The Role of Accounting Digitization in Entrepreneurial Success in West Java : Quantitative Study of Efficiency, Accuracy, Cost Reduction, Customer Satisfaction, and Data Security
Article Sidebar
Main Article Content
Abstract
The aim of this study was to investigate the role of accounting digitization in entrepreneurial success in West Java. A quantitative research approach was used, and data were collected from 250 small and medium-sized enterprises (SMEs) using a structured questionnaire. The study analyzed the impact of accounting digitization on efficiency, accuracy, cost reduction, customer satisfaction, and data security using Structural Equation Modeling (SEM) with Smart PLS software. The results of the study showed that accounting digitization has a significant positive impact on all five constructs. Specifically, the use of accounting digitization tools improves the efficiency and accuracy of accounting processes, leading to cost savings and increased customer satisfaction. Additionally, data security measures are crucial to protect sensitive financial information. The study highlights the importance of government support and policies that encourage the adoption of accounting digitization by SMEs in West Java. This can help SMEs to remain competitive in the global market, increase productivity, and create more job opportunities. However, the study has some limitations, such as the focus on only one region and the use of a quantitative research approach. Future research can use a qualitative research approach to gain more in-depth insights into the experiences and perceptions of SME owners and managers regarding accounting digitization.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
D. Gulin, M. Hladika, and I. Valenta, “Digitalization and the Challenges for the Accounting Profession,” Entren. Res. Innov., vol. 5, no. 1, pp. 428–437, 2019.
D.-R. Knudsen, “Elusive boundaries, power relations, and knowledge production: A systematic review of the literature on digitalization in accounting,” Int. J. Account. Inf. Syst., vol. 36, p. 100441, 2020.
F. Kitsios and M. Kamariotou, “Artificial intelligence and business strategy towards digital transformation: A research agenda,” Sustainability, vol. 13, no. 4, p. 2025, 2021.
K. Möller, U. Schäffer, and F. Verbeeten, “Digitalization in management accounting and control: an editorial,” Journal of Management Control, vol. 31. Springer, pp. 1–8, 2020.
A. Agostini, “Differences in business model innovation, a challenges perspective [disertasi],” Halmstad Halmstad Univ. Coll., 2014.
K. Bygren, “The digitalization impact on accounting firms business models.” 2016.
M. Jans, B. Aysolmaz, M. Corten, A. Joshi, and M. van Peteghem, “Digitalization in accounting–Warmly embraced or coldly ignored?,” Accounting, Audit. Account. J., vol. 36, no. 9, pp. 61–85, 2022.
I. V Spilnyk and M. S. Paluh, “Developing accounting system: the challenges of digitalization,” 2019.
L. Anatan, “A Review on MSMEs Resilience: Strategies and Policies Post Covid-19 Pandemic,” Rev. Integr. Bus. Econ. Res., vol. 10, pp. 386–394, 2021.
- Kurniawan, A. Maulana, and Y. Iskandar, “The Effect of Technology Adaptation and Government Financial Support on Sustainable Performance of MSMEs during the COVID-19 Pandemic,” Cogent Bus. Manag., vol. 10, no. 1, p. 2177400, 2023.
B. S. Sutejo and M. A. R. Silalahi, “Correlation analysis among innovation, risk-taking, competitive aggressiveness, and proactiveness on company performance in the Covid-19 situation,” Correl. Anal. Among Innov. Risk-taking, Compet. Aggress. Proactiveness Com-pany Perform. Covid-19 Situat., vol. 180, pp. 16–20, 2021.
Y. Iskandar, J. Joeliaty, U. Kaltum, and H. Hilmiana, “Systematic review of the barriers to social enterprise performance using an institutional framework,” Cogent Bus. Manag., vol. 9, no. 1, p. 2124592, 2022.
S. Supriandi, “Pengaruh Modal Sosial, Kapabilitas Finansial, Orientasi Kewirausahaan Terhadap Daya Saing Bisnis Berkelanjutan Serta Implikasinya Pada Kinerja Umkm Industri Kuliner Di Kota Sukabumi.” Nusa Putra, 2022.
H. A. Arie and A. M. Fikry, “Development of synergistic between digitalization MSMEs and digital society in Indonesia,” Ho Chi Minh City Open Univ. J. Sci. Bus. Adm., vol. 11, no. 2, pp. 18–30, 2021.
S. B. Butunov and G. I. Azamatova, “The Digitalization Of Accounting: From The Past To The Future.,” Theor. Appl. Sci., no. 4, pp. 514–519, 2020.
M. Virginia and L. Hertati, “User Competence And Business Digitalization For The Successful Performance Of The Financial Statements,” J. Akunt., vol. 27, no. 1, pp. 80–98, 2023.
Z. Z. Abidin, S. M. Rahayu, M. G. W. E. N. Pamungkas, S. R. Handayani, and R. B. Utami, “Entrepreneurial Knowledge, Market Orientation, Digitalization, and Entrepreneurial Competencies: Evidence from SMEs in Indonesia,” J. Econ. Financ. Account. Stud., vol. 4, no. 2, pp. 91–103, 2022.
D. M. Coman et al., “Digitization of accounting: The premise of the paradigm shift of role of the professional accountant,” Appl. Sci., vol. 12, no. 7, p. 3359, 2022.
A. Dabbous, K. A. Barakat, and S. Kraus, “The impact of digitalization on entrepreneurial activity and sustainable competitiveness: A panel data analysis,” Technol. Soc., p. 102224, 2023.
M. B. Gherman, M. H. Molociniuc, and V. Grosu, “Digitalization of Accounting-trends and Perspectives,” J. Inf. Syst. Oper. Manag., vol. 15, no. 1, pp. 104–113, 2021.
I. P. Julianto, I. G. N. H. Wiguna, and I. N. P. Yasa, “Analysis of the Digitalization of Accounting Information Systems in Supporting the Sustainability of MSMEs During the Pandemic (Study on MSMEs in Buleleng Regency),” JIMAT (Jurnal Ilm. Mhs. Akuntansi) Undiksha, vol. 13, no. 04, pp. 1277–1284, 2022.
N. Carbonell Launois and T. B. Nassè, “Entrepreneur leadership, adaptation to Africa, organisation efficiency, and strategic positioning: What dynamics could stimulate success?,” Int. J. Entrep., vol. 25, no. 6, pp. 1–10, 2021.
K. Tajeddini, U. Elg, and M. Trueman, “Efficiency and effectiveness of small retailers: The role of customer and entrepreneurial orientation,” J. Retail. Consum. Serv., vol. 20, no. 5, pp. 453–462, 2013.
C. Ancillai, H. Terho, S. Cardinali, and F. Pascucci, “Advancing social media driven sales research: Establishing conceptual foundations for B-to-B social selling,” Ind. Mark. Manag., vol. 82, no. February, pp. 293–308, 2019, doi: 10.1016/j.indmarman.2019.01.002.
T. Dalwai and M. Salehi, “Business strategy, intellectual capital, firm performance, and bankruptcy risk: evidence from Oman’s non-financial sector companies,” Asian Rev. Account., vol. 29, no. 3, pp. 474–504, 2021.
A. K. Olsson and I. Bernhard, “Keeping up the pace of digitalization in small businesses–Women entrepreneurs’ knowledge and use of social media,” Int. J. Entrep. Behav. Res., vol. 27, no. 2, pp. 378–396, 2021.
F. M. Fossen and A. Sorgner, “Digitalization of work and entry into entrepreneurship,” J. Bus. Res., vol. 125, pp. 548–563, 2021.
B. Tedjasuksmana, “Membangun Lingkungan Bisnis UMKM Dalam Pemanfaatan Digital Financial Technology,” J. Sumberd. Bumi Berkelanjutan, vol. 2, no. 1, pp. 387–390, 2020.
T. Niemand, J. P. C. Rigtering, A. Kallmünzer, S. Kraus, and A. Maalaoui, “Digitalization in the financial industry: A contingency approach of entrepreneurial orientation and strategic vision on digitalization,” Eur. Manag. J., vol. 39, no. 3, pp. 317–326, 2021.
S. Estrin, S. Khavul, and M. Wright, “Soft and hard information in equity crowdfunding: network effects in the digitalization of entrepreneurial finance,” Small Bus. Econ., vol. 58, no. 4, pp. 1761–1781, 2022.
A. Ben Youssef, S. Boubaker, B. Dedaj, and M. Carabregu-Vokshi, “Digitalization of the economy and entrepreneurship intention,” Technol. Forecast. Soc. Change, vol. 164, p. 120043, 2021.
A. Andaç, F. Akbiyuk, and A. Karkar, “Customer satisfaction factor in digital content marketing: Isparta Province as an example,” Int’l J. Soc. Sci. Stud., vol. 4, p. 124, 2016.
U. S. Grissemann and N. E. Stokburger-Sauer, “Customer co-creation of travel services: The role of company support and customer satisfaction with the co-creation performance,” Tour. Manag., vol. 33, no. 6, pp. 1483–1492, 2012.
J. J. Lenzun, J. D. . Massie, and D. Adare, “Pengaruh Kualitas Produk, Harga dan Promosi terhadap Kepuasan Pelanggan Kartu Prabayar Telkomsel,” J. EMBA, vol. 2, no. 3, pp. 1237–1245, 2014.
R. Rachmawati, “Peranan Bauran Pemasaran (Marketing Mix) terhadap Peningkatan Penjualan,” J. Kompetensi Tek., vol. 2, no. 2, pp. 143–150, 2017.
M.-Y. Wu and L.-H. Tseng, “Customer satisfaction and loyalty in an online shop: An experiential marketing perspective,” Int. J. Bus. Manag., vol. 10, no. 1, p. 104, 2015.
S. Sedkaoui, Big data analytics for entrepreneurial success. IGI Global, 2018.
L. J. Trautman, “Rapid Technological Change and US Entrepreneurial Risk in International Markets: Focus on Data Security, Information Privacy, Bribery and Corruption,” Cap. UL Rev., vol. 49, p. 67, 2021.
U. N. Umesh, M. Q. Huynh, and L. Jessup, “Creating successful entrepreneurial ventures in IT,” Commun. ACM, vol. 48, no. 6, pp. 82–87, 2005.
R. S. Wijaya, R. Rahmaita, M. Murniati, N. Nini, and E. Mariyanti, “Digitalisasi Akuntansi Bagi Pelaku UMKM Di Lubuk Minturun,” J. Pengabdi. Masy. Dharma Andalas, vol. 2, no. 1, pp. 40–44, 2023.
L. I. W. Dewi, B. A. Hilendri, and N. Kartikasari, “Faktor-faktor yang Memengaruhi Digitalisasi Informasi Akuntansi pada UMKM di Kota Mataram,” Riset, Ekon. Akunt. dan Perpajak., vol. 3, no. 2, pp. 121–136, 2022.
Y. Ekawarti, T. Agustin, and W. Widarti, “Interpretasi Sistem Digitalisasi Legalitas Dan Administrasi UMKM,” J. Sains Sosio Hum., vol. 5, no. 2, pp. 852–859, 2021.
A. A. S. Mashuri and H. N. L. Ermaya, “Peningkatan kualitas penyusunan laporan keuangan manual menjadi digitalisasi akuntansi sederhana pada pelaku UMKM di Kabupaten Serang,” J. Bakti Masy. Indones., vol. 4, no. 1, 2021.
N. Ganawati, D. Soraya, and I. M. Yogiarta, “The Role of Intellectual Capital, Organizational Learning and Digital Transformation on the Performance of SMEs in Denpasar, Bali-Indonesia,” Int. J. Sci. Manag. Stud. (IJSMS), June, pp. 235–246, 2021.
Y. Iskandar and U. Kaltum, “The Relationship Between Intellectual Capital and Performance of Social Enterprises: A Literature Review,” 2021.
N. Islamiah, R. Rahmatia, H. Paddu, and M. Y. Zamhuri, “Direct and Indirect Effect of Macro Economic Factors in the West of Indonesia,” Golden Ratio Soc. Sci. Educ., vol. 1, no. 1, pp. 13–24, 2021.
D. Agostino, I. Saliterer, and I. Steccolini, “Digitalization, accounting and accountability: A literature review and reflections on future research in public services,” Financ. Account. Manag., vol. 38, no. 2, pp. 152–176, 2022.
S. Berghaus and A. Back, “Stages in digital business transformation: results of an empirical maturity study.,” in MCIS, 2016, p. 22.
J. R. Coyanda, “Model Technopreneur IT Mahasiswa Pada Masa Pandemic Covid 19 dengan Metode Business Model Canvas,” J. Ilm. Inform. Glob., vol. 11, no. 1, pp. 27–32, 2020, doi: 10.36982/jig.v11i1.1069.
J. Barney, “Firm resources and sustained competitive advantage,” J. Manage., vol. 17, no. 1, pp. 99–120, 1991.
S. Masyitoh, “‘Penerapan Konsep Resources-Based View (Rbv) Dalam Upaya Mempertahankan Keunggulan Bersaing Perusahaan’(Studi Kasus Pada Artshop Akifani Mutiara Mataram).” Universitas Muhammadiyah Jember, 2019.
J. Wiklund and D. Shepherd, “Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses,” Strateg. Manag. J., vol. 24, no. 13, pp. 1307–1314, 2003.
D. J. Teece, “Dynamic capabilities: Routines versus entrepreneurial action,” J. Manag. Stud., vol. 49, no. 8, pp. 1395–1401, 2012.
Z. Yousaf, “Go for green: green innovation through green dynamic capabilities: accessing the mediating role of green practices and green value co-creation,” Environ. Sci. Pollut. Res., vol. 28, no. 39, pp. 54863–54875, 2021.
M. Blahušiaková, M. Mateášová, and J. Meluchová, “New Challenges in Accounting Practice in the Slovak Republic Related to Digitalization,” in Hradec Economic Days. Vol. 12 (1): Proceedings of the International Scientific Conference Hradec Economic Days 2022: June 9–10, 2022, Hradec Králové, Czech Republic, 2022, pp. 104–116.
F. Menne, B. Surya, M. Yusuf, and M. Ruslan, “Inovasi Digitalisasi Ekonomi Dan Literasi Keuangan; Menuju Kebangkitan Ekonomi Syariah Dan Peningkatan Kinerja Keuangan Usaha Kecil Menengah (UKM),” 2022.
D. A. Griffith and M. G. Harvey, “A resource perspective of global dynamic capabilities,” J. Int. Bus. Stud., vol. 32, no. 3, pp. 597–606, 2001.
M. Haider Syed, S. Khan, M. Raza Rabbani, and Y. E. Thalassinos, “An artificial intelligence and NLP based Islamic FinTech model combining Zakat and Qardh-Al-Hasan for countering the adverse impact of COVID 19 on SMEs and individuals,” 2020.