CLOUD ACCOUNTING AND INTELLECTUAL CAPITAL: A CATALYST FOR SMES PERFORMANCE

Abstract

This research aims to enhance information technology through the use of cloud accounting. Cloud accounting is believed to revolutionize the way business and society operate. Given its potential to enhance organizational performance, this study examines the role of intellectual capital, specifically structural capital, human capital, and relational capital, in mediating the relationship between cloud accounting adoption and SME performance. The population of this study includes SMEs in Klaten Regency. A quantitative research method was employed using primary data collected through purposive sampling. The sample was limited to SMEs that have implemented cloud accounting. Structural Equation Modeling (SEM) using PLS 4.0 was used to analyze the data. The findings indicate that cloud accounting has a positive influence on structural, human, and relational capital. Moreover, these three forms of intellectual capital positively impact SMEs performance. Additionally structural capital, human capital, and relational capital can mediate the relationship between cloud accounting and SMEs performance. This research contributes to the body of knowledge by providing insights for SMEs and policymakers regarding the significance of investing in information technology and developing structural, human, and relational capital.