The Effectiveness of Cloud-Based Accounting Software Usage on Operational Performance: The Mediating Role of Employee Performance and the Moderating Role of Employees' Digital Capability

Abstract

This study aims to analyze the effect of Cloud Based Accounting on the operational performance of MSMEs in Semarang City by considering the roles of employee performance and employee digital capabilities. The study employs a quantitative approach using a survey method involving 95 MSME owners who utilize Cloud Based Accounting Software. Data analysis was conducted using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method with the assistance of SmartPLS. The results indicate that Cloud Based Accounting has a positive effect on both employee performance and the operational performance of MSMEs. However, employee performance does not function as a mediating variable in the relationship between Cloud Based Accounting and operational performance. Furthermore, employee digital capabilities do not moderate the influence of Cloud Based Accounting on employee performance or operational performance, although they do moderate the relationship between employee performance and operational performance. These findings suggest that the implementation of Cloud Based Accounting can directly enhance MSME operational performance through improved efficiency and greater accuracy of information.