IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i22p15048-d972154.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/22/15048/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/22/15048/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Abdalwali Lutfi & Maryam Ashraf & Waqas Ahmad Watto & Mahmaod Alrawad, 2022. "Do Uncertainty and Financial Development Influence the FDI Inflow of a Developing Nation? A Time Series ARDL Approach," Sustainability, MDPI, vol. 14(19), pages 1-11, October.
    2. Abhay Nath Mishra & Prabhudev Konana & Anitesh Barua, 2007. "Antecedents and Consequences of Internet Use in Procurement: An Empirical Investigation of U.S. Manufacturing Firms," Information Systems Research, INFORMS, vol. 18(1), pages 103-120, March.
    3. Wafa AlNasrallah & Farida Saleem, 2022. "Determinants of the Digitalization of Accounting in an Emerging Market: The Roles of Organizational Support and Job Relevance," Sustainability, MDPI, vol. 14(11), pages 1-15, May.
    4. Ana Ortiz de Guinea & Helen Kelley & M. Gordon Hunter, 2005. "Information Systems Effectiveness in Small Businesses: Extending a Singaporean Model in Canada," Journal of Global Information Management (JGIM), IGI Global, vol. 13(3), pages 55-79, July.
    5. Kevin Zhu & Kenneth L. Kraemer, 2005. "Post-Adoption Variations in Usage and Value of E-Business by Organizations: Cross-Country Evidence from the Retail Industry," Information Systems Research, INFORMS, vol. 16(1), pages 61-84, March.
    6. Tareq Bani-Khalid & Ahmad Farhan Alshira’h & Malek Hamed Alshirah, 2022. "Determinants of Tax Compliance Intention among Jordanian SMEs: A Focus on the Theory of Planned Behavior," Economies, MDPI, vol. 10(2), pages 1-20, January.
    7. James Y. L. Thong & Chee-Sing Yap & K. S. Raman, 1996. "Top Management Support, External Expertise and Information Systems Implementation in Small Businesses," Information Systems Research, INFORMS, vol. 7(2), pages 248-267, June.
    8. Sarv Devaraj & Rajiv Kohli, 2003. "Performance Impacts of Information Technology: Is Actual Usage the Missing Link?," Management Science, INFORMS, vol. 49(3), pages 273-289, March.
    9. Ayman Abdalmajeed Alsmadi & Marwan Alzoubi, 2022. "Green Economy: Bibliometric Analysis Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 282-289, March.
    10. Gary Cokins & Ionica Oncioiu & Mirela Cătălina Türkeș & Dan Ioan Topor & Sorinel Căpuşneanu & Carmen Adina Paștiu & Delia Deliu & Alina Nicoleta Solovăstru, 2020. "Intention to Use Accounting Platforms in Romania: A Quantitative Study on Sustainability and Social Influence," Sustainability, MDPI, vol. 12(15), pages 1-17, July.
    11. Mohammad Salem Oudat & Ayman Abdalmajeed Alsmadi & Najed Massad Alrawashdeh, 2019. "Foreign direct investment and economic growth in Jordan: An empirical research using the bounds test for cointegration," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 11(1), pages 55-63, February.
    12. Juan-Pierre BRUWER & Yolande SMIT, 2015. "Accounting Information Systems - A Value-Adding Phenomenon or a Mere Trend? The Situation in Small and Medium Financial Service Organizations in the Cape Metropolis," Expert Journal of Business and Management, Sprint Investify, vol. 3(1), pages 38-52.
    13. Azize Esmeray, 2016. "The Impact of Accounting Information Systems on Firm Performance: Empirical Evidence in Turkish Small and Medium Sized Enterprises," International Review of Management and Marketing, Econjournals, vol. 6(2), pages 233-236.
    14. Jianmin Song & Senmao Xia & Demetris Vrontis & Arun Sukumar & Bing Liao & Qi Li & Kun Tian & Nengzhi Yao, 2022. "The Source of SMEs’ Competitive Performance in COVID-19: Matching Big Data Analytics Capability to Business Models," Information Systems Frontiers, Springer, vol. 24(4), pages 1167-1187, August.
    15. Abdalwali Lutfi & Mohamed Saad & Mohammed Amin Almaiah & Abdallah Alsaad & Ahmad Al-Khasawneh & Mahmaod Alrawad & Adi Alsyouf & Akif Lutfi Al-Khasawneh, 2022. "Actual Use of Mobile Learning Technologies during Social Distancing Circumstances: Case Study of King Faisal University Students," Sustainability, MDPI, vol. 14(12), pages 1-18, June.
    16. Henderson, Dave & Sheetz, Steven D. & Trinkle, Brad S., 2012. "The determinants of inter-organizational and internal in-house adoption of XBRL: A structural equation model," International Journal of Accounting Information Systems, Elsevier, vol. 13(2), pages 109-140.
    17. Paul Chwelos & Izak Benbasat & Albert S. Dexter, 2001. "Research Report: Empirical Test of an EDI Adoption Model," Information Systems Research, INFORMS, vol. 12(3), pages 304-321, September.
    18. William H. DeLone & Ephraim R. McLean, 1992. "Information Systems Success: The Quest for the Dependent Variable," Information Systems Research, INFORMS, vol. 3(1), pages 60-95, March.
    19. Abdalwali Lutfi, 2022. "Factors Influencing the Continuance Intention to Use Accounting Information System in Jordanian SMEs from the Perspectives of UTAUT: Top Management Support and Self-Efficacy as Predictor Factors," Economies, MDPI, vol. 10(4), pages 1-17, March.
    20. Adi Alsyouf & Ra’ed Masa’deh & Moteb Albugami & Mohammad Al-Bsheish & Abdalwali Lutfi & Nizar Alsubahi, 2021. "Risk of Fear and Anxiety in Utilising Health App Surveillance Due to COVID-19: Gender Differences Analysis," Risks, MDPI, vol. 9(10), pages 1-19, October.
    21. Akif Lutfi Al-Khasawneh & Hamdi Jaber Barakat, 2016. "The Role of the Hashemite Leadership in the Development of Human Resources in Jordan: An Analytical Study," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 654-667.
    22. Mahmaod Alrawad & Abdalwali Lutfi & Sundus Alyatama & Ibrahim A. Elshaer & Mohammed Amin Almaiah, 2022. "Perception of Occupational and Environmental Risks and Hazards among Mineworkers: A Psychometric Paradigm Approach," IJERPH, MDPI, vol. 19(6), pages 1-12, March.
    23. Adi Alsyouf & Abdalwali Lutfi & Mohammad Al-Bsheish & Mu’taman Jarrar & Khalid Al-Mugheed & Mohammed Amin Almaiah & Fahad Nasser Alhazmi & Ra’ed Masa’deh & Rami J. Anshasi & Abdallah Ashour, 2022. "Exposure Detection Applications Acceptance: The Case of COVID-19," IJERPH, MDPI, vol. 19(12), pages 1-26, June.
    24. Ramanathan, Ramakrishnan & Ramanathan, Usha & Hsiao, Hsieh-Ling, 2012. "The impact of e-commerce on Taiwanese SMEs: Marketing and operations effects," International Journal of Production Economics, Elsevier, vol. 140(2), pages 934-943.
    25. Pham Quoc Thuan & Nguyen Vinh Khuong & Nguyen Duong Cam Anh & Nguyen Thi Xuan Hanh & Vo Huynh Anh Thi & Tieu Ngoc Bao Tram & Chu Gia Han, 2022. "The Determinants of the Usage of Accounting Information Systems toward Operational Efficiency in Industrial Revolution 4.0: Evidence from an Emerging Economy," Economies, MDPI, vol. 10(4), pages 1-19, April.
    26. Miroshnychenko, Ivan & Strobl, Andreas & Matzler, Kurt & De Massis, Alfredo, 2021. "Absorptive capacity, strategic flexibility, and business model innovation: Empirical evidence from Italian SMEs," Journal of Business Research, Elsevier, vol. 130(C), pages 670-682.
    27. Adi Alsyouf & Awanis Ku Ishak & Abdalwali Lutfi & Fahad Nasser Alhazmi & Manaf Al-Okaily, 2022. "The Role of Personality and Top Management Support in Continuance Intention to Use Electronic Health Record Systems among Nurses," IJERPH, MDPI, vol. 19(17), pages 1-30, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Teresa Riso & Carla Morrone, 2023. "To Align Technological Advancement and Ethical Conduct: An Analysis of the Relationship between Digital Technologies and Sustainable Decision-Making Processes," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    2. Mahmaod Alrawad & Abdalwali Lutfi & Mohammed Amin Almaiah & Adi Alsyouf & Hussin Mostafa Arafa & Yasser Soliman & Ibrahim A. Elshaer, 2023. "A Novel Framework of Public Risk Assessment Using an Integrated Approach Based on AHP and Psychometric Paradigm," Sustainability, MDPI, vol. 15(13), pages 1-17, June.
    3. Adi Alsyouf & Abdalwali Lutfi & Nizar Alsubahi & Fahad Nasser Alhazmi & Khalid Al-Mugheed & Rami J. Anshasi & Nora Ibrahim Alharbi & Moteb Albugami, 2023. "The Use of a Technology Acceptance Model (TAM) to Predict Patients’ Usage of a Personal Health Record System: The Role of Security, Privacy, and Usability," IJERPH, MDPI, vol. 20(2), pages 1-24, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abdalwali Lutfi & Akif Lutfi Al-Khasawneh & Mohammed Amin Almaiah & Adi Alsyouf & Mahmaod Alrawad, 2022. "Business Sustainability of Small and Medium Enterprises during the COVID-19 Pandemic: The Role of AIS Implementation," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    2. Alrawad, Mahmaod & Lutfi, Abdalwali & Alyatama, Sundus & Al Khattab, Adel & Alsoboa, Sliman S. & Almaiah, Mohammed Amin & Ramadan, Mujtaba Hashim & Arafa, Hussin Mostafa & Ahmed, Nazar Ali & Alsyouf, , 2023. "Assessing customers perception of online shopping risks: A structural equation modeling–based multigroup analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    3. Abdalwali Lutfi & Ahmad Farhan Alshira’h & Malek Hamed Alshirah & Manaf Al-Okaily & Hamza Alqudah & Mohamed Saad & Nahla Ibrahim & Osama Abdelmaksoud, 2022. "Antecedents and Impacts of Enterprise Resource Planning System Adoption among Jordanian SMEs," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    4. Lutfi, Abdalwali & Alrawad, Mahmaod & Alsyouf, Adi & Almaiah, Mohammed Amin & Al-Khasawneh, Ahmad & Al-Khasawneh, Akif Lutfi & Alshira'h, Ahmad Farhan & Alshirah, Malek Hamed & Saad, Mohamed & Ibrahim, 2023. "Drivers and impact of big data analytic adoption in the retail industry: A quantitative investigation applying structural equation modeling," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    5. Nam, Dalwoo & Lee, Junyeong & Lee, Heeseok, 2019. "Business analytics use in CRM: A nomological net from IT competence to CRM performance," International Journal of Information Management, Elsevier, vol. 45(C), pages 233-245.
    6. Adi Alsyouf & Awanis Ku Ishak & Abdalwali Lutfi & Fahad Nasser Alhazmi & Manaf Al-Okaily, 2022. "The Role of Personality and Top Management Support in Continuance Intention to Use Electronic Health Record Systems among Nurses," IJERPH, MDPI, vol. 19(17), pages 1-30, September.
    7. Abhay Nath Mishra & Prabhudev Konana & Anitesh Barua, 2007. "Antecedents and Consequences of Internet Use in Procurement: An Empirical Investigation of U.S. Manufacturing Firms," Information Systems Research, INFORMS, vol. 18(1), pages 103-120, March.
    8. Morteza Ghobakhloo & Sai Hong Tang, 2015. "Information system success among manufacturing SMEs: case of developing countries," Information Technology for Development, Taylor & Francis Journals, vol. 21(4), pages 573-600, October.
    9. Abdalwali Lutfi & Manaf Al-Okaily & Adi Alsyouf & Mahmaod Alrawad, 2022. "Evaluating the D&M IS Success Model in the Context of Accounting Information System and Sustainable Decision Making," Sustainability, MDPI, vol. 14(13), pages 1-17, July.
    10. Adi Alsyouf & Abdalwali Lutfi & Nizar Alsubahi & Fahad Nasser Alhazmi & Khalid Al-Mugheed & Rami J. Anshasi & Nora Ibrahim Alharbi & Moteb Albugami, 2023. "The Use of a Technology Acceptance Model (TAM) to Predict Patients’ Usage of a Personal Health Record System: The Role of Security, Privacy, and Usability," IJERPH, MDPI, vol. 20(2), pages 1-24, January.
    11. Joseph K. Nwankpa & Jeffrey W. Merhout, 2020. "Exploring the Effect of Digital Investment on IT Innovation," Sustainability, MDPI, vol. 12(18), pages 1-26, September.
    12. Abdalwali Lutfi & Akif Lutfi Al-Khasawneh & Mohammed Amin Almaiah & Ahmad Farhan Alshira’h & Malek Hamed Alshirah & Adi Alsyouf & Mahmaod Alrawad & Ahmad Al-Khasawneh & Mohamed Saad & Rommel Al Ali, 2022. "Antecedents of Big Data Analytic Adoption and Impacts on Performance: Contingent Effect," Sustainability, MDPI, vol. 14(23), pages 1-23, November.
    13. Probir Kumar Banerjee & Louis C. Ma, 2012. "Routinisation of B2B E-commerce by small firms: A process perspective," Information Systems Frontiers, Springer, vol. 14(5), pages 1033-1046, December.
    14. Stanislav Kreuzer, 2017. "Explaining organizational susceptibility to coercive pressure: results from a field experiment on e-invoicing IOIS adoption," Information Systems and e-Business Management, Springer, vol. 15(1), pages 159-195, February.
    15. Jonghak Sun, 2017. "The effect of information technology on IT-facilitated coordination, IT-facilitated autonomy, and decision-makings at the individual level," Applied Economics, Taylor & Francis Journals, vol. 49(2), pages 138-155, January.
    16. Ma, Darren & Fisher, Richard & Nesbit, Trevor, 2021. "Cloud-based client accounting and small and medium accounting practices: Adoption and impact," International Journal of Accounting Information Systems, Elsevier, vol. 41(C).
    17. Mahmaod Alrawad & Abdalwali Lutfi & Mohammed Amin Almaiah & Adi Alsyouf & Hussin Mostafa Arafa & Yasser Soliman & Ibrahim A. Elshaer, 2023. "A Novel Framework of Public Risk Assessment Using an Integrated Approach Based on AHP and Psychometric Paradigm," Sustainability, MDPI, vol. 15(13), pages 1-17, June.
    18. Abdalwali Lutfi, 2022. "Factors Influencing the Continuance Intention to Use Accounting Information System in Jordanian SMEs from the Perspectives of UTAUT: Top Management Support and Self-Efficacy as Predictor Factors," Economies, MDPI, vol. 10(4), pages 1-17, March.
    19. Abhay Nath Mishra & Ritu Agarwal, 2010. "Technological Frames, Organizational Capabilities, and IT Use: An Empirical Investigation of Electronic Procurement," Information Systems Research, INFORMS, vol. 21(2), pages 249-270, June.
    20. Wenjuan Xu & Peiyu Ou & Weiguo Fan, 2017. "Antecedents of ERP assimilation and its impact on ERP value: A TOE-based model and empirical test," Information Systems Frontiers, Springer, vol. 19(1), pages 13-30, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:22:p:15048-:d:972154. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.