How Do Accounting Information Systems Shape Firm Performance in Small and Medium Enterprises in Transition Economy?

Abstract

Accounting information systems play a critical role in providing timely and reliable information to support managerial decision-making and control. This study investigates how the components of accounting information systems: people, procedures, software, data, information technology (IT) infrastructure, and internal control influence the non-financial performance of Vietnamese small and medium enterprises (SMEs). The sample data are 208 valid respondents from SMEs through a structured survey. The measurement quality test reveals that, the data and software components are integrated into a single construct, referred to as database in the digital transformation context. The regression analysis indicates that the five AIS components exert positive effects on the non-financial performance of SMEs. Database demonstrates the strongest influence, followed by IT infrastructure and internal controls. These findings contribute to the literature in transition economies by highlighting the predominance of technological resources over human-related factors, which contrasts with some prior studies. From a practical perspective, the results suggest that SMEs should prioritize investments in database management, software systems, and IT infrastructure, alongside the development of appropriate internal control mechanisms, to enhance non-financial performance across customer, internal process, and learning dimensions.