Evaluating the Impact of E-accounting Systems on Firm Performance: A Structural Equation Modeling Approach

Recently, digital systems have achieved dynamic developments in terms of their ability to enhance firm performance. These developments contributed to a radical evolution in the manner of the accounting process to provide an educated decision-making process and promote firms to interact with new technological developments in order to maintain their competitiveness. Therefore, the electronic accounting approach had the credibility of the firm’s performance in a way that cannot be overstated. Nevertheless, related literature has demonstrated that the success of electronic accounting depends on several critical factors. Accordingly, this paper sought to investigate the impact of e-accounting systems on the firm performance of hypermarkets in Jordan. A quantitative approach was applied to gather primary data from 20 hypermarkets in Amman. 152 responses from financial employees were acquired which constitute 84.4%. Structural equation modeling (SEM) is deemed the statistical method used for data analysis and hypotheses testing. The findings of this paper revealed that all dimensions of e-accounting systems, i.e., system quality, information quality, and service quality, had a positive significant impact on firm performance. Hence, a set of recommendations was provided to these firms’ managers, the most notable was to select a reputable e-accounting software vendor that specializes in the retail sector, ensuring that the chosen system ac-accommodates features specifically designed for hypermarket operations such as inventory management and point-of-sale integration. The paper revealed many limitations and future suggestions that were mentioned.