The Mediating Role of Enterprise Resources Planning on Accounting Information System Quality and the Performance Of Smes In Libya

Abstract

The rapid development of the business environment and relying more on information as a resource makes it more dependent each time on the quality and speed of information when decisions are made. Libyan SMEs suffer from a lack of performance that is tied to ineffective information availability. This study aims to identify the impact of the accounting information system on the SME's performance in Libya through the mediation of implementing the enterprise resource planning system. This study is based on the general system theory, which views the system as a collection of elements that interact with a structural and functional component via boundaries, elements, a communications network, and information. This study follows the quantitative method. The questionnaire instrument was used to collect the data. This study relies on a cross-sectional time horizon in collecting the data from 384 SME managers in Libya. The results of this study indicate there is a positive and significant relationship between five dimensions of accounting information systems: tangibility, reliability, responsiveness, assurance, empathy, and SME performance in Libya. There is also a positive and significant relationship between ERP adoption and SME performance in Libya. ERP adoption influences the performance of Libyan SMEs. This study contributes to the body of accounting information system toward the improvement of SMEs performance through the technology transformation of adopting ERP. It is recommended by this study that businesses with effective and efficient accounting information systems will have a high chance of success.