Determinants of the Digitalization of Accounting in an Emerging Market: The Roles of Organizational Support and Job Relevance

Abstract

Digitalization has considerable potential to help achieve the sustainability of the planetary and human systems, including organizations. As digitalization is one of the most promising factors for transformation, there is no doubt that ICT and big data can help promote sustainability. Linking digitalization with a sustainable workplace, the purpose of this investigation is to identify the determinants of the adoption of digitalization of accounting procedures by accounting professionals in Saudi Arabia, an economy rapidly moving towards digital transformation. A holistic model based on the technology acceptance model (TAM), elaboration likelihood model (ELM), and social exchange theory (SET) is proposed and tested. The extension in TAM is proposed by integrating job relevance and organizational support as moderators. A survey method was used to collect data from 365 accounting professionals working in Saudi Arabia. Structural equation modeling and PROCESS macro were used as data analysis techniques. The findings reveal that perceived ease of use has both direct and indirect effects through perceived usefulness on intentions to use e-accounting. Both job relevance and organizational support act as moderators for perceived usefulness and intentions to use e-accounting when treated separately. However, job relevance becomes an insignificant moderator in the presence of organizational support. This finding highlights the importance of organizational support for the successful implementation of e-accounting in an organization.

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

“…In the same caliber of study, findings showed that the right system deployed serves as a competitive advantage and that causal relationships exist between DAS and performance [10,17]. Alnasrallah and Saleem [7] also revealed that service quality, information quality and system quality constitute the success factors of DAS and, eventually, the performance of the organization. Culture within organizations contributes to performance enhancement through information quality, data quality and system quality and therefore it is crucial for organizations to facilitate an environment that promotes happiness, motivation and diligent work among employees.…”

“…It formulates hypotheses on the effective use of DAS among Jordanian SMEs and its relationship with their performance, with the consideration that studies of this caliber in literature are still lacking, thus creating a gap. Only a few of the past studies have explained the effect of DAS use on performance [6,7,48].…”

“…Since 2020, researchers such as Lohapan [6], Ainasrallah and Saleem [7] and Hasbolah et al [8] have indicated the use of technology, such as digital accounting systems (DAS), in addressing difficult and uncertain situations brought on by the COVID-19 pandemic all over the world. Technology use is actually deemed one of the top strategies that businesses can adopt [9,10].…”

“…According to Dyt and Halabi [28], the main difference between successful and failed SMEs is their methods of using accounting data and, certainly, accounting information plays a key role in business function enhancement and support. Specifically, DASs have been adopted to effectively bring about sustainable competitiveness and survival [7,10]. A DAS enables the provision and generation of accounting reports in a timely and proper manner as well as the smooth process of obtaining financial information to promote information among managers regarding the effects of business decisions and processes on the performance of the whole organization [6,36].…”

Development of the Digital Accounting and Its Impact on Financial Performance in Higher Education

“…The company's financial statements represent the company's ability to optimize revenue and operational cost efficiency (Endri et al, 2020). Financial and accounting, like many other fields, is experiencing a need for change to digital and the way businesses transact (AlNasrallah & Saleem, 2022;Coman et al, 2022;Meraghmi et al, 2021;Möller et al, 2020;Phornlaphatrachakorn & Kalasindhu, 2021;Shkolnyk et al, 2022;Taib et al, 2022;Lipaj & Davidavičienė, 2013)). However, research on the impact of accounting digitization found a low level of awareness of the significance of digital transformation and a lack of effort to develop accounting information systems by its requirements.…”