Improving The Performance of SMEs through Financial Literacy and Information Technology: Accounting Reporting as Mediation

DOI

10.2991/978-94-6463-795-3_11How to use a DOI?

Keywords

Creative Economy; SMEs; IT

Abstract

Small and Medium Enterprises (SMEs) are the simplest form of business that is easiest for people to do, and of course are the main drivers of national economic growth. The existence of SMEs supported by financial literacy, information technology, and accounting reporting can be a key factor in improving SMEs business performance. This study examines the effect of financial literacy and information technology on SMEs performance, with accounting reporting as a mediator. This study focuses on SMEs in West Java, using a sample of 100 respondents. Data were collected through surveys and questionnaires, and analysis was conducted using structural equation modeling (SEM) with SmartPLS software. The research findings reveal that financial literacy does not directly affect SME performance but positively affects accounting reporting. Conversely, accounting reporting and information technology have a direct positive impact on performance. These results indicate that increasing financial literacy in SMEs, and the use of information technology by SMEs, can improve SME performance. The existence of accounting reporting also functions as an important intermediary in improving SMEs performance. This study highlights the importance of integrating these factors to support the growth and sustainability of SMEs in West Java. Although it has a major positive impact on accounting reporting, financial literacy has little direct effect on SME success. Information technology has no direct effect on SMEs’ performance or accounting reporting, and accounting reporting has no discernible effect on SMEs’ performance. Information technology and financial literacy did not significantly affect SMEs’ performance, according to the accounting reporting mediation.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Sri Dewi Anggadini
AU  - Deden Abdul Wahab
AU  - Rio Yunanto
AU  - Aida Nia Margin
AU  - Egi Fahrana
AU  - Sari Damayanti
PY  - 2025
DA  - 2025/07/24
TI  - Improving The Performance of SMEs through Financial Literacy and Information Technology: Accounting Reporting as Mediation
BT  - Proceedings of the 8th International Conference on Business, Economics, Social Sciences, and Humanities - Economics, Business and Management Track (ICOBEST-EBM 2025)
PB  - Atlantis Press
SP  - 122
EP  - 135
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-795-3_11
DO  - 10.2991/978-94-6463-795-3_11
ID  - Anggadini2025
ER  -