An exploration of accounting information system's role in SMEs failure triangular

Abstract

High rates of SMEs failure in recent years question whether and how information system can help in raising financial awareness? To address this question, the present paper seeks to empirically explore the relationship between use of accounting information systems and SMEs failure. By reviewing recent trends in SMEs management and success of information systems, this paper argues that the SMEs failure is due to the lack of information systems and resources. Using survey data from 338 SMEs professionals and by applying structural equation modelling (SEM), outcomes suggests that effective use of accounting information systems enhances the financial awareness and organisational agility which in sequence reduce SMEs failure.