Digital transformation in accounting of Vietnamese small and medium enterprises

Tam Nguyen, Tuan Le-Anh, Nga Nguyen Thi Hong, Lien Thi Huong Nguyen and Thanh Nguyen Xuan

Journal of Financial Reporting and Accounting, 2024, vol. 23, issue 2, 769-787

Abstract: Purpose - This paper studies the factors affecting digital transformation in accounting of small and medium enterprises (SMEs) and then influencing accounting information quality. Design/methodology/approach - The research model includes seven independent variables, namely organizational culture, competitive pressure, employee's awareness, readiness of the information technology systems, organization's mindfulness, alignment of the organization’s strategy and top management support, which affect digital transformation in accounting. Besides, the research model proposed to examine the relationship between digital transformation in accounting and accounting information quality. The paper uses a survey (with 253 respondents) and applies exploratory factor and regression analysis to examine Vietnamese SMEs. Findings - This paper aims to examine the antecedents of the digital transformation in accounting and its positive impact on the accounting information quality. The research results highlight three factors: the organization's mindfulness, alignment of the organization’s strategy and top management support. In the SMEs, top management may be the one, so the top management in SMEs has a strong influence on the digital transformation in accounting. Research limitations/implications - There are small sample sizes and not yet guaranteed to cover all business areas of Vietnamese SMEs. Control variables will be added to the research model to evaluate, such as firm size, operation time, sex of top management and age of top management. Practical implications - The results of this paper provide practical insights into the digital transformation in accounting for business managers, researchers and other stakeholders. Vietnamese SMEs should communicate and educate employees and spend resources to improve the information technology system. It helps to improve the financial accounting quality for SMEs. Originality/value - To the best of the authors’ knowledge, this study is the first to examine factors affecting digital transformation in accounting and the relationship between digital transformation in accounting and the financial accounting quality of SMEs in Vietnam.

Keywords: Small and medium enterprises; Accounting information quality; Digital transformation (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrapp:jfra-12-2023-0761

DOI: 10.1108/JFRA-12-2023-0761

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