Abstract:
The performance of SMEs is a key indicator in assessing the success of small and
medium-sized enterprises in facing business competition. Optimal performance is
closely linked to effective financial information management through accounting
information systems and the preparation of high-quality financial reports. This
study aims to (1) identify and test the influence of accounting information systems
on SME performance; (2) identify and test the influence of financial report quality
on SME performance; (3) identify and test the moderating effect of financial
literacy on the relationship between accou nting information systems and SME
performance; and (4) identify and test the moderating effect of financial literacy on
the relationship between financial report quality and SME performance. This study
employs an associative approach using primary data obtained through the
distribution of questionnaires to SME operators in Medan City. The sampling
technique used is purposive sampling, with a sample size of 48 respondents. The
data analysis techniques used in this study include outer model analysis, inner
model analysis, and hypothesis testing using Smart Partial Least Squares (PLS)
software version 4. The results of the study indicate that (1) the accounting
information system has a significant effect on SME performance; (2) financial
report quality has a significant effect on SME performance; (3) financial literacy
moderates the relationship between the accounting information system and SME
performance; and (4) financial literacy moderates the relationship between financial
report quality and SME performance.
