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

Author

Listed:
  • Abdalwali Lutfi

    (Department of Accounting, College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia)

  • Saleh Nafeth Alkelani

    (Department of Accounting, College of Business, Utara University Malaysia, Sintok 06010, Malaysia)

  • Malak Akif Al-Khasawneh

    (Independent Researcher, Amman 11931, Jordan)

  • Ahmad Farhan Alshira’h

    (Accounting Department, Faculty of Administrative and Financial Sciences, Irbid National University, Irbid 2600, Jordan)

  • Malek Hamed Alshirah

    (Department of Accounting, Faculty of Economics and Administrative Sciences, Al al-Bayt University, Al-Mafraq 130040, Jordan)

  • Mohammed Amin Almaiah

    (Department of Computer Networks, College of Computer Sciences and Information Technology, King Faisal University, Al-Ahsa 31982, Saudi Arabia
    Faculty of Information Technology, Applied Science Private University, Amman 11931, Jordan
    King Abdullah the II IT School, Department of Computer Science, The University of Jordan, Amman 11942, Jordan)

  • Mahmaod Alrawad

    (Quantitative Method Department, College of Business Administration, King Faisal University, Al Ahsa 31982, Saudi Arabia
    Department of Accounting, Finance and Banking, College of Business Administration and Economics, Al-Hussein Bin Talal University, Ma’an 71111, Jordan)

  • Adi Alsyouf

    (Department of Managing Health Services and Hospitals, Faculty of Business Rabigh, College of Business (COB), King Abdulaziz University, P.O. Box 344, Jeddah 21991, Saudi Arabia)

  • Mohamed Saad

    (Department of Accounting, College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia)

  • Nahla Ibrahim

    (Department of Accounting, College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia)

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.

Suggested Citation

  • Abdalwali Lutfi & Saleh Nafeth Alkelani & Malak Akif Al-Khasawneh & Ahmad Farhan Alshira’h & Malek Hamed Alshirah & Mohammed Amin Almaiah & Mahmaod Alrawad & Adi Alsyouf & Mohamed Saad & Nahla Ibrahim, 2022. "Influence of Digital Accounting System Usage on SMEs Performance: The Moderating Effect of COVID-19," Sustainability, MDPI, vol. 14(22), pages 1-23, November.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:22:p:15048-:d:972154
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    References listed on IDEAS

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