Business Model Transformation and Information Technology Use on the Quality of Accounting Information Systems in MSMEs in Indonesia

Authors

  • Lucky Mahesa Yahya Universitas Andalas

DOI:

https://doi.org/10.58812/wsist.v2i01.801

Keywords:

Business model transformation, information technology, accounting information systems, MSMEs, Indonesia, quantitative analysis

Abstract

This research investigates the impact of business model transformation (BMT) and information technology utilization (ITU) on the quality of accounting information systems (QAIS) in Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. A quantitative approach is employed, with data collected through a survey of MSMEs across various industries. Structural Equation Modeling (SEM) with Partial Least Squares (PLS) is used for data analysis. The findings reveal significant positive relationships between BMT, ITU, and QAIS. Business model transformation and IT utilization are found to significantly enhance the quality of accounting information systems in Indonesian MSMEs. These results highlight the importance of innovative business practices and effective technology adoption in improving financial management processes within MSMEs, providing valuable insights for practitioners, policymakers, and researchers.

References

A. S. Atichasari and A. Marfu, “The Influence of Tax Policies on Investment Decisions and Business Development of Micro, Small, and Medium-Sized Enterprises (MSMEs) and its Implications for Economic Growth in Indonesia,” J. Econ. Financ. Manag. Stud., 2023.

R. F. Yose, “Job Creation Efforts through Empowering Micro, Small and Medium Enterprises,” AURELIA J. Penelit. Dan Pengabdi. Masy. Indones., vol. 2, no. 2, pp. 1211–1214, 2023.

M. Amin, R. Saleh, M. Masitah, and N. Ufayani, “MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMES) IN PROSPERITY BUSINESS ACTORS DURING THE COVID-19 PANDEMIC IN THE VILLAGE ANAIWOI,” Int. J. Business, Law, Educ., vol. 4, no. 2, pp. 336–351, 2023.

F. Taslim and A. L. Kadiyono, “Entrepreneurial orientation of Muslim Micro, Small and Medium Enterprises (MSMEs) owners in West Sumatra,” INSPIRA Indones. J. Psychol. Res., vol. 4, no. 1, pp. 20–28, 2023.

I. G. G. H. Marwanto, A. N. Rahmadi, and N. Yap, “Evaluation of Micro, Small And Medium Enterprises (MSMES) Financing Policies For MSME Actors In Yogyakarta,” Return Study Manag. Econ. Bussines, vol. 2, no. 5, pp. 456–462, 2023.

R. Siregar and E. Sudarmanto, “Beyond Traditional Boundaries: Embracing Digital Transformation for Enhanced Management Efficiency at Micro and Small Business Enterprisess,” West Sci. Interdiscip. Stud., vol. 1, no. 06, pp. 267–279, 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.

W. A. Prabowo, T. P. Putri, and Z. Y. Himawan, “Leveraging Technology for MSME Development: A Case Study of the Sistem Informasi Hasil Desa (SIHASA) V2 in Banyumas Regency,” Sink. J. dan Penelit. Tek. Inform., vol. 8, no. 3, pp. 1500–1514, 2023.

E. Susilowati, A. Permadi, S. Hariyanti, M. Munir, and A. Wahyudi, “Analysis of the Implementation of Digitalization of Financial Statements in Micro, Small, and Medium Enterprises,” Open Access Indones. J. Soc. Sci., vol. 6, no. 4, pp. 1048–1054, 2023.

R. R. Mubarak, J. Manaroinsong, and M. P. Lonto, “Factors Affecting MSME Accounting Recording (A Study of MSMEs in East Bolaang Mongondow District),” AKUMULASI Indones. J. Appl. Account. Financ., 2023, [Online]. Available: https://api.semanticscholar.org/CorpusID:259591776

A. C. Maurina and R. Y. Rusdianto, “Strategi Peningkatan Daya Saing UMKM Terhadap Perdagangan Internasional,” J. Pengabdi. Kpd. Masy., vol. 2, no. 2, pp. 70–76, 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.

M. Akbar, M. Effendi, W. Nawarcono, A. Priambodo, and H. S. Sufyati, “The Sustainability of MSME Business Competitiveness in Bogor City in Review from Entrepreneurial Orientation, Financial Capital and Innovation,” J. Bisnisman Ris. Bisnis dan Manaj., vol. 5, no. 1, pp. 80–93, 2023.

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.

N. S. Mar’a Elthaf Ilahiyah, “Knowledge-Based Business for the Sustainability Msmes in Indonesia’s New Normal Era”.

A. Selezneva, A. Veselova, and A. Anand, “Business model transformation: what is known and what is to be further developed?,” Int. J. Emerg. Mark., 2023.

Y. A. Mies and J. P. Hausberg, “Business Model Innovation in Manufacturing Firms: Exploring the Driving Forces of Digital Transformation,” Int. J. Innov. Technol. Manag., vol. 20, no. 07, pp. 1–27, 2023.

D. Paulus-Rohmer, H. Schatton, and T. Bauernhansl, “Ecosystems, strategy and business models in the age of digitization-How the manufacturing industry is going to change its logic,” Procedia CIRP, vol. 57, pp. 8–13, 2016.

H. L. Madsen, “Business model innovation and the global ecosystem for sustainable development,” J. Clean. Prod., vol. 247, p. 119102, 2020.

B. W. Wirtz and P. R. M. Kubin, “Digital Transformation-Driven Business Model Innovation,” in Handbook of Research on Business Model Innovation Through Disruption and Digitalization, IGI global, 2023, pp. 157–171.

Y. Wibisono and Y. Rosmunie, “The Design of a New IT Governance Framework to Optimize the Utilization of Information Technology for MSME,” in International Conference on Computational Science and Technology, Springer, 2022, pp. 165–179.

G. Kaur, B. Rao, and H. Singh, “Adoption of Information Technology and its Impact on Human Capital Performance in Micro and Small Enterprises in India,” Asia-Pacific J. Manag. Res. Innov., vol. 19, no. 1, pp. 19–24, 2023.

K. Ogwu and V. Naicker, “The role of information technology innovations on organisational performance: a case study of selected SMEs,” EUREKA Soc. Humanit., no. 1, pp. 3–13, 2023.

J. Y. L. Thong and C.-S. Yap, “CEO characteristics, organizational characteristics and information technology adoption in small businesses,” Omega, vol. 23, no. 4, pp. 429–442, 1995.

A. U. Hasanah, Y. Shino, and S. Kosasih, “The Role Of Information Technology In Improving The Competitiveness Of Small And SME Enterprises,” IAIC Trans. Sustain. Digit. Innov., vol. 3, no. 2, pp. 168–174, 2022.

W. H. HS, M. Salsabila, and N. Harahap, “Penerapan Sistem Informasi Akuntansi,” J. EMT KITA, vol. 7, no. 2, pp. 317–324, 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.

J. Abigail, E. R. Sumanti, and I. Prayanthi, “Factors Affecting Accounting Information System Performance,” JRAM (Jurnal Ris. Akunt. Multiparadigma), vol. 9, no. 2, pp. 70–84, 2022.

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.

S. Supriyati, S. Mulyani, H. Suharman, and T. Supriadi, “The Influence of Business Models, Information Technology on the Quality of Accounting Information Systems Digitizing MSMEs Post-COVID-19,” J. Sist. Inf., vol. 18, no. 2, pp. 36–49, 2022.

K. Farina and S. Opti, “DETERMINANTS OF THE QUALITY OF FINANCIAL STATEMENTS MSME,” J. Apresiasi Ekon., vol. 11, no. 1, pp. 32–40, 2023.

S. Zhang, “The Reform of the Training Mode of Accounting Professionals in Universities and Colleges Under the Background of Financial Accounting Transformation Under the Background of Big Data,” in Frontier Computing: Proceedings of FC 2020, Springer, 2021, pp. 1131–1139.

Q. H. Pham and K. P. Vu, “Digitalization in small and medium enterprise: a parsimonious model of digitalization of accounting information for sustainable innovation ecosystem value generation,” Asia Pacific J. Innov. Entrep., vol. 16, no. 1, pp. 2–37, 2022.

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.

R. Rapina, Y. Carolina, and S. Anggraeni, “Analysis of Factors Related To The Application Of Accounting Information Systems In Small Medium & Micro Businesses,” J. Educ. Manag. Dev. Stud., vol. 3, no. 1, pp. 19–29, 2023.

M. J. B. Siringoringo, A. Maksum, and E. Abubakar, “Determinant Analysis of the Quality of MSME Financial Statements (Case Study on MSMEs in North Sumatra Province),” J. Namibian Stud. Hist. Polit. Cult., vol. 33, pp. 1343–1356, 2023.

Downloads

Published

2024-04-30

How to Cite

Yahya, L. M. (2024). Business Model Transformation and Information Technology Use on the Quality of Accounting Information Systems in MSMEs in Indonesia. West Science Information System and Technology, 2(01), 28–38. https://doi.org/10.58812/wsist.v2i01.801

Issue

Vol. 2 No. 01 (2024): West Science Information System and Technology

Section

Articles

License

Copyright (c) 2024 Lucky Mahesa Yahya

Creative Commons License

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