From Digital Accounting Capability to SME Performance: The Mediating Role of Managerial Decision-Making Quality
Keywords:
digital management accounting capability; managerial decision-making quality; SME performance; management accounting; digital transformationAbstract
Small and medium-sized enterprises (SMEs) increasingly rely on digital accounting information to support effective managerial decisions and improve business performance. This study examines the effect of digital management accounting capability on SME performance, with managerial decision-making quality as a mediating variable. An explanatory quantitative design used survey data from 74 SME owners and managers in Medan City, Indonesia, selected through purposive sampling. The data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results show that digital management accounting capability positively and significantly affects SME performance (β = 0.286; p = 0.008) and managerial decision-making quality (β = 0.672; p < 0.001). Managerial decision-making quality also positively and significantly affects SME performance (β = 0.521; p < 0.001). Furthermore, managerial decision-making quality significantly mediates the effect of digital management accounting capability on SME performance (β = 0.350; p < 0.001), indicating partial mediation. The model explains 45.2% of the variance in managerial decision-making quality (R² = 0.452) and 57.8% of the variance in SME performance (R² = 0.578). These findings demonstrate that digital management accounting capability enhances SME performance both directly and indirectly by improving the quality of managerial decision-making. The findings suggest that SME owners and managers should strengthen digital accounting capabilities, integrate real-time accounting information into managerial processes, and promote data-driven decision-making practices to improve business performance and competitiveness.
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