The interface between electronic banking and accounting modules : a case analysis of companies in Vietnam | |
| Author | Nguyen Danh |
| Call Number | AIT Diss. no.DBA-SOM-18-03 |
| Subject(s) | Banks and banking--Vietnam--Accounting Electronic commerce--Vietnam Accounting--Computer programs |
| Note | A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Business Administration |
| Publisher | Asian Institute of Technology |
| Series Statement | Dissertation ; no. DBA-SOM-18-03 |
| Abstract | Vietnam’s economy has witnessed a rapid economic success over the last 15 years. About 95,000 new companies have registered during the last decade and half. The growth in business was perfectly in line with the development of electronic banking systems in Vietnam. This phase of growth in the Vietnamese economy also generated considerable discussions and applications of electronic banking with regard to its effectiveness in the business operation of a company in Vietnam. However, the process of accepting and implementing the electronic banking system was gradual because of several factors such as business ownership, the company structure and national infrastructure. Hence, the acceptability and penetration of electronic banking system has been steady in Vietnam. In addition, the government has enhanced cashless transactions through the banking system and has further broadened them by releasing Decision No.24531 in 2011. Nowadays, in Vietnam, every bank has its own website where customers can access banking information, and process payments via internet banking. Most of the companies in Vietnam are using online banking services for bank account information, or electronic banking system (EBS) for the electronic transfer of funds. However, only a few foreign-owned banks such as ANZ, Citibank, HSBC, Deutsch Bank and BNP bank can provide a competitive interface between Electronic Banking System (EBS) and some modules of the Accounting Information System (AIS) used in companies. With this banking revolution, companies had to change certain business processes in order to achieve a competitive advantage. Among these is the adoption of an interface between EBS and AIS for payment transactions to vendors and collection of payments from customers. The use of the interface has resulted in huge improvements of the accounting process, cost savings, manpower reduction, data consistency, accuracy, and instantaneous processing of data. Based on the data provided by the banks, 165 companies have achieved in adopting the interface with BNP Paribas Bank while 476 companies have successfully adopted the interface with Citibank. Moreover, all of the companies indicated a solid interface adoption during the period, 2010-2016. However, considering the high number of newly-registered companies in Vietnam, the total number of companies that adopted the interface is significantly low, at 641 compared to the 95,000 newly-registered companies. Thus, it is important to understand this gap particularly because very few studies have been conducted on the impact of interface adoption on the accounting process and business performance of companies in Vietnam. Thus, studying the factors influencing interface adoption in the country and its outcomes is necessary. In this research, a case study has been adopted by collectively analyzing case studies of four companies in Vietnam; two companies as interface adopters and the other two as non-adopters). The study was conducted on the companies that belong to the following sectors: Case 1: DSM Nutritional Products Vietnam in animal feeds as an interface adopter. Case 2: A company in animal feeds and agrochemicals as an interface adopter. Case 3: Metal packaging products for beverages as a non-interface adopter. Case 4: Wacoal (Vietnam) Ltd in textile for women’s underwear as a non-interface adopter. The case analysis included a mixed method approach using both quantitative and qualitative data for analysis. The first company, DSM Nutritional Products Vietnam, was selected primarily because of the researcher’s affiliation and familiarity of the interface system in the company; thus, quantitative and qualitative data were accessible. Data were collected through the live accounting system called SAP. Daily observations were also accomplished. Based on the initial findings from the study of Case 1, a questionnaire was developed and used to gather data from all four cases which comprised of both structured and unstructured questions. The three other cases were also based on interviews using a structured questionnaire but relatively lesser quantitative information was collected. Qualitative method through interviews was conducted for Cases 2, 3 and 4. All interviews were recorded and transcribed in English. Analysis was carried out based on the responses obtained. Results show that the success of the interface adoption was influenced by interrelated factors; among them, IT – business alignment in terms of business strategy and software compatibility are the key factors. The other factors include adherence to the national internet infrastructure, management support by both the company and bank, and perceived risk and security of the interface. Moreover, the effectiveness of the interface is manifested by various positive outcomes such as cost savings, manpower reduction, reduction in errors and document losses, vendor and customer satisfaction, and instantaneous processing. Since interface adoption and its benefits is a pioneering research study in Vietnam, the study enhances managers’ understanding of the interface adoption and its positive outcomes. The study also provides banks some indications on how to effectively convince clients to also implement the interface with their electronic banking system. However, this research does not examine in depth how much gains can be derived by banks from the interface. Rather, this study focuses on the outcomes of the interface between the electronic banking system and accounting modules in the form of electronic payment under the flat form of file to file interface and host to host interface. As a matter of fact, banks provide a variety of interface services with ERP for companies which can also be explored further in future studies. |
| Year | 2018 |
| Corresponding Series Added Entry | Asian Institute of Technology. Dissertation ; no. DBA-SOM-18-03 |
| Type | Dissertation |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Doctor of Philosophy in Business Administration (Publication code = DBA-SM, SM) |
| Chairperson(s) | Gopalaswamy, Arun Kumar (Co-Chairperson);Badir, Yuosre (Co-Chairperson); |
| Examination Committee(s) | Vimolwan Yukondi;Mongkol Ekpanyapong; |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2018 |