THE DIGITAL ACCOUNTING ENTREPRENEURSHIP COMPETENCY FOR SUSTAINABLE PERFORMANCE OF THE RURAL MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES): AN EMPIRICAL REVIEW

  • Farhana Hasbolah Universiti Selangor, Malaysia
  • Mohamad Hafiz Rosli Universiti Teknologi MARA, Malaysia
  • Hanissah Hamzah Universiti Selangor, Malaysia
  • Siti Aisyah Omar Universiti Selangor, Malaysia
  • Abul Bashar Bhuiyan Universiti Selangor, Malaysia
Keywords: Accounting Entrepreneurship, Competency Model, Digital Entrepreneurship, Sustainable Performance, MSME.

Abstract

A year has passed since the Covid-19 pandemic hit the world and no one could have imagined that it would leave such a massive impact on the world economic landscape. The most affected groups are the Rural Micro, Small, and Medium Enterprises (MSMEs) and micro-entrepreneurs. With the implementation of the Movement Control Order (MCO), the business owners are in dilemma in the way to sustain and maintain their businesses. They need to scrutinize the ability of their businesses to continue operations amid the Covid-19 pandemic. Besides, these business owners were forced to explore new strategies to interact with customers and to simplify transaction processes. A new shift or new normal of the spending habits are formed where individuals are more interested to perform online shopping, and this creates an ideal market environment for business owners to accelerate, test, and launch new experience-driven mobile applications and websites across all their digital platforms. Hence, this study is an empirical attempt to formulate the digital accounting competency model for rural MSMEs. The available online empirical recourses by the name of digital accounting entrepreneurship and sustainable performance of the rural MSMEs in different online database sources such as Google Scholars, Springer Link, Wiley, Science Direct, JSTOR, Emerald full text, Scopus, and EBSCO HOST were used for the review. The review findings hitherto show that digital accounting entrepreneurship has a significant role in ensuring the sustainable performance of the rural MSMEs, especially for entrepreneurial competency, marketing capability, knowledge sharing, financial resources, technology usage, drive change and engagement, and individual competency is considered the most influencing factors toward sustainable performance among the rural MSMEs in the world. This finding, therefore, warrants a more in-depth analysis to develop a digital accounting entrepreneurship competency model.

Author Biographies

Farhana Hasbolah, Universiti Selangor, Malaysia

Faculty of Business and Accountancy

Universiti Selangor, Shah Alam, Malaysia

Mohamad Hafiz Rosli, Universiti Teknologi MARA, Malaysia

Faculty of Accountancy

Universiti Teknologi MARA (UiTM)

Cawangan Johor, Kampus Segamat, Johor, Malaysia

 

 

Hanissah Hamzah, Universiti Selangor, Malaysia

Faculty of Business and Accountancy

Universiti Selangor, Shah Alam, Malaysia

Siti Aisyah Omar, Universiti Selangor, Malaysia

Faculty of Business and Accountancy

Universiti Selangor, Shah Alam, Malaysia

Abul Bashar Bhuiyan, Universiti Selangor, Malaysia

Faculty of Business and Accountancy

Universiti Selangor, Shah Alam, Malaysia

References

Abdulghani, H. M., Sattar, K., Ahmad, T., and Akram, A. (2020). Association of COVID-19 Pandemic with undergraduate Medical Students' Perceived Stress and Coping. Psychological Research Behaviour Management, 13, 871–881.
Abdul Jumaat, M. (2012). Factors That Encourage Women Involvement in SMEs in Pahang, Malaysia. The Journal of Human Resource and Adult Learning, 8 (2).
Adlina AR (2020), https://www.google.com/amp/s/techwireasia.com/amp/2020/03/malaysia-gives-a-boost-to-rural-smes-with-e-commerce-hubs/, (accessed on 6/3/2020)
Ahmad, Y. F., Saeid, K., and Mahsa, M. (2017). The Role of Entrepreneurial Knowledge as a Competence in Shaping Iranian Students' Career Intentions to Start a New Digital Business. European Journal of Training and Development, 41 1), 83-100.
Ahmad Zukni. J. (2000). Ke Arah Mempertingkatkan Latihan dan Kemahiran Bumiputera dalam Perniagaan Agihan. Kertas Kerja Konvensyen Penyertaan Bumiputera dalam Industri Perdagangan Pengedaran, 19-20 September, Kuala Lumpur.
Amanamah, R., Morrison, A., and Asiedu, K. (2016). Computerized accounting system usage by small and medium scale enterprises in Kumasi metropolis, Ghana. Research Journal of Finance and Accounting, 7 (16), 16-29.
Appiah, K. O. (2014). Computerized Accounting Information Systems: Lessons in State-Owned Enterprise in Developing Economies. Journal of Finance and Management in Public Services, 12 (1).
Ardjouman, D. (2015). Marketing Management Strategies Affecting Performance of Small and Medium Enterprises (SMEs) in Cote d’Ivoire. International Journal of Business and Social Science, 6 (4).
Brecht, H. D., & Martin, M. P. (1996). Accounting information systems: The challenge of extending their scope to business and information strategy. Accounting Horizons, 10, 16-22.
Camilleri, M. A. (2018). The SMEs’ technology acceptance of digital media for stakeholder engagement. Journal of Small Business and Enterprise Development, 26 (4), 504-521.
Camilleri, M. A. (2019). The SMEs’ technology acceptance of digital media for stakeholder engagement. Journal of Small Business and Enterprise Development, 26 (4), 504-521.
Camilleri, M.A. (2020). Strategic dialogic communication through digital media during COVID-19. In Camilleri, M.A. (Ed.). Strategic Corporate Communication in the Digital Age, Emerald, UK.
Chamani, M. H. J., Kulathunga, K. M. M. C. B. and Amarawansha, C. (2017). Financial Accessibility of Women Entrepreneurs. International Journal of Scientific and Research Publications, 7 (11).
Chowdury, M. and Alam, Z. (2017). Affecting Access to Finance of Small and Medium Enterprises (SMEs) of Bangladesh. USV Annals of Economics and Public Administration, 2 (26), 55-68.
CPA Australia. (2020). Small Business COVID-19 Recovery Toolkit.
Davis, D., Dunn, P., and Boswell, K. (2009). The Importance of Capturing and Using Financial Information in Small Business. American Journal of Economics and Business Administration, 1 (1), 27-33.
Duschinsky, P., and P. Dunn. 1998. “Competitive advantage from IT”. Chaintech News, The Institute of Chartered Accountants, April: 7.
Dwivedi, Y. K., Hughes, D. L., Coombs, C., Constantiou, I., Duan, Y., Edwards, J. S., Gupta, B., et al. (2020). Impact of COVID-19 pandemic on information management research and practice: Transforming education, work, and life. International Journal of Information Management, 7, 102211.
Dvorsky, J., Schonfeld, J., Kotaskova, A., and Petrakova, Z. (2018). Evaluation of important credit risk factors in the SME segment. Journal of International Studies, 11 (3), 204-216.
European Commission (2015). European Commission (EC), Digital Transformation of European Industry and Enterprises; A report of the Strategic Policy Forum on Digital Entrepreneurship, available from http://ec.europa.eu/DocsRoom/documents/9462/attachments/1/translations/en/renditions/native
Faradillah, I. O., Samsudin A. R., and Ali, S. (2015). Penyertaan digital dan ciri keusahawanan dalam permerkasaan usahawan wanita di Malaysia. Malaysian Journal of Communication, 3 (1), 241-256.
Faradillah I. O., Samsudin, A. R. & Husna, A. D. (2019). Analisis Pola Penyertaan Digital ICT dan Transformasi Keusahawanan (Analysis of Digital Inclusion Pattern and Entreprenuership Transformation). Jurnal Komunikasi: Malaysian Journal of Communication, 35 (2), 314–330
Faradillah, I. O., Nur Ajeerah, O., and Nor Azlili, H. (2019). Digital Inclusion of ICT And Its Implication Among Entrepreneurs of Small and Medium Enterprises. International Journal of Engineering and Advanced Technology, 8 (5C)
Ghani, F. A. (2020). Impak psikologi akibat wabak Covid-19, Astro Awani, 14 Mac 2020, retrieved from http://www.astroawani.com/berita-malaysia/impak-psikologi-akibat-wabak-covid-19-233648
Gregurec, I., Tomičić Furjan, M., Tomičić‐Pupek, K. (2021). The Impact of COVID‐19 on Sustainable Business Models in SMEs. Sustainability, 1 (13), 1098.
Haleem, A. (2016). The factor affecting computerized accounting system concerning government department in the Ampara District. International Journal of Economic and Business Review, 4 (7), 130-139.
Hoque, M. Z., Sultana, N. and Thalil, T. (2016). Credit rationing’s determinants of Small and Medium Enterprises (SMEs) in Chittagong, Bangladesh. Journal of Global Entrepreneurship Research, 6 (1), 1-23.
Idris, J. and Rahmah, I. (2009). Technical progress and labor productivity in small and medium scale industry in Malaysia. European Journal of Economics, Finance, and Administrative Science, 15, 199 – 208.
Ifinedo, P. (2011). Examining the influences of external expertise and in-house computer/ IT knowledge on ERP system success. The Journal of Systems and Software, 84, 2065–2078.
Isa, F. M., Jaganathan, M., Ahmdon, M. A. S., and Ibrahim, H. M. (2018). Malaysian Women Entrepreneurs: Some Emerging Issues and Challenges of Entering the Global Market. International Journal of Academic Research in Business and Social Sciences, 8 (12), 1596–1605.
Jones, M.V., Coviello, N.E., (2005). Internationalization: conceptualizing an entrepreneurial process of behavior in time. Journal of International Business Studies, 36 (3), 284–303.
Karabag, S. (2020). An Unprecedented Global Crisis! The Global, Regional, National, Political, Economic and Commercial Impact of the Coronavirus Pandemic. Journal of Applied Economics and Business Research, 10 (1), 1-6
Kartini, M. R., Haslina, C. N., Zuraida, M., and Norudin, M. (2015). Success Factors Among Women Entrepreneurs in Malaysia. International Academic Research Journal of Business and Technology. 1 (2), 28-36.
Kraus, S., Kailer, N., Kallinger, F. L., and Palmer, C. (2019). Digital entrepreneurship: A research agenda on new business models for the twenty-first century. International Journal of Entrepreneurial Behaviour & Research, 25 (2), 353-375.
Koonin, L. M. (2020). Novel coronavirus disease (COVID-19) outbreak: Now is the time to refresh pandemic plans. Journal of Business Continuity & Emergency Planning, 13 (4), 1-15.
Kusmaharani, A. S., & Halim, R. E. (2020). Social Influence and Online Impulse Buying of Indonesian Indie Cosmetic Products.Jurnal Ilmiah Manajemen, 10 (2), 237-248.
Le Dinh, T., Vu, M. C. & Ayayi, A. (2018). Towards a living lab for promoting the digital entrepreneurship process. International Journal of Entrepreneurship, 22 (1), 1–17.
McClelland, D.C. (1987), “Characteristics of successful entrepreneurs”, The Journal of Creative Behavior, 21 (3), 219–233.
Mohd Fazli, M. S., Hoshino, Y., and Nor Hayati, T. (2012). The Adoption of Computerized Accounting System in Small Medium Enterprises in Melaka, Malaysia (SSRN Scholarly Paper No. ID 2204182). Rochester, NY: Social Science Research Network. Retrieved from https://papers. ssrn.com/abstract=2204182
Mohd Rosli, M. (2000) Industri kecil dan sederhana: landasan pembangunan usahawan / Mohd Rosli Mohamad. Penerbit Universiti Malaya, Kuala Lumpur. ISBN 9831001044
Musbri, M. (2011). E-Dagang & Undangundang: Perlindungan Pengguna Dalam Transaksi Jualan Barang di Malaysia
Nakyobe, J., E. Nambi, E Aguti, and W Ssewankambo. 2016. Implementation of a Computerized Accounting System at RUFORUM. Working Document Series, 277–86. Cape Town, South Africa.
Nambisan, S. (2017). Digital Entrepreneurship: Toward a Digital Technology Perspective of Entrepreneurship. Entrepreneurship: Theory and Practice, 41 (6), 1029–1055.
Ngoasong, M. Z. (2015). Digital Entrepreneurship in Emerging Economies: The role of ICTs and local context. In: 42nd AIB-UKI Conference, 16-18 Apr 2015, Manchester Metropolitan University, UK.
Noor Azizi, I, Shamsul Nahar, A., and Mahamad, T. (2003). Computer-Based Accounting Systems: The Case of manufacturing-based Small and Medium Enterprises in the Northern Region of Peninsular Malaysia. Jurnal Teknologi, 39 (E), 19–36.
Noor Fadhiha, M., Zuha Rosufila, A. H., and Muhammad Abi Sofian, A. H. (2017). The Social Media and Marketing Strategies: How it Impacts the Small- and Medium-sized Enterprises’ Business Performance. Australasian Journal of Business, Social Science and Information Technology, 3 (4), 184-190.
Noor Fzlinda, F., Khairul Hanim, P., and Juliana, L. (2020). The Impact of Covid-19 Pandemic Crisis on Micro-Enterprises: Entrepreneurs’ Perspective on Business Continuity and Recovery Strategy. The Asian Institute of Research Journal of Economics and Business, 3 (2), 837-844.
Nuckles, B. (2014). How SMS Marketing Can be Your Business’ Resolution. Retrieved from https://www.swiftsmsgateway.com/2014/01/07/how-sms-marketing-can-be-your-business-resolution/
Nurwahida, F. and Abdul Manaf, B. (2011). Malay Women Entrepreneurs in the Small and Medium-Sized ICT-Related Business: A Study on Need for Achievement. International Journal of Business and Social Science, 2 (13)
Nyang’au, R.N., Okibo, B.W., and Nyanga’u, A. (2015). Constraints affecting adoption of computerized accounting system in 160 Nyeri County, Kenya. International Journal of Economics, Commerce and Management, 3 (5), 15-36
Omiunu, O. G. (2019). E-literacy-adoption model and performance of women-owned SMEs in Southwestern Nigeria. Journal of Global Entrepreneurship Research, 9 (26)
Pakej Rangsangan Ekonomi 2020 (2020), https://www.treasury.gov.my/pdf/pre2020/Booklet_Pakej_Rangsangan_Ekonomi_2020.pdf. (accessed on 1/4/2021)
Park, J. Y., Sung, C. S., and Im, I. (2017). Do Social Media Use Influence Entrepreneurial Opportunity? A Review of its Moderating Role. Sustainability, 9, 1593
Pine, R. and McKercher, B. (2004), "The impact of SARS on Hong Kong’s tourism industry", International Journal of Contemporary Hospitality Management, 16 (2), 139-143.
Rahmah, I. and Nor Aini, H. I. (2006). The Impact of Information and Communication Technology Utilisation on Firm Performance: A Case Study of Women Entrepreneurs. Malaysian Management Journal 10 (1 & 2), 19-32
Rippa, P., and Secundo, G. (2019). Digital academic entrepreneurship: The potential of digital technologies on academic entrepreneurship. Technological Forecasting and Social Change, 146 (C), 900-911
Rofikoh, R., Permata, W. and Lin, M. (2018). Small Medium Enterprises Technology Acceptance Model: A Conceptual Review. International Journal of Business and Society, 19 (4), 689-699
Saleh, A. S. and Ndubisi, N. O. (2006). An evaluation of SME development in Malaysia. International Review of Business Research Papers, 2 (1), 1-14
Shabbir, M. S., Ghazi, M. S. and Mehmood, A. R. (2016). Impact of Social Media Applications on Small Business Entrepreneurs. Arabian Journal of Business and Management Review. 6 (3), 203
Sheikh, M. I., and Mosharraf, M. H. (2019). Women Entrepreneurship in Bangladesh: Influential Factors of Women Participation in the SMEs Area. International Journal of Science and Business, 3 (3), 151-161
Sibanda. K., Hove Sibanda, P., Shava, H. (2018). The impact of SME access to finance and performance on exporting behavior at the firm level: A case of furniture manufacturing SMEs in Zimbabwe. Acta Commercial, 18 (1), 554.
SME Corporation Enterprise (2020), http://www.smecorp.gov.my/index.php/en/about-sme-corp-malaysia (accessed 6/3/2020)
Suriatie, M. Y. and Nor Aishah, B. (2017). Pendekatan penggunaan medium epemasaran dalam kalangan usahawan wanita. Journal of Global Business and Social Entrepreneurship (GBSE), 1(1), 47–57.
Warschauer, M. (2003). Technology and social inclusion: Rethinking the digital divide. Cambridge: MIT Press
Wibowo, A., Chen, S. C., Wiangin, U., Ma, Y., Ruangkanjanases, A. (2020). "Customer Behavior as an Outcome of Social Media Marketing: The Role of Social Media Marketing Activity and Customer Experience," Sustainability, MDPI, Open Access Journal, 13 (1), 1-18.
Yusrinadini, Z. M. I. and Azizi, A. B. (2016). Determinants Factors of Women Entrepreneurs’ Business Performance: A Conceptual Framework. Journal of Global Business and Social Entrepreneurship, 1 (1), 55-67.
Published
2021-11-29
How to Cite
Hasbolah, F., Rosli, M. H., Hamzah, H., Omar, S. A., & Bhuiyan, A. B. (2021). THE DIGITAL ACCOUNTING ENTREPRENEURSHIP COMPETENCY FOR SUSTAINABLE PERFORMANCE OF THE RURAL MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES): AN EMPIRICAL REVIEW. International Journal of Small and Medium Enterprises, 4(1), 12-25. https://doi.org/10.46281/ijsmes.v4i1.1471
Section
Original Articles/Review Articles/Case Reports/Short Communications