Computerized Accounting Systems and SMEs Performance in Developing Countries: A Mediating Role of Internal Control System

Abstract

The purpose of this study is to examine the mediating role of an internal control system in adopting a
computerized accounting system and SMEs performance. Data were collected by sending structured
five points Likert scale online questionnaires to the Accounting Professionals of SMEs from the Textile
industry of Pakistan. The data was analysed by using Smart PLS 3.2.8 software. The findings of the
research show that the Internal Control system partially mediates between computerized accounting
systems and organizational performance. Results also indicate that computerized accounting system
and internal control system has a significant role to improve organizational performance. The findings
support the positive relationship of computerized accounting systems and internal control systems in
SMEs of the Textile Industry of Pakistan. Limited research is available on Computerized Accounting
Systems in SMEs with mediating role of internal control in emerging economies Managerial Implication,
limitations, and future research directions are also discussed.