Does Creditors Terms and Accounting Process Affect MSMEs Debtor’s Management? The Need for Novel IT Tools


  • Mohammed Muneerali Thottoli
  • Aisha Hamed Al-Shukaili
  • Maha Ali-Alalawi
  • Fatema Khamis Al-Amri



The 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.