The 1st International Conference on Business and Accounting Studies (ICBAS) was held on November 4-5, 2016 in Jember, East Java, and was hosted by the Faculty of Economics and Business, University of Jember. The theme of the Conference was “Socio-Culture Entrepreneurship and Corporate Accountability”. There were six subthemes of the papers presented in this Conference, i.e.: (1) Accounting Information System/Management Information System (AMS); (2) Capital Market (CPM); (3) Entrepreneurship, Small and Medium Enterprise (ENT); (4) Financial Accounting and Auditing (FAA); (5) Sharia (SHA); (6) Taxation and Public Sector (TPS). The Proceedings contains most of the papers presented during the Conference. There are 60 papers published in these proceeding consist of 5 (five) papers under AMS subtheme; 5 (five) papers under CPM subtheme; 9 (nine) papers under ENT subtheme; 20 papers under FAA subtheme; 8 (eight) papers under SHA subtheme; and 13 papers under TPS subtheme. I would like to thank all participants for their contributions to the Conference program and for their contributions to these Proceedings. Also, I would like to extend my appreciation to my colleagues at the Faculty of Economics and Business, University of Jember for their support to this Conference. Finally, I would like to express my sincere thanks to all members of the Organizing Committee of the 1 st ICBAS for their hard work before the Conference, during the Conference, and after the Conference including preparing these Proceedings.
Chairman of the Organizing Committee Dr. Yosefa Sayekti, SE, M.Comm, Ak, CA
TABLE OF CONTENTS ACCOUNTING INFORMATION SYSTEM/MANAGEMENT INFORMATION SYSTEM .........................................................................
Cloud Computing in the Public Sector..........................................
Effectiveness Delone and Mclane Information System Success Model (D & M Is Success Model) ................................................
Factors Affecting Information Systems Performance On Regional Planning Departement in Bondowoso District ..............
Application of Accounting Environment in Hospital Clinic Jember ...........................................................................................
Accounting Education Research: Extended Dramaturgical Interventionism Approach .............................................................
CAPITAL MARKET ....................................................................................
Effect of Size, Profitability and Leverage Disclosure of Corporate
Manufacturing Company Listed in Indonesia Stock Exchange Year 2013 To 2015) ......................................................................
The Investor's "Individualistic" Behavior in Sukuk Investment ...
Indonesia Capital Market Reaction to The Implementation Ramadan Month 2016 In Indonesia Stock Exchange (Studies Case Companies Registered in JII Index 2016) ............................
Does “Monday Effect” Really Occur in Indonesia? Evidence From Indexed LQ45 Companies ...................................................
Optimal Portfolio Analysis of Formation of Food and Beverage Industry Listed in Indonesia Stock Exchange Case Study 20112014 ...............................................................................................
ENTERPRENEURSHIP, SMALL AND MEDIUM ENTERPRISE ....... ENT-01
The Effect of Price, Promotion and Quality Product to Purchase Decision On Moment in Batam (Case Study in Pt. Moment Global International) .....................................................................
Performance Improvement Model Home Based Manufacturer Tahu and Tempe Groups Based in The District of Jember ...........
Analysis of Micro and Small Industry Performance in Indonesia, 2013-2015......................................................................................
Values of Global Business Paradigm Share Culture of Value: Understanding Locality and Culture Values as Basic Growth and Productivity ............................................................................
Building Social Capital Towards Growth Smes: A Case of Tapai SME’s ............................................................................................
A Var Approach to Examines the Economics and Sosial Factors to The Enterpreneur in Indonesia ..................................................
Social Capital Roles in Creating Tourism Entreprenuer Through Preserving Culture in The Village of Padang Tegal, District of Ubud, Gianyar, Bali) .....................................................................
The Impact of Macroeconomics on SME’S Profitability in Indonesia: Evidence Vector Autoregression .................................
Creation Excellence Small and Medium Enterprise to Compete in National and International Markets ...........................................
FINANCIAL ACCOUNTING AND AUDITING .......................................
Review of The Implementation of Understanding the Actors Smes Financial Accounting Standards Entities Without Public Accountability (Fase WPA) in The Process of Preparation of Financial Statements (Case Study On Smes Performers District of Batam City) ............................................................................
Potential Fraud on Capitation Funds Management of National Social Health Insurance Scheme.................................................
Accounting Interpretation as “Ngudi Kasampurnan”(Thought Concepts Java Culture: Abdullah Ciptoprawiro/ 1986) ..............
Comparison Conventional Audit with Perspective Shariah Audit ..................................................................................... 296
The Making of Sosial Assistance Budgeting Performance Based ..................................................................................... 310
Efficiency in Sugar Factories ...................................................... FAA-07
Changes in World Oil Prices and Fiscal Policy in Indonesia (Dynamic Systems Model Approach).........................................
Ratio Analysis to Measure Accounting Performance in Mineral Water Territory Company (PDAM) Of Probolinggo. ................
The Analysis Relationship Between Professionalism and Ethics of the Quality of Audit .....................................................
Financial Accountability in The Management of Village Fundallocation ............................................................................
The Meaning of Assets, Asset Sources, And Reporting Form in Al-Imam Islamic Boarding House ..............................................
Factory Overhead Costs (FOH) Accuracy Analysis with Using Activity Based Costing Method to Determined Cost of Goods Manufactured in The CV. Agnieh Printing Lumajang ...............
Determinant of The Sustainable Growth Rate ............................
Standard Cost Analysis of Raw Materials and Direct Labor Cost as direct Production Cost Control at UD. Sinar Abadi Probolinggo .................................................................................
Analysis Services Quality, Complaint Handling, Image Satisfaction and Loyalty in PT Bank BNI 46 Branch Jember ....
Empirical Analysis of Audit Delay: A Study of Companies Listed in Indonesia Stock Index Sharia ......................................
Differential Analysis in Decision Making Accept or Reject Special Orders On UD. Mayong Sari .........................................
The Effect of Individual Commitment and Pattern of Feedback Presentation On Judgment of Usefulness in The Context Of Cost Allocation ...........................................................................
The Effect of Good Corporate Governance and Audit Quality On Earning Management ............................................................
Increasing Cassava Farmers’ Income by Creating Value Added of Cassava as Tape and Chips.....................................................
Measuring The Performance of Islamic Banking with Syaria Value Added Approach: Implementation of Sharia Enterprise Theory in Islamic Banking in Indonesia .......................................
The Finance Reporting Construction of Mosque: Sharia Basis ....
Implementation of Psak 105 In Funding and and Financing of Mudharabah Transaction On Syariah BMT (Case Study On KSPS BMT UGT of Sidogiri Indonesia Branch of Leces) ...........
Theory of Islamic Accounting: Accounting Perspective of Social and Responsibility .........................................................................
The Value of Islamic Social Reporting Disclosure .......................
The Treatment Principles Accounting of Zakat, Infaq, and Sedekah Based On PSAK 109 ......................................................
The Views of Islamic Financial Institutions On Audit Shari'a .....
TAXATION AND PUBLIC SECTOR .........................................................
The Village's Financial Management Accountability (Case Study on Klompangan Village Ajung Jember Regency) ..............
Acquaint The Management of Inventories in The Application of Accrual-Based Government Accounting Standards ......................
The Implementation of Fixed Assets Administration and Accounting Based On Accrual in The Government of Bondowoso Regency .....................................................................
Detectors Voluntary Compliance in Tax Amnesty Program ........
Analysis of Performance Measurement District Government Bondowoso in The Period 2010-2014 Using The Principles of Value for Money ...........................................................................
The Trend of National Government During the Reign of Jember M.Z.A. Jalal in 2010 – 2014 .........................................................
Factors Affecting On the Budget Absorbtion at Health Department of Bondowoso Regency.............................................
Tax Planning Through A Method Of Depreciation And Adjustment Fiscal To Minimize The Tax Expense (Case Studies On PT Dwijaya Gasindo Makmur) ...............................................
The Rule of E-Catalogue in Procurement of Government's Goods/Services ..............................................................................
Effect of Application of Accounting Standards Administration and Good Governance of the Quality of Financial Statements (Case Study On Local Governments Banyuwangi) ......................
Optimization of Idle State Asset: A Framework ...........................
Microfinance Institution and Household Institution in Jember Regency for Finance Inclusive ......................................................
The Mapping of Audit Opinions, the Finding of the Audit by BPK, Local Government Financial Capability, and Incentive Funds of District in Indonesia .......................................................
CLOUD COMPUTING IN THE PUBLIC SECTOR Diana Sugiyantari Purnamie Titisari Sumani University of Jember [email protected]
ABSTRACT Cloud computing is the application of computer-based information systems by utilizing the internet. Cloud computing can be accessed from any tool from any location and origin of the connected network. Cloud computing also offers excellent service 24 hours a day and 7 days a week, consumers need only pay based on the resources they use. The main issues in cloud computing is security and privacy. The provider always offer more security and privacy, in addition to a variety of convenience and cost efficient in their products. Cloud computing has penetrated all areas of Government, including as E-government. Cloud computing is considered able to suppress corruption and improve government performance in serving the community. This study describes the benefits, barriers, and challenges the adoption of cloud computing for Government based on a wide range of literature. The study also various things that must be prepared to adoption this application. Keywords: cloud computing, public sector, information system 1. Introduction Excellent service from the public prosecution is one of the main driving factors of the public sector in utilizing computer-based information technology. Currently the development of computer-based technology from the latest is cloud computing. Cloud computing is "a means for enabling on-demand access to shared and scalable pools of computing resources with the goal of minimizing management effort or service provider interaction." (The National Institute of Standards and Technology/NIST in GAO, 2016; and Sofana, 2012). The Internet is regarded as a large cloud. Cloud computing for the public sector are usually called e-Government. e-Government is applied in various forms. In Indonesia e-Gov apply in procurement services, taxation and licensing. In Canada used in 77 (seventy-seven)
different types of service, in Singapore to apply for submission of questions, licensing and management of documents, while in Malaysia for electronic procurement, E-services and taxation (Hardjaloka, 2014). Cloud computing allows an agency to pay for only the IT services it uses. Purchasing it services through a provider enables agencies avoid to paying for all the assets (e.g., hardware, software, networks). According to The Office of Management and Budget (OMB), cloud computing is economical, flexible, and fast (GAO, 2016). Based on the research of Alshomrani and Qamar (2013) the benefits of cloud computing for the public sector are Availability and Accessibility, Cost savings, Efficiency, Flexibility, and Scalability. Sofana (2012:24) says cloud computing is considered more environmentally friendly, more cost effective and faster. To take advantage of these benefits, Information and Communications Technology (ICT) investment in Indonesia's Government reaches Rp 14 trillion (US $ 1.2 billion) in 2013 and Rp 36 Trillion (US $ 2.8 Billion) in 2014 (Anggono, Ministry of communication and Information Technology of the Republic of Indonesia). The United States government plan to spend more than $ 2 billion on cloud computing services in fiscal year 2016 (GAO-Highlights, 2016 : 3) and the Australian Government spends approximately $ 6 billion in 2011-2012. (Australian Government Department of finance, 2014). The adoption of cloud computing in Government is also facing some challenges and barriers. Effective challenges in e-government are classified into three groups that include social, economic and political barriers (Hashemi et al (2013). While according to Tsaravas & Themistocleous (2011) Barriers of E-Government Does classified into four groups that include Social, Technological, Organizational, and Policy and. Sen (2013) three critical challenges in cloud computing are regulatory, security and privacy issues. The following research is trying to illustrate the benefits, challenges and barriers of cloud computing for government. Researchers want to find out what the benefits, barriers and challenges in the adoption of cloud computing in the public sector?
2. Literature Review 2.1 Cloud Computing There is some notion of cloud computing from different articles or books, among them: Cloud computing is internet based technology offers computing resources as a service to end users support various IT business process (Ramamoorthy, 2016). Cloud computing is the combined utilization of computer technology (computing) and cloud-based development (Jamil, 2016:4). Cloud computing is "a means for enabling on-demand access to shared and scalable pools of computing resources with the goal of minimizing management effort or service provider interaction." (The National Institute of Standards and Technology/NIST in GAO, 2016; and Sofana, 2012:9). Cloud computing is a model of computation, where activities of processing, storage, software, and other services are provided as a source of virtual integrated into one network. The network generally used is internet (Laudon, 2015:190). Of the various opinions of the above can be said that cloud computing is a computer-based data storage processing for end users by leveraging the internet. According to Jamil (2016:8); Sofana (2011:11); Hashemi URet.eal (2013); Alshomrani and Qamar (2013); and Gen. (2011) Here are five characteristics cloud computing : 1. On
the customer can easily and automatically access to computing facilities like servers, net, storage and soon from any provider.. 2. Ubiquitous/Broad network acces: It implies that the facilities are accessible on the net and they can be used following standard methods like laptops and mobile phones. 3. Location – Resource pooling: This features pools, customers needed different resources in the same place dynamically by the providers include the storage, memory, the bandwidth of the net and the virtual machines.. 4. Rapid elasticity Using this feature, the user can always be updated and improved and accessible anytime for the users.
5. Measured services. All these features cover the coherence and appearance of the clouds. Laudon (2015:194); Hashemi et al (2013); Bassi and Chaudhary (2015); Sen (2013); Alshomrani and Qamar (2013); Wyld (2010); and Kavitha (2014) does NIST development models include the aim and the identity of the cloud and the way they are settled. 1. Public cloud: it is for the public use and accessible for everyone, in which the resources, applications and web-services are provided over the internet and public organizations help to provide infrastructure. 2. The Private cloud: Private cloud is for the exclusive use and only for an organization, the Organization's members can just access the data, services and applications. 3. Community cloud: Infrastructure can be shared between one or some organizations with specific community. Its cost is cheaper than the public cloud but more than the private cloud 4. Hybrid cloud: Hybrid ones which are combination of two or more (public, private and community) clouds. It is in fact an environment which uses multiple cloud providers, internal and external suppliers. The benefits of using cloud computing by Sofana (2012:24) cloud computing is considered more environmentally friendly because less electricity use so that less use of solar, meaning less pollution smoke. Cloud computing more cheaper because users pay only needed, faster because the internet support the faster and cheaper. Challenges in cloud computing is security, performance, availability, exitra. Cloud computing applications from Iphone can help the effectiveness of corporate mobility, flexible, cost-effective, and efficient electricity (Laudon, 2015). The main issues in cloud computing is the data security and reliance on the cloud service provider and internet network. Cloud computing is an internet-based application, where there is a negative side of the utilization of the internet in job that is the threat of malicious software, hackers and computer crimes, internal threats from employees, legal, and health disorders.
3. Reseach Method Research methods researchers use is descriptive qualitative research methods with the study of literature. This researcher collect data using documentation method. Types of data used in this research is secondary data in the form of the words, the images have been recorded without the intervention of researchers in the form of writing, record, sound, digital image, and which is contained in a document such as a previous research, books, journals and articles related to research (Daymon, 2008:344).
4. Result And Discussion There are some benefits, challenges and barriers of E — the author of the Government auto summary of various studies. The following are some of the benefits and challenges for those who offer cloud computing-based services and applications: Table 1 Benefits, Challenges, and Barriers of cloud computing No. Benefits Challenges/Barriers 1 (Kavitha: 2014): 1. Cost saving 1. Security and Privacy 2. Mobile access 2. Lack of Standards 3. Scalability and Capacity 3. Continuously Evolving 4. Resource Maximization 4. Compliance Concern 5. Collaboration 6. Customization 1. Poor quality can hinder 2. Muhammed et.al (2015) 1. virtually unlimited processing, new the prompt availability of storage capabilities (Uwaje: 2012) data. 2. Kuyoro et al (2012) enables the 2. The Fear of hackers measuring of used resources 3. Companies are not 3. Hinchcliffe (2009) payment just for contented privacy. only software used 4. Lack of technical skills 5. Lack of flexibility of the policy or legal framework 6. Lack of detailed information 7. ICT infrastructures and social needed to establish cloud computing data centre 5
across the country. 8. insecurity problem facing the nation will also hinder cloud technologies providers from investing in the country 3.
Alshomrani and Qamar (2013); 1. Availability and Accessibility 2. Cost saving 3. Efficiency 4. Flexibility 5. Scalability
1. Privacy 2. Lack of user control 3. System failure 4. Security 5. On demand self service 6. Data leakage
Hashemi et.al (2013) 1. Rapid elasticity 2. Protection, Care and Technical Support 3. Cost and Efficiency 4. Auditing and Logging 5. Disaster Recovery 6. Reporting and intelligently 7. Systems Integration and Software LEGACY 8. Policies Management 9. Migrating to New Technologies 10. Green technology 11. Security Dhumal (2015) 1. efficient delivery of services at door step 2. reducing corruption 3. Use four models of E-Gov a. Government to Government: increased the speed of work and performance of government b. Government to Citizen: provides 24 hours and 7 days services to the citizen and reduces the effort for citizens accessing the government services. c. Government-to-Business: increased transparency and speed of work d. d. Government-to-Employee model: pay employee's tax bills and other payments Tsaravas & Themistocleous (2011) 6
social, economic and political barriers
1. Low technology literacy 2. Language Problem 3. Contradiction regarding Government services 4. Lack of Internet facility in Villages: 5. Population
1. efficient and cost-effective (Carter
1. Technological: hardware
and Bélanger, 2005; Tokunbo, 2010)
and soft ware, computer power, data storage, levels, enhanced transparency and security, privacy increased revenue (Tokunbo, 2010). 2. Organisational: issues, 3. improved satisfaction levels among human resources, citizens, reduced their governance, the rejection against public sector complexity of services and effaced personal governmental processes interaction (Gilbert and Balestrini, 3. Policy: cost, security, data 2004; Kumar et al., 2007). ownership, privacy a. 4. more responsive governance can be 4. Social: lack of skills, data achieved by citizens ' involvement, ownership, citizen trust, leaving instant feedback on receiving governance services or government policies (Brooks and Ofosu-Agyekum, 2010). 7. Hardjaloka (2014) 1. Increase the effectiveness, efficiency, 1. Lack of local regulations and reduce costs governing the application 2. Increase public participation of e-Gov 3. Improving transparent and reducing 2. the existence of a corruption tradition of sharing 4. Improve services information and creating documentation not yet 3. reliable human resources and the community's ability in using technologi. 4. Limited Access Infrastructure Source: the data processed 2. reduced the corruption
Based on some of the above research benefits e-Gov is a cost effective, flexible, disaster recovery and improve performance, quality of service and transparency of Government. While the major problem is security, human resources, law, economic, social, and technology. The element of confidentiality also into consideration because of the wealth of the country concerned and the important secrets that should not be known by people who are not interested (Wardani: 2013). In Indonesia to protect data security cloud computing is order by law PP number 82 year 2012 , Government mandating electronic service providers opens data center in Indonesia. (tekno.kompas.com: 2014). It will make easier for security of governance and communities data from other parties inside and outside the country.
(puspiptek.ristekdikti.go.id: 2016). With this rule will also encourage the growth of the cloud computing industry in Indonesia. (kominfo.go.id: 2011) E-government in Indonesia beginning 2000s the laws in the field of eGovernment is the instruction of the President (presidential instruction) number 3 year 2003 about the policies and Strategies of e-Government and Ministerial Regulation Ministry of Communication and Information Technology of the Republic of Indonesia number 28 year 2006 about the management of the domain name of the Government, and law number 11 year 2008 of the information and electronic transactions. (http://opensource.telkomspeedy.com/ ). The Ministry of communications and Information in cooperation with various parties doing e-Government Ranking Indonesia (PeGI) to provide an overview of development, and the utilization of ICT in environmental governance, through the evaluation of the whole, balanced, and objective, and get a map of the condition of environmental governance in ICT utilization nationwide (kominfo.go.id, 2013). Dimensions
infrastructure and applications. Based on the PeGI DKI Jakarta Province in year 2015 was ranked first, while for the Ministry/Agency assigned the Ministry of finance and for LPNK occupied the Central Bureau of statistics (BPS) (pegi.layanan.go.id) e-Gov is the new system for the Organization of Government in Indonesia. Before adopting this system the Government was supposed to hold some of the feasibility study to evaluate the feasibility of the system. The feasibility study covering technical, economic, operational, human resources and legal/political. (O'Brien and Marrakech, 2014:155) The feasibility of human resources include employees, managers, customers/users and suppliers. Human resources readiness before the application is applied to prevent resistance to the adoption of information and communication technology and the impact of further could create harmonious environment within a company or organization (Florestiyanto: 2012).
4. Conclusion From some research it can be concluded that benefits the adoption of cloud computing is efficient and cost-effective, reduced the corruption levels, enhanced transparency, improve government performance and service quality, flexibility and Disaster Recovery. While the challenges and barriers to adoption of cloud computing is the Technology, social, economic, law and policy. There are five things that should be hold by Government before adopting cloud computing are operational feasibility, economic, technical, legal and human resources/politics. This research is only wearing a secondary data source based on a variety of research and reading material, which did not use primary sources such as interviews and direct observation. For further research primary data is used in order to make research results more realistic and up to date.
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Hardjaloka, Loura. 2014. Studi Penerapan e-Government di Indonesia dan Negara Lainnya Sebagai Solusi Pemberantasan Korupsi di Sektor Publik. Jurnal Rechtvsvinding. Volume 3 nomor 3, Desember 2014. Hal 435 - 452 Hashemi, S, Khalil M., M. Masdari 2013. Using Cloud Computing for EGovernment: Challenges and Benefits. World Academy of Science, Engineering and Technology. International Journal of Computer, Electrical, Automation, Control and Information Engineering Vol:7, No:9. Jamil, M., Rosihan., dan A. Fuad. 2016. Cloud Computing, Teori dan Aplikasi Yogyakarta. Deepublish. Kavitha, K. 2014. Study on Cloud Computing Model and its Benefits, Challenges. International Journal of Innovative Research in Computer and Communication Engineering (An ISO 3297: 2007 Certified Organization) Vol. 2, Issue 1, January 2014 pp. 2423 - 2431 Laudon, Kenneth C. Dan Jane P. Laudon. 2015. Sistem Informasi Manejemen Mengelola Perusahaan Digital ed 13. Penerjemah Lukki Sugito dkk., Jakarta. Salemba Empat. O’Brien, James A. and George M. Marakas. 2014. Sistem Informasi Manajemen (Management Information System) 9th ed. penerjemah Liza Nurbani dkk.,Jakarta. Salemba Empat Ramamoorthy, S and S. Rajalakshmi. 2016. A Preventive Method for host level Security in Cloud Infrastructure. Proceeding of the 3rd International Symposium on Big Data and Cloud Computing Challenges (ISBCC-16). Switzerland. Springer International Publishing. Sen, Jaydip. 2013. Security and Privacy Issues in Cloud Computing. Architectures and Protocols for Secure Information Technology Infrastructures pages 1 – 45. Sofana, Iwan. 2012. Cloud Computing, Teori dan Praktek (Open Nebula, Vmware, dan Amazon AWS. Bandung. Informatika Tsaravas, Charalampos and Marinos Themistocleous. 2011. Cloud Computing and E-government : Myth or Reality? tGov Workshop ’11 (tGOV11) March 17 – 18 2011, Brunel University, West London. United States Government Accountability Office (GAO-Highlights). 2016. Cloud Computing Agencies Need to Incorporate Key Practices to Ensure Effective Performance. GAO-16-325.April Wardani, Kusuma. 2013. Penerapan Cloud Computing di Instansi Pemerintah. http://ilmukomputer.org/wp-content/uploads/2013/04/dani-cloud computing 1.pdf Wyld, David C. 2010. Moving to the Cloud: An Introduction to Cloud Computing in Government. International Journal of Web & Semantic Technology (IJWesT), Vol 1, Num 1, January 2010 http://tekno.kompas.com/read/2014/06/23/1414000/Batu.Sandungan.Bisnis.ClouddiI ndonesia https://kominfo.go.id/content/detail/1618/kominfo-siapkan-aturan-keamanan-cloudcomputing/0/sorotan_media. 26 Oktober 2011 10
http://puspiptek.ristekdikti.go.id/?p=380#JzKiscdLXQr4EmJZ.99 . 28 Mei 2016 https://id.wikipedia.org/wiki/Komputasi_awan (http://opensource.telkomspeedy.com/). https://kominfo.go.id/index.php/content/detail/3308/Pemeringkatan-e-GovernmentIndonesia--PeGI-/0/e_government http://pegi.layanan.go.id/tabel-hasil-pegi-4/
EFFECTIVENESS DELONE AND MCLANE INFORMATION SYSTEM SUCCESS MODEL (D & M IS SUCCESS MODEL) Diah Wahyu Puspitarini email : [email protected]
ABSTRACT The development of information technology is growing rapidly, encourage (spurred) companies both in the private sector and the public sector to use as processing and information provider. However, not all information systems used can be beneficial to both. For that we need a model to test the effectiveness of an information system. DeLone and McLane information systems success model is one model that can be used to test the success of information systems. From some research, there is a difference between information systems that are voluntary and mandatory. It can be concluded that D & M IS Success model is proven effective to test the success of an information system because the model is simple and valid. Keywords : information system, effectiveness, D & M IS Success model
1. Introduction Advances in information technology as part of the era of globalization can not be separated from modern society as it is today. Today information technology has experienced rapid growth followed by progress in the field. With the rapid advancement of information technology to grow and encourage companies to use technology such as processing and information provider. Not only in the private sector, public sector development of information systems has also increased. According to O'Brien and Maracas (2011), the information system is a combination of regular between people, hardware, software, communication networks and data resources (fifth element is called the components of information systems) that collect, transform and distribute information within an organization. The information system consists of subsystems that can be broadly grouped into operation support system and system management support. Operations support systems (such as: transaction processing systems, process control systems and enterprise collaboration systems) produces a variety of information for internal and
external purposes, but does not emphasize the specific information used by management. The management support systems (such as management information systems, decision support systems, and executive information systems) to provide information in the form of reports and views for managers and business professionals. Jogiyanto (2007) distinguish failures in the implementation of an information system into two aspects. The first is the technical aspect, the aspects related to the system itself which is the technical quality of the information system. Poor technical quality concerns still many mistakes writing program (syntax), logic errors and even mistakes of information. While the second is the non-technical aspects, which is associated with the perception of users of information systems that cause users want or do not use information systems that have been developed. The presence of information technology systems has given so much influence over an organization, not just the organization but the effect extends to the business processes and transactions of the organization. But if all information technology systems are applied to the organization can be considered effective? Then how organizations can determine the effectiveness of applied information technology systems and how to create effective information technology system. Many research have been conducted to measure the effectiveness of information systems. One is the famous research study conducted by William H. DeLone and Ephraim R. McLean in 1992. The success of the information technology system model developed by DeLone & McLean (1992), quickly got a response because it is a simple model but considered quite valid. Based on the explanation above, this paper will discuss the effectiveness of information systems using DeLone and McLane information systems success model.
2.1 Information System According to Mc. Leod (2001), Information Systems is a system that has the ability to gather information from all sources and uses various media to display information. The information system is data collected, classified and processed in such a way that it becomes a unity of related information and support each other so 13
that it becomes a valuable information for those who receive. (Tafri D. Muhyuzir, 2001). Meanwhile, according to Tata Sutabri (2005), the information system is a system within an organization reconcile the needs of daily transaction processing that supports managerial functions of the organization in strategic activities of an organization to be able to provide certain outside parties with the reports required. Leitch Rosses (in Jogiyanto 2005) suggested the information system is a system within an organization that brings together the needs of daily transaction manager, support the operation, managerial and strategic activities of an organization and provide certain outside parties with the necessary reports. Based on some of the above understanding can be concluded that the information system is a set of data to be processed so as to produce information that can be utilized by the organization.
2.2 Effectiveness Information System Effectiveness is an essential element for achieving the goals and objectives that have been determined by an organization. Effectiveness also called effective, if the achievement of goals or targets that have been defined. This is in accordance with the opinion of Mahmudi (2005) in his book "Public Sector Performance Management" Effectiveness defines a relationship between the output with the goal, the greater the contribution output to the achievement of the goal, the more effective the organization, program or activity. While Mardiasmo (2002) states that the effectiveness of the comparison of the level of achievement of program outcomes (outputs) with the targets set (outcome). According to Seddon, Graeser and Willcocks (2002), Effectiveness of information systems is a value judgment made by the point of view of stakeholders, regarding the net benefits obtained in using an information system. In Maharsi, 2000 stipulates that before the management of the organization to implement new information technologies, they should consider the costs and benefits required to be obtained (cost - benefit analysis). Information technology will be applied if the benefits obtained by the use of information technology is greater than the costs incurred to implement information technology. 14
Effectiveness assessment of information systems necessary to evaluate how far the planning information system has reached the goal - the goal is the availability of local development planning information relevant accurate, timely and accountable. According to Bodnar (2000), an indicator of the effectiveness of technology-based information system that is data security, time, variety and relevance of the report.
2.3 DeLone and McLane Information System Success Model In the past two decades, many researchers have discussed the performance evaluation of information systems. The criteria for evaluation and classification of information system performance and success in many organizations have formulated. One of the popular models in measuring the success of information systems is a model developed by DeLone and McLean (1992), known as DeLone and McLean Information Systems Success Model (D&M IS Success Model). The model proposed by DeLone and McLean (1992) is a model that focuses on successful implementation at the organizational level that is based on the causal relationships of the elements of a system for measuring the success of information contained in this model. A preliminary overview of this model is as Figure below
Figure 1. DeLone and McLean Information Systems Success Model (1992.
From the picture above, it can be explained briefly that the success of information systems is shown by the six dimensions, namely: system quality, information quality, user satisfaction, use, individual impact and organizational 15
impact. The proposed model reflects the dependence of system quality and information quality, which was later independently and together affect both elements of use and user satisfaction. The amount of use of the element may affect the value of user satisfaction positively and negatively. And use and user satisfaction severely individual impact and further affects organizational impact. DeLone and McLean then revised model into update DeLone and McLean Information System Success Model (2003). In the model of this revision, DeLone and McLean added dimension of quality service and combines two dimensions: the influence of individuals (individual impact) and the influence of the organization (organizational impact) into the dimensions of net benefits (net benefit) so that itbecomes a model as figure 2 below: Figure 2. Update DeLone dan McLean Information System Success Model (2003)
. This model is built on three components, namely the manufacture of the system, the use of the system, and the impact of the use of the system. The components are: 1. System Quality System quality was measured in terms of ease-of-use, functionality, reliability, flexibility, data quality, portability, integration, and importance. Individual impacts were measured as quality of work environment and job performance. 2. Information Quality Information quality was measured in terms of accuracy, timeliness, completeness, relevance, and consistency. Individual impact was measured in terms decision-making performance, job effectiveness, and quality of work.
3. Service Quality Service quality was measured in terms of up-to-date hardware and software (tangible), dependable (reliability), employees give prompt service to users (responsiveness), employees have the knowledge to do their job well (assurance), and has users’ best interests at heart (empathy). 4. Intention to use/Use System use was typically voluntary and was measured as frequency of use, time of use, number of accesses, usage pattern, and dependency. Individual impacts were measured in terms of job performance and decision-making performance. 5. User Satisfaction User Satisfaction was measured in terms of in content, accuracy, format, easy to use, dan timeliness 6. Net Benefit Net Benefit was measured in terms of make job easier, usefall, increase productivity, enchance effectiveness, improve job performance 3.
Research Method This research is a literature study research is research by studying and
reading various previously references of the problem which is the object of research, namely management of inventories in local government. The literature used in the form of books, articles and journals.
4. Discussion From the model developed by DeLone and McLane there are few studies on the effectiveness of information systems. Among Rai et al. (2002) conducted a study to test the model DeLone and McLean (1992) in the context of the use of information systems of voluntary. Data were collected by questionnaire of 274 students of the student information system (integrated student information system) at Midwestern University. Data were analyzed with structural modeling (SEM). The results of empirical tests support the model DeLone and McLean (1992), namely, the quality of information significant effect on the use and user satisfaction, user
satisfaction significantly influence the use but not vice versa. For the record, Rai et al. (2002) did not test the model to the organizational impact. Roldan and Leal (2003) conducted a study on the model DeLone and McLean (1992) in the field of Executive Information System (EIS) in Spain. This study took a sample of 100 users of the system in 55 companies that have applied the EIS. This study uses three variables to analyze the effect of the EIS to impact individuals, namely: the speed of identification of the problem, the speed of decision-making, and an extension of the analysis. While the variable is used as a measure of the organization impact are: the vision of an organization that is spread, the effectiveness of organizational decision making, and perceived organizational performance. From the empirical results demonstrated that the quality system and quality of information positively affects user satisfaction EIS, but found no significant relationship between information quality and systems quality with the use. Hanmer (2004) conducted a study on the implementation of computerized hospital information system in South Africa on a public hospital owned by the government. The study is based on a model of update DeLone and McLean information systems success model (2003). The empirical test results showed that system quality affect the use, and information quality provides weak influence on user satisfaction. Livari (2005) conducted a study to test the model DeLone and McLean (1992) on the accounting information system in the City Council Oulu, Finland. Field studies done using longitudinal data by taking 78 samples are the primary users of the system. Consistent with research Roldan and Leal (2003), this study demonstrated that system quality is perceived is a significant predictor of the use and user satisfaction. While the perceived information quality affects user satisfaction but does not affect the use. Between the use of the user satisfaction not proved mutually affect one another (reciprocaly). Individual impacts are significantly influenced by user satisfaction, but not by use. Elpez and Fink (2006) conducted an analysis of three case studies that examine the success of information systems in the public sector in Western Australia. From the literature study found some of the key variables that play an 18
important role in the success of information systems in the public sector that differentiates it from the private sector. According to them several variables from a user who was instrumental in the success of information systems in the public sector, namely: meeting user requirements, system usability and performance, information quality and use, user acceptance and IS ownership, and interactions with the rest of the IT infrastructure. Purwanto (2007) conducted a study to test the effectiveness of e-government applications in Sragen government. The model used is DeLone and McLean IS Success Model (2003). The test results revealed that the information quality models of e-government and e-government service quality significantly affect e-government user satisfaction. Instead, these results indicate a weak correlation between the quality of e-government and e-government user satisfaction. The results showed no significant relationships between the use of e-government and predictor variables, such as system quality of e-government, e-government information quality, service quality e-government and e-government user satisfaction. E-government user satisfaction is predominantly affects all the benefits of e-government net compared to the use of e-government. Therefore, the quality of e-government (such as system quality, information quality, and service quality) to affect net benefits of egovernment through e-government user satisfaction. Radityo and Zulaikha (2007) conducted a study to test the use of applications SIMAWEB (Academic Information System Based Website) at the Faculty of Economics, University of Diponegoro. As a result, only 2 of the 8 hypothesis that the use of a significant positive effect on the impact of individual and individual impact significant positive effect on the impact of the organization. While six other hypotheses are not empirically proven: quality system does not have a significant effect on the use, the quality of the system does not have a significant influence on user satisfaction, and between use and user satisfaction not proved mutually affect one another. Istianingsih and Wijanto (2008) has conducted research related to the success of information systems using variable service quality, system quality, information quality, user satisfaction and individual performance. The results of these studies provide evidence that the service quality, system quality, information quality positive 19
and significant impact on user satisfaction, as well as user satisfaction information system positively affects the performance of individuals.
5. Conclusion From the results of empirical studies above show that the context of the use of voluntary and mandatory information systems give different results. Model DeLone and McLean (1992) is more appropriate to be applied for the voluntary use of information systems, it is proved by this model empirically supported by several studies in the system of voluntary information (Rai et al. 2002; Hanmer 2004). While several other studies (Roldan and Leal 2003; Livari 2005; Radityo and Zulaikha 2007) demonstrated the inaccuracy of measurement variables by the use of other variables in the model. This may have been influenced by the nature of the use of information systems is a mandatory policy. The variabels used were system quality, information quality, service quality, intention to use-use, user satisfaction and net benefits. Of course, with variable variation of existing research results. So basically, DeLone and McLane information systems success model can be used as a tool to measure the effectiveness of an information system.
Andrianto, Nico. 2007. Transparasi dan Akuntabilitas Publik Melalui eGovernment. Malang: Bayumedia Publishing. DeLone, W. H., and Ephraim R, McLean. 2003. The DeLone and McLean Model of Information Systems Success: A Ten-Year Update. Journal of Management of Information System. Vol. 19 Iss. 4, p. 9-30 (Diunduh dari: http://www.mesharpe.com.) Elpez, I. dan Fink, D. 2006. Information Systems Success in the Public Sector: Stakeholders’ Perspectives and Emerging Alignment Model. Issues in Informing Science and Information Technology (Volume 3). pp. 219-231. Hanmer, Lyn. 2004. Assessment of Success of a Computerised Hospital Information System in a Public Sector Hospital in South Africa. MEDINFO. IOS Press. Februari 12. Available at: cmbi.bjmu.edu.cn/news/report/2004/.../128_d040004715.pdf
Istianingsih dan Wijayanto. 2008. Pengaruh Kualitas Sistem Informasi, Kualitas Informasi dan Percived Usefulness terhadap Kepuasan Pengguna Software Akuntansi. SNA IX. Pontianak Jogiyanto HM, 2007, Model Kesuksesan Sistem Teknologi Informasi, Yogyakarta: Andi Offset. Livari, J. 2005. “An Empirical Test of The DeLone McLean Model of Information System Success” Database for Advance in Information System (DFA).ISSN: 1532-0936 .Volume 36. ProQuest Company. Muhyuzir, T.D., 2001, Analisa Perancangan Sistem Pengolahan Data, Cetakan Kedua, PT. Elex Media Komputindo, Jakarta O’Brein, James A., (2005), Pengantar Sistem Informasi, Penerbit : Salemba 4, Jakarta. Purwanto, Arie, 2007. Ranvcangan dan Implementasi Model Pemeriksaan Kinerja Badan Pemeriksa Keuangan republik Indonesia Atas Aplikasi EGovernment di Pemerintah Daerah : Studi Kasus di Kabupaten Sragen. UGM, Yogyakarta Radityo, Dody dan Zulaikha. 2007. Pengujian Model DeLone and McLean Dalam Pengembangan Sistem Informasi Manajemen (Kajian Sebuah Kasus).SNA X. Makasar. Roldan, J.L. dan Leal, A. 2003. A Validation Test of an Adaptation of the DeLone and McLean’s Model in Spanish EIS Field. Idea Group Publishing. Seddon, Peter B. Graeser, Valerie and Willcocks, Leslie P. (2002) Measuring Organizational IS effectiveness: An Overview and Update of Senior Management Perspectives.The Database for Advances in Information Systems, 33 (2). ISSN 0095-0033. Tata Sutabri, Sistem Informasi Manajemen, 2005, Yogyakarta, Andi.
FACTORS AFFECTING INFORMATION SYSTEMS PERFORMANCE ON REGIONAL PLANNING DEPARTEMENT IN THE BONDOWOSO DISTRICT Eko Slamet Wahyudi University of Jember, Indonesia Email : [email protected]
ABSTRACT This study aims to determine affect information quality, tehnical personal information system and user training and education on information systems performance. Population were 56 employees. Sampling techniques used purposive sampling by certain criteria. Samples were 35 employees. Analysis is used validity, reliability and multiple linear regression test. The first hypothesis testing showing that information systems quality have effects on information systems performance. The second hypothesis testing showing that tehnical personal information system have effects on information systems performance. The third hypothesis testing showing that user training and education influence have effects on on information systems performance. The fourth hypothesis testing showing that information quality, tehnical personal information system and user training and education have simultan effects on information systems performance. Keywords: Quality Of Information, Tehnical Personal Information System And User Training And Education And Information Systems Performance 1.
Introduction In globalization era, most people increasingly feel the information as one of the
staples in addition to the need for clothing, food and shelter. Along with it, the information has been transformed into a commodity that can be traded. This situation is evident with the development of business information services, such as television stations, newspapers, radio and the Internet that has entered the joints of human life. Rapid environmental changes, dynamic, and broad was supported by advances in information technology in all fields. This has encouraged the transformation of traditional society into an information society. The development of information technology has had an impact in people's lives. Since the invention of the computer in 1955, the civilization the world has entered the information age. Technology information with computers as the driving motor has changed everything. Processing 22
computer based information began to familiar people and until now has been a lot of software that people can use as a data processing tool to generate information. Information technology enables people to obtain information from a remote place in a short time and at a low cost. Besides information technology led to a system that we call information systems. Information systems play a role in accounting for information processing system of computer-based accounting plenty on offer with the aim to make it easy for accountants to produce information that is reliable, relevant, timely, complete, comprehensible, and tested. Accounting Information Systems can be defined as an information system that is changing the business transaction into useful financial information for the wearer. Statement of Financial Accounting Concept No. 2, the Financial Accounting Standards Board defines accounting as an information system. Financial accounting standards also states that the primary purpose of accounting is to provide information for decision makers. The information system will provide facilities for management accountants to produce financial information that is reliable, relevant, timely, understandable and tested so it will help in decision making. American Institute of Certified Public Accountants (AICPA) recently has made a new certification is the Certified Information Technology Professional (CITP). CITP documenting systems expertise accountants are accountants who have extensive knowledge in technology and understand how information technology can be used in a variety of organizations. This reflects the AICPA recognition of the importance of technology or information systems and its relation to accounting (Hand, 2007). Both the poor performance of an Accounting Information System can be seen from the user's decision Accounting Information System itself. An information system will be successful if it is supported by some of the supporting factors. According Soegiharto and Tjhai Fung Jen (in Almilia and Briliantien, 2006) some of the factors that affect the performance of accounting information systems, among others: the involvement of users in system development, engineering capabilities of personal information systems, top management support, formalization of information systems development, and training and user education Accounting Information Systems. With training and education users of the system, the user can gain the 23
ability to identify information requirements and sincerity as well as the limitations and capabilities of information systems can lead to improved performance. Prior to accepting on the new system, someone must first be aware of these changes and then will try to understand it. This can be achieved through proper training. Training will also increase the confidence of employees in the face of the new system (Lester, 2010: 22). The technical capability of personal user information systems play an important role in the development of information systems to be able to produce information to create accurate planning report. Therefore, every employee should be able to master the use of computer-based systems that can process a number of transactions quickly and integrated, can store data and retrieve the data in large quantities, can reduce errors mathematical, generate timely reports in various forms, and can be decision aids (Yullian, 2011: 6). Many studies have been conducted to identify the factors that led to the success of information systems. According to Bailey and Pearson (1983) in the journal entitled Development of a Tool For Measuring and Analyzing Computer User Satisfaction, classify the factors that affect the level of satisfaction of users of the system to 39 variables to test the level of success of the system. Of the 39 variables, Pearson and Bailey determine the five most important variables, namely accuracy, reliability, timeliness, relevancy, and confidence in the systems that will affect end-user satisfaction. Another eminent research study conducted by DeLone and McLean (1992). Success model information system developed by DeLone & McLean (1992), quickly got a response. The reason is their model is a simple model but it is considered sufficiently valid by the researcher. Model DeLone and McLean (1992) is created based on the study of theoretical and empirical information system created by researchers in about the 1970s and 1980s. According to them, the success of an information system can be represented by the qualitative characteristics of the information system itself (system quality), the output quality of the information system (information quality), consumption of the output (use), the user response information system (user satisfaction), the influence information systems
performance to the user (individual impact), and its effect on the performance of the organization (organizational impact). As an effort to improve service quality REGIONAL PLANNING DEPARTEMENT (BAPPEDA) at Bondowoso district hold a new system in order to control the business processes and presenting reports in real time can be applied properly so that the system will be more effective and efficient. For that REGIONAL PLANNING DEPARTEMENT at Bondowoso district excitedly high service implements these applications as a strategic move to meet the challenges aimed at the creation of revenue assurance, efficiency of human resources, the efficiency of system maintenance costs and hardware, uniformity of business processes across units and subsidiaries REGIONAL PLANNING DEPARTEMENT at Bondowoso district ease of system management, availability a centralized data source, the credibility of the financial statements, the consolidated report more effectively and speed cash flow can be monitored at any time. Through this application, the service system can be done anywhere, anytime, cross-border / online web bases, more scalable service assurance and decision making in order to answer customer requests and complaints can be faster. This study aims to examine effect on information quality, tehnical personal information system and user training and education on information systems performance.
Literature Review and Hypothesis
2.1 The Effect Information Quality on Information Systems Performance Information quality is associated with the concept of product information using the data as input and information is defined as data that has been processed so as to give meaning to the recipient information.
information quality has a strong
significance to the influence the success of information systems. Thus, the system designer must make full use four indicators of information quality that is complete (completeness),
availability (availability), and accuracy (accuracy) of information that increase behavioral intention and satisfaction of users to use the system information (DeLone
and McLean, 1992). Based on the description can be formulated the first hypothesis, namely: H1: information quality have significant effect on system information performance
2.2 The Effect Tehnical Personal Information System On Information Systems Performance Personal engineering capabilities here pertains to the capabilities of the users of the information system. There are two types of specialist engineering capability is the ability (include engineering design system associated with the system, the computer, and the system model), and a general ability (include engineering analysis relating to the organization, the human, and the surrounding environment). Jen (2002) argues that the higher tehnical Personal Information System will improve due to the positive relationship between Tehnical Personal Information System On Information Systems Performance. Mechanical ability Personal user information systems play an important role in the development of information systems to be able to produce information to create accurate planning report. Therefore, every employee should be able to master the use of computer-based systems that can process a number of transactions quickly and integrated, can store data and retrieve the data in large quantities, can reduce errors mathematical, generate timely reports in various forms, and can be decision aids (Yullian, 2011: 6). Based on the description can be formulated the first hypothesis, namely: H2: Technical ability personal information systems have significant effect information systems performance.
2.3 The Effect User Training and Education on Information Systems Performance Their training and education, users can gain the ability to identify their information requirements and sincerity as well as the limitations and capabilities of information systems can lead to improved performance Montazemi (in Komara, 2005). Research Holmes and Nicholls (in Komara, 2005) showed that formal training affect the preparation of accounting information. The other researchers have proposed a positive relationship between training users, the attitude of the wearer,
and the success of information systems. Similarly, according to Cheney, Courtney Sanders, Yaverbaum, and Nosek, Nelson and Cheney (in Komara, 2005). To raise awareness and understanding of the importance of information and utilization of information and communication technologies (e-literacy), both in government and the autonomous regional government and in the community in order to develop the information culture towards the realization of the information society (information society). Improvement through awards / appreciation to all the human resources in the field of information and communication central and local governments and communities that are actively developing innovations into works that are beneficial to the development and implementation of e-government. Based on the above can be formulated in the second hypothesis, namely: H3: User training and education on the system have a significant effect on information systems performance. 2.4
The Relationship Between Information Quality, Tehnical Personal Information System and User Training and Education on Information Systems Performance Simultaneous. Their personal technical ability and training and education, can improve
information systems performance. The other researchers have proposed a positive relationship between training users, the attitude of the wearer, and the success of information systems. Similarly, according to Cheney, Courtney Sanders, Yaverbaum, and Nosek, Nelson and Cheney (in Komara, 2005). Improvement through awards / appreciation to all resources both personal ability and training and education can improve system performance. Based on the above can be formulated third hypothesis, namely: H4: Information Quality, Tehnical Personal Information System and User Training and Education have significant effect as Simultaneous on information systems performance.
Research Methods The
DEPARTEMENT at Bondowoso district. Sampling techniques using purposive
sampling that the sample selection by certain criteria, among others, employees who used information systems in their work. Selected samples were 35 employees. The method of collecting data on survey methods in the study done by that personally administered questionnaires. Most questionnaires were distributed directly to the respondents (personally administered questionnaires) that the researcher can provide the necessary explanations and questionnaires can be collected immediately after the questionnaires were collected after completion questionnaire answered by the respondent. Based on the background and issues that have been presented, the variables used in this study were: a.
Information Quality Variable Quality system means the quality of the combination of hardware and software
in information systems. The focus is the performance of the system, which refers to how well the capabilities of the hardware, software, policies, procedures of information systems can provide the information needs of users (DeLone and McLean, 1992). Information quality is associated with the concept of product information using the data as input and information is defined as data that has been processed so as to give meaning to the recipient information. Information quality has a strong significance to the influence the success of information systems. Thus, the system designer must make full use four indicators of information quality that is completeness, understandability, security, availability, and accuracy information that enhances the behavioral intention and
satisfaction of users to use the system
information (DeLone and McLean, 1992). b.
Tehnical Personal Information System Variable Personal technical ability variable was related to the capabilities of the users of
the information system. There are two types of specialist engineering capability is the ability (include engineering design system associated with the system, the computer, and the system model), and a general ability (include engineering analysis relating to the organization, the human, and the surrounding environment). This variable relates to whether the ability of the staff have can be used on its activities and whether any staff have at least one engineering capabilities.
User training and education Variable User training and education on the system variable was related to the existence
of training and education in order to teach how to use the correct system to the staff of the department as well as the benefits of the training and the education. Variables used in this research is information system performance as a vehicle of REGIONAL PLANNING DEPARTEMENT at Bondowoso district in its duty to provide services to the community. Methods of data analysis using normality test, regresli linear and hypothesis testing 4
Result Multiple regression analysis is concerned with the study of a dependent variable
dependence on one or more independent variables in order to determine how much influence the independent variable on the dependent variable. The results of multiple linear regression analysis between the independent variables are information quality, personal technical ability and user training and education on information system performance dependent variable based on the regression coefficient regression equation that can be established are: Y = 0,024 + 0,510X1 + 0,035X2 + 0,281X3 Hypothesis testing is done by the F test is intended to determine the effect of information quality (X1) and training programs and user education (X2) on the dependent variable (performance information system) simultaneously. Based on data analysis known F count equal to 8.641 and F table α (k) (n-k-1), F table (0.05: 5: 30) with a 5% significance of 2.49 was obtained. These results indicate that the F count> F table (8.641> 2.49) then reject Ho and accept Ha means the simultaneous information system performance REGIONAL PLANNING DEPARTEMENT at Bondowoso district significant effect on information systems performance REGIONAL PLANNING DEPARTEMENT staff Bondowoso. Having performed classical assumption, the next step is to test t to interpret the results of multiple regression analysis. This test is performed to determine whether the independent variables affect the dependent variable significantly partially. The results of multiple regression analysis is to determine the effect of information
quality, personal engineering capabilities, and training and education programs to the users of information systems performance. Based on the results of multiple linear regression analysis with t test (in this case to examine the effect of partially) obtained results that may be expressed as follows: The information quality variable in the development process accounting information system has a significance level (sig t) of 0.002. This value is less than α (= 0.05), then Ho is accepted, which means partial information quality variable companies have a significant effect on information systems performance. Tehnical Personal Information System variable at accounting information system has a significance level (sig t) of 0.022. This value is less than α (= 0.05), then Ho is rejected, which means that in partial, personal teαchniques ability of accounting
performance. training and user education variable have a level of significance (sig t) of 0.044. This value is less than α (= 0.05), then Ho is rejected, which means in partial training and user education programs have a significant effect on information systems performance. Based on t-test, then the coefficients of multiple linear regression equation can be interpreted as follows: a.
The information quality variable companies have a significant effect on the quality of corporate information means any increase or decrease in the information quality variable companies one unit affect the performance improvement of information systems employees.
Tehnical personal information system variable of accounting information systems have a significant effect means that any increase in personal technical ability variable accounting information system of the unit affect the increase or decrease in information systems performance.
User training and education variable have a significant effect means that any increase or decrease in variable and user education training program for the unit affect the increase or decrease in information systems performance.
5.1 Effect of Information Quality on Performance Information Systems. The result showed that information quality had significant effect on Performance Information Systems. Quality system means the quality of the combination of hardware and software in information systems. The focus is the performance of the system, which refers to how well the capabilities of the hardware, software, policies, procedures of information systems can provide the information needs of users. Quality system means the quality of the combination of hardware and software in information systems. Quality system in this study is defined as the quality of accounting software. The focus is the performance of the system, which refers to how well the capabilities of the hardware, software, policies, and procedures of information systems can provide information to the user's needs. In connection with the development of a system and that the system can meet the expectations of users, the system must be made so that the quality expectations of users to improve performance can be achieved. Therefore, why would any system development should be of a quality that is based on the reasons 1) consistency, 2) efficiency, 3) leading, 4) reducing costs, and 5) the ability to adapt. Information quality systems can improve information systems performance. Information systems quality is the performance of the system, which refers to how well the capabilities of the hardware, software, policies, procedures of information systems can provide the information the user needs. The better information systems quality, the better the performance of the system so as to provide convenience for users. Ease of use is an assertion about the decision-making process. If users believe that the information system is easy to use, the user would use. Conversely, if users feel confident that the information system is not easy to use, users will not use the information system. The results support the research that has been done by Almilia and Briliantien (2006) who found the result that the information quality variable in the development of accounting information systems have significant effect information systems performance.
5.2 The Effect Tehnical Personal Information System on Information Systems Performance Based on the results of statistical tests showed that Tehnical Personal Information System had a significant effect on information systems performance. Personal technical ability of accounting information systems affect information systems performance. This suggests that employees who use the system should have the capability information corresponding to the information systems used by employees. Users of accounting information systems are required to have the ability and skills about computers and information systems that are used in order to expedite and improve system performance informasi.Adanya good skills in implementing system will make the application of informai system also will be the better so that the performance will also increase. User information system that has the ability gained from education and experience will improve performance in the use of information systems and will continue to use to help finish the job because the user has sufficient knowledge and ability. It means their personal engineering capabilities will provide enhanced information systems performance. The results support the research that has been done Syahdan (2006) who found that the result of personal technical ability variable system of accounting information on information systems performance. According Syahdan (2006), this was due to personal technical ability is very good information systems that result in users of the system are satisfied with the existing system. 5.3 The Effect User Training and Education on Information systems performance. User training and education had significant on information systems performance. The existence of training and user education programs affect information systems performance. This means training and user education programs affect information systems performance for education and training programs aimed at the user that the user can use the system properly. With the training for employees to make personal technical ability, the better so in running the system and employee information as a brain-ware able to improve information systems performance to expedite all access to information needed for the benefit of the company.
Training and education will further enhance the skills and knowledge so that employees can have the necessary skills to carry out their duties in the accounting information system. Along with the procurement of expertise or skills of the income received by individuals will increase. In the end the result of the user training and education will open up an increase in the work and performance of information systems. In the context of career advancement or promotion will be determined by the possession of skills qualifications. While in difficult situations where the organization tends to reduce the number of employees, user training and education provide reinforcement for individuals with job security guarantees mastery of competencies required by the agency. The results support the research that has been done Komara (2005), Syahdan (2006) who found results that user training and education variable on information systems performance. 5.4 The Relationship Between Information Quality, Tehnical Personal and User Training and Education on Information Systems Performance Simultaneous The results showed that there is influence between information quality, personal technical ability of information systems and training programs and educational users of the system on information systems performance simultaneously. Their personal technical ability and training and education, can improve information systems performance. The other researchers have proposed a positive relationship between training users, the attitude of the wearer, and the success of information systems. Similarly, according to Cheney, Courtney Sanders, Yaverbaum, and Nosek, Nelson and Cheney (in Komara, 2005). Improvement through awards / appreciation to all resources both personal ability and training and education can improve system performance. 6
Conclusions and Suggestions This study aimed to analyze the influence of factors such as information quality,
personal technical ability, user training and education on information systems performance. Based on the hypothesis that the analysis can be drawn some conclusions. The first hypothesis testing showing that information systems quality affect information systems performance. These results are consistent with research conducted by Komara (2005) and Syahdan (2006), but it is consistent with research 33
conducted by Almilia and Briliantien (2006). The second hypothesis testing results showing that tehnical personal information system affect information systems performance. These results are consistent with research conducted by Syahdan (2006), but is not consistent with research conducted by Almilia and Briliantien (2006). The third hypothesis testing results indicate that the user training and education influence on information systems performance. These results are consistent with research conducted by Komara (2005) and Syahdan (2006). Suggestions for further research : the need to broaden the object of study, not just a single company so it can be used as a reference to the interests of the generalization problem. Also need to increase the population of the study in order to more complex data can be read easily. It should be added during the interview method of data collection in order to avoid the possibility of bias or not the objective of the respondents in filling out questionnaires. For Regional Planning Departement can improve information systems performance by continuing to do the evaluation and development of the system in accordance with the company's internal environment and procedures have been established, so it can continue to compete in an increasingly competitive business environment. REFERENCES Almilia, Luciana Spica dan Briliantien, Irmaya. 2006. Faktor-Faktor yang mempengaruhi Kinerja Sistem Informasi Akuntansi. Jumal Akuntansi. Almilia, Luciana Spica dan Briliantien, Irmaya. 2007. Faktor-Faktor yang mempengaruhi Kinerja Sistem Informasi Akuntansi. Jumal Akuntansi. Bodnar, H. George dan William S. Hopewood. 1996. Sistem Informasi Akuntansi, Terjemahan Indonesia. Jakarta: Penerbit Salemba Empat. DeLone, W. H., and Mclean, E. R. 1992. Information System Success: The Quest for the Dependent Variable, Information System Research, 3(1): 60-95. Hall, James A. 2002. Sistem Informasi Akuntansi (Buku 1 & 2). Edisi Ketiga Jakarta: Salemba Empat. Handayani, Rini. 2007. Analisis Faktor-faktor Yang Mempengamhi Minat Pemanfaat Sistem Informasi dan Penggunaan Sistem Informasi. Symposium Nasional Akuntansi 10. Makasar. Indriantoro, Nur dan Bambang Supumo. 1999. Metodologi Penelitian Bisnis untuk Akuntansi dan Manajemen). Edisi pertama, cetakan pertama. Yogyakarta: BPFE. Jogiyanto. 2001. Sistem Teknologi dan Informasi. Yogyakarta : BPFE
Jusup, Al Haryono. 2001. Dasar-Dasar Akuntansi. Jilid 1, Edisi 6. Yogyakarta: Bagian Penerbitan Sekolah Tinggi llmu Ekonomi YKPN. Kieso, Donald E., Weygandt, Jerry J.,Warfield, Terry D. 2002. Akuntansi Intermediate. Edisi kesepuluh. Jakarta: Penerbit Erlangga. Komara, Acep. 2005. Analisis Faktor-Faktor yang mempengaruhi Kinerja Sistem Informasi Akuntansi. Simposium Nasional Akuntansi 8. Solo. Kuncoro, Mudrajad. 2001. Metode Kuantitatif: Teori dan Aplikasi untuk Bisnis dan Ekonomi. Yogyakarta: UPP AMP YKPN. Montazemi, A.R., 1988. Factor Affecting Information Satisfaction In The Context Of The Small Business Environment. MIS Quarterly, Vol 12 (2): 239 – 256. Tjhai Fung Jen. 2002. Faktor-Faktor Yang Mempengaruhi Kinerja Sistem Informasi Akuntansi. Jurnal Bisnis dan Akuntansi Volume IV No. 2.
APPLICATION OF ACCOUNTING ENVIRONMENT IN HOSPITAL CLINIC JEMBER Norita Citra Y. University of Muhammadiyah Jember
ABSTRACT The purpose of this study was to examine the method of recording financial statements Hospital Clinic Jember whether it has been implementing environmental accounting system in terms of the allocation of waste management costs with accounting theory existing environment.The data obtained in this study were obtained through interviews, documentation and observation. Once all the required data or information collected in this study, then presented and analyzed with descriptive-qualitative manner. Data analysis is done by comparing the financial statements presented by the Hospital Clinic Jember accounting theory existi ng environment. Keywords: environmental accounting, hospital, waste management costs 1. Introduction The Company was established with a view to achieving certain goals. In achieving these objectives, the company has always interacted with their environment because the environment contribute and contribute to the company. During this time the company is considered as an institution that can provide many benefits to the surrounding community and society in general. The existence of the company are considered able to provide the needs of society for consumption and employment providers. Companies within the communities have a legitimacy to move freely carry out its activities, but over time as the company's position becomes very vital in the life of the community then the impact will be enormous. Impacts that appear in each operational activity is certain to bring due to the environment around the company was doing business. The negative impact that appear most frequently found in each of their operational implementation of the company's business is noise pollution, waste production, gaps, etc. and the impact of this kind is called Eksternality
In this case, pollution and waste production is one example of the negative impact of the company's operational systems that require environmental accounting as a control to corporate responsibility because waste management is carried out by the company requires measurement, valuation, disclosure and reporting of waste management costs of operational results company. Calculation of costs in the waste handling required tersistematis their accounting treatment properly. Treatment of the problem of waste handling company's operational results to be very important in terms of control as a corporate responsibility towards the environment. Based on that later researchers tried to raise the issue of the environmental accounting in research that will reveal the application of environmental accounting at a company that has the potential to produce waste production, namely medical waste in the public health service company. Outcomes in this study are: 5.5 The results of this study will be very useful for hospitals 5.6 Enrichment of teaching materials in an effort to support the accounting curriculum 5.7 scientific publications in local journals with the ISSN or accredited national journal "Journal of accounting" Unej Jember 5.8 Proceedings of the seminar or well-scale scientific symposium of local, regional and national 2.
2.1 Social and Environmental Accounting Based on the theory that has been elaborated at the previous, social and environmental accounting line for the company because the company trying to meet the
Stakeholder theories explain that the company will meet the expectations of stakeholders of the company so that the company will attempt to deliver a report that presents information about the company's efforts to fulfill its social responsibility and the environment. Social and environmental accounting recognizable form of corporate social responsibility (CSR) and sustainability reporting (SR). In addition,
social and environmental accounting can also be applied in the field of management accounting and auditing.
2.2 Environmental Management Accounting Environmental accounting is not limited to financial accounting, but also applied to the environmental management accounting manajemen.Akuntansi used to monitor and evaluate the efficiency of resource use, reducing the environmental impact of operations perusahaan.Sesuai with previous theoretical discussion, stakeholder theory, Arfan (2008: 112) identified the benefits of environmental management for the enterprise, government, and society.
2.3 Social Audit One part of the social accounting is a social audit. The purpose of social audit is to assess the company's performance in relation to the expectations and needs of the community (Deegan, 2004: 322). The results of social audit is used as a material consideration to disclose the company's corporate social activities and as a basis for dialogue with the public.
2.4 Environmental Accounting Legitimacy is based on theory explains that the organization will periodically operate in accordance with the limits and the value received by the community around the company in an attempt to gain legitimacy. Norma company always changes with changes from time to time so that the company must follow its development. Venture companies following the change to gain legitimacy is a process on an ongoing basis. The process to gain legitimacy with regard to the social contract between made by the company with various parties in the community. The company's performance is not only measured by the profit generated by the company, but other performance measures related to the various parties berkepentingan.Untuk have legitimate companies have an incentive to conduct social activities that are expected by the community around the company's operations. Failure to meet the expectations of the community will result in LOSS legitimacy and then will have an impact on the support given by the public to the company. 38
Disclosure of the company through the annual financial statements of the company's efforts to communicate the social activities that have been undertaken by the company to gain legitimacy from the public so that the company's survival is assured. The company will show that the company is able to fulfill the social contract with the surrounding community. While stakeholder theory considering the various groups (stakeholders) are available in the community and bagimana expectations of stakeholder groups have a bigger impact (smaller) against perusahaan.Teori this strategy has implications for policy management in managing expectations stakeholder.Stakeholder companies basically have different expectations about how the company operated. The Company will seek to achieve the expectations of stakeholders ruling by penyampaikan disclosures, including social and environmental reporting activities.
3.1 Types of research This study is exploratory research, and actionresearch survey conducted in the region Kab.Jember using triangulation method.
3.2 Data analysis This study used a descriptive analysis and comparative method that is done by collecting, preparing and analyzing data so that it gets a clear picture of the issues, and analyze the data starts by collecting primary data obtained by the method of interviews with stakeholders then developed and analyzed based on secondary data such as financial statements. The analysis will provide an overview of the application of accounting standards used are the foundation of the recognition, measurement, disclosure and reporting. The results of this analysis are then compared with the theories derived from the literature that support. The purpose of this analysis is to determine the application of
The design of the activities to be performed during the observation, among others: 1.
Interviews with financial staff, HR staff and office staff to find out why the use of standards used. 39
Looking at the way financial reporting Hospital Clinic Jember
View the form of financial statements Hospital Clinic Jember
Comparing the differences in the financial statements Hospital Clinic Jember with environmental accounting theory.
4. Results And Discussion 4.1 Research result Hospital Clinic Jember is one of the hospitals that have met the standard installation of Wastewater Management (WWTP) are based on the rules of the government,
Equipment and machinery WWTP incinerator (incineration of hazardous wastes and toxic / B3) has been installed in accordance with the layout of the site plan of the building Hospital (RS). Hospitals already have the tools WWTP and Incenerator since 2000. Hospitals have hope useful to society and the corresponding expectations of the patient, not to harm the public hospital. Because the waste water can endanger the
To be sure, the hospital always produce waste, both medical waste, non-medical, B3, and should be treated special division. If the non-medical waste is placed differently. Inside the hospital placed a small garbage bins to facilitate waste collection daily. Liquid medical waste, glass, plastic, needle too late treated at incinerator. To get a perfect process, the combustion temperature of 1200 degrees B3 wear celcius.Itu perfection incinerator. So that glass, plastic, needles will be ashes. Impact of B3 waste is dangerous because there is the content of radiology, infeksium of blood and fluids of the human body, so it must be destroyed as well. As such infectious needle in the HIV virus if held small children can be infected. Hospital waste water is processed and can be tested by freshwater fish. This incinerator engine capacity of 50 kg. Interviews with financial staff, HR staff and office staff to find out why the use of standards used. Standart Environmental Accounting Application Regulation is a standard that has been compiled and published to provide guidance in every
environmental management assignment. As well as in waste water management stipulated in decree Kep-03 / Men. KLH / VI / 1993 on wastewater. 1. General Standart Common standards are conducted in order to process the application execution environment accounting Hospital Hospital Clinic Jember is by preparing the budget on planned activities to be conducted in the management of municipal waste sakit.Setiap waste control activities must also do research to find out whether it's activities on the ground running well or not. 2. Standard Implementation In the management of the environment, there are three components that must be managed and monitored, these components are abiotic components (water, air, soil, etc.) kompenen biotic (flora and fauna), and social components. Analysis Examination of Waste and Wastewater Levy regularly conducted every month also did not experience any difference. The activities carried out well costs are not increased. Standard wastewater treatment was appropriate. Basically, the environmental costs are always related to the cost of products, processes, systems or facilities essential to making better management decisions. The portrayal of the environmental costs of a company that depends on the intention of the company itself to use the information generated from the information lingkungan.Biaya environmental costs represent costs incurred by the company due to environmental degradation. It is also revealed by the Hospital Clinic Jember that: "Environmental costs as expenses - costs incurred relating to cope with the environmental impact both for the management of waste generated by the operations of the company and the social impact of the operations of the company."
Recognition Recognition of the problem associated with the transaction will be recorded or not into the recording system, and thus the transaction will affect the company's financial statements. Hospital Clinic Jember recognize these elements as an expense when these costs are already used in the company's operations in managing the environment 41
Measurement Hospital Clinic Jember in measuring environmental costs (in terms of waste treatment costs) using monetary units based on the costs incurred and the realization of the budget taken from the previous period
Presentation Presentation of issues related to how a financial information will be presented in the financial statements. Costs incurred in terms of environmental management (waste management) at the Hospital Clinic Jember is presented together with other similar fee to the sub overheads and the cost of direct labor and direct material costs and other indirect costs
Disclosures The disclosure relates to a problem that a financial information or the company's accounting policies disclosed or not. Based on observations made during the study, the company revealed accounting policies, activities contingent liabilities in connection with environmental management (PLH) in the Notes to the Financial Statements of the Company. Comparing the differences in the financial statements of the Hospital Clinic Jember with environmental accounting theory.
The costs included in cost accounting environment Environmental costs can be defined as costs incurred in order to achieve objectives such as cost reduction environment that increase revenue, improve environmental performance to be considered current and future. Environmental cost is the cost incurred by the company related to environmental damage caused and protection do. Environmental costs include both internal costs (associated with a reduction in the production process to reduce the environmental impact) and external (related to repairs damage caused by waste generated) (Susenohaji, 2003) 1. The cost of maintenance and replacement of the impact caused by waste and waste gas (waste and emission treatment), which are expenses 42
incurred to maintain, repair, replace environmental damage caused by waste companies. At Hospital jember Clinic at the beginning of the accounting period receive a Budget Funds for a period of one year, but padadasarnya is that cash is still the form of budget allocations (rencanabiaya) which still can not be called a charge, as the financing untuklingkungan (in terms of waste treatment) was conducted danpada every month accounting period will end on the sum to be reported on this line
GreeningAccounting (in Winarno, 2008) which suggests his views that allocation
dialokasikanpada new beginning of the period and are recognized when received a number of values wherewith issued 2. The cost of prevention and environmental management (prevention and environmental management) are the costs incurred for preventing and managing waste to avoid environmental damage. 3. Cost savings environment (environmental revenue) is a cost savings or revenue improvements sebgai company as a result of environmental management. 4. The hospital is one of the public sector organizations engaged in health services. Hospitals in its operations may generate waste. The hospital as a public servant agencies are expected to show social responsibility by implementing environmental accounting. 5. Steps that could be done by the company is to present the notes in the financial statements regarding the waste management costs, then amplified and reinforced as an important policy overview of our environmental policy accounting. The next step to do is present "environmental report" as an additional complement of financial statements in addition to providing accounting records on environmental policies that have been taken. According to Mathew and Parrerra (1996), environmental accounting as social information is used to provide a comprehensive overview of the accounting forms extrenalities enter into a corporate account information such as labor, product, and environmental pollution. In this 43
case, pollution and waste production is one example of the negative impact of the company's operational systems that require environmental accounting as a control to corporate responsibility because waste management is carried out by the company requires the identification, measurement, presentation, disclosure, and reporting of waste management costs of the results of operations of the company.
4.2 Discussion Examination Analysis of Waste and Wastewater Levy regularly conducted every month also did not experience any difference. The activities carried out well costs are not increased. Standard wastewater treatment was appropriate. Hospitals in revealing that the hospital waste treatment intended to reduce substance - substance pollutants before they disappeared kelingkungan. To treat wastewater coming out of hospital waste treatment installation required (WWTP). Cost allocation method for the management of these environments are generally allocated as additional costs, the cost for one year accounting period to manage the various possibilities of environmental pollution and the negative impact the rest of the businesses included in the post operational common costs (Kohln, 2003). In practical terms, the allocation is not problematic at tackling the negative impact, but in the accounting allocation of costs that are not carried out systematically by the method of cost allocation explanation may reduce the accountability of the companies concerned. Accountability of the use of environmental costs that are not included in the post in detail to reveal the identification, classification, measurement, assessment, and reporting of the use of such charges being biased. (Hadisatmoko.2000). Hospitals have implemented environmental costs in accordance with the standards that have been made. The amount of waste is estimated each year is different, this is what led to the addition of costs incurred for the destruction increased. If no additional budget costs, there will be lean with garbage. This is what makes this environmental pollution terjadi.Sejauh Hospital has not been highlighted with regard to disclosure of social information, especially the practice of application of environmental accounting. As a unit of services that are considered gentleness on the "social path", Information responsibility to the environment as a result of activities Hospital services go 44
unnoticed. Moreover, the ownership status Hospitals generally do not go public and are usually located in the control group of foundations tend to be regarded not profit oriented. In reality Hospital is one of the largest potential waste, ranging from chemical wastes that come from drugs until the radioactive waste from radioactive equipment is very dangerous. Hospital Clinic Jember, as the entity that could potentially generate B3 should have a good accounting system environment as a form of corporate social responsibility. The problem faced today is the application of sistemakuntansi unfavorable, especially with regard to the implementation of environmental accounting. This is because companies still combine the costs associated with processing this waste yangsejenis other expenses in the financial statements. In fact, the inclusion of these costs in the financial statements may be added value (value added) separately for the company. Therefore, the authors felt it necessary to propose any improvement in the implementation of environmental accounting firm. Steps that could be done by the company is to present the notes in the financial statements regarding the waste management costs, then amplified and reinforced
environmental policies that have been taken.
5. Conclusion Based on the results of research and discussion that has been discussed in the previous chapter, produced some of the following conclusions, among others: 1.
Treatment allocation of environmental costs carried out by the Hospital Clinic Jember carried out by the finance department and Logistics Hospital directly with Environmental Sanitation Section recognized as one of the fixed assets (fixed assets) of the hospital.
The management of hospital waste has followed the applicable procedures in the hospital, the state of the environment is healthy or normal matter seen from the results or performance evaluations that have been conducted by the Hospital Clinic Jember and -pihak third party to work with. All 45
research or evaluation carried out in accordance with standards prescribed rules Jember Hospital Clinic.
5.1 Suggestion Based on the analysis, discussion and conclusions, the suggestions of the study's findings are; 1.
It is expected that further research could take another research object for comparison. It would be better if the object of study more than two so they can dikomparasi with more varied.
In conducting further research is expected to last longer and use time effectively and efficiently as possible in order to understand and know more about its accounting cycle to the financial reporting process.
The Ministry of Health also should create guidelines for the implementation of environmental accounting for the hospital, so that each hospital is required to apply environmental accounting in its operations and have clear guidelines on how should implement environmental accounting.
The environmental accounting standards required for accounting standards be the key to the company in serving the community so that this agency should be able to present sufficient information, trustworthy, and relevant for its users.
REFERENCES Angraini. 2006. "Disclosure of Social Information and Factors Affecting factors that Social Information Disclosure of Annual Financial dalamLaporan (Empirical Study on Listed Companies that Jakarta Stock Exchange)". National Symposium Disampaikandi Accounting 9 Padang. Aras, Guler and Crowther, David. 2008. "Evaluating Sustainability: aNeed for Standards". Issues in Social and EnviromentalAccounting. Vol. 2, No. 1, June 2008, pp. 19-35. Basyit. 2005. "Europe: Sustainability Reporting Already MenjadiKewajiban". Accounting, Issue 47, Year XII, July 2005. Hal.18-19.
Bewley. 2008. "The Impact of A Change in Regulation onEnvironmental Disclosure: SAB92 and the US ChemicalIndustry". Issues in Social and Environmental Accounting. Vol. 2, No. 1, June 2008, pp. 61-88. Deegan, Craig. 2004. Financial Accounting Theory. Australia: McGrawHillFinancial Accountant Standard Board. 1996. Standard of FinancialAccounting Concepts. Norwalk: John Wiley & Sons Inc. Gaffikin, Michael. 2008. Accounting Theory, Research, Practice andAccounting Regulation. N.S.W .: Pearson Education. Global Reporting Initiative. 2002 Sustainability Reporting Guidelines. Gray, Rob. 2008. "Social and Eviromental Accounting and Reporting: From Ridicule to Revolution? From Hope to Hubris? - Apersonal Review of Field ". Issues in Social and EnviromentalAccounting. Vol. 2, No. 1, June 2008, pp. 3-18. Indonesian Institute of Accountants. 2009. Accounting Standards Keuangan.Jakarta: Salemba Four. S. Jafar, Muhammad and Arifah, Dista Amalia. 2006. "PengaruhDorongan Environmental Management, Performance Management and Environmental LingkunganProaktif against PublicEnvironmental Reporting. Delivered in SimposiumNasional Accounting 9 Padang. Kompas, July 2, 2010. "Reflecting on Dark History". Page 17. Kompas, June 25, 2010. "The head of the Regional Co-Involved Spreads" .It 27. Lily. 2005. "Indonesia Sustainability Reporting Award". 47. Akuntansi.Edisi Year XII, July 2005. Page. 17. Mahoney, Lois, LaGore, W., and Scazzero, J. A. 2008. "CorporateSocial Performance, Financial Performance for thatRestate Firm Earnings". Issues in Social and EnviromentalAccounting. Vol. 2, No. 1, June 2008, pp. 104130. Minister of Justice and Human Rights of the Republic of Indonesia. 2007.Undang Law of the Republic of Indonesia Number 25 Year 2007tentang Investment. ______. 2007. Law of the Republic of Indonesia Number 40, Tahun2007 on Limited Liability Companies. Satyo. 2005. "Strong Political Will Need". Accounting. 47.Tahun XII edition, July 2005. Page. 10-11. ____. 2005. "Sustainability Reporting: New Paradigm PelaporanPerusahaan". Accounting. 47. In the XII edition, July 2005. Hal.5-9. Suharto, Harry. 2004. "Environmental Accounting Standards: KebutuhanMendesak". Accounting. Issue 42. Year XI, July 2004. Page. 4-5.
AMS-06 ACCOUNTING EDUCATION RESEARCH: EXTENDED DRAMATURGICAL INTERVENTIONISM APPROACH Whedy Prasetyo Accounting Departement of Jember University Email: [email protected]
ABSTRACT This paper describes a research perspective of accounting education in a extended dramaturgical interventionism approach is methodology for the study of cultural policies that selection pragmatis and self-reflexive method. Therefore, extended dramaturgical interventionism approach developed a method of using any available empirical material. The choice of method depends on the accounting research issues and problems which otherwise depends on the context of what is available and what can be done research in these settings. This study discusses viewing accounting education as scenarios, extended dramaturgical interventionism approach and contribution of extended dramaturgical interventionism for accounting education approach. The result is to create, critically assess, and communicate the policy-relevant knowledge in one or more stages of the policy making process. Applications that can generate knowledge relevant to policies that directly affect the assumptions, decisions and actions in one step, which then indirectly affect future performance. Keywords: Accounting education research, Extended Dramaturgical, and interventionism
Me in the Genuineness of the Number Words I…my pace…halted, perplexed before the wall of submission The domain of the weary desire of the heart trueness The determination in the swaying move of the artists of the fibrous brain The direction guidance of My identity through the chalk cracks of number balance Gun in framing exploding the clouds that bring the balance away My shape is not a rebellion against the product of the fibrous brain of My intellectual Bestowing love and affection…in the pace unity of the genuineness of the number words In the harmonious mind beauty of My accounting for the achievement of my way y accounting way that has been revealed in My map of change In creating the interconnection of number words that grants the liberation When expression is offered to the trail of knowledge As it shall be….giving the space of exploitative expression
For…the growth of various bonds of expression As the expression of knowledge trail that never stand alone Whose existence is from, for and in favor of itself… Only the play and the mosaic of citations of previous texts To avoid the isolation of My cultural object I…bounced...bumped…in the freedom of creating My fibrous words I hold My posture upright, facing My liberation through interactions I shall undergo I…now no longer in the darkness…not strolling in arrogance…in the shelter of the eternal candle of enlightenment Starting to step in the interception of My whole physical self Now I am walking in consciousness and tranquility in the interconnection of number word Because… I think that is the reason why I exist Bring me into the eternality….Amin Whedy Prasetyo, Malang I belong to , 09 July 2012 1.
Intoduction Dramaturgical approach represents a shift towards humanism and the
avoidance of the scientific model. Dramaturgy more interested in studying men as abstractions rather than adjust their behavior to the propositions and theories that are already known. Dramaturgy allowing the individual to his role. This is evident from the discussion on controlling the impression (which let mistakes or mismanagement), as well as in the concept of the role and engagement gap role. Therefore, Blumer (1971) states without prejudice to the fact that in each of the human presence is very responsive to the presumption against him, then it is very unfortunate if we assume that this form of self-awareness as a basic human problem dealing with him. In the association, people do not just sink to the etap attention focused on the assessment of him and how it affects the way the votes. This is done continuously and some of them do it more than others. But this is not the core of what humans do in interacting with him. From this it can be concluded that the dramaturgy was less attention to the social structure in which actors organize their experiences. Data for theoretical thought Goffman (1959) about the "self" in the Presentation of Self in Everyday Life be the beginning of dramaturgy methodology. The concept of "self" (self) Goffman greatly influenced by the ideas of the tension between "self" spontaneous. "I" and
"me", the self which is limited by social life. According to the theory of dramaturgy, as according to other symbolic interactionist, "self" is not something organic nature that has a special place. Furthermore, Goffman argued that in analyzing the "self" we take from the owner, of the people who will benefit or be harmed by it, because he and his solely provide the basis for something that generates cooperation. Dramaturgy is a social theory that is above episode and see life just because he lives in a narrow circle interpersonal, historical and non-institutional, an existence that transcends history and society, and live only in the moment of time, temporary and fragile. Society is composed of human acts, and people's lives can be seen as a form of their actions. That is, the public is action, group life complex ceaseless activity, and there is a collective action that requires adjustment and action of each individual into a line of action of each actor that each give a sign to one another, not only to ourselves (Blumer, 1969). From here, it takes a development on a concept called extended dramaturgy. So, extended dramaturgical interventionism approach not only see self as "I" and "Me" but also "Us". Extended dramaturgical interventionism approach is a multiple focus method involving an interpretive and reasonable approach to any subject matter. Extended dramaturgical interventionism approach identifying itself in the realm of qualitative research, work in a natural setting, attempting to understand, given the interpretation of the phenomenon yan seen from the meaning given to her people. Therefore, study methods of extended dramaturgical interventionism approach involves the use and collecting empirical materials such as case studies, personal experience, introspection, biography, interviews, observation, historical texts, interactional and visual, participatory observations that describe routine and problematic moments, and its meaning in the life of the individual and the collective. In this case extended dramaturgical interventionism approach is a method of communicating knowledge relvan policy can be viewed as a four-stage process involving policy analysis, manufacturing of materials, interactive communication, and utilization of knowledge. For extended dramaturgical interventionism approach, policy analysis is made on the basis of assessment of knowledge relevant to policy issues, the results of policies and policy performance. To communicate this knowledge, analysis of extended dramaturgical interventionism approach create a 50
variety of documents relevant to the policy. The purpose of creation of the documents that are relevant to policy and oral presentations is to increase the prospect of exploiting knowledge and open discussion among stakeholders at some stage in the policy-making process.
Viewing Accounting Education as Scenarios Is accounting education changing? Are there individuals who are responsible
for its change? Do changes in accounting education prone to challenges? Do changes in accounting education involve power?
I see that all these questions
provide ‘yes’ for answers, which show quite clearly that changes are inevitable and that society is not always in order or at a status quo. Fogarty (1997:45-46) explains that there are three reasons why accounting education in this modern world is always changing. First, accounting education has reached the peak of modernity that rationalizes areas of human life even if there is little evidence of its success. Second, social meanings are contested in this era and therefore changes are unavoidable.
Third, modernity invests heavily in market
ideology which substitutes actual freedom, although the market implies aggregated autonomous decision making. Accounting education is therefore brimmed with changes. Such changes have been termed by Perks (1993:195) as scenarios. Just as choreography of dances has intrigued Janesick, as edited by Denzin and Lincoln (2003), to use as metaphor for qualitative research, the word ‘scenario’ has triggered my interest to use theatres as metaphor in viewing accounting education for several reasons. In my days of youth, I was often intrigued and drawn into the attraction of art, literature and play. My involvement in school productions such as “Midsummer’s night dream”, “Romeo and Juliet”, “The Twelfth Night” as well as literature readings such as “To Kill a Mockingbird”, “Hamlet”, “Animal Farm”, “Pride and Prejudice” has always made such great impression to me because of their cunning plots. Both entertaining and enlightening, such plays have their messages: they are life lessons watched. Further, there was this unexplainable energy rush as I stood on the center stage to play my part. It was not just because of the lighting, attention or the grandness of 51
theatre, but it also conveyed a feeling of power to lead the audience’s empathy, hatred, anger, pity, sorrow and joy. There was a sense of power of knowledge since those who were involved in the play knew exactly how the story was built and ended. On the other hand, the audience may have the joy of unknowing. The life of a theatre is invigorated by the known and the unknown; dynamics of emotions as the story telling goes on. This is the beauty of a theatrical performance or a play. Now, accounting education that becomes life itself, and especially my life, could also be regarded as a play. It tells a story! Allow me to elaborate. The discourse of accounting education and its changes could be viewed under different spectacles. Rebeleet al. (1998), as they recapitulate accounting education changes through accounting curriculum development during 1991-1997 in several accounting education journals, namely Journal of Accounting Education, Issues in Accounting Education, The Accounting Educators’ Journal and Accounting Education: A Journal of Theory, Practice and Research, see that it is accounting education’s purpose to be able to face significant changes in practice developments. Such practice developments are referred to the need of the market. This is supported by the trend that shows how accounting education adjusts to the dominant need of the market.
The current progress of accounting standards namely
International Financial Reporting Standards (IFRS), which is needed by capital owners to facilitate investment (Ratnatunga, 2010), has affected accounting education in most countries. Munter and Reckers (2010) have affirmed that one important benchmark for the US Stock Exchange Commission (SEC) is the progress being made by educators in incorporating IFRS content into their accounting programs. Although in a recent survey it is found that the top twenty universities in the United States do not see the need to integrate IFRS into their curriculum (Bates et al., 2011), Munter and Reckers (2010) see that this is caused by uncertainties and budget shortfalls that are faced by universities. In different view, Ainsworth (2001) may see changes to accounting education as a call to transform “what we teach” to “how we teach”. Yet, there are other views that are beyond the prescriptive (what educators should be doing) and descriptive (what educators are doing) approaches. Such view could be more critical (Truan and
Hughes 1999, Oakes and Berry 2009), postmodern (James 2008; Hines 1999), or religious spiritual (Triyuwono 2010, Mulawarman 2007, 2008). Under a theatrical perspective, the dynamics of accounting education have therefore been presented in a range of collection of scenarios. There are changes in accounting education that are propounded in calm drama and there are those who see accounting education changes as romance, satire, comedy or tragedy. Chamber’s (2005) Poverty in Accounting Discourse could be viewed as satire as he elucidates the irony of accounting “fallacious arithmetical propriety” that leads to discrepancies between the financial statement and business value. James (2008) might be viewed to tell his story in romance as he details the process of accounting theory learning process through music, literature and films. Hines’ (1992:314) Filling up Negative Spaces could be regarded as a comedy as it tickles our senses of status quo while proposing how willingly we have taken our stances in “Absolute Masculine”. When accounting education is viewed in such way, then there will be all traits of what a theatrical performance would possess. There will be plot, cast, stage, dialogues, interlude, applause and encore.
All of these would build and tell a
complete set of a story that depicts accounting education journey through its players or actors. In a play, one could sometimes become director who designs the plot, scenery, dialogues, then watches the play knowing how the story would progress in the hands and creativity of its cast. Yet, one could also be positioned as audience experiencing the joy ride of the unknown and wait for either the unexpected or expected finale. Being a director, a researcher could introduce changes into accounting education that is currently existing. Bearing this in mind, dramaturgical interventionism offer an alternative way to create a change in accounting education as well as present the findings in a refreshing fashion.
Extended Dramaturgical Interventionism Approach The spirit of play isthe core of thekind of accounting education research that
holds on to viewing accounting education as scenarios. The researcher will act as director, actor as well as audience. As play director, one would design the play while plotting how accounting education should change in an institution. As player 53
or actor, one would use immense creativity and commitment to play one’s part while experiencing the change in accounting education. As audience, one would watch and enjoy how the play commences while observing and understanding the progress of change in accounting education. One could be all these in different settings and the story of accounting education would be presented inscenarios. The use of theatrical metaphor might be similar to dramaturgy. Berg (2004:7677) describes that dramaturgy is derived from symbolic interaction stream that views everyday life as theatrical performance. It sees that in research, the line between the performer and the audience sometimes blurs. Therefore, dramaturgy is an orientation of interviewing, in which researcher creates appropriate climate for establishing rapport, instead of using mere words or sentences. This study will certainly employ such interviewing technique. Interviewer (or researcher) will be actor, director and choreographer (Berg, 2004:103). Taking this stance, the research would be written as lively and dynamic as it happens, capturing thoughts and beliefs.Capturing thoughts and beliefsare important because they are parts of consciousness (Audi, 2005). In this way, this kind of research could also be classified as narrative study. There are several types1 of narrative study, but this research dwells on narrative approach that has a specific contextual focus. Similar narrative study in accounting education, especially portraying classroom, teacher and students have been conducted by Ollerenshaw and Creswell (2002) as described by Creswell (2007:55). However, dramaturgical approach alone can not be used in a study that tries to introduce changes into prevailing accounting education. This is simply because dramaturgy is limited to interviewing technique using theatrical metaphor. Similarly, if narrative approach is used, it would only be able to portray accounting education perse. An extension to intervene is therefore necessary. Keeping in mind that both dramaturgy and narrative study need intervention, extension to these methods is carried out also by using interventionism. Interventionism is simply described as an approach that presupposes actions, for
A biographical study is a form of narrated study in which the reseracher writes and records the experience of another person’s life. Autobiography is written and recorded by individuals who are the subject of study. Life history portrays an individual entire life. Oral history consists of gathering personal reflections of events and their causes and effects from several individuals (Creswell, 2007:55)
example forcing changes in an organization (Jonsonn, 2010). Therefore, interventionism is very unique with infinite variations as well as very contextual. It provides progress of knowledge about changes that work in an organization. Interventionism is different to experimental research. Experimental research is built upon artificial context that is designed to test hypothesis derived from theory. In this way, experimental research is concerned on measurement.
On the other hand,
interventionism hinges on ‘realism’ (Jonsonn, 2010:131): ““Realism” is not a major concern in experiments. Measurement is. The meaning of the measurements comes from theory in the case of experiments. The meaning of observations in interventionist research comes from context and it tends to be narrative in form (Bruner, 1990). A narrative meaning comes about by being “high-lighted” by a story line (like how mercifulness is illustrated by the biblical story about the merciful Samaritan).” This shows that dramaturgical and narrative approaches are compatible if they are extended by interventionism. Therefore, by Burrell and Morgan’s (1986) quadrants, this research could not be categorized as a research in pure interpretive paradigm. Rosile (2003) might classify this type of research as critical dramaturgy. In an organizational theatrics contexts, dramaturgy can be classified in several domain as elucidated in the following table. Table 1 Contexts of Organizational Theatrics Audience is insiders Audience is outsiders Authors/actors are Critical Dramaturgy Persuasive Spectacles Corporate theatre by Traditional theatre, insiders workers infomercials, PR, galas Spectators/participantsTheatre for Social Ethnography Documentaries, some observers Change Theatre of the street theatres oppressed, street theatre Authors/actors are Corporate theatre by Simulacral outsiders theatre professionals Spectacles Las Vegas’s Paris, Luxor, Venice and so forth Source: Rosile (2003:309)
Audience can be regarded as insiders if they are part of the system in question. The intended audience or readers of this study are accounting educators, students or those who have concern on accounting educators. Therefore, this kind of study can fall in the first upper left-hand side quadrant, since it is persuading the actors (accounting educators) to believe that accounting education must change. Clearly this study is not merely with the purpose of to explain and understand, it also extends to introducing changes or stimulants into accounting education practices. It exerts ‘power’ to change accounting educators’ consciousness and portrays as well as understands its process. This makes language the most important tool in this study. Language is not viewed as simply a medium of representation. Through language, changes can emerge. Arrington (1997:9) explicates: “Now in a range of research projects, we are beginning to understand the power of accounting discourse to constitute identities rather than simply report upon identities presumed given...a body of research is surfacing that seeks to understand this constitutive force of accounting through a very profound sense of the moral ontology of language rather than from the more Foucaldian view of discourse as a medium of power.” This type of accounting research has embraced the postmodern possibility which has recognized that the extant focus of subjectivity or identities will make it possible for self-presentation, values and discursive practices to surface.
accounting is viewed in such way, then accounting has a power that does not have to be subordinate to presumed realities. Accounting, and accounting education, are realities, not independent, but intertwined with other realities. The intervention to change educators’ consciousness through language is therefore necessary. Similar to solipsism tradition, this research sees that accounting education changes are perceived in the most subjective approach.
Morgan (1979:239) describe solipsism as “…the most extreme form of subjective idealism, in that it denies that the world has any distinct independent reality”. Changing accounting education can therefore be seen through accounting educators’as well as the researher’s consciousness. Consciousness can be a very good source of knowledge.
Audi (2005:85-86) affirms the importance of
consciousness in knowledge building:
“If we now ask whether consciousness, ...is a basic source of belief, justification, and knowledge, the answer should be evident. It is. In the inner world, by sharp contrast with the external world, there is far more at our beck and call...This is perhaps another reason why introspectively grounded beliefs have sometimes seemed to be such good material to serve as foundations for knowledge and justification.” He further explains that consciousness has two claims why it can be come a good source of knowledge. First, it follows a thesis of infallibility (impossibility of error), which states that one cannot be mistaken in a belief to the effect that one is now in an present mental state (such as imaging) or that one is undergoing a mental process (such as thinking) or that one is experiencing something(such as pain). The infallibility thesis rests largely on the idea that we are in a strong position regarding present mental phenomena, that we cannot be mistaken in thinking that they are going on inside us. The second claim suggests a thesis of omniscience (allknowingness) with respect to the current contents of consciousness: if one is in present mental state, undergoing a mental process, or experiencing something, one can not fail to know that one is. The omniscience thesis rests largely on the idea that present mental phenomena are so dominant in consciousness that one cannot help knowing of their occurrence. Together, these two theses constitute the strong doctrine of privileged access (Audi, 2005:80).
Contribution of Extended Dramaturgical Interventionism for Accounting Education Approach This approach about accounting educators’ consciousness mainly hopes to
add to a theoretical contribution, especially in accounting education changes, that Llwellyn (2009) would classify as metaphor theorizes. Liwellyn (2009:668-670) describes that: “…metaphor provides both a ``way of thinking’’ about organizations and a ``way of seeing’’… metaphor theorizes through linking the unfamiliar to the familiar; it creates meaning and significance through ``picturing’’ or ``image-ing’’ the world.” Such metaphor frequently occurs in literature, one of which in a famous balcony scene of “Romeo and Juliet” by Juliet:
What’s in a name? That which we call a rose By any other name would smell as sweet; So Romeo would, were he not Romeo call’d, Retain that dear perfection which he owes Without that title. Romeo, doff thy name, And for thy name, which is no part of thee, Take all myself. In the above verse, the use of the word ‘rose’ has explained that it is not the name that matters, but the essence of the rose. Hence, the name Romeo of Montague who is the sworn enemy of Juliet’s family, the Capulet, would not change the love between them. The metaphor has exposed the true feeling of Juliet through its simplification of the familiar concept (in this case the rose) to a more private and complex concept (Juliet’s love for Romeo). Similarly, the use of theatrical perspective as a metaphor to accounting education, would help to explain and enhance understanding of how new concepts emerge through the grounding experience of both the educators and the researcher. The research is not only designated to enrich accounting education researches, but also to employ metaphor theorizing, that according to Llwellyn (2009), has been under-utilized as theoretical tool in accounting discipline. Other contribution of this study can be seen under interventionism. Jonsonn (2010:129) describes the theoretical contribution of such study: “The crucial aspect of interventionist approaches to organizational studies is the question of what kind of knowledge such research may generate. Obviously the whole idea is that the intervention must be designed in such a way that it works in practice, and offers a theoretical contribution as well... It is more likely that interventionist approaches will yield knowledge in the form of vocabulary/grammar for analysing/diagnosing organizational situations.” This theoretical contribution (which is what works in practice) brings us to realize the ontological foundation of reality being studied. The ontology is that accounting education can be established and changed by its actors through the power of language.
Summary Realizing the ontological foundation of accounting education being studied is
very important to decide methodological choice of research. Accounting education is viewed as a reality that is brimmed with dynamics of changes, and changes can be triggered. These changes can be seen as a scenario or play, and therefore theatrical metaphor theorizing (Lwellyn, 2009) can be used in this study to portray changes. Dramaturgy and narrative approaches are providing good bases to produce findings that would suit theatrical metaphor theorizing. Dramaturgical outlook of interview will help researcher to play his/her role in obtaining detailed and dense data. On the other hand, narrative approach offers a descriptive and live presentation of changes observed. However, when accounting education research is concerned on bringing about changes in accounting education, then dramaturgical interviewing techniques and narrative approach are not sufficient. For this reason, intervention to arouse critical consciousness in accounting educators is the most important issue. Interventionism approach (Jonsonn, 2010) to change accounting educators must be used. This extension will be suitable and compatible with either dramaturgy or narrative approach because interventionism requires narrative presentation of study. Through persuasion (intervention), in the medium of language and role playing (dramaturgy), accounting education changes especially in accounting educators will be narrated and portrayed using the metaphor of theatre. This will make dramaturgical interventionism based research very contextual in nature. The methodological choice will provide a theoretical contribution to understanding how organization changes occur contextually with its own uniqueness through its players. Further, it helps explore the use of metaphor theorizing as a perspective which is rarely used in accounting research. This way, the study will enrich not only accounting education research, but also empirical qualitative approach at its one ofmost subjective and refreshing form. REFERENCES Ainsworth, P. (2001). Changes in Accounting Curricula: Discussion and Design. Accounting Education.10,279- 294.
Arrington, C.E. (1997). Tightening One’s Belt: Some Questions about Accounting, Modernity and the Postmodern. Critical Perspective on Accounting,8, 313. Audi, R. (2005). Epistemology: A contemporary introduction to the theory of knowledge. Taylor and Francis e Library. New York. Badan Akreditasi Nasional Perguruan Tinggi (BAN-PT). (2008). Buku IIIA Borang Akreditasi yang Diisi Perguruan Tinggi. Departemen Pendidikan Nasional. Jakarta. Bates, H.L., B.E. Waldrup, & V. Shea.(2011). The Effect of Financial Accounting Standards Convergence on US Accounting Curriculum.American Journal of Business Education.4(7), 39-43. Berg, B.L. (2004). Qualitative Research Methods for The Social Sciences. Pearson Education, Inc. USA. Blumer, H. (1971). Social problems as collective behaviour. Social Problems, 18, 298-306. Burrel, G. & G. Morgan. (1979). Sociological Paradigms and Organizational Analysis: Elements of the sociology of corporate life. Ashgate Publishing Company. USA. Chambers, R.J. (2005). The Poverty of Accounting Discourse.Accounting Education: An International Journal, 14(1), 5-15. Denzin, N.K. & Y.S. Lincoln (ed). (2003). Strategies of Qualitative Inquiry.Sage Publications. California. Fogarty, T. (1997).The Education of Accountants in the US: Reason and Its Limits at The Turn of The Century.Critical Perspectives on Accounting,8, 45-68. Goffman, E. (1959). Presentation of Self in Everyday Life, Garden City, N.Y: Anchor in Ritzer and Goodman, 2003. Hines, R. D. (1992). Accounting Filling the Negative Space.Accounting Organization and Society, 17(3-4), 313- 341. Irianto, G. (2004). A Critical Enquiry into Privatization of State-Owned Enterprises: The Case of PT. Semen Gresik (Persero) Tbk Indonesia. Dissertation. University of Wollongong. James, K. (2008). A Critical Theory and Postmodernist Approach to The Teaching of Accounting Theory. Critical Perspective on Accounting,19, 643- 676. Jonsonn, S. (2010).Interventionism- An Approach to the Future.Qualitative Reearch in Accounting and Manegement, 7(1), 124-134.
Llwellyn, S. (2003).What count as “theory” in qualitative management and accounting research: Introducing five levels of theorizing. Accounting, Auditing, Accountability Journal,16(4), 662-708. Mulawarman, A.D. (2007). Pensucian Pendidikan Akuntansi Episode 2: Hyperview of Learning dan Implementasinya. Addressed at The First Accounting Session Revolution of Accounting Education. UKM Maranatha Bandung 18- 19 January. Mulawarman, A.D. & U. Ludigdo. (2010). Metamorfosis Kesadaran Etis Holistik Mahasiswa Akuntansi: Implementasi Pembelajaran Etika Bisnis dan Profesi Berbasis Integrasi IESQ. Addressed at Simposium Nasional Akuntansi 13, Purwokerto. Oakes, H. & A. Berry. (2009). Accounting Colonization: Three Case studies in Further Education.Critical Perspective on Accounting, 20, 343-378. Perks, R.W. (1993).Accounting and Society.Chapman and Hall. London. Ratnatunga, J. (2010). The Accounting Delusion: Faith and Trust in Financial Reporting.Presented at The Third International Accounting Symposium and the Second Doctoral Colloquium, Bali, 27-29 November. Rebele, J. E., F. A. Buckless, J. M. Hassell, L. R Paquette & D. E. Stout. (1998). Accounting Education Literature Review (1991-1997), Part I: Curriculum and Instructional Approaches.Journal of Accounting Education, 16(1), 151. Rosile, G.A. (2003). To head knowledge: critical dramaturgy and artful ambiguity.Management Communication Quarterly,17(2), 308-314. Triyuwono, I., (2010). Mata Ketiga: SéLaén, Sang Pembebas Sistem Pendidikan Tinggi Akuntansi. Jurnal Akuntansi Multiparadigma, 1(1), 1-18. Truan, F. & H. Hughes. (1999). Tradition or Enlightenment: Philosophical Choice in Accounting Academia. Journal of Accounting Education,17, 23-34.
EFFECT OF SIZE, PROFITABILITY AND LEVERAGE DISCLOSURE OF CORPORATE SOCIAL RESPONSIBILITY (Empirical study in Manufacturing Company Listed in Indonesia Stock Exchange Year 2013 to 2015) Budi Santoso University of Jember, Indonesia Email: [email protected]
ABSTRACT The aim of the research is to examine the influence of earning management, profitability, leverage to corporate social responsibility disclosure. Earning Management is measured by discretionary accrual, profitability is measured by return on asset and leverage is measured by dept to equity ratio. The sample of this research is mining companies which are listed in Indonesian Stock Exchange (IDX) in 2013-2015. Samples are obtained by purposive sampling method. Hypothesis testing method used is multiple regression analysis. There are 36 companies fulfilling cretirion as the research sample. Result of the research indicates that Earnings Management has not significant effect to corporate social responsibility disclosure. Profitability also has not significant effect to corporate social responsibility disclosure. Leverage has significant effect to corporate social responsibility disclosure. Keywords : Corporate Social Responsibility Disclosure, Earnings Management, Profitability, Leverage. 1. Background A growing issue since the 1960s or the post-war period after World War II II.Pada the masyarat compelled to menentut poverty and backwardness, and that the attention of players and investors to share social responsibility disclosure to both the environment and the internal externally. In the global context, the term CSR is used since the 1970s CSR is becoming more popular, especially after the presence of the book Cannibals With Forks: The Bottom Line tiple the Business in the 21st Century (1998),
The concept of corporate social responsibility has been known since the early 1970s, which is generally defined as a set of policies and practices relating to the stakeholders, the values of the fulfillment of legal requirements appreciation society, the environment, and the commitment of business to contribute to sustainable development (Corporate SocialResponsibility) in this case CSR is not only a company's creative activity and is not limited to mere compliance with legal rules. (Linda San d Erlin, 2012). In Indonesia, the discourse about the awareness of the need to safeguard the environment and social responsibility has been regulated by the Law on Limited Limited 2007 No. 40 Article 74ayat 1 states that the limited liability company which carries on business in the field and / or concerned with natural resources required to carry out social responsibility and the environment , Then in Act no.25 of 2007 section 15 (b) states that any investment obligation to implement corporate social responsibility, in this case interpreted as evidence of corporate responsibility that leads to the development of local communities around the company itself, while the central government and devices provide regulatory regions as a reference in the relationship between the public, private and government (Bambangand Melia, 2013). Many people, especially the workers, did not believe that the company 'did not mean it in implementing Corporate Social Responsibility. They assume that an institution that only the pursuit of profit is not likely to have the intent and noble purpose to empower people respect workers' rights and does not damage the environment, therefore it is not possible to sue companies that are socially responsible, Bambang and Melia, (2013) .Corporate Social Responsibility does not provide financial reporting results in the short term, but the Corporate Social Responsibility will have an impact, either directly or indirectly on the company's financial future. Investors also want investment and public confidence in the company has a good image in the eyes of the public. Thus, if the company conducts programs of Corporate Social Responsibility in a sustainable manner, then the company will be able to run well, therefore the program CorporateSocial Responsibility is more appropriate where digolongka as an investment and should be the business strategy of a company (Siragar, 2007; 2856) .in Kinaa(2011). In a previous study found several different results in researching the factors 63
affecting CSR in annual reporting. Among the researchers on the size of the company is research Sandy (2013) which states that there is influence between firm size, profitability and leverage on the disclosure of corporate social responsibility, these results are not consistent with the research Linda and Erline (2011), while leverage has no effect on the disclosure of social responsibility. Different results found by researchers Lestari (2007) which states that the positive effect on the leverage CSR disclosure in its annual report. Selanjutya, research Ahmat (2009) states that priofitabilitas pengkapan influence positively to social responsibility. The difference in this study lies in research that is years 2011-2013 and several dependent variables that are not used in this study. This study used a sample of the companies listed on the Stock Exchange Indonisia (BEI) in the year 20132015. The reason is because the manufacturing companies more easily affected by economic conditions and have a high level of sensitivity to any internal or external events
environmentalimpactssociety. From the above presentation of researchers interested in conducting research with the title: Effect of Size, Profitability, laverage Against Social Responsibility Disclosure Manufacturing companies listed on the exchange Securities Indonesia (BEI) 2013-2015.
2. Research methodology The dependent variable in the study of Coporate Social Responsibility symbolized by (Y), given the small number of companies in Indonesia which reported the economic performance, social, and environment in the form of sustainability reporting. CSR is measured using CSR disclousure / CSRDI, while the indicator of CSR disclosure categorized into seven themes, which consists of 78 items social disclosure for manufacturing companies. The formula used to measure CSR 𝐶𝑆𝑅𝐷𝐼 =
Information : CSD: Corporate Social Disclosure Index company j ΣXj: the number of items disclosed by the company j
Nj: number of items disclosure of CSR for companies j
3.1 Size (X1) The size of the company is a scale which can be classified on the size of the company (Helfert, 1997) in his book on the analysis of financial statements. States that: The value associated with the base of an asset's ability to provide after-tax cash flow kepda companies. of several studies, the size of the company can be measured by the number of employees, total assets, sales volume, or ranking index. In this study the variable firm size is presented in the form of logarithms, because of the value and distribution which is greater than the other variables. Meneurut Linda (2012), said the company's size was measured by using the natural log of assets owned by the company.= The natural logarithm of firm size (total assets) 3.2 Profitability (X2) This ratio is the ratio of net profit after tax to amount aseet overall, this ratio is a measure to assess how much the rate of return (%) of the assets. If this ratio is high, indicating the efficiency undertaken by the management. Profitability is defined as a company's ability to generate income or profit in order to increase shareholder value. There are several sizes to determine the profitability of the company, namely: return of equity indicators used to measure the size of this company is the Return on Assets (ROA). Return on assets (ROA) is a measure of the effectiveness of the company in generating profits by exploiting its assets. ROA researchers used as a measure of profitability, because the ROA is a profitability ratio that measures the effectiveness of the company to generate profits by leveraging their assets. (Helfert, 1997: 87). The measurement using the formula: 𝑅𝑂𝐴 =
EAT X 100 % Total aktiva
Laverage Leverage is the use of assets or funds in which to use the company must cover
fixed costs or pay a fixed load. If the "operating leverage" use of the asset at a fixed
cost is the hope that the revenue generated by the use of the assets that would be enough to cover fixed costs and variable costs, then on "financial leverage" the use of funds with fixed load it is with the hope to increase revenue width per ordinary share. (EPS = Earning Per Share). (D: \ csr \ goddess septianawati leverage analytics and bep.htm). laverage measurements performed by comparing the total debt by total assets, in line with the measurement of leverage for developing countries. Debt to Asset Ratio (DAR) is the ratio of total liabilities to assets. This ratio emphasizes the importance of debt financing by showing the percentage of the company's assets backed by debt. DAR used in this study because it is able to demonstrate the feasibility and risks of the company. Leverage in this study is symbolized by (X3). (Helfert, 1997: 97). 𝐷𝐴𝑅 =
Total debt 100% Total Aktiva
4. Population and Sample Research Population companies listed BEI in 2013-2015. The sample is part of the population which is considered to represent the population (Supormo and Indriantoro 2013: 117). Samples were manufacturing companies listed in Indonesia Stock Exchange, while the sample using purposive sampling of the population, purposive sampling is a type of sample selection is not random and making willful whose information is obtained by using certain considerations and generally adapted to the purpose of research / research problem (Dwi cahyono: 2010: 84). Samples were selected are the financial statements for 2013-2015 based on the characteristics of the sample with a sample selection criteria specified. Criteria-criteria for companies that can be sampled is: The sample is manufacturing companies listed on the Stock Exchange during the period of 2013-2015 study year, has annual report
5. Data analysis 5.1 Descriptive statistics Variables used in this research is the Size (X1), profitability (X2), Leverage (X3), and the disclosure of Corporate Social Responsibility (Y). Table
Results Descriptive Statistics Variable Research Variabel
Based on Table
it can be seen that the disclosure of Corporate Social
Responsibility variable (Y) has an average of 0,305. Variable disclosure of Corporate Social Responsibility (Y) has a minimum value of 0.090 which is the disclosure of Corporate Social Responsibility (Y) in the company of PT. Mayora Indah Tbk. (MYOR) in 2013, while the maximum value of 0.744 is the disclosure of Corporate Social Responsibility (Y) in the company of PT. Argo Pantes Tbk. (ARGO) 2015 Variable Size (X1) has an average of Rp. 7222.33 billion. Variable Size (X1) has a minimum value of Rp. 10.00 billion which is Size (X1) at PT. Alam Karya Unggul Tbk. (AKKU) in 2014, while the maximum value of Rp. 213,994.00 billion is Size (X1) at PT. Astra International Tbk. (ASII) 2015 Variable Profitability (X2) has an average of 8.01%. Profitability variables (X2) has a minimum value of 72.73% which is Profitability (X2) in the company of PT. Alam Karya Unggul Tbk. (AKKU) in 2013, while the maximum value of 65.71% a Profitability (X2) in the company of PT. Multi Bintang Indonesia Tbk. (MLBI) 2015 Variable Leverage has an average of 57.19%. Variable Leverage has a minimum value of 3.72% that is the leverage on company PT. Jaya Pari Steel Tbk. (JPRS) in 2014, while the maximum value of 526.25% is the leverage on company PT. Asia Pacific Fibers Tbk. (POLY) in 2013.
5.2 Classic Assumption Test a. Normality Test Data Testing normality of the data used to determine whether the data is normally distributed or not. Test equipment used is Kolmogorov-Smirnov test with the testing criteria, if the figure of significance (GIS)> 0.05, the normal distribution of data,
whereas if the figure of significance (GIS) F table and the probability value is less than t that the Size (X1), profitability (X2), and Leverage (X3) simultaneously have 68
influence on the disclosure of Corporate Social Responsibility variable (Y). So the hypothesis which states that the Size, profitability and leverage effect silmutan on the disclosure of social responsibility unsubstantiated (H4 accepted).
5.5 Hypothesis test (t test) Size (X1), Under the Table variable size (X1) has a positive and significant impact on the disclosure of Corporate Social Responsibility (Y), beta coefficient of 0.0274 and obtained t value of 2.658 and t table where the value of 1.86 t count 2.658> 1.96 and significant 0.008 t table and significant 0.020 r table then declared invalid 2. When calculating the correlation coefficient or r