Volume 11 - Volume 11
Does Creditors Terms and Accounting Process Affect MSMEs Debtor’s Management? The Need for Novel IT Tools
Abstract
he objective of the study is to know whether creditors terms and Micro, Small and Medium
Enterprises (MSMEs) accounting process affect MSMEs debtor’s management and to know the need
for novel Information Technology (IT) tools. This study proposes a definite set of survey
questionnaires to measure variables such as the influence of suppliers’ credit policies and the
accounting process of selected MSMEs. The sample size of this study focuses on various MSMEs
owners or accountants in Oman. The questionnaire survey findings are based on 44 MSMEs that
responded. The study used Partial Least Squares Structural Equation Modeling (PLS-SEM) to
analyze creditors terms, accounting process of MSMEs with its impact on MSMEs debtors’
management. MSMEs' accounting process and suppliers' credit policies do influence MSMEs
debtors’ management. Increased working capital risks due to inefficient debtors’ management may
lead MSMEs to be resource-efficient in managing their accounting process by using IT tools. The
practice of using IT tools by MSMEs can scientifically manage their outstanding debtors which leads
to a higher level of hostile working capital management and MSMEs sustainable development.
MSMEs play a key role in the development of the national economy, there is a dearth of similar
published MSMEs broad studies in Oman that validates the importance of the current research.
Paper Details
PaperID: 2483
Author's Name: Mohammed Muneerali Thottoli, Aisha Hamed Al-Shukaili, Maha Ali-Alalawi and Fatema Khamis Al-Amri
Volume: Volume 11
Issues: Volume 11
Keywords: Debtors Management, MSMEs, Creditors Terms, Accounting Process, Oman.
Year: 2021
Month: August
Pages: 4545-4560