Accounting service quality and firm performance: the full mediating role of accounting information quality in small and medium enterprises

Purpose This study aims to investigate the role of accounting service quality (ASQ) in enhancing the performance of small and medium enterprises (SMEs) in Vietnam. It examines both the direct and indirect effects of ASQ on firm performance, using the ASQ model and resource-based theory. Design/methodology/approach The research model was tested using SmartPLS3 software, with data collected from a survey of 279 SME clients of accounting service firms. Respondents included managers and accountants in Vietnamese SMEs, providing insights into the relationship between ASQ, accounting information quality and firm performance. Findings The results reveal that (1) ASQ directly and positively impacts accounting information quality (AIQ), (2) ASQ does not directly affect firm performance but influences it indirectly through AIQ and (3) ASQ has a direct and positive impact on firm performance. Originality/value This study provides practical implications for SME managers in Vietnam, highlighting the importance of selecting high-quality accounting service providers to enhance AIQ and, consequently, firm performance. In addition, it underscores the need for accounting service firms to prioritize quality factors, such as advisory view, capability, efficiency, communication, technological innovation and trustiness, to maintain competitiveness.