The Impact of Accounting Information System Usage on Financial Performance of SMEs: The Moderating Role of Firm Age and Resource Acquisition

To better understand the elements influencing the financial health of Small and Medium-sized Enterprises in Jordan, this study looks at the factors that come before the deployment of Accounting Information Systems (AIS). Thus, the author proposed a unified model that utilized the technology–organization–environment (TOE) paradigm and the Resource Based View to investigate the effects of AIS adoption among Jordanian SMEs. The proposed method combines the components of efficacy and application of AIS into a unified framework. Furthermore, firms that acquire resources with the passage of time may have more opportunity to invest in accounting information system. A questionnaire survey that participants self-administered was used to collect the data for the current investigation. The study model was verified using information gathered from 384 respondents in an actual setting of Jordanian SMEs. The results showed the significance of various factors, including the relative benefit of using AIS, compatibility of using AIS, commitment of using AIS, organizational readiness of using AIS, and competitive pressure of using AIS on the financial performance of SMEs. In addition to that AIS usage impact over financial performance increases with the age of the SME. The findings of the study identified the importance about the use of AIS to boost productivity.
Keywords: Accounting information system, Resource acquisition, Firm age, Financial performance.