functions of the cost management AIS. Although there is no professional designer, developer or facilitator for the cost management AIS in the leather and footwear enterprises. The facilitators, if any, are the main IT staffs who mainly work on computer support or guidelines for using software (if any), the users of the cost management AIS are virtually the accountants or persons-in-charge directly responsible for the internal reports on expenses to the managers, and the managers are directly responsible for management of cost management for the enterprises; but the results of the survey into the knowledge, skills, attitudes, task performance issues and training issues for employees working on the cost management AIS have met the basic requirements of the cost management AIS in leather and footwear enterprises. 3.2.2.2. Organization of procedures and guidelines Through the survey results, in-depth interviews with financial directors, chief accountants, general accountants at leather and footwear enterprises, we may see that: “Most of the enterprises have not established the procedures and guidelines for applying to the cost management AIS but mainly given the guidelines to the employees in performing the tasks of the cost management AIS according to the experience of the senior ones. Only Chang Shin Vietnam Co., Ltd. has established a guideline procedure, but not all of the procedures are available”. The results of the research into the real state of the organization of procedures and guidelines have shown that the development of procedures and guidelines of the cost management AIS in leather and footwear enterprises have not really been focused on the development of procedures and guidelines by any leather and footwear enterprises despite having met all basic requirements. 3.2.2.3. Data organization Through the survey results, in-depth interviews with financial directors, chief accountants, general accountants at leather and footwear enterprises, we may see that: "Most of the leather and footwear enterprises are implementing hierarchical data organization model." Thus, the research results into the real state of the data organization of the the cost management AIS in the leather and footwear enterprises have shown that, although the survey results of the data organization factors are mean values > 3, however, it is still <4. This proves that the data organization for enterprises has not really achieved the results desired by the managers. 3.2.2.4. Software organization Results of the research into real state of software organization of the cost management AIS in the leather and footwear enterprises have shown that any enterprises using accounting software to data process and organization has accounted for the highest proportion (62.94%), which is consistent with reality and meets the cost requirements of the enterprises in the current period. Some enterprises with economic potential have started to establish ERP software for data processing and organization. 3.2.2.5. Organization of information technology infrastructure Thus, the results of the research into the real estate of the organization of information technology infrastructure (hardware) of the cost management AIS in the leather and footwear enterprises have shown that those enterprises have relatively and adequately equipped IT infrastructure equipment and devices. However, in terms of quality, through the in-depth interviews with the interviewed objects, it is possible that the equipment has been invested relatively long, while the configuration of the devices and machines is not really strong, etc. leading to the fact that IT infrastructure has met the basic job requirements, but not fully met the job requirements of the cost management AIS. 3.2.2.6. Organization of internal control system Through the survey results, in-depth interviews with financial directors, chief accountants, general accountants at leather and footwear enterprises, we may see the real state of the internal control system as follows: “Most enterprises are very interested in the internal control system for enterprises. Large-scale leather and footwear enterprises have organized the internal control systems, and although the other enterprises have not yet qualified for organizing the internal control systems, they have implemented control measures similar to the content of the internal control systems.” 3.2.2.7 Organizing report system of cost management accounting Through researching the actual situation, it shows that leather and footwear enterprises have started to build and deploy reports related to cost management accounting, but in fact the in-depth interviews show that those who perform correlative tasks to cost management accounting has yet been proactive in designing the forms and contents of the reports but only made the design at the requirement of the manager. Those who perform cost accounting management tasks often use the edited and adjusted financial accounting reports to meet the manager 's information needs. 3.3. Results of quantitative research into organizational factors affecting the quality of cost management accounting information 3.3.1. Research results and data analysis 3.3.1.1. Research sample The sample was collected in a convenient way in the form of a questionnaire by sending the survey questionnaire by Google Forms via e-mail and the survey questionnaire directly to the surveyed people, including the managers and accountants at Vietnamese leather and footwear enterprises. The research results received 567 answer sheets from Google Forms, and after reviewing for the incomplete answer sheets according to the survey request, we removed 32 answer sheets, and the number of valid answer sheets received from Google Forms is 535. 250 questionnaires have been sent directly to the leather and footwear enterprises in Dong Nai, Binh Duong, Ho Chi Minh City, Binh Phuoc and Ba Ria - Vung Tau. Finally, 225 responses have been received, and after reviewing for the incomplete questionnaires according to the survey request, we removed 28 questionnaires, and the number of valid questionnaires is 197. Thus, the total number of valid questionnaires aggregated and included in the quantitative analysis is 732. Thus, 732 valid collected samples in the research have met the requirements of research samples. After collecting, the survey sheets were reviewed and discarded for unsatisfactory ones. After that, the observed variables will be coded, input and cleaned, and collected data will be analyzed by SPSS software version 22.0. 3.3.1.2. Testing scales Testing the reliability of 8 scales has given the result of Cronbach's Alpha coefficient > 0.6. At the same time, all observed variables are correlated with global variables > 0.3 and smaller than Cronbach's Alpha. This shows that the observed variables of the scales have ensured its reliability. Therefore, all observed variables were retained for EFA analysis. 3.3.1.3. EFA factor analysis When it comes to analysis of EFA factor, variables with factor load < 0.3 and variables with 2 factor load coefficients will be disqualified if its difference < 0.3. Based on the results of the factor rotation matrix, variables such as CN3, CN6, CN9, QT6, QT9, DL11, PM11, PM16, CT9, KS14, KS16, KS17, KS18, DT5 are disqualified. Bartlett testing result after removing unsatisfactory observation variables shows that there are correlations among global variables (sig. =0.00 0.5, proving that factor analysis to group variables together is appropriate and the data is suitable for factor analysis. The sub-groups in the second EFA analysis in the second factor rotation matrix. 3.3.1.4. Regression analysis After analyzing collected data through steps of calculating Cronbach's Alpha reliability and factor analysis. The research conducted regression model test, and the results of regression model are shown as follows: Model summary Model R R2  Adjusted R Square Std. Error of the Estimate Durbin-Watson 1 .832a .692 .684 .29908 1,889 Adjusted R2 from the model is 0.684, meaning that more than 68.4% of the variation in the quality of cost management accounting information provided by the cost management accounting for management may be interpreted by the linear relationship of the independent variables. Relevance of the model is relatively high. However, this conformance only applies to sample data. To test whether the model can be deduced for the real general or not, the suitability of the model should be tested. The linear regression equation through the regression result table is rewritten as follows: CL = 0.399*CN + 0.192*QT + 0.186*DL + 0.176*KS + 0.175*PM + 0.127*DT + 0.112*CT + ε Model interpretation: The multivariate regression equation estimated by stepwise method shows: Human organization; organization of procedures and guidelines; Data organization; organization of Internal control systems; organization of selection and use of software; organization of IT infrastructure (PC); The cultural characteristics and organizational structure have a direct impact on the quality of the cost management accounting information provided for the management. The results of the regression results show that the variables such as CN, QT, DL, KS, PM, DT, CT have sig. < 0.05, and these 7 variables are significantly correlated with TC with 99% reliability. At the same time, for VIF < 5, there is no sign of multi-collinear phenomenon. In the ANOVA table, the value F = 87.349 with Sig < 0.01, and it may be concluded that the given model is consistent with the actual data. In other words, the variables such as CN, QT, DL, KS, PM, DT, CT are linearly correlated with the variable CL, with a 99% reliability. 3.3.2. The findings and discussion of research results Through the coefficients like Adjusted R2 = 0.684, sig. is very small, and there is no variance in changing balance, and there is no multicollinearity phenomenon, so that it may be concluded that the model is suitable for interpreting the factors of the cost management accounting information system affecting the quality of information provided for the management in Vietnamese leather and footwear enterprises. The influence of CN variable is the highest at the rate of 29.19%, followed by the QT variable contributing 14.05%, the DL contributing 13.61%, the KS contributing 12.87%, the PM variable. contributing 12.8%, DT contributing 9.29%, PC contributing 8.19%. Human organizational factors are the biggest factor affecting the quality of information provided for the management in Vietnamese leather and footwear enterprises. Because it is people who build the procedures and prepare the guideline procedures for the cost management accounting information system, it is also the person involved in the internal control system in helping the cost management accounting information system reduce errors and frauds. encountered. Factors belonging to the development and organization of procedures and guidelines are the second factors affecting the quality of information provided for the management in Vietnamese leather and footwear enterprises. Because if a procedure of organizing the cost management accounting information system is built fully, scientifically and objectively, it will bring efficiency to the work and produce a positive impact on the quality of information provided for the management. Factors related to data organization are the third factors affecting the quality of information provided for the management in Vietnamese leather and footwear enterprises. Full and accurate data may help increase the competitiveness of enterprises, and the quality of information of the cost management accounting information system depends on the quality of the data. Factors related to the organization of internal control system are the fourth factors affecting the quality of information provided for the management in Vietnamese leather and footwear enterprises. The organization of the internal control systems aims to provide a reasonable assurance for the operations and functions of the cost management AIS. Factors related to the selection and use of software are the fifth factors affecting the quality of information provided for the management in Vietnamese leather and footwear enterprises. The selection of the software suitable for business activities and the scale of the enterprises also contributes significantly to the organization of the cost management accounting information system. The cultural characteristics and organizational structure are the sixth factor affecting the quality of information provided for the management in Vietnamese leather and footwear enterprises. Although the contribution of cultural and organizational characteristics is located at the final position, it is also very important in organizing the cost management accounting information system in the enterprises. Factors related to IT infrastructure hardware organization are the final factors affecting the quality of information provided for the management in Vietnamese leather and footwear enterprises. The full equipmen