The Impact Of Digitalization On Management Accounting Practices Among Smes In China

Abstract

Small and Medium Enterprises (SMEs) have a significant impact on the economics of many countries, especially in emerging nations including China. The 19th National Congress of the Communist Party of China and the revised "Small and Medium Enterprises Promotion Law" in 2023 provided clear guidelines on expenditures. The China’s government encouraged SMEs to adopt modern technologies for innovation in production methods, operation modes, and management practices. However, there is a limited study investigates the significance of digitalization in assisting the adoption of MAPs, specifically in China. This study aims to analyses the influence of digitalization on MAPs, with a special emphasis on the strategies used by SMEs in China. The study used AMOS Structural Equation Modelling (SEM) to examine data obtained from 599 questionnaires using purposive sampling. The research results indicated that digitalization has a substantial impact on the MAPs among SMEs in China through IT capabilities, employees’ digital culture, digital technologies and digital culture. This study adds to the growing literature on the MAPs and digitalization in China SMEs. Thus, the use of MAPs in organizations can significantly improve business performance and digitalization will not only enhances the effectiveness of MAPs, but also ensures the long-term viability of the firm and encourages the adoption of MAPs in China SMEs.