The use of accounting information with environmental uncertainty as moderating variable

Abstract

This study investigates the factors that influence MSMEs in using accounting information, considering the challenges posed by environmental uncertainty, particularly in the context of the ongoing COVID-19 pandemic in Indonesia. The study focuses on independent variables such as business scale, company age, organizational culture, and leading period. The research population comprises a total of 15,895 MSMEs in Kudus Regency. The sampling technique used is convenience sampling. The sample obtained was 104 respondents. The data analysis utilized Partial Least Square - Structural Equation Modeling (PLS-SEM). The results revealed that business scale, organizational culture, and leading period positively influence the utilization of accounting information. However, company age was found to have no significant impact on the use of accounting information. Environmental uncertainty did not moderate the effect of business scale, company age, organizational culture, and leading period on the use of accounting information. The study provides valuable insights for MSMEs to improve their performance by incorporating accounting information into business operations. It suggests that the Department of Manpower, Industry, Cooperatives, and Small and Medium Enterprises in Kudus Regency should prioritize MSMEs’ welfare through training programs.

Keywords

• business scale
• leading period
• use of accounting information
• environmental uncertainty