The Nexus of Digital Accounting Systems and Financial Performance: A Structural Analysis in the Modern Banking Sector
DOI:
https://doi.org/10.55640/tprjsms-v02i09-01Keywords:
Digital Accounting Systems, Financial Performance, PLS-SEMAbstract
Purpose: This study dives into the relationship between Digital Accounting Systems (DAS) and the financial performance of banks. We developed and tested a model based on the well-regarded DeLone and McLean Information Systems (IS) Success Model to pinpoint the key factors that predict whether a DAS is successful and how that success ultimately connects to the bank's bottom line.
Design/methodology/approach: We used a quantitative, cross-sectional approach. Data came from a detailed questionnaire answered by 350 professionals in accounting, finance, and IT—all of whom work directly with DAS in the commercial banking world. To make sense of the data, we used Partial Least Squares Structural Equation Modeling (PLS-SEM), which allowed us to check the validity of our measures and test the relationships we hypothesized.
Findings: The results were quite clear. The quality of the system, the information it produces, and the service supporting it are all strong predictors of user satisfaction. That satisfaction, in turn, is directly and strongly linked to the bank's perceived financial performance. We also found that a user's intention to keep using the system is a vital piece of the puzzle, suggesting that getting the full financial benefit depends on long-term adoption.
Practical implications: For bank executives and IT managers, our findings offer a straightforward, evidence-based roadmap. Improving financial performance isn't just about the technology itself (System Quality); it's equally, if not more, about the reliability of the data (Information Quality) and the quality of user support and training (Service Quality). Investing in these areas is tied directly to happier users and better financial results.
Originality/value: What makes this research unique is that it's one of the first to empirically trace a line from the different parts of the D&M IS Success Model all the way to financial performance specifically within today's digital banking environment. It gives us a much clearer picture of how big investments in technology can actually translate into real, tangible value for the organization.
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Copyright (c) 2025 Dr. Samuel Chen (Author)
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