Digital Transformation of Accounting in MSMEs in Timor-Leste: The Role of Accounting Technology Adoption and Organizational Readiness in Improving Financial Management Effectiveness

Authors

  • Casimiro Soares Universidade Oriental Timor Lorosa'e (UNITAL), Dili, Timor Leste
  • Julio Matins Maya Universidade Oriental Timor Lorosa'e (UNITAL), Dili, Timor Leste
  • Arlindo do Ceu Fatima Universidade Oriental Timor Lorosa'e (UNITAL), Dili, Timor Leste
  • Andri Yandi Universitas Batanghari, Jambi, Indonesia
  • Yumna Syaza Kani Putri Universitas Jambi, Jambi, Indonesia

DOI:

https://doi.org/10.38035/dar.v4i2.3987

Keywords:

Accounting Technology Adoption, Organizational Readiness, Financial Management Effectiveness, Digital Transformation

Abstract

Digital transformation has created opportunities for small and medium-sized enterprises (SMEs) to improve financial management through accounting technology. However, adopting digital technology alone may not ensure effective financial management without adequate organizational readiness. Previous studies have examined digital technology adoption and organizational factors separately, leaving room for an integrated conceptual framework, particularly in the context of SMEs in Timor-Leste. This study aims to develop a conceptual model explaining the role of accounting technology adoption and organizational readiness in supporting financial management effectiveness. A conceptual research design was employed through an integrative literature review of relevant scholarly publications on digital transformation, accounting technology adoption, organizational readiness, and SME financial management. The literature synthesis informed the development of a model that positions accounting technology adoption and organizational readiness as two independent constructs associated with financial management effectiveness. The proposed model highlights the importance of integrating digital accounting solutions with organizational resources, competencies, management support, and commitment. The novelty lies in combining the technological and organizational dimensions within a single conceptual framework tailored to the context of SMEs in Timor-Leste. The model provides a foundation for future empirical testing and offers practical insights for developing context-sensitive digital accounting strategies to strengthen SME financial management.

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Published

2026-10-23

How to Cite

Soares, C., Maya, J. M., Fatima, A. do C., Yandi, A., & Putri , Y. S. K. (2026). Digital Transformation of Accounting in MSMEs in Timor-Leste: The Role of Accounting Technology Adoption and Organizational Readiness in Improving Financial Management Effectiveness. Dinasti Accounting Review, 4(2), 329–340. https://doi.org/10.38035/dar.v4i2.3987

Issue

Vol. 4 No. 2 (2026): Dinasti Accounting Review (September - October 2026)

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Articles

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Copyright (c) 2026 Casimiro Soares, Julio Matins Maya, Arlindo do Ceu Fatima Fatima, Andri Yandi Yandi, Yumna Syaza Kani Putri Putri

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