Sharing Economy Platform Use and MSME Financial Performance: The Mediating Role of Management Accounting Systems

Platforms operating under the sharing economy model provide micro, small, and medium enterprises (MSMEs) with access to the digital marketplace along with payment and delivery facilities. However, simply participating in digital transactions will not ensure improved financial performance, as MSMEs must have effective financial processes in place. Drawing on Dynamic Capabilities Theory, this study tests how the use of sharing economy platforms relates to MSME financial performance, with attention to management accounting systems as the mediating link. Data came from a cross-sectional survey of 99 owners or managers of MSMEs in the Barlingmascakeb region of Central Java, Indonesia, and were analyzed through partial least squares structural equation modeling run in SmartPLS 3. Platform use showed a positive association with financial performance, with a path coefficient of 0.298 and a significance level below 0.001. Management accounting systems were also positively related to financial performance at 0.574, while platform use was positively related to those systems at 0.628. Both paths were statistically significant at a level below 0.001. The indirect effect running from platform use to financial performance through management accounting systems was significant as well, at 0.360, which points to complementary partial mediation. The findings highlight how sound accounting practice converts engagement with digital platforms into better-informed financial decisions and stronger financial management among MSMEs.