Enhancing Financial Report Quality in Yogyakarta's Micro, Small, and Medium Enterprises (MSMEs) Through Information Technology Application and Organizational Commitment
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Dec 27, 2023
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Abstract
This study aims to understand the phenomenon where the information technology application and organizational commitment can contribute to enhancing financial report quality in Yogyakarta’s MSMEs. High-quality financial reports may serve as an effective platform for diverse parties to make economic decisions. MSMEs were chosen as the focus of the research because they often face challenges in terms of access to capital for their business expansion, caused by suboptimal capital distribution. This insufficient capital distribution is largely due to a lack of sufficient information for investors regarding the conditions of MSMEs. A quantitative research approach was used, involving the distribution of questionnaires and obtaining 209 responses from MSME operators in Yogyakarta, followed by hypothesis testing using PLS-SEM. The findings indicate that the information technology application improves the financial report quality. Furthermore, Organizational commitment acts as a moderator in enhancing the link between the deployment of IT and the quality of financial reports. Ultimately, the results of this study can provide practical contributions to organizations, particularly MSMEs, in improving their financial report quality through the implementation of information technology and organizational commitment.
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References
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Wafa, Z., Rusmawati, F., Utomo, R. B., Budiantara, M., & Pabulo, A. M. A. (2023). Are MSMEs Able to Prepare Financial Statements Following SAK EMKM? Jurnal Ekonomi Dan Bisnis Digital, 2(2), 431–442. https://doi.org/10.55927/ministal.v2i2.3493
Cascio, W. F., & Montealegre, R. (2016). How Technology Is Changing Work and Organizations. In Annual Review of Organizational Psychology and Organizational Behavior (Vol. 3, pp. 349–375). Annual Reviews Inc. https://doi.org/10.1146/annurev-orgpsych-041015-062352
Chen, J. V., & Huang, S. F. (2022). The effect of IT management and IT governance on enterprise performance. Information Systems and E-Business Management, 20(1), 173–195.
Chong, V. K., & Law, M. B. C. (2016). The effect of a budget-based incentive compensation scheme on job performance. Journal of Accounting & Organizational Change, 12(4), 590–613. https://doi.org/10.1108/JAOC-02-2015-0024
Farrukh, M., Chong, W. Y., Mansori, S., & Ramzan, S. R. (2017). Intrapreneurial Behaviour: The Role of Organizational Commitment. World Journal of Entrepreneurship, Management and Sustainable Development, 13(3), 243–256.
Friday, I., & Japhet, I. (2020). Information technology and the accountant today: What has really changed? Journal of Accounting and Taxation, 12(1), 48–60. https://doi.org/10.5897/jat2019.0358
Hair Jr, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis (7th ed.). Pearson New International Edition.
Hidayat, W. W. (2018). Dasar-Dasar Analisa Laporan Keuangan. Uwais Inspirasi Indonesia.
Huang, J. L., Ryan, A. M., Zabel, K. L., & Palmer, A. (2014). Personality and Adaptive Performance at Work: A Meta-Analytic Investigation. Journal of Applied Psychology, 99(1), 162–179.
Ikatan Akuntansi Indonesia. (2015). PSAK No.1 Tentang Laporan Keuangan-edisi revisi 2015 (15th ed.). PT. Raja Grafindo.
Mahardhika, R. (2013). Pengaruh Motivasi Kerja Terhadap Kinerja Karyawan (Survei Karyawan Pada PT. Axa Financial Indonesia Sales Office Malang). Jurnal Administrasi Bisnis, 4(2).
Mahlamäki, T., Rintamäki, T., & Rajah, E. (2019). The Role of Personality and Motivation on Key Account Manager Job Performance. Industrial Marketing Management, 83, 174–184.
Meyer, J. P., & Allen, N. J. (1991). A Three-Component Conceptualization Of Organizational Commitment. Human Resource Management Review, 1(1), 61–89.
Nurillah, U. S., & Muid, D. (2014). Influence of Human Resources Competence, Application of Regional Financial Accounting Systems (SAKD), Utilization of Information Technology, and Internal Control Systems on the Quality of Regional Government Financial Reports (Empirical Studies in Depok City Government SKPD). Dipenogoro Journal of Accounting, , 3(2).
Priyono, & Marnis. (2008). Manajemen Sumber Daya Manusia. ZIFATAMA PUBLISHER.
Qizam, I., & Fong, M. (2019). Developing Financial Disclosure Quality in Sukuk and Bond Market: Evidence from Indonesia, Malaysia, and Australia. Borsa Istanbul Review, 19(3), 228–248.
Ratmasari, D. I., Yuliani, N. L., & Purwantini, A. H. (2021). Kualitas laporan keuangan BUMDES dan faktor yang Mempengaruhinya. Borobudur Accounting Review, 66–77.
Robbins, P. S., & Judge, T. A. (2017). Organizational Behaviour (13th ed.). Salemba Empat.
Robbins, S. P., & Judge, T. A. (2013). Organizational Behavior (15th ed.). Prentice Hall.
Roshanti, A. E., Sujana, & K. Sinarwati. (2014). The Influence of Human Resource Quality, IT Utilization, and Internal Control Systems on the Value of Regional Government Financial Reporting Information. E-Journal S1 Ak Ganesha University of Education, 2(1).
Salehi, M., & Torabi, E. (2012). The role of information technology in financial reporting quality: Iranian scenario. Poslovna Izvrsnost, 6(1), 127.
Sarjito, B., & Muthaher, O. (2008). Pengaruh Partisipasi Penyusunan Anggaran terhadap Kinerja Aparat Pemerintah Daerah: Budaya dan Komitmen Organisasi sebagai Variabel Moderating. Jurnal Ekonomi Dan Bisnis, 2(1), 37–49.
Sholihin, M., & Dwi Ratmono. (2013). Analisis SEM-PLS Dengan WarpPLS . Penerbit Andi.
Simarmata, J., Romindo, P. S. H., Prasetio, A., Siregar, M. N., Ardiana, D. P., & Jamaludin. (2020). Teknologi Informasi dan Sistem Informasi Manajemen. Yayasan Kita Menulis.
Singh, M., & Kaur, R. (2021). IT adoption in enterprises: The role of organizational commitment and leadership. Journal of Enterprise Information Management, 34(4), 884–902.
Soimah, S. (2014). Pengaruh Kapasitas Sumber daya Manusia, Pemanfaatan Teknologi Informasi dan Sistem Pengendalian Intern Pemerintah Terhadap Kualitas Laporan Keaungan Pemerintah Daerah Kabupaten Bengkulu. Bengkulu: Utara. Universitas Bengkulu.
Sukarini, L., & Dewi, P. E. D. M. (2018). Pengaruh tingkat pendidikan, pengalaman kerja, pelatihan, dan penggunaan teknologi informasi terhadap kualitas laporan keuangan BUMDes di Kecamatan Negara. JIMAT (Jurnal Ilmiah Mahasiswa Akuntansi) Undiksha, 9(3).
Suliyanto, S. A., & Jati, D. P. (2013). Potential and Problems of Small Medium Enterprise (SMEs)-coconut-sugar: case study in Banyumas Regency, Central Java-Indonesia. . International Journal of Business and Management, 8(3), 18–26.
Syamsuddin, S. (2022). The effect of information technology on the quality of financial reports in the regional financial management agency of Takalar Regency. Journal of Economics and Business Letters, 2(3), 8–11. https://doi.org/10.55942/jebl.v2i3.161
Wafa, Z., Rusmawati, F., Utomo, R. B., Budiantara, M., & Pabulo, A. M. A. (2023). Are MSMEs Able to Prepare Financial Statements Following SAK EMKM? Jurnal Ekonomi Dan Bisnis Digital, 2(2), 431–442. https://doi.org/10.55927/ministal.v2i2.3493