Effect of Proactive Digital Accounting Support on Firm Sustainability of Exporting Business in Thailand

Abstract

There is an increasing interest in organizations for the use of digital accounting relating to competitive advantage and sustainability (The Stock Exchange of Thailand, 2021), yet, current literature has not been fully embraced relating to impact or engagement to firm sustainability. The primary objective of this research is to examine the direct effects of proactive digital accounting support on firm sustainability. Moreover, the effects of proactive digital accounting support on business innovation effectiveness, modern product creativity, and organizational trust are investigated. In addition, the impacts of business innovation effectiveness, modern product creativity, and organizational trust on firm sustainability are examined. Furthermore, this research investigated the effects of antecedents (including ambidextrous of top management, technological innovation, and market competition pressures) on proactive digital accounting support. Finally, this research tests the moderating effects of proactive culture on the relationships among proactive digital accounting support and its consequences (including business innovation effectiveness, modern product creativity, organizational trust, and firm sustainability); the moderating effects of stakeholder awareness on the relationships among business innovation effectiveness, modern product creativity, and organizational trust and firm sustainability; and the moderating effects of disruptive technology on the relationships among antecedents (including ambidextrous of top management, technological innovation, and market competition pressures) and proactive digital accounting support.

This research used survey research. Data for the study is based on the data from 225 entrepreneurs exporting businesses in Thailand, with a response rate was approximately 34.67%. The Structural Equation Modeling (SEM) technique is a method for testing hypotheses. In addition, Harman's single-factor test technique was implemented to confirm Common Method Variance's minimal risk. The maximum variance explained by one factor was 38.75%. The data were validated and passed the convergent and discriminant validity tests through various analyses, where factor loading ranged from 0.644 to 0.90, composite reliability (CR) ranged from 0.84 to 0.91, and average variance extracted (AVE) ranged from 0.525 to 0.717.

The results of this research indicate that digital cost management, diagnostic data analytics, dynamic resource allocation, and risk assessment information system of the proactive digital accounting support significantly positively affect business innovation effectiveness, modern product creativity, organizational trust, and firm sustainability. While ambidextrous of top management, technological innovation, and market competition pressures also significantly affect proactive digital accounting support. Eventually, the finding supported the moderating effect of proactive culture, particularly in the relationship between proactive digital accounting support and firm sustainability. In addition, the findings also supported the remarkably positive moderating effects of stakeholder awareness in the relationship between business innovation effectiveness, modern product creativity, organizational trust and firm sustainability. Further, disruptive technology moderated the relationship between ambidextrous of top management, technological innovation, market competition pressures and proactive digital accounting support. The findings suggest that proactive digital accounting support has practical implications for organizations, which will help to contribute significantly to improving operational performance and lead to sustainability goals. Moreover, these findings provide theoretical and managerial contributions as well as future research directions.