The Influence of Accounting Information Systems, Knowledge Management Capabilities, and Innovation on Organizational Performance in Iraqi SMEs

The aim of this study is to examine Iraqi small and medium enterprises (SMEs) in terms of the relationship between the use of accounting information systems (AIS), knowledge management capabilities (KMC), and organizational performance (OP) mediated by innovation. A total of 312 questionnaires were used for analysis. Partial least squares version 3 was used to analyse the relationships. The results showed that the use of AIS and KMC have a positive significant influence on innovation, while all three constructs have a positive significant influence on the OP of SMEs. Moreover, all the dimensions of the use of AIS (e.g., decision-making, controlling process, operational efficiency, planning process, and financial reporting), and all the dimensions of KMC (e.g., knowledge acquisition, knowledge sharing, and knowledge utilization) were found to have a positive influence on OP. It was also found that innovation partially mediates the relationship between the use of AIS and OP, as well as the relationship between KMC and OP. The results could help SMEs to obtain a competitive advantage.