How Cloud-Based Accounting Information System CAIS Capabilities Influence Performance Outcomes in SMES of UAE

Abstract

Introduction: This study aims to explore the association between the capabilities of cloud accounting information systems (CAIS) and the performance of small and medium enterprises (SMEs) in the United Arab Emirates (UAE). This study examines the impact of CAIS adoption, automation, and integration with enterprise resource planning (ERP) on the speed of financial decision-making, accuracy of financial reporting, and operational efficiency based on the resource-based view and dynamic capability theory. Methodology: Data were gathered using a structured questionnaire and analysed using partial least squares structural equation modelling (PLS-SEM) from 330 SME owners, finance managers, and accounting professionals. Results: The results highlight the benefits of adopting CAIS for faster financial decision-making and automation to achieve greater reporting accuracy and efficiency. The integration of ERP had the highest positive impact on all performance outcomes. The study also establishes that the capabilities available to a CAIS are organisational resources which add value to the performance of SMEs in various ways. Conclusion: The results have implications for theory and can inform SME management practices in enhancing SME performance by adopting integrated cloud accounting solutions.