Title:
Information Technology Dynamic: Potraying Indonesian SMEs for Quality Financial Report

Authors:
Rasyid Mei Mustafa, YanuarEko Restianto, Aldila Dinanti, Aldila Krisnaresanti, Lina Rifda Naufalin, Nur Chasanah, Dadang Iskandar, Indonesia

Abstract:

The study explores how Indonesian SMEs generate their financial statements through the use of information technology. Observations on locally-wisdom SMEs and in-depth interviews with sources of SME financial managers are used to reveal the dynamics of SMEs compiling financial statements with information technology. We found interesting findings that the adoption of locally-wisdom SME information technology implements innovation diffusion theory (IDT) for relative advantage, compatibility, complexity, and trialability and does not implement the UTAUT model. SME with local wisdom adopting information technology does not start from the owner's intention to adopt but rather the intention of financial managers in the application of psychology in the form of pressure from him. The difficulty of managers in obtaining accurate financial information is able to encourage SMEs to apply information technology to help them compile financial statements. Due to the limitations of this study, researchers were unable to conduct Focus Group Discussion (FGD) on the grounds that it is difficult to unite the adoption of information technology because locally-minded SMEs have their own characteristics and knowledge of different information technology adaptations, so they have a tendency to see the answers of other informants in FGD. This research explores the exploration of SME manufacturing with local wisdom, and further research can explore the adoption of technology in SMEs in the fields of services and trade. Literature on the application of technology in the context of presenting SME financial statements is very rare. Most focus on large businesses and the standard presentation of SME financial statements. This research explores the dynamics of Indonesian SMEs applying technology to produce quality financial statements. The need for information technology to produce quality SME financial statements is the focus of this study.

DOI: https://doi.org/10.51505/IJEBMR.2024.8204