Effects of Audit Data Analytics Capability on Tax Performance: Evidence from Tax Departments in Thailand

Main Article Content

Soranee Janchai
Nuttavong Poonpool
Uthen Laonamtha

Abstract

               This study aims at investigating the effects of audit data analytics capability on tax performance of tax departments in Thailand. The dynamic capability theory is used to explain the relationship of the variables. In this study, a mail survey questionnaire is used to collect quantitative data from the entire population of tax departments in Thailand 404 tax audit branches and received 255 usable returned questionnaires (63.28%). The ordinary least squares (OLS) regression analyses are processed to test all postulated hypotheses. The results indicate that audit data analytics capability including management capability, technology competence, and personnel expertise has a significant positive effect on tax performance.
               In addition, this study empirically confirms that management capability, technology competence, and personnel expertise are the key dimensions of audit data analytics capability, which is consistent with the existing literature and adds benefit to the literature. This study sheds light on the boundary of dynamic capability theory in the context of tax departments in Thailand. In summary, executives should emphasize the importance of audit data analytics capability that plays a role in determining the success and sustainability of tax performance in current and future perspectives.

Article Details

Section
บทความวิจัย (Research Article)

References

Akter, S., Wamba, S. F., Gunasekaran, A., Dubey, R., & Childe, S. J. (2016). How to improve firm performance using big data analytics capability and business strategy alignment? International Journal of Production Economics, 182, 113-131.

Al-Khouri, A. M. (2014). Strategy and execution: Lessons learned from the public sector. International Business Research, 7(10), 61-73.

Al-moumany, S. N. & AI Ebbini, M. M. (2013). The role of accounting information systems (AIS) in combating tax evasion. Institute of Interdisciplinary Business Research, 5(6), 73-91.

Armstrong, J. S. & Overton, T. S. (1977). Estimating nonresponse bias in mail surveys. Journal of Marketing Research, 14(3), 396-402.

Barreto, I. (2010). Dynamic Capabilities: A review of past research and an agenda for the future. Journal of Management, 36(1), 256-280.

Bonface, A., Malenya, A. A., & Musiega, D. (2015). Effect of Managerial Expertise on Organizational Performance of Investment Banks in Kenya: A case Study of Old Mutual Acquisition of Faulu Kenya Micro-Enterprise. International Journal of Business and Management Invention, 4(4), 38-54.

Brown-Liburd, H., Issa, H., & Lombardi, D. (2015). Behavioral implications of big data’s impact on audit judgment and decision making and future research directions. Accounting Horizons, 29(2), 451-468.

Chen, Y. C. & Hsieh, T. C. (2014). Big data for digital government: Opportunities, challenges, and strategies. International Journal of Public Administration in the Digital Age, 1(1), 1-14.

Colon, D. W. & Swagerman, D. M. (2015). Enhanced relationship preparedness in a Dutch multinational context: A tax control framework. Journal of Accounting and Taxation, 7(1), 13-18.

Drnevich, P. L. & Kriauciunas, A. P. (2011). Clarifying the conditions and limits of the contributions of ordinary and dynamic capabilities to relative firm performance. Strategic Management Journal, 32(3), 254-279.

Dubey, R. & Gunasekaran, A. (2015). Education and training for successful career in big data and business analytics. Industrial and Commercial Training, 47(4), 174-181.

Groves, R. M. (2006). Nonresponse rates and nonresponse bias in household surveys. Public Opinion Quarterly, 70(5), 646-675.

Gunasekaran, A., Papadopoulos, T., Dubey, R., Wamba, S. F., Childe, S. J., Hazen, B., & Akter, S. (2017). Big data and predictive analytics for supply chain and organizational performance. Journal of Business Research, 70, 308-317.

Gupta, M. & George, J. F. (2016). Toward the development of a big data analytics capability. Information and Management, 53(8), 1049-1064.

Gurama, Z. & Mansor, M. (2018). Internal Audit Effectiveness in Tax Administration: A Model Proposition. Journal of Advanced Research in Business and Management Studies, 12(1), 70-78.

Gutierrez-Gutierrez, L. J., Barrales-Molina, V., & Kaynak, H. (2018). The role of human resource-related quality management practices in new product development. International Journal of Operations & Production Management, 38(1), 43-66.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate data analysis. Pearson new international edition (7th ed.). London: Pearson Education Limited.

Helfat, C. E. & Peteraf, M. A. (2014). Managerial Cognitive Capabilities and The Microfoundations of Dynamic Capabilities. Strategic Management Journal, 36(6), 831-850.

James, S., Svetalekth, T., & Wright, B. (2007). Tax charters, performance indicators and the case for a more strategic approach to tax administration. In Discussion Papers in Management (pp. 1-24). Tax Research Network Conference, University of Edinburgh on the 8-9th September.

Kim, G., Shin, B., & Kwon, O. (2012). Investigating the Value of Sociomaterialism in Conceptualizing IT Capability of a Firm. Journal of Management Information Systems, 29(3), 327-362.

Klievink, B., Bharosa, N., & Tan, Y.-H. (2016). The collaborative realization of public values and business goals: Governance and infrastructure of public-private information platforms. Government Information Quarterly, 33(1), 67-79.

Mikalef, P., Pateli, A., & Van De Wetering, R. (2016). IT flexibility and competitive performance: The mediating role of IT-enabled dynamic capabilities. Association for Information Systems AIS Electronic Library (AISeL), 6(15), 1-17.

Modica, E., Laudage, S., & Harding, M. (2018). Domestic revenue mobilization: A new database on tax levels and structures in 80 countries (OECD Taxation Working Papers Series No. 36). OECD Taxation Working Papers (Vol. 36). Paris.

Nunnally, J. & Bernstein, I. (1994). Psychometric theory (First). New York: McGraw-Hill.

Nurcahyo, R., Wibowo, A. D., & Putra, R. F. E. (2015). Key performance indicators development for government agency. International Journal of Technology, 6(5), 856-863.

Oh, S., Yang, H., & Kim, S. W. (2014). Managerial capabilities of information technology and firm performance: Role of e-procurement system type. International Journal of Production Research, 52(15), 4488-4506.

Orlikowski, W. J. (2007). Sociomaterial practices: Exploring technology at work. Organization Studies, 28(9), 1435-1448.

Pavlou, P. A. & El Sawy, O. A. (2011). Understanding the elusive black box of dynamic capabilities. Decision Sciences, 42(1), 239-273.

Rao, M. S. (2014). Enhancing employability in engineering and management students through soft skills. Industrial and Commercial Training, 46(1), 42-48.

Shamim, S., Zeng, J., Shariq, S. M., & Khan, Z. (2019). Role of big data management in enhancing big data decision-making capability and quality among Chinese firms: A dynamic capabilities view. Information and Management, 56(6), 1-12.

Stankevicius, E. & Leonas, L. (2015). Hybrid approach model for prevention of tax evasion and fraud. Procedia - Social and Behavioral Sciences, 213, 383-389.

Tanriverdi, H. (2005). Information technology relatedness, knowledge management capability, and performance of multibusiness firms. MIS Quarterly, 29(2), 311-334.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.

Thoumrungroje, A. (2013). Handbook of Research Methodology in International Business. Bangkok: Triple Education Co., Ltd.

Wamba, S. F., Gunasekaran, A., Akter, S., Ren, S. J., Dubey, R., & Childe, S. J. (2017). Big data analytics and firm performance: Effects of dynamic capabilities. Journal of Business Research, 70, 356-365.

Wang, N., Liang, H., Zhong, W., Xue, Y., & Xiao, J. (2012). Resource structuring or capability building? An empirical study of the business value of information technology. Journal of Management Information Systems, 29(2), 325-367.

Zhang, J. A., Edgar, F., Geare, A., & O’Kane, C. (2016). The interactive effects of entrepreneurial orientation and capability-based HRM on firm performance: The mediating role of innovation ambidexterity. Industrial Marketing Management, 59, 131-143.

Zollo, M. & Winter, S. G. (2002). Deliberate learning and the evolution of dynamic capabilities. Organization Science, 13(3), 339-351.