Influence of Digital Accounting System Usage on SMEs Performance: The Moderating Effect of COVID-19

Abstract

In the literature, studies have evidenced the efforts adopted by firms to develop digital technology with the hope of achieving sustainable decisions and competitive performance. However, studies have yet to provide an extensive explanation of the mechanisms used by firms in their digital technology adoption to impact and enhance value, particularly among small and medium enterprises (SMEs). In this regard, accounting information has served as a fundamental basis for business decision-making and the extensive use of digital technology has paved the way for the efficiency and effectiveness of accounting functions in modifying information relating to such functions. More specifically, a digital accounting system (DAS) enables the reporting and processing of large transaction amounts and generates the data required for analysis. However, despite these advantages, SMEs have been slow in their adoption and usage of DASs. Accordingly, this study drew upon resource-based view theory and the technology-organization-environment framework to propose an integrated model for examining the determinants and impact of using DAS among SMEs. The proposed model encapsulates the use and performance aspect of DAS. The study utilized a self-administered survey questionnaire as the primary data collection instrument. Data from 183 SMEs in Jordan were analyzed using partial least squares-structural equation modeling. The findings reveal that compatibility, organizational readiness, top management support and government support all had significant effects on DAS usage, which, in turn, had a positive and significant effect on DAS performance. With regard to the moderating effects, COVID-19 was found to have a moderating role on the DAS usage–DAS performance relationship. The study findings explain the way firms can enhance their DAS use to obtain optimum performance, thereby contributing to the literature on the antecedents and effects of using current information technology/information systems. The study recommends that the government of Jordan prepare and carry out a campaign concerning the importance of DASs for SMEs.

The influence of accounting information system adoption on business performance amid COVID-19

“…The D&M (2003) extension with the addition of decision making quality variables is useful in studying technologies and innovations, in various contexts and nations having similar level of backgrounds, both economic and social, ( Almaiah et al, 2022k ; Khassawneh & Lutfi, 2014 ). Nevertheless, the limited size of the sample employed in this study calls for caution when generalizing the results to other nations as suggested by past literature ( Almaiah et al, 2022l ; Lutfi et al, 2022c , 2022h , 2022i , Lutfi et al, 2022j ).…”

“…In an uncertain, information-requiring environment, the firm's information processing and sourcing play a key role and in this regard, using AIS can extend such capabilities, making the firm adept at the collection, analysis and relay of information, and enhancing the possibility of achieving optimum performance ( Lutfi et al, 2022k ).…”

Influential Characteristics and Benefits of Cloud ERP Adoption in New Zealand SMEs: A Vendors’ Perspective

“…Several IS adoption theories have been used in literature focusing on various dimensions at the organizational and individual levels. At the organizational level, DOI, which has formed the foundations for the expansion of several theoretical frameworks such as TOE [35,36], is the most popular and frequently employed framework for technological innovation [25,37]. Most of the IS frameworks are technologically oriented to explain technological characteristics which influence the adoption decisions [38].…”

“…At the individual level, frameworks such as the theory of reasoned action (TRA) [41], technology acceptance model (TAM) [42], the theory of planned behavior (TPB) [43] and UTAUT are well-established for determining individual characteristics in IS adoptions [36]. TAM is a widespread framework to investigate IS adoptions such as cloud ERP [32,44].…”

“…This paper uses both TOE and UTAUT as the theoretical foundation for developing the model to investigate the different characteristics for cloud ERP adoption in SMEs. Table 1 summarizes the IS theoretical frameworks classified at the two main organizational and individual levels [36].…”