Digital accounting-based MSME governance to increase transparency and access to financing
##plugins.themes.bootstrap3.article.sidebar##
Published:
Sep 30, 2026
Keywords:
MSMEs, digital accounting, business governance, financial transparency, access to financing
Section
Articles
Statistics Article
Article View : 17 Times
##plugins.themes.bootstrap3.article.main##
Abstract
restricted access to formal financing, partly due to suboptimal digital accounting implementation. Although previous studies have examined digital transformation, financial technology, and MSME governance separately, limited evidence integrates digital accounting, financial transparency, access to financing, and governance within a single empirical framework. This study develops and validates an integrative Digital Accounting-Based MSME Governance model examining the mediating roles of financial transparency and access to financing. A quantitative approach was employed using purposive sampling, involving 175 valid MSME respondents in North Sumatra. Data were collected through documentation, interviews, and questionnaires and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results show that Digital Accounting significantly affects Financial Transparency (β = 0.503), Access to Financing (β = 0.513), and MSME Governance (β = 0.525). Financial Transparency significantly affects Access to Financing (β = 0.417) and MSME Governance (β = 0.570), while Access to Financing significantly affects MSME Governance (β = 0.520). Financial transparency and access to financing also significantly mediate the relationship between Digital Accounting and MSME Governance. Theoretically, the study extends digital accounting from a technological capability to a governance-enabling mechanism by demonstrating complementary mediating pathways through financial transparency and access to financing. The findings contribute empirical evidence on how digital accounting can strengthen MSME governance in an emerging economy.
##plugins.themes.bootstrap3.article.details##
How to Cite
Nainggolan, E. P., Yusoff, W. S., & Sukri, S. B. (2026). Digital accounting-based MSME governance to increase transparency and access to financing. Indonesia Accounting Research Journal, 14(1), 74–90. Retrieved from https://journals.iarn.or.id/index.php/Accounting/article/view/668
References
Agostino, D., Saliterer, I., & Steccolini, I. (2022). Digitalization, accounting and accountability: A literature review and reflections on future research in public services. In Financial Accountability and Management (Vol. 38, Number 2). https://doi.org/10.1111/faam.12301
Alassuli, A., Thuneibat, N. S., Eltweri, A., Al-Hajaya, K., & Alghraibeh, K. (2025). The Impact of Accounting Digital Transformation on Financial Transparency: Mediating Role of Good Governance. Journal of Risk and Financial Management, 18(5). https://doi.org/10.3390/jrfm18050272
Al-Okaily, M., Alkhwaldi, A. F., Abdulmuhsin, A. A., Alqudah, H., & Al-Okaily, A. (2023). Cloud-based accounting information systems usage and its impact on Jordanian SMEs’ performance: the post-COVID-19 perspective. Journal of Financial Reporting and Accounting, 21(1). https://doi.org/10.1108/JFRA-12-2021-0476
Antonini, C. (2024). Accounting digitalization in the quest for environmental sustainability. In Current Opinion in Environmental Sustainability (Vol. 66). https://doi.org/10.1016/j.cosust.2023.101399
Avelar, S., Borges-Tiago, T., Almeida, A., & Tiago, F. (2024). Confluence of sustainable entrepreneurship, innovation, and digitalization in SMEs. Journal of Business Research, 170. https://doi.org/10.1016/j.jbusres.2023.114346
Awang, Y., Shuhidan, S. M., Taib, A., Rashid, N., & Hasan, M. S. (2022). Digitalization of Accounting Profession: An Opportunity or a Risk for Future Accountants? https://doi.org/10.3390/proceedings2022082093
Bhatti, S. H., Ahmed, A., Ferraris, A., Hirwani Wan Hussain, W. M., & Wamba, S. F. (2022). Big data analytics capabilities and MSME innovation and performance: A double mediation model of digital platform and network capabilities. Annals of Operations Research. https://doi.org/10.1007/s10479-022-05002-w
Bugandwa Ciza, T., Robert, J., Kamdjoug, K., Biga-Diambeidou, M., Djossa Tchokote, I., & Kibekenge, G. B. (2025). including those for text and data mining, AI training, and similar technologies. Quality of accounting information and SMEs’ financial performance: The mediating role of bank and informal financing. Research in International Business and Finance, 75.
Ciza, T. B., Kamdjoug, J. R. K., Biga-Diambeidou, M., Tchokote, I. D., & Kibekenge, G. B. (2025). Quality of accounting information and SMEs’ financial performance: The mediating role of bank and informal financing. Research in International Business and Finance, 75. https://doi.org/10.1016/j.ribaf.2025.102763
Devender, K., Kafila, Goli, G., & Shravan, M. (2025). Bibliometric trends in SMEs financial literacy research from 2021 to 2024. Future Business Journal, 11(1). https://doi.org/10.1186/s43093-025-00495-w
Gao, X. (2023). Digital transformation in finance and its role in promoting financial transparency. Global Finance Journal, 58. https://doi.org/10.1016/j.gfj.2023.100903
Gnatiuk, T., Shkromyda, V., & Shkromyda, N. (2023). Digitalization of Accounting: Implementation Features and Efficiency Assessment. Journal of Vasyl Stefanyk Precarpathian National University, 10(2). https://doi.org/10.15330/jpnu.10.2.45-58
Gunawan, A. (2023). Sharia Financial Knowledge And Financial Behavior As A Basis For Measuring Financial Literacy. Quality - Access to Success, 24(193). https://doi.org/10.47750/QAS/24.193.11
Indriawati, F., Nurlis, N., & Dhewi, R. M. (2022). Sustainability Report Disclosure: Analysis of the impact of company characteristics and Good Corporate Governance. International Journal of Multidisciplinary Research and Analysis, 05(12). https://doi.org/10.47191/ijmra/v5-i12-36
Jans, M., Aysolmaz, B., Corten, M., Joshi, A., & van Peteghem, M. (2022). Digitalization in accounting–Warmly embraced or coldly ignored? In Accounting, Auditing and Accountability Journal (Vol. 36, Number 9). https://doi.org/10.1108/AAAJ-11-2020-4998
Janský, P., Palanský, M., & Wójcik, D. (2023). Shallow and Uneven Progress towards Global Financial Transparency: Evidence from the Financial Secrecy Index. Geoforum, 141. https://doi.org/10.1016/j.geoforum.2023.103728
Julita, J., & Nainggolan, E. P. (2023). Financial Inclusion on Creative Industry Performance: Evidence from Indonesia. Journal of International Conference Proceedings, 6(3). https://doi.org/10.32535/jicp.v6i3.2482
Khairiah, N., & Inayah, N. (2024). The Effect of Implementing Good Corporate Governance (GCG) on the Financial Performance of Islamic Banks in Indonesia. Accounting and Sustainability, 2(2). https://doi.org/10.58968/as.v2i2.344
Kovalevska, N., Nesterenko, I., Lutsenko, O., Nesterenko, O., & Hlushach, Y. (2022). Problems of accounting digitalization in conditions of business processes digitalization. Revista Amazonia Investiga, 11(56). https://doi.org/10.34069/ai/2022.56.08.14
Lestari, P. A. (2025). Transparency and Accountability in the Digital Era: Insights from Public Sector Accounting. Sinergi International Journal of Accounting and Taxation, 3(3).
Lulaj, E., Hysa, E., & Panait, M. (2026). Does digitalization drive sustainable transformation in finance and accounting? Kybernetes, 55(1). https://doi.org/10.1108/K-04-2024-1006
Mai, B. T., Nguyen, P. V., Ton, U. N. H., & Ahmed, Z. U. (2024). Government policy, IT capabilities, digital transformation, and innovativeness in Post-Covid context: case of Vietnamese SMEs. International Journal of Organizational Analysis, 32(2), 333–356. https://doi.org/10.1108/IJOA-11-2022-3480
Muafi, Sanusi, Z. M., & Roostika, R. (2023). Digital Skills, Digital Entrepreneurship, Job Satisfaction, and Sustainable Performance of MSMEs: A Survey on MSMEs in Indonesia. International Journal of Sustainable Development and Planning, 18(2). https://doi.org/10.18280/ijsdp.180215
Mujalli, A., Wani, M. J. G., Almgrashi, A., Khormi, T., & Qahtani, M. (2024). Investigating the factors affecting the adoption of cloud accounting in Saudi Arabia’s small and medium-sized enterprises (SMEs). Journal of Open Innovation: Technology, Market, and Complexity, 10(2). https://doi.org/10.1016/j.joitmc.2024.100314
Mujiatun, S., Julita, J., Rahmayati, R., & Nainggolan, E. P. (2022). Pengembangan Model Penyaluran Kredit Bagi UKM Untuk Mengantisipasi Perkembangan Lembaga Keuangan Informal. Owner, 6(4), 3645–3652. https://doi.org/10.33395/owner.v6i4.1016
Mukesh, H. V. (2022). Digital Transformation Taking Centre Stage: How Is Digital Transformation Reshaping Entrepreneurial Innovation? Journal of Entrepreneurship, 31(2). https://doi.org/10.1177/09713557221097158
Nainggolan, E. P. (2023). Peran Mediasi Inklusi Keuangan pada Literasi Keuangan dan Kinerja UMKM di Kabupaten Deli Serdang. In Balance: Jurnal Akuntansi dan Manajemen (Vol. 2, Number 1).
Oncioiu, I., Popescu, D. M., Aviana, A. E., Şerban, A., Rotaru, F., Petrescu, M., & Marin-Pantelescu, A. (2020). The role of environmental, social, and governance disclosure in financial transparency. Sustainability (Switzerland), 12(17). https://doi.org/10.3390/SU12176757
Pargmann, J., Riebenbauer, E., Flick-Holtsch, D., & Berding, F. (2023). Digitalisation in accounting: a systematic literature review of activities and implications for competences. In Empirical Research in Vocational Education and Training (Vol. 15, Number 1). https://doi.org/10.1186/s40461-023-00141-1
Rahmadita, A., & Marsono. (2024). The Effect of Good Corporate Governance and Sustainability Report Disclosure on Banking Financial Performance. The Accounting and Accountability Journal, 7(1), 1–14. https://ejournal2.undip.ac.id/index.php/taaij/article/view/19398
Redjeki, F., & Affandi, A. (2021). Utilization of Digital Marketing for MSME Players as Value Creation for Customers during the COVID-19 Pandemic. International Journal of Science and Society, 3(1). https://doi.org/10.54783/ijsoc.v3i1.264
Shaban, O. S., & Omoush, A. (2025). AI-Driven Financial Transparency and Corporate Governance: Enhancing Accounting Practices with Evidence from Jordan. Sustainability (Switzerland), 17(9). https://doi.org/10.3390/su17093818
Tjahjadi, B., Soewarno, N., & Mustikaningtiyas, F. (2021). Good corporate governance and corporate sustainability performance in Indonesia: A triple bottom line approach. Heliyon, 7(3). https://doi.org/10.1016/j.heliyon.2021.e06453
Van Hoang, D., Thi Hien, N., Van Thang, H., Nguyen Truc Phuong, P., & Thi-Thuy Duong, T. (2025). Digital Capabilities and Sustainable Competitive Advantages: The Case of Emerging Market Manufacturing SMEs. SAGE Open, 15(2). https://doi.org/10.1177/21582440251329967
Wahyuni, S. F., Dahrani, D., Sari, M., Putri, I. A., & Nabila, A. (2025). Digital Financial Literacy and Financial Well-Being: Unpacking the Roles of Financial Behavior and Financial Stress. International Journal of Business Economics (IJBE), 7(1), 20–45. https://doi.org/10.30596/ijbe.v7i1.25672
Widyatini, I. R. (2019). Financial Inclusion for Economic Sustainability through the Implementation of Good Corporate Governance. Review of Integrative Business and Economics Research, 8(3).
Alassuli, A., Thuneibat, N. S., Eltweri, A., Al-Hajaya, K., & Alghraibeh, K. (2025). The Impact of Accounting Digital Transformation on Financial Transparency: Mediating Role of Good Governance. Journal of Risk and Financial Management, 18(5). https://doi.org/10.3390/jrfm18050272
Al-Okaily, M., Alkhwaldi, A. F., Abdulmuhsin, A. A., Alqudah, H., & Al-Okaily, A. (2023). Cloud-based accounting information systems usage and its impact on Jordanian SMEs’ performance: the post-COVID-19 perspective. Journal of Financial Reporting and Accounting, 21(1). https://doi.org/10.1108/JFRA-12-2021-0476
Antonini, C. (2024). Accounting digitalization in the quest for environmental sustainability. In Current Opinion in Environmental Sustainability (Vol. 66). https://doi.org/10.1016/j.cosust.2023.101399
Avelar, S., Borges-Tiago, T., Almeida, A., & Tiago, F. (2024). Confluence of sustainable entrepreneurship, innovation, and digitalization in SMEs. Journal of Business Research, 170. https://doi.org/10.1016/j.jbusres.2023.114346
Awang, Y., Shuhidan, S. M., Taib, A., Rashid, N., & Hasan, M. S. (2022). Digitalization of Accounting Profession: An Opportunity or a Risk for Future Accountants? https://doi.org/10.3390/proceedings2022082093
Bhatti, S. H., Ahmed, A., Ferraris, A., Hirwani Wan Hussain, W. M., & Wamba, S. F. (2022). Big data analytics capabilities and MSME innovation and performance: A double mediation model of digital platform and network capabilities. Annals of Operations Research. https://doi.org/10.1007/s10479-022-05002-w
Bugandwa Ciza, T., Robert, J., Kamdjoug, K., Biga-Diambeidou, M., Djossa Tchokote, I., & Kibekenge, G. B. (2025). including those for text and data mining, AI training, and similar technologies. Quality of accounting information and SMEs’ financial performance: The mediating role of bank and informal financing. Research in International Business and Finance, 75.
Ciza, T. B., Kamdjoug, J. R. K., Biga-Diambeidou, M., Tchokote, I. D., & Kibekenge, G. B. (2025). Quality of accounting information and SMEs’ financial performance: The mediating role of bank and informal financing. Research in International Business and Finance, 75. https://doi.org/10.1016/j.ribaf.2025.102763
Devender, K., Kafila, Goli, G., & Shravan, M. (2025). Bibliometric trends in SMEs financial literacy research from 2021 to 2024. Future Business Journal, 11(1). https://doi.org/10.1186/s43093-025-00495-w
Gao, X. (2023). Digital transformation in finance and its role in promoting financial transparency. Global Finance Journal, 58. https://doi.org/10.1016/j.gfj.2023.100903
Gnatiuk, T., Shkromyda, V., & Shkromyda, N. (2023). Digitalization of Accounting: Implementation Features and Efficiency Assessment. Journal of Vasyl Stefanyk Precarpathian National University, 10(2). https://doi.org/10.15330/jpnu.10.2.45-58
Gunawan, A. (2023). Sharia Financial Knowledge And Financial Behavior As A Basis For Measuring Financial Literacy. Quality - Access to Success, 24(193). https://doi.org/10.47750/QAS/24.193.11
Indriawati, F., Nurlis, N., & Dhewi, R. M. (2022). Sustainability Report Disclosure: Analysis of the impact of company characteristics and Good Corporate Governance. International Journal of Multidisciplinary Research and Analysis, 05(12). https://doi.org/10.47191/ijmra/v5-i12-36
Jans, M., Aysolmaz, B., Corten, M., Joshi, A., & van Peteghem, M. (2022). Digitalization in accounting–Warmly embraced or coldly ignored? In Accounting, Auditing and Accountability Journal (Vol. 36, Number 9). https://doi.org/10.1108/AAAJ-11-2020-4998
Janský, P., Palanský, M., & Wójcik, D. (2023). Shallow and Uneven Progress towards Global Financial Transparency: Evidence from the Financial Secrecy Index. Geoforum, 141. https://doi.org/10.1016/j.geoforum.2023.103728
Julita, J., & Nainggolan, E. P. (2023). Financial Inclusion on Creative Industry Performance: Evidence from Indonesia. Journal of International Conference Proceedings, 6(3). https://doi.org/10.32535/jicp.v6i3.2482
Khairiah, N., & Inayah, N. (2024). The Effect of Implementing Good Corporate Governance (GCG) on the Financial Performance of Islamic Banks in Indonesia. Accounting and Sustainability, 2(2). https://doi.org/10.58968/as.v2i2.344
Kovalevska, N., Nesterenko, I., Lutsenko, O., Nesterenko, O., & Hlushach, Y. (2022). Problems of accounting digitalization in conditions of business processes digitalization. Revista Amazonia Investiga, 11(56). https://doi.org/10.34069/ai/2022.56.08.14
Lestari, P. A. (2025). Transparency and Accountability in the Digital Era: Insights from Public Sector Accounting. Sinergi International Journal of Accounting and Taxation, 3(3).
Lulaj, E., Hysa, E., & Panait, M. (2026). Does digitalization drive sustainable transformation in finance and accounting? Kybernetes, 55(1). https://doi.org/10.1108/K-04-2024-1006
Mai, B. T., Nguyen, P. V., Ton, U. N. H., & Ahmed, Z. U. (2024). Government policy, IT capabilities, digital transformation, and innovativeness in Post-Covid context: case of Vietnamese SMEs. International Journal of Organizational Analysis, 32(2), 333–356. https://doi.org/10.1108/IJOA-11-2022-3480
Muafi, Sanusi, Z. M., & Roostika, R. (2023). Digital Skills, Digital Entrepreneurship, Job Satisfaction, and Sustainable Performance of MSMEs: A Survey on MSMEs in Indonesia. International Journal of Sustainable Development and Planning, 18(2). https://doi.org/10.18280/ijsdp.180215
Mujalli, A., Wani, M. J. G., Almgrashi, A., Khormi, T., & Qahtani, M. (2024). Investigating the factors affecting the adoption of cloud accounting in Saudi Arabia’s small and medium-sized enterprises (SMEs). Journal of Open Innovation: Technology, Market, and Complexity, 10(2). https://doi.org/10.1016/j.joitmc.2024.100314
Mujiatun, S., Julita, J., Rahmayati, R., & Nainggolan, E. P. (2022). Pengembangan Model Penyaluran Kredit Bagi UKM Untuk Mengantisipasi Perkembangan Lembaga Keuangan Informal. Owner, 6(4), 3645–3652. https://doi.org/10.33395/owner.v6i4.1016
Mukesh, H. V. (2022). Digital Transformation Taking Centre Stage: How Is Digital Transformation Reshaping Entrepreneurial Innovation? Journal of Entrepreneurship, 31(2). https://doi.org/10.1177/09713557221097158
Nainggolan, E. P. (2023). Peran Mediasi Inklusi Keuangan pada Literasi Keuangan dan Kinerja UMKM di Kabupaten Deli Serdang. In Balance: Jurnal Akuntansi dan Manajemen (Vol. 2, Number 1).
Oncioiu, I., Popescu, D. M., Aviana, A. E., Şerban, A., Rotaru, F., Petrescu, M., & Marin-Pantelescu, A. (2020). The role of environmental, social, and governance disclosure in financial transparency. Sustainability (Switzerland), 12(17). https://doi.org/10.3390/SU12176757
Pargmann, J., Riebenbauer, E., Flick-Holtsch, D., & Berding, F. (2023). Digitalisation in accounting: a systematic literature review of activities and implications for competences. In Empirical Research in Vocational Education and Training (Vol. 15, Number 1). https://doi.org/10.1186/s40461-023-00141-1
Rahmadita, A., & Marsono. (2024). The Effect of Good Corporate Governance and Sustainability Report Disclosure on Banking Financial Performance. The Accounting and Accountability Journal, 7(1), 1–14. https://ejournal2.undip.ac.id/index.php/taaij/article/view/19398
Redjeki, F., & Affandi, A. (2021). Utilization of Digital Marketing for MSME Players as Value Creation for Customers during the COVID-19 Pandemic. International Journal of Science and Society, 3(1). https://doi.org/10.54783/ijsoc.v3i1.264
Shaban, O. S., & Omoush, A. (2025). AI-Driven Financial Transparency and Corporate Governance: Enhancing Accounting Practices with Evidence from Jordan. Sustainability (Switzerland), 17(9). https://doi.org/10.3390/su17093818
Tjahjadi, B., Soewarno, N., & Mustikaningtiyas, F. (2021). Good corporate governance and corporate sustainability performance in Indonesia: A triple bottom line approach. Heliyon, 7(3). https://doi.org/10.1016/j.heliyon.2021.e06453
Van Hoang, D., Thi Hien, N., Van Thang, H., Nguyen Truc Phuong, P., & Thi-Thuy Duong, T. (2025). Digital Capabilities and Sustainable Competitive Advantages: The Case of Emerging Market Manufacturing SMEs. SAGE Open, 15(2). https://doi.org/10.1177/21582440251329967
Wahyuni, S. F., Dahrani, D., Sari, M., Putri, I. A., & Nabila, A. (2025). Digital Financial Literacy and Financial Well-Being: Unpacking the Roles of Financial Behavior and Financial Stress. International Journal of Business Economics (IJBE), 7(1), 20–45. https://doi.org/10.30596/ijbe.v7i1.25672
Widyatini, I. R. (2019). Financial Inclusion for Economic Sustainability through the Implementation of Good Corporate Governance. Review of Integrative Business and Economics Research, 8(3).
Copyright and Licensing
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.