The Strategic Role of Accounting Information Systems in Driving Employee Performance in Islamic Banking Institutions in Indonesia

Abstract

The increasing digital transformation in the Islamic banking industry has created challenges for organizations to ensure that accounting information systems can effectively support employee performance. Although Islamic banks have adopted information technology to improve operational processes, the effectiveness of technology utilization depends not only on the quality of accounting information systems but also on organizational support and the ability to transform information into organizational knowledge. This study aims to examine the influence of Accounting Information System Quality and Organizational Support for Technology on Employee Performance, with Knowledge Management Capability as a mediating variable in Islamic banking institutions. This study employed a quantitative approach with an explanatory research design. Data were collected using a questionnaire with a 1–5 Likert scale from 220 employees of Islamic commercial banks and Islamic business units in Bogor City. The data were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS 4 through measurement model assessment, structural model analysis, and mediation testing. The results indicate that Accounting Information System Quality and Organizational Support for Technology positively and significantly influence Employee Performance and Knowledge Management Capability. Furthermore, Knowledge Management Capability positively influences Employee Performance and significantly mediates the relationship between technology-related factors and employee performance. This study concludes that improving employee performance in Islamic banking requires the integration of high-quality accounting information systems, organizational technology support, and effective knowledge management capabilities.