Factors Influencing the Digital Transformation in Accounting Sector

Song, Hao Jie (2025) Factors Influencing the Digital Transformation in Accounting Sector. Masters thesis, Tunku Abdul Rahman University of Technology and Management.

Text 01 Song Haojie.pdf Restricted to Registered users only Download (2MB)

Abstract

This research is for the purpose to investigate the factors influencing the digital transformation in the accounting sector in Malaysia. Through the study of the elements under Technology, Organization and Environment perspectives under TOE model, and have an evaluation of the mediating role of adoption intention and moderating role of financial capability, this research provides the theoretical and practical insights on how the internal and external factors of a company will affect the digital transformation performance of an accounting firm. For the specific factors that influence the digital transformation, this research has totally 9 independent variables which are relative advantage, compatibility, trust, security, lack of technological knowledge, firm size, rivalry pressure, business partners pressure and regulatory support. Besides, there is also the discussion on adoption intention as the mediator and financial capability of the company as the moderator. To align Malaysia’s implementation of E-invoice and Malaysia Digital Economy Blueprint, it is crucial to conduct the digital transformation and improve the competitive capacity among the local or global market. For the establishment of a conceptual framework, this research adopted the TOE model and referred to numbers of past studies to investigate how the comprehensive technology, organization and environment factors affect the accounting firm’s digital transformation performance. This research has collected 265 responses by the use of structured questionnaires. There is the use of SPSS professional software to do the data analysis and examination of hypotheses developed. The results of this research indicates that relative advantage, business partner pressure, and regulatory support have a significant positive influence on adoption intention and digital transformation and it is confirmed that the mediating role of adoption intention. These findings emphasize the importance of system excellent features, driven force from market, institutional support and employees’ willingness to the digital transformation. For the insights on how accounting firms achieve a successful digital transformation, this research has given theoretical understanding and practical implications.