Technological Sophistication Substituting User Competence in MSME AIS Effectiveness
Keywords:
User Competence; IT Sophistication; Accounting Information Systems; MSMEsAbstract
Research aims:
Digital transformation has increased MSMEs’ reliance on Accounting Information Systems (AIS) to improve financial reporting and decision-making. However, AIS effectiveness in developing economies remains inconsistent due to varying levels of technological readiness and user capability. Prior research has largely examined human and technological factors separately, providing limited comparative evidence in MSME contexts. This study analyzes the relative influence of user competence and IT sophistication on AIS effectiveness among MSMEs in Pematangsiantar City, Indonesia.
Design/Methodology/Approach: A quantitative approach was applied using survey data from 50 MSMEs selected through purposive sampling. A validated Likert-scale questionnaire was employed, and data were analyzed using PLS-SEM via SmartPLS.
Research findings: The results reveal that user competence does not significantly affect AIS effectiveness. In contrast, IT sophistication exhibits a strong and positive effect, indicating that technological infrastructure plays a more decisive role than individual user abilities.
Theoretical contribution/Originality: This study refines contingency-based explanations of AIS effectiveness by demonstrating that, within MSMEs characterized by increasing automation, technological sophistication may compensate for limited user competence. The findings extend the DeLone and McLean IS Success Model by positioning IT sophistication as a dominant antecedent in resource-constrained environments.
Practitioner/Policy implication: The findings underscore the importance of investing in advanced, integrated, and user-friendly IT systems to strengthen financial reporting quality and operational decision-making processes.
Research limitation/Implication: The study is limited by its regional focus and narrow scope of independent variables. Future research may expand the model by integrating organizational and technological dimensions
