The Impact of Transitioning to Digital Accounting Systems on the Quality of Data, Cost Reduction, and Decision-making of Medium and Small-sized Businesses in the Bangkok Metropolitan Area and Perimeter

Main Article Content

Samerkwan Sathitchaisap
Chalermchai Piamnamthip
Jidapa Uisiripon
Nutthanich Chan-itthikul
Piyanuch Kitrungrojcharoen

Abstract

This study investigates the impact of digitizing accounting systems on the quality of accounting information and the decision-making effectiveness of management in small and medium-sized enterprises (SMEs) in Bangkok and its metropolitan area. A survey of 400 samples was conducted, and the data were analyzed using Structural Equation Modeling (SEM). The findings indicate that digitizing accounting systems significantly improves the quality of accounting information, specifically in terms of accuracy and timeliness, with a standardized coefficient of 0.001 and a p-value of less than 0.05. Additionally, digitization significantly reduces costs, also with a standardized coefficient of 0.001 and a p-value of less than 0.05. Moreover, the study shows that the enhanced quality of accounting information, characterized by increased accuracy and timeliness, combined with cost reductions, positively influences the decision-making effectiveness of management, evidenced by a standardized coefficient of 0.003 and a p-value of less than 0.05. These results confirm that implementing digital accounting systems can effectively enhance data management and decision-making in SMEs.

Article Details

Section
Research Articles

References

Al-Hattami, H. M., Abdullah, A. A. A. H., Kabra, J. D., Alsoufi, M. A., Gaber, M. M., & Shuraim, A. M. (2022). Effect of AIS on planning process effectiveness: A case of SMEs in a less developed nation. The Bottom Line, 35(2/3), 33-52. https://doi.org/10.1108/BL-01-2022-0001

Bataineh, A. (2018). The effect of using computerized accounting information systems on reducing production costs in Jordanian pharmaceutical companies. International Journal of Business and Management Invention (IJBMI), 7(7), 1-10. https://www.researchgate.net/publication/326534931_The_Effect_of_Using_Computerized_Accounting_Information_Systems_on_Reducing_Production_Costs_in_Jordanian_Pharmaceutical_Companies

Ghobakhloo, M., Iranmanesh, M., Vilkas, M., Grybauskas, A., & Amran, A. (2022). Drivers and barriers of Industry 4.0 technology adoption among manufacturing SMEs: A systematic review and transformation roadmap. Journal of Manufacturing Technology Management, 33(6), 1029-1058. https://doi.org/10.1108/JMTM-12-2021-0505

Grande, E. U., Estébanez, R. P., & Colomina, C. M. (2011). The impact of accounting information systems (AIS) on performance measures: Empirical evidence in Spanish SMEs. International Journal of Digital Accounting Research, 11(1), 25-43. http://dx.doi.org/10.4192/1577-8517-v11_2

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage Publications.

Juan, E. Villalva. (2021). Structural equation models - PLS in engineering sciences: a brief guide for researchers through a case applied to the industry. Athenea: Revista de la Escuela Universitaria de Ciencias de la Salud, 2(4), 17-39. http://doi.org/10.47460/athenea.v2i4.17

Kuttner, M., Mayr, S., Mitter, C., & Duller, C. (2022). Impact of accounting on reorganization success: Empirical evidence from bankrupt SMEs. Journal of Accounting & Organizational Change, 19(6), 24-45. http://doi.org/10.1108/JAOC-06-2021-0080

Lin, E. T. W., Mohamad Shabri, S., & Yeap, J. Y. (2024). The Influence of Accounting Information System on Financial Performance of Small and Medium-Sized Enterprises in Kangar, Perlis. International Journal of Business and Technopreneurship, 14(1), 49-62. https://doi.org/10.58915/ijbt.v14i1.306

National Economic and Social Development Council (NESDC). (2023). The Thirteenth National Economic and Social Development Plan (2023-2027). https://www.nesdc.go.th/article_attach/article_file_20230615134223.pdf

Nikmatullah, M. I., & Widarsono, A. (2014). Analysis of the Implementation of Cost Reduction in Increasing Profits (Studies at Rural Banks in West Java). Journal of Accounting and Finance Research, 2(2), 40-68.

Owusu, A., Akpe-Doe, C. E., & Taana, I. H. (2022). Assessing the effectiveness of e-government services in Ghana: A case of the registrar general's department. International Journal of Electronic Government Research (IJEGR), 18(1), 1-23. http://dx.doi.org/10.4018

/IJEGR.289827

Pham, Q. H., & Vu, K. P. (2022). Digitalization in small and medium enterprise: A a parsimonious model of digitalization of accounting information for sustainable innovation ecosystem value generation. Asia Pacific Journal of Innovation and Entrepreneurship, 16(1), 2-37. http://doi.org/10.1108/APJIE-02-2022-0013

Romney, Marshall B., & Steinbart, Paul John. (2017). Accounting Information Systems (14th ed.). Pearson.

Radicic, D., & Petković, S. (2023). Impact of digitalization on technological innovations in small and medium-sized enterprises (SMEs). Technological Forecasting and Social Change, 191, 122474. https://doi.org/10.1016/j.techfore.2023.122474

Yamane, T. (1973). Statistics: An Introductory Analysis (3rd Ed.). New York: Harper and Row.

Yoshino, N., & Taghizadeh-Hesary, F. (2016). Major challenges facing small and medium-sized enterprises in Asia and solutions for mitigating them. Asian Development Bank Institute Working Paper Series. Asian Development Bank Institute.