Proceedings of the 1st International Conference on Islamic Civilization, ICIC 2020, 27th August 2020, Semarang, Indonesia

Research Article

MSME’s Performance – in the Effect of Accounting Digitization

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  • @INPROCEEDINGS{10.4108/eai.27-8-2020.2303265,
        author={Mutoharoh  Mutoharoh and Winarsih  Winarsih and Siti Zahra Buyong},
        title={MSME’s Performance -- in the Effect of Accounting Digitization},
        proceedings={Proceedings of the 1st International Conference on Islamic Civilization, ICIC 2020, 27th August 2020, Semarang, Indonesia},
        publisher={EAI},
        proceedings_a={ICIC},
        year={2020},
        month={12},
        keywords={accounting digitization profit productivity},
        doi={10.4108/eai.27-8-2020.2303265}
    }
    
  • Mutoharoh Mutoharoh
    Winarsih Winarsih
    Siti Zahra Buyong
    Year: 2020
    MSME’s Performance – in the Effect of Accounting Digitization
    ICIC
    EAI
    DOI: 10.4108/eai.27-8-2020.2303265
Mutoharoh Mutoharoh1,*, Winarsih Winarsih1, Siti Zahra Buyong2
  • 1: Faculty of Economics, Universitas Islam Sultan Agung Semarang, Indonesia
  • 2: Faculty of Business and Management, Universiti Teknologi Mara Cawangan Terengganu, Malaysia
*Contact email: mutoharoh@unissula.ac.id

Abstract

The Disruption era has a huge impact on the development of MSMEs. The role of information technology occupies an important position in supporting profit and productivity. However, the limitations of MSMEs make the technological sophistication less functional. This study aims to analyze how SMEs performance is influenced by the Accounting Digitization in the areas within developing countries that are Semarang (Indonesia) and Kuala Terengganu (Malaysia). This study also compare the implementation of Accounting Digitization by SMEs between those two areas. Primary data were collected using purposive and convenience sampling method toward the SMEs that apply computerize transaction record and/or utilize smart devices for business activities. The sellected data were processed using Rank Spearman Correlation test and Mann Whitney. Samples used consist of the SMEs groups in Semarang Indonesia and Kuala Terengganu Malaysia with the total of 338 cases. The results found that there is a signifikan correlation between the implementation of Accounting Digitization and profitability as well as productivity in both groups of respondents. In addition, cases in the two regions of the groups showed that there is a signifikan difference in terms of the implementation of Accountimg Digitization.