Technology Relatedness Accounting System and Entrepreneur’s Decision-Making Style on The Company Performance of SMEs:The Moderating Role of Product Diversification
Year: 2026
Type: article
Abstract: This study examines the effects of Technology Relatedness Accounting Systems (TRAS) and Entrepreneur’s Decision-Making Style on the performance of small and medium-sized enterprises (SMEs), with Product Diversification as a moderating variable. Using survey data from 318 technology-adopting SMEs in Indonesia, the study applies Structural Equation Modeling with Partial Least Squares (SEM-PLS) to test the proposed relationships. The results indicate that technology-relatedness—conceptualized as a second-order construct reflecting the complementarity of IT strategy, IT vendor management, IT human resources, and IT infrastructure—has a significant positive effect on SME performance. An entrepreneur’s decision-making style also positively influences performance. Product diversification significantly negatively moderates the relationship between technology-relatedness and performance, suggesting that excessive diversification may increase coordination complexity and reduce the effectiveness of technological complementarities in resource-constrained SMEs. However, product diversification does not moderate the relationship between decision-making style and performance. This study contributes to the Resource-Based View by demonstrating that the performance impact of technology-related resources depends on their internal integration and strategic alignment rather than on diversification breadth alone. The findings provide actionable insights for SME managers and policymakers regarding effective digital capability development and diversification strategies.
DOI: 10.14419/zdsnwa33
Institution: State University of Medan
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W7126110522
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