Accounting innovation development of small and medium enterprises

Abstract

This research aimed to study organizational characteristics and organizational supporters that affect the innovative development of small and medium enterprises (SMEs). The independent variables were organizational characteristics based on McKinsey’s 7S framework (strategy, structure, systems, style, staff, skills, and shared values) and organizational supporters (technology and government support). The dependent variables were guidelines for accounting innovation development. Sizes of the organization were control variables. The sample group in the study consisted of 309 small and medium enterprise entrepreneurs. Data were analyzed using descriptive statistics and inferential statistics (multiple linear regression). The results showed that strategy, systems, staff, technology, and governmental support affect the innovative development of small and medium enterprises (SMEs) at the .05 level of significance. According to small and medium enterprise entrepreneurs, management accounting innovation and financial innovation were very important to SMEs (X ±S.D. equal 3 . 6 1 ± 0 . 8 2 ) . To develop SMEs’ accounting innovation, entrepreneurs need to determine clear strategies, policies, and goals for innovation, manage data systems to be exchanged in organizations, and set a motivation system for innovation development. Staff development plans should be created for knowing and understanding innovation. Apart from organization management, SMEs need to get government support and adapt technologies to accounting to increase the efficiency of accounting information.