Main Article Content
Abstract
In an increasingly competitive business environment, high-quality accounting information is crucial for companies seeking improved performance—particularly small and medium-sized enterprises (SMEs) in the manufacturing sector. Accounting information quality not only influences internal decision-making but also fosters trust among stakeholders, including investors, creditors, and business partners. This study aims to examine the roles of innovation capability, risk propensity, moral standards, knowledge management, and the management accounting information system (MAIS) in shaping accounting information quality and financial performance. Data were collected through 318 questionnaires distributed to general managers, financial managers, chief accountants, and internal auditors in randomly selected manufacturing companies in Bandung City. The data were analyzed using the SEM-PLS approach to test the relationships among the studied variables. The results indicate that innovation capability, risk propensity, moral standards, and knowledge management significantly influence both the management accounting system and the quality of accounting information. In turn, the management accounting system and accounting information quality significantly affect financial performance. Based on these findings, this study recommends that company management adopt modern MAIS, as it is a critical component for achieving competitive advantage and long-term survival in today’s market.
Keywords
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References
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- Al-Dmour, A., Zaidan, H., & Al Natour, A. R. (2023a). The impact knowledge management processes on business performance via the role of accounting information quality as a mediating factor. VINE Journal of Information and Knowledge Management Systems, 53(3), 523–543. https://doi.org/10.1108/VJIKMS-12-2020-0219
- Al-Hattami, H. M. (2024). The influence of accounting information system on management control effectiveness: The perspective of SMEs in Yemen. Information Development, 40(1), 75–93. https://doi.org/10.1177/02666669221087184
- Alareeni, B., & Hamdan, A. (2021). Lecture Notes in Networks and Systems 487 Sustainable Finance, Digitalization and the Role of Technology (Issue Icbt). https://link.springer.com/bookseries/15179
- Alrabei, A. M., Jawabreh, O., & Saleh, M. M. A. (2023). Accounting Information and Role It on Financial Reports Quality in Jordanian Hotels, and Social Performance as a Mediating Effect. International Journal of Sustainable Development and Planning, 18(7), 2271–2279. https://doi.org/10.18280/ijsdp.180732
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- Bakri, B., & Mulyani, S. (2019a). The influence of using enterprise resource planning (ERP) technology and knowledge management on the quality of accounting information systems. International Journal of Supply Chain Management, 8(5), 62–68. https://doi.org/10.59160/ijscm.v8i5.2572
- Daat, S. C., Sanggenafa, M. A., & Larasati, R. (2021). The role of intellectual capital on financial performance of smes. Universal Journal of Accounting and Finance, 9(6). https://doi.org/10.13189/ujaf.2021.090610
- Gherghina, S. C., Botezatu, M. A., Hosszu, A., & Simionescu, L. N. (2020). Small and medium-sized enterprises (SMEs): The engine of economic growth through investments and innovation. Sustainability (Switzerland), 12(1). https://doi.org/10.3390/SU12010347
- Gyamera, E., Abayaawien Atuilik, W., Eklemet, I., Henry Matey, A., Tetteh, L. A., & Kwasi Apreku-Djan, P. (2023). An analysis of the effects of management accounting services on the financial performance of SME: The moderating role of information technology. Cogent Business and Management, 10(1). https://doi.org/10.1080/23311975.2023.2183559
- Gyamera, E., Abayaawien Atuilik, W., Eklemet, I., Henry Matey, A., Tetteh, L. A., Kwasi Apreku-Djan, P., Mia, L., Clarke, B., Saleh, Q. Y., Al-Nimer, M. B., Bakri, Mulyani, S., Al-Dmour, A., Zaidan, H., Al Natour, A. R., Zhao, Y., Bai, H., Li, Y., Zhou, P., … Hutahayan, B. (2024). The influence of clan culture on the accounting information quality: evidence from privately listed firms in China. Cogent Business and Management, 10(1), 1–24. https://doi.org/10.1080/00036846.2024.2399813
- Hartikayanti, H. N., Bramanti, F. L., & Gunardi, A. (2018). Financial management information system: An empirical evidence. European Research Studies Journal, 21(2). https://doi.org/10.35808/ersj/1015
- Hutahayan, B. (2020). The mediating role of human capital and management accounting information system in the relationship between innovation strategy and internal process performance and the impact on corporate financial performance. Benchmarking, 27(4), 1289–1318. https://doi.org/10.1108/BIJ-02-2018-0034
- Johan, A., Zulganef, Z., & Pratminingsih, S. A. (2023). The Drivers of Business Performance: Does Sales Force Strategy and Network Capability Matter? JBTI : Jurnal Bisnis : Teori Dan Implementasi, 14(1). https://doi.org/10.18196/jbti.v14i1.17019
- Kareem, H. M., Aziz, K. A., Maelah, R., Yunus, Y. M., Alsheikh, A., & Alsheikh, W. (2021). The influence of accounting information systems, knowledge management capabilities, and innovation on organizational performance in Iraqi SMEs. International Journal of Knowledge Management, 17(2). https://doi.org/10.4018/IJKM.2021040104
- Kerler, W. A., & Killough, L. N. (2009). The effects of satisfaction with a client’s management during a prior audit engagement, trust, and moral reasoning on auditors’ perceived risk of management fraud. Journal of Business Ethics, 85(2). https://doi.org/10.1007/s10551-008-9752-x
- Khalid, B., & Kot, M. (2021). The impact of accounting information systems on performance management in the banking sector. IBIMA Business Review, 2021. https://doi.org/10.5171/2021.578902
- Kusiyah, K., Usmany, P., Susilawati, M., As’ady, M., & Sahri, Y. (2024). The Influence Of Moral Reasoning On Internal Audit Quality With Auditor Competence As A Moderating Variable. Reslaj : Religion Education Social Laa Roiba Journal, 6(3). https://doi.org/10.47467/reslaj.v6i3.6158
- Le, H. M., Nguyen, T. T., & Hoang, T. C. (2020). Organizational culture, management accounting information, innovation capability and firm performance. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1857594
- Malagueño, R., & Bisbe, J. (2012). The Role of Management Accounting and Control Systems as Antecedents of Organizational Creativity and Innovation Capabilities. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1720989
- Mayr, S., Mitter, C., Kücher, A., & Duller, C. (2020). Entrepreneur characteristics and differences in reasons for business failure: evidence from bankrupt Austrian SMEs. Journal of Small Business and Entrepreneurship. https://doi.org/10.1080/08276331.2020.1786647
- Motta, V., & Sharma, A. (2020). International Journal of Hospitality Management Lending technologies and access to finance for SMEs in the hospitality industry. International Journal of Hospitality Management, 86(3). https://doi.org/10.1016/j.ijhm.2019.102371
- Pinatik, S. (2021a). The Effect of Auditor’s Emotional Intelligence, Competence, and Independence on Audit Quality. International Journal of Applied Business and International Management, 6(2), 55–67. https://doi.org/10.32535/ijabim.v6i2.1147
- Pinatik, S. (2021b). The Effect of Auditor’s Emotional Intelligence, Competence, and Independence on Audit Quality. International Journal of Applied Business and International Management, 6(2). https://doi.org/10.32535/ijabim.v6i2.1147
- Purwaningsih, E., Muslikh, Suhaeri, & Basrowi. (2024). Utilizing blockchain technology in enhancing supply chain efficiency and export performance, and its implications on the financial performance of SMEs. Uncertain Supply Chain Management, 12(1). https://doi.org/10.5267/j.uscm.2023.9.007
- Rajapathirana, R. P. J., & Hui, Y. (2018). Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation and Knowledge, 3(1). https://doi.org/10.1016/j.jik.2017.06.002
- Rita, M. R., & Huruta, A. D. (2020). Financing access and SME performance: A case study from batik SME in Indonesia. International Journal of Innovation, Creativity and Change, 12(12). https://www.ijicc.net/images/vol12/iss12/121222_Rita_2020_E_R.pdf
- Saleh, Q. Y., & Al-Nimer, M. B. (2022). The mediating role of the management accounting information system in the relationship between innovation strategy and financial performance in the Jordanian industrial companies. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2135206
- Salim, K., Mohd Amir, A., Maelah, R., & Jalaludin, D. (2023). The Impact of Financial Resources, Natural Ecological Orientation, and Environmental Innovation Capabilities on Environmental Management Accounting Across Kenyan SMEs. Global Conference on Business and Social Sciences Proceeding, 15(1). https://doi.org/10.35609/gcbssproceeding.2023.1(62)
- Sari, S. P., Sudarma, M., & Andayani, W. (2021). The effect of auditors’ competence and moral reasoning towards audit quality with audit time budget as moderating. International Journal of Research in Business and Social Science (2147- 4478), 10(6), 205–212. https://doi.org/10.20525/ijrbs.v10i6.1339
- Senan, N. A. M. (2024). Optimizing financial performance: The interplay between financial management and accounting information systems in Yemeni SMEs. Asian Economic and Financial Review, 14(9), 646–659. https://doi.org/10.55493/5002.v14i9.5155
- Silvia, H. D., Revina, W., Hamidah, S., Arianti, I., & Masturoh, I. (2020). Standar Atribut Auditor Internal dan Isu Etika. Paper Kel. 02 Internal Auditing. https://doi.org/10.31219/osf.io/4kte6
- Siregar, T., Murtanto, & Nuryatno, M. (2023). The Effect of Organizational Climate, Knowledge Management, Ethical Leadership on Company Performance is Moderated Quality of Management Accounting Information System. Migration Letters, 20(6). https://doi.org/10.59670/ml.v20i6.3531
- Soetjipto, B. E., Handayati, P., Hanurawan, F., Meldona, Rochayatun, S., & Bidin, R. (2023). Enhancing MSMEs Performance through Innovation: Evidence from East Java, Indonesia. Journal for ReAttach Therapy and Developmental Diversities, 6(3s), 124–145. https://jrtdd.com/index.php/journal/article/view/331
- Soewarno, N., & Tjahjadi, B. (2020). Eco-oriented culture and financial performance: Roles of innovation strategy and eco-oriented continuous improvement in manufacturing state-owned enterprises, Indonesia. Entrepreneurship and Sustainability Issues, 8(2). https://doi.org/10.9770/jesi.2020.8.2(20)
- Vignero, L., & Wenmackers, S. (2021). Degrees of riskiness, falsifiability, and truthlikeness: A neo-Popperian account applicable to probabilistic theories. Synthese, 199(3–4). https://doi.org/10.1007/s11229-021-03310-5
- Yu, W., Huang, H., Kong, X., & Zhu, K. (2023). Can Digital Inclusive Finance Improve the Financial Performance of SMEs? Sustainability (Switzerland), 15(3). https://doi.org/10.3390/su15031867
References
Afifa, M. A., & Nguyen, N. M. (2024). An Investigation of Antecedents and Outcomes of Accounting Information Quality: Evidence from SMEs. Vision, 1–16. https://doi.org/10.1177/09722629241231419
Ahmad, M. A., & Al-Shbiel, S. O. (2019). The Effect of Accounting Information System on Organizational Performance in Jordanian Industrial SMEs: The Mediating Role of Knowledge Management. International Journal of Business and Social Science, 10(3). https://doi.org/10.30845/ijbss.v10n3p9
Al-Dmour, A., Zaidan, H., & Al Natour, A. R. (2023a). The impact knowledge management processes on business performance via the role of accounting information quality as a mediating factor. VINE Journal of Information and Knowledge Management Systems, 53(3), 523–543. https://doi.org/10.1108/VJIKMS-12-2020-0219
Al-Hattami, H. M. (2024). The influence of accounting information system on management control effectiveness: The perspective of SMEs in Yemen. Information Development, 40(1), 75–93. https://doi.org/10.1177/02666669221087184
Alareeni, B., & Hamdan, A. (2021). Lecture Notes in Networks and Systems 487 Sustainable Finance, Digitalization and the Role of Technology (Issue Icbt). https://link.springer.com/bookseries/15179
Alrabei, A. M., Jawabreh, O., & Saleh, M. M. A. (2023). Accounting Information and Role It on Financial Reports Quality in Jordanian Hotels, and Social Performance as a Mediating Effect. International Journal of Sustainable Development and Planning, 18(7), 2271–2279. https://doi.org/10.18280/ijsdp.180732
Alrjoub, A., Bataineh, A., & Al Bataineh, I. (2023). Impact of knowledge management on accounting information quality in light of electronic publishing at the Jordanian insurance companies. International Journal of Process Management and Benchmarking, 14(3). https://doi.org/10.1504/IJPMB.2023.131258
Bakri, B., & Mulyani, S. (2019a). The influence of using enterprise resource planning (ERP) technology and knowledge management on the quality of accounting information systems. International Journal of Supply Chain Management, 8(5), 62–68. https://doi.org/10.59160/ijscm.v8i5.2572
Daat, S. C., Sanggenafa, M. A., & Larasati, R. (2021). The role of intellectual capital on financial performance of smes. Universal Journal of Accounting and Finance, 9(6). https://doi.org/10.13189/ujaf.2021.090610
Gherghina, S. C., Botezatu, M. A., Hosszu, A., & Simionescu, L. N. (2020). Small and medium-sized enterprises (SMEs): The engine of economic growth through investments and innovation. Sustainability (Switzerland), 12(1). https://doi.org/10.3390/SU12010347
Gyamera, E., Abayaawien Atuilik, W., Eklemet, I., Henry Matey, A., Tetteh, L. A., & Kwasi Apreku-Djan, P. (2023). An analysis of the effects of management accounting services on the financial performance of SME: The moderating role of information technology. Cogent Business and Management, 10(1). https://doi.org/10.1080/23311975.2023.2183559
Gyamera, E., Abayaawien Atuilik, W., Eklemet, I., Henry Matey, A., Tetteh, L. A., Kwasi Apreku-Djan, P., Mia, L., Clarke, B., Saleh, Q. Y., Al-Nimer, M. B., Bakri, Mulyani, S., Al-Dmour, A., Zaidan, H., Al Natour, A. R., Zhao, Y., Bai, H., Li, Y., Zhou, P., … Hutahayan, B. (2024). The influence of clan culture on the accounting information quality: evidence from privately listed firms in China. Cogent Business and Management, 10(1), 1–24. https://doi.org/10.1080/00036846.2024.2399813
Hartikayanti, H. N., Bramanti, F. L., & Gunardi, A. (2018). Financial management information system: An empirical evidence. European Research Studies Journal, 21(2). https://doi.org/10.35808/ersj/1015
Hutahayan, B. (2020). The mediating role of human capital and management accounting information system in the relationship between innovation strategy and internal process performance and the impact on corporate financial performance. Benchmarking, 27(4), 1289–1318. https://doi.org/10.1108/BIJ-02-2018-0034
Johan, A., Zulganef, Z., & Pratminingsih, S. A. (2023). The Drivers of Business Performance: Does Sales Force Strategy and Network Capability Matter? JBTI : Jurnal Bisnis : Teori Dan Implementasi, 14(1). https://doi.org/10.18196/jbti.v14i1.17019
Kareem, H. M., Aziz, K. A., Maelah, R., Yunus, Y. M., Alsheikh, A., & Alsheikh, W. (2021). The influence of accounting information systems, knowledge management capabilities, and innovation on organizational performance in Iraqi SMEs. International Journal of Knowledge Management, 17(2). https://doi.org/10.4018/IJKM.2021040104
Kerler, W. A., & Killough, L. N. (2009). The effects of satisfaction with a client’s management during a prior audit engagement, trust, and moral reasoning on auditors’ perceived risk of management fraud. Journal of Business Ethics, 85(2). https://doi.org/10.1007/s10551-008-9752-x
Khalid, B., & Kot, M. (2021). The impact of accounting information systems on performance management in the banking sector. IBIMA Business Review, 2021. https://doi.org/10.5171/2021.578902
Kusiyah, K., Usmany, P., Susilawati, M., As’ady, M., & Sahri, Y. (2024). The Influence Of Moral Reasoning On Internal Audit Quality With Auditor Competence As A Moderating Variable. Reslaj : Religion Education Social Laa Roiba Journal, 6(3). https://doi.org/10.47467/reslaj.v6i3.6158
Le, H. M., Nguyen, T. T., & Hoang, T. C. (2020). Organizational culture, management accounting information, innovation capability and firm performance. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1857594
Malagueño, R., & Bisbe, J. (2012). The Role of Management Accounting and Control Systems as Antecedents of Organizational Creativity and Innovation Capabilities. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1720989
Mayr, S., Mitter, C., Kücher, A., & Duller, C. (2020). Entrepreneur characteristics and differences in reasons for business failure: evidence from bankrupt Austrian SMEs. Journal of Small Business and Entrepreneurship. https://doi.org/10.1080/08276331.2020.1786647
Motta, V., & Sharma, A. (2020). International Journal of Hospitality Management Lending technologies and access to finance for SMEs in the hospitality industry. International Journal of Hospitality Management, 86(3). https://doi.org/10.1016/j.ijhm.2019.102371
Pinatik, S. (2021a). The Effect of Auditor’s Emotional Intelligence, Competence, and Independence on Audit Quality. International Journal of Applied Business and International Management, 6(2), 55–67. https://doi.org/10.32535/ijabim.v6i2.1147
Pinatik, S. (2021b). The Effect of Auditor’s Emotional Intelligence, Competence, and Independence on Audit Quality. International Journal of Applied Business and International Management, 6(2). https://doi.org/10.32535/ijabim.v6i2.1147
Purwaningsih, E., Muslikh, Suhaeri, & Basrowi. (2024). Utilizing blockchain technology in enhancing supply chain efficiency and export performance, and its implications on the financial performance of SMEs. Uncertain Supply Chain Management, 12(1). https://doi.org/10.5267/j.uscm.2023.9.007
Rajapathirana, R. P. J., & Hui, Y. (2018). Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation and Knowledge, 3(1). https://doi.org/10.1016/j.jik.2017.06.002
Rita, M. R., & Huruta, A. D. (2020). Financing access and SME performance: A case study from batik SME in Indonesia. International Journal of Innovation, Creativity and Change, 12(12). https://www.ijicc.net/images/vol12/iss12/121222_Rita_2020_E_R.pdf
Saleh, Q. Y., & Al-Nimer, M. B. (2022). The mediating role of the management accounting information system in the relationship between innovation strategy and financial performance in the Jordanian industrial companies. Cogent Business and Management, 9(1). https://doi.org/10.1080/23311975.2022.2135206
Salim, K., Mohd Amir, A., Maelah, R., & Jalaludin, D. (2023). The Impact of Financial Resources, Natural Ecological Orientation, and Environmental Innovation Capabilities on Environmental Management Accounting Across Kenyan SMEs. Global Conference on Business and Social Sciences Proceeding, 15(1). https://doi.org/10.35609/gcbssproceeding.2023.1(62)
Sari, S. P., Sudarma, M., & Andayani, W. (2021). The effect of auditors’ competence and moral reasoning towards audit quality with audit time budget as moderating. International Journal of Research in Business and Social Science (2147- 4478), 10(6), 205–212. https://doi.org/10.20525/ijrbs.v10i6.1339
Senan, N. A. M. (2024). Optimizing financial performance: The interplay between financial management and accounting information systems in Yemeni SMEs. Asian Economic and Financial Review, 14(9), 646–659. https://doi.org/10.55493/5002.v14i9.5155
Silvia, H. D., Revina, W., Hamidah, S., Arianti, I., & Masturoh, I. (2020). Standar Atribut Auditor Internal dan Isu Etika. Paper Kel. 02 Internal Auditing. https://doi.org/10.31219/osf.io/4kte6
Siregar, T., Murtanto, & Nuryatno, M. (2023). The Effect of Organizational Climate, Knowledge Management, Ethical Leadership on Company Performance is Moderated Quality of Management Accounting Information System. Migration Letters, 20(6). https://doi.org/10.59670/ml.v20i6.3531
Soetjipto, B. E., Handayati, P., Hanurawan, F., Meldona, Rochayatun, S., & Bidin, R. (2023). Enhancing MSMEs Performance through Innovation: Evidence from East Java, Indonesia. Journal for ReAttach Therapy and Developmental Diversities, 6(3s), 124–145. https://jrtdd.com/index.php/journal/article/view/331
Soewarno, N., & Tjahjadi, B. (2020). Eco-oriented culture and financial performance: Roles of innovation strategy and eco-oriented continuous improvement in manufacturing state-owned enterprises, Indonesia. Entrepreneurship and Sustainability Issues, 8(2). https://doi.org/10.9770/jesi.2020.8.2(20)
Vignero, L., & Wenmackers, S. (2021). Degrees of riskiness, falsifiability, and truthlikeness: A neo-Popperian account applicable to probabilistic theories. Synthese, 199(3–4). https://doi.org/10.1007/s11229-021-03310-5
Yu, W., Huang, H., Kong, X., & Zhu, K. (2023). Can Digital Inclusive Finance Improve the Financial Performance of SMEs? Sustainability (Switzerland), 15(3). https://doi.org/10.3390/su15031867