The decision matrix: a mediated-moderated model of analytical orientation on digital accounting and decision quality

Abstract

Purpose This study aims to examine the impact of digital accounting system quality on decision-making quality within the banking industry in Bangladesh. Specifically, it investigates how data accuracy and system efficiency influence decision quality by mediating information clarity and the moderating role of analytical decision orientation. Design/methodology/approach Using a quantitative approach, data were collected from 287 respondents across various banking institutions in Bangladesh. Structural equation modelling was used to analyze the proposed mediated-moderated model. Measurement validity and reliability were confirmed through confirmatory factor analysis, and hypotheses were tested via bootstrapping techniques. Findings The results show that data accuracy significantly improves decision quality directly and indirectly through information quality. Although system efficiency does not directly affect decision quality, it significantly enhances information clarity, which in turn contributes to better decision outcomes. Furthermore, analytical decision orientation positively moderates the relationship between decision accuracy and information clarity, highlighting the role of organizational culture in decision-making effectiveness. Practical implications This research holds substantial international relevance by offering a framework that financial institutions worldwide can adopt to assess and improve the effectiveness of digital accounting systems. The findings highlight the global importance of prioritizing data and information quality and fostering an analytical decision-making culture to ensure efficient decision outcomes in the digital era. Social implications By enhancing transparency and decision accountability, effective digital accounting systems can contribute to improved financial governance and institutional trust. In the broader context of developing economies, where banking systems are evolving rapidly, empowering decision-makers with reliable, data-driven insights can help reduce errors, fraud and inefficiencies. Furthermore, cultivating a culture of analytical orientation supports ethical decision-making and strengthens organizational resilience, which has positive ripple effects on economic stability and public confidence in financial institutions. Originality/value This study contributes to the accounting literature by providing a context-specific understanding of how digital accounting systems influence decision-making in a developing economy. It fills a theoretical gap by modelling the combined mediating and moderating effects underexplored in prior studies.