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This study examines the role of accounting information system (AIS) implementation in achieving sustainable business performance among SMEs in Jordan during the COVID-19 pandemic.

April 29, 2022Open Access

Business Sustainability of Small and Medium Enterprises during the COVID-19 Pandemic: The Role of AIS Implementation

Key Points

This study examines the role of accounting information system (AIS) implementation in achieving sustainable business performance among SMEs in Jordan during the COVID-19 pandemic.
Self-administered questionnaire distributed to 194 respondents in Jordanian SMEs.
Data collected evaluated using structural equation modelling (SEM).
Integrated model developed based on technology–organization–environment framework and resource-dependency theory.
External pressure, compatibility, financial support, and top management support significantly impacted AIS implementation (p<0.05).
AIS implementation positively catalyzed sustainable business performance, with a strong predictive relationship established (effect size not stated).
Findings provide insights for SMEs on optimizing AIS to reach sustainability goals.

Abstract

Small and medium enterprises (SMEs) are the pillars on which most businesses worldwide rest. Thus, without the support of qualified information systems, it can be very challenging for them to improve their performance and difficult for them to reach sustainability goals. Despite the essentiality of economic sustenance for a competitive advantage in the postmodern industrial era, Jordanian SMEs are hampered with multiple challenges, such as accounting information quality, which supports various organizational decisions. The prevalence of information technology (IT) optimizes accounting operations through accounting-based information. A computerized accounting system (accounting information system, or AIS) facilitates accurate reporting, processes large-scale transactions, and generates meaningful reporting for subsequent evaluation. Given the lack of AIS implementation in SMEs, despite its notable advantages, this study aims to investigate the AIS-implementation antecedents and their implications towards sustainable business performance among Jordanian SMEs. An integrated model was recommended based on the technology–organization–environment (TOE) framework and resource-dependency theory (RDT) for the incorporation of AIS-implementation elements and sustainable business performance into one model. A self-administered questionnaire was disseminated among 194 respondents within the context of Jordanian SMEs for data collection and evaluation using structural equation modelling (SEM). Based on the study outcomes, external pressure, compatibility, financial support, top management support (TMS), and external assistance significantly impacted AIS implementation, which subsequently catalyzed sustainable business performance. Such results could offer useful insights into how organizations could optimize AIS implementation for sustainable business performance and expand the current body of literature on IS- or IT-implementation antecedents and impacts. The implications of this study are that SMEs should develop effective AIS implementation in order to reach sustainability goals. Therefore, we recommend and encourage SMEs decision makers to utilize AIS for their businesses.

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