The Role of Digital Accounting and Management Quality Using The Toe Method on The Sustainability of Msmes

Department of Accounting, Universitas Putera Batam

^* Corresponding author: argoupb@gmail.com

Abstract

The sustainability of Micro, Small, and Medium Enterprises (MSMEs) is crucial for economic growth, especially in the digital era. This study examines the role of digital accounting and management quality in MSME sustainability, using the Technology-OrganizationEnvironment (TOE) framework. A mixed-methods approach was used, where quantitative data were collected through surveys and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS), while qualitative insights were collected through interviews. The study findings indicate that the adoption of digital accounting has a positive impact on MSME sustainability by improving financial transparency and decision-making efficiency. In addition, management quality significantly influences MSME resilience and strategic adaptability. This study also highlights that technological readiness, organizational capabilities, and external environmental factors mediate these relationships, emphasizing the importance of a comprehensive digital transformation strategy. The study finds that digital accounting and management quality positively and significantly influence MSME sustainability in Batam within the TOE framework. Quality management directly strengthens sustainability through effective practices, while digital accounting enhances efficiency and transparency. Together, both factors improve decision-making and adaptability, ensuring long-term business resilience. These results emphasize the importance of digitalization and strengthening management in improving the competitiveness and sustainability of MSME businesses in the digital economy era.