The Effect of Accounting Information System Service Quality, Technological Innovation, and Financial Literacy on Investment Decision Making in MSMEs in Indonesia

Authors

  • Loso Judijanto  Indonesia Palm Oil Strategic Studies (IPOSS)
  • Eko Sudarmanto Universitas Muhammadiyah Tangerang
  • Eva Yuniarti Utami Universitas Sebelas Maret
  • Darman Darman Universitas Bina Mandiri Gorontalo
  • Samalua Waoma Universitas Nias Raya

DOI:

https://doi.org/10.58812/wsaf.v2i01.710

Keywords:

MSMEs, Investment Decision-Making, Accounting Information System Service Quality, Technological Innovation, Financial Literacy

Abstract

This research investigates the multifaceted determinants influencing investment decision-making in Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Employing a quantitative approach, a sample of 150 participants, including owners, managers, and decision-makers, was surveyed to explore the interplay between Accounting Information System Service Quality (AISSQ), Technological Innovation (TI), Financial Literacy (FL), and their collective impact on investment decisions. Results indicate robust positive relationships between AIS service quality, financial literacy, technological innovation, and investment decision-making. The combined effect of these factors explains a substantial portion of the variance in the model (R^2 = 0.602). Practical and policy implications are discussed, offering insights to empower MSMEs in navigating dynamic economic landscapes.

References

A. I. Sudrajad, D. Tricahyono, E. B. Yulianti, and W. Rosmawati, “The Role of Digitalization Performance on Digital Business Strategy in Indonesia MSEMs,” Int. J. Prof. Bus. Rev., vol. 8, no. 6, pp. e02260–e02260, 2023.

M. Amalia Putri, T. Hanida, I. Tarwisah, V. Wati, Z. Maulana, and I. Firmansyah, “The Influence of Digital Marketing, Access to Capital, and Financial Management on the Competitiveness of MSMEs Products in the Regency/City of Tasikmalaya,” Saudi J. Econ. Financ., vol. 7, pp. 300–306, 2023.

L. Anatan and Nur, “Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in Indonesia,” Economies, vol. 11, no. 6, p. 156, 2023.

P. K. Ribek, N. P. A. T. Yuliasti, and I. M. Tamba, “PEMANFAATAN TEKNOLOGI DALAM MENINGKATKAN PENJUALAN PADA WARUNG SARIN PAON BALI DI ERA PANDEMI COVID-19,” J. Abdi Dharma Masy., vol. 3, no. 2, pp. 58–67, 2022.

H. Haqqi, “The Government’s Policy in Encouraging the Global Competitiveness of Indonesian MSMEs through the Digital Ecosystem,” J. Econ. Manag. Trade, vol. 29, no. 8, pp. 66–76, 2023.

Y. Priyana, “Implementation of President Grants for Micro Business Productive (BPUM) to Increase Productivity of MSMEs Amid Adaptation of New Normal: A Research Proposal,” in International Conference on Economics, Management and Accounting (ICEMAC 2021), Atlantis Press, 2022, pp. 324–328.

F. Saragih and R. D. Harahap, “Perkembangan UMKM Di Indonesia: Peran Pemahaman Akuntansi, Teknologi Informasi dan Sistem Informasi Akuntansi,” Own. Ris. dan J. Akunt., vol. 7, no. 3, pp. 2518–2527, 2023.

J. R. T. Wijaya and E. Herwiyanti, “Financial Literacy in Financial Management and FAS Implementation: AIS as Moderator,” 2023.

B. L. Handoko, J. Enrico, and Raymond, “Factors That Influence MSMEs to Adopt Technology-Based Accounting Information Systems,” in Proceedings of the 2023 7th International Conference on E-Commerce, E-Business and E-Government, 2023, pp. 203–207.

Maswin and Oktofa Yudha Sudrajad, “Analysis of Financial Indicator Literacy Determinants on The Performance of Bandung City SMEs,” Int. J. Curr. Sci. Res. Rev., vol. 06, no. 06, pp. 3792–3804, 2023, doi: 10.47191/ijcsrr/v6-i6-68.

R. L. Aulia, M. K. Agatha, and M. Y. R. Pandin, “The Effect of Financial Literacy and Financial Behavior on Financial Resilience in MSMEs (Study of MSME Actors in Ngagel Village, Surabaya),” Center for Open Science, 2023.

M. U. Fadhilla and E. N. Purwanto, “The Effect of Digital Literacy and Perceptions of Personal Data Security on the Decision to Use E-Wallet as a Payment System in MSMEs in The Jakarta Area,” J. Manag. Energy Bus., vol. 2, no. 2, 2022.

M. Aladwan and A. S. Al Adwan, “Cohesion of Accounting Information System Fundamentals and Knowledge Robustness in Financial Reporting,” Int. J. Prof. Bus. Rev. Int. J. Prof. Bus. Rev., vol. 8, no. 7, p. 69, 2023.

M. Saad, “The influence of accounting information system adoption on business performance amid COVID-19,” Comput. Hum. Behav. Reports, vol. 10, p. 100286, 2023.

A. M. Qatawneh and G. A. Alfalayeh, “The Role of the Effectiveness of Accounting Information Systems in the Relationship between the Earnings Management and Financial Performance,” Significance, vol. 13, no. 24, 2022.

D. Plinta and K. Radwan, “Implementation of Technological Innovation in a Manufacturing Company,” Appl. Sci., vol. 13, no. 10, p. 6068, 2023.

C. Singhal, R. V Mahto, and S. Kraus, “Technological innovation, firm performance, and institutional context: a meta-analysis,” IEEE Trans. Eng. Manag., vol. 69, no. 6, pp. 2976–2986, 2020.

S. H. Sukumar, A. O. Vargas, and S. Y. Mondal, “Impact of Technological Innovation on Performance of Manufacturing Firms in Switzerland,” J. Strateg. Manag., vol. 6, no. 6, pp. 12–21, 2022.

E. A. Ilyina, “Models of the dynamics of maximal and optimal profits of a manufacturing enterprise implementing technological innovations,” Вестник Самарского университета. Экономика и управление, vol. 14, no. 1, pp. 219–231, 2023.

S. M. Sundaram, T. R. Murgod, and M. Sowmya, “Technology-Based Innovation for Business Model Innovation,” in Emerging Technologies for Innovation Management in the Software Industry, IGI Global, 2022, pp. 223–236.

J. Jain, N. Walia, M. Kaur, K. Sood, and D. Kaur, “Shaping Investment Decisions Through Financial Literacy: Do Herding and Overconfidence Bias Mediate the Relationship?,” Glob. Bus. Rev., p. 09721509221147409, 2023.

Mahesha, “Financial Literacy: an Initiative Taken by the Government of Karnataka,” Int. J. Multidiscip. Res., vol. 5, no. 3, pp. 3–7, 2023, doi: 10.36948/ijfmr.2023.v05i03.3801.

H. R. P. Hartono and Y. D. Kurniawan, “Financial Literacy. A Case Study in Madiun,” Indones. J. Bus. Anal., vol. 3, no. 3, pp. 665–672, 2023.

F. Shaheen, M. A. Tariq, Q. Zahoor, and A. Mehmood, “Role of Financial Literacy in Investment Decisions: Exploring the Individual Investors’ Perspective through a Qualitative Approach,” J. Bus. Soc. Rev. Emerg. Econ., vol. 8, no. 4, pp. 719–726, 2022.

Downloads

Published

2024-03-28

How to Cite

Judijanto, L., Sudarmanto, E., Utami , E. Y., Darman, D., & Waoma, S. (2024). The Effect of Accounting Information System Service Quality, Technological Innovation, and Financial Literacy on Investment Decision Making in MSMEs in Indonesia. West Science Accounting and Finance, 2(01), 1–10. https://doi.org/10.58812/wsaf.v2i01.710

Issue

Vol. 2 No. 01 (2024): West Science Accounting and Finance

Section

Articles

License

Copyright (c) 2024 Loso Judijanto, Eko Sudarmanto, Eva Yuniarti Utami , Darman Darman, Samalua Waoma

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.