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Abstract
This research evaluates modern organizations' technical and cultural barriers to implementing digital accounting systems. It seeks to identify how these barriers interact and influence the overall effectiveness of digital transformation efforts in accounting. A systematic literature review synthesized existing research on the subject, focusing on peer-reviewed articles published in 2014. The study incorporated diverse perspectives to understand the challenges organizations encounter comprehensively. The findings reveal significant technical barriers, including inadequate technological infrastructure and challenges in integrating legacy systems with new technologies. Cultural barriers, particularly employee resistance and conservative organizational culture, further complicate the adoption process. The interaction between these barriers underscores the need for a holistic approach to digital transformation. This study contributes original insights to the field of digital transformation in accounting, emphasizing the importance of addressing both technical and cultural aspects for successful implementation. Organizations should invest in technological upgrades while fostering a culture that supports innovation and change. Management should prioritize leadership engagement and employee involvement to facilitate smoother transitions to digital accounting systems.
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References
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- Anitha, K. M., & R, D. K. G. (2023). The Digitalization of Accounting in Modern Business : An Analytical Pedagogy Through Benefits and Challenges of Digitalization. 44, 5428–5434. https://doi.org/10.52783/tjjpt.v44.i4.1917
- Burnett, J. R., & Lisk, T. C. (2021). The future of employee engagement: Real-time monitoring and digital tools for engaging a workforce. In International Perspectives on Employee Engagement (pp. 117–128). Routledge. https://www.taylorfrancis.com/chapters/edit/10.4324/9781003142492-9
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- Cortellazzo, L., Bruni, E., & Zampieri, R. (2019). The role of leadership in a digitalized world: A review. Frontiers in Psychology, 10, 1938. https://doi.org/10.3389/fpsyg.2019.01938
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- Hamidianpour, F., Esmaeilpour, M., & Zarei, R. (2016). The effects of cultural intelligence and transformational leadership style of managers on employee resistance to change. Management.
- Hon, A. H. Y., Bloom, M., & Crant, J. M. (2014). Overcoming resistance to change and enhancing creative performance. Journal of Management, 40(3), 919–941. https://doi.org/10.1177/0149206311415418
- Jasim, Y. A., & Raewf, M. B. (2020). Impact of the information technology on the accounting system. Cihan University-Erbil Journal of Humanities and Social Sciences, 4(1), 50–57. https://eprints.cihanuniversity.edu.iq/id/eprint/256
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- Naveed, R. T., Alhaidan, H., Halbusi, H. Al, & Al-Swidi, A. K. (2022). Do organizations really evolve? The critical link between organizational culture and organizational innovation toward organizational effectiveness: Pivotal role of organizational resistance. Journal of Innovation & Knowledge, 7(2), 100178. https://doi.org/https://doi.org/10.1016/j.jik.2022.100178
- Pargaonkar, S. (2020). A Review of Software Quality Models: A Comprehensive Analysis. Journal of Science & Technology, 1(1 SE-Review Articles), 40–53. https://thesciencebrigade.com/jst/article/view/37
- Sheninger, E. (2019). Digital leadership: Changing paradigms for changing times. Corwin Press.
- Trenerry, B., Chng, S., Wang, Y., Suhaila, Z. S., Lim, S. S., Lu, H. Y., & Oh, P. H. (2021). Preparing workplaces for digital transformation: An integrative review and framework of multi-level factors. Frontiers in Psychology, 12, 620766. https://doi.org/10.3389/fpsyg.2021.620766
- van den Adel, M. J., de Vries, T. A., & van Donk, D. P. (2023). Improving cross-functional teams’ effectiveness during supply chain disruptions: the importance of information scouting and internal integration. Supply Chain Management: An International Journal, 28(4), 773–786. https://doi.org/10.1108/SCM-06-2022-0243
- Velayutham, A. (2021). Overcoming Technical Challenges and Implementing Best Practices in Large-Scale Data Center Storage Migration: Minimizing Downtime, Ensuring Data Integrity, and Optimizing Resource Allocation. International Journal of Applied Machine Learning and Computational Intelligence, 11(12 SE-Articles), 21–55. http://neuralslate.com/index.php/Machine-Learning-Computational-I/article/view/149
- Venkatesh, V., & Bala, H. (2008). Technology acceptance model 3 and a research agenda on interventions. Decision Sciences, 39(2), 273–315. https://doi.org/10.1111/j.1540-5915.2008.00192.x
- Walczuch, R., Lemmink, J., & Streukens, S. (2007). The effect of service employees’ technology readiness on technology acceptance. Information & Management, 44(2), 206–215. https://doi.org/https://doi.org/10.1016/j.im.2006.12.005
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References
Almeida, R., Behrman, J., & Robalino, D. (2012). The right skills for the job?: Rethinking training policies for workers. World Bank Publications.
Anitha, K. M., & R, D. K. G. (2023). The Digitalization of Accounting in Modern Business : An Analytical Pedagogy Through Benefits and Challenges of Digitalization. 44, 5428–5434. https://doi.org/10.52783/tjjpt.v44.i4.1917
Burnett, J. R., & Lisk, T. C. (2021). The future of employee engagement: Real-time monitoring and digital tools for engaging a workforce. In International Perspectives on Employee Engagement (pp. 117–128). Routledge. https://www.taylorfrancis.com/chapters/edit/10.4324/9781003142492-9
Carlsson‐Wall, M., Goretzki, L., Hofstedt, J., Kraus, K., & Nilsson, C. (2022). Exploring the implications of cloud‐based enterprise resource planning systems for public sector management accountants. Financial Accountability & Management, 38(2), 177–201. https://doi.org/10.1111/faam.12300
Cortellazzo, L., Bruni, E., & Zampieri, R. (2019). The role of leadership in a digitalized world: A review. Frontiers in Psychology, 10, 1938. https://doi.org/10.3389/fpsyg.2019.01938
Duong, D. C. T., & Fledsberg, K. (2019). Digitalization of the Accounting Industry: The influence of digitalization on the accountants’ role and their self-understanding. An exploratory study based on 13 Norwegian accounting firms. Universitetet i Agder; University of Agder. http://hdl.handle.net/11250/2624790
Gelinas, U. J., Dull, R. B., & Wheeler, P. (2018). Accounting information systems. Cengage AU.
Ghosh, S., Hughes, M., Hodgkinson, I., & Hughes, P. (2022). Digital transformation of industrial businesses: A dynamic capability approach. Technovation, 113, 102414. https://doi.org/https://doi.org/10.1016/j.technovation.2021.102414
Gkrimpizi, T., Peristeras, V., & Magnisalis, I. (2023). Classification of barriers to digital transformation in higher education institutions: Systematic literature review. Education Sciences, 13(7), 746. https://doi.org/10.3390/educsci13070746
Goncalves, D., Bergquist, M., Bunk, R., & Alänge, S. (2020). Cultural aspects of organizational agility affecting digital innovation. Journal of Entrepreneurship, Management and Innovation, 16(4), 13–46. https://doi.org/10.7341/20201641
Gonçalves, M. J. A., da Silva, A. C. F., & Ferreira, C. G. (2022). The future of accounting: how will digital transformation impact the sector? Informatics, 9(1), 19. https://doi.org/10.3390/informatics9010019
Hamidianpour, F., Esmaeilpour, M., & Zarei, R. (2016). The effects of cultural intelligence and transformational leadership style of managers on employee resistance to change. Management.
Hon, A. H. Y., Bloom, M., & Crant, J. M. (2014). Overcoming resistance to change and enhancing creative performance. Journal of Management, 40(3), 919–941. https://doi.org/10.1177/0149206311415418
Jasim, Y. A., & Raewf, M. B. (2020). Impact of the information technology on the accounting system. Cihan University-Erbil Journal of Humanities and Social Sciences, 4(1), 50–57. https://eprints.cihanuniversity.edu.iq/id/eprint/256
Knudsen, D.-R. (2020). Elusive boundaries, power relations, and knowledge production: A systematic review of the literature on digitalization in accounting. International Journal of Accounting Information Systems, 36, 100441. https://doi.org/https://doi.org/10.1016/j.accinf.2019.100441
Lindsay, C., Pearson, S., Batty, E., Cullen, A. M., & Eadson, W. (2021). Collaborative innovation in labor market inclusion. Public Administration Review, 81(5), 925–934. https://doi.org/10.1111/puar.13338
Lutfi, A., Alkelani, S. N., Al-Khasawneh, M. A., Alshira’h, A. F., Alshirah, M. H., Almaiah, M. A., Alrawad, M., Alsyouf, A., Saad, M., & Ibrahim, N. (2022). Influence of digital accounting system usage on SMEs performance: The moderating effect of COVID-19. Sustainability, 14(22), 15048. https://doi.org/10.3390/su142215048
Martínez-Peláez, R., Ochoa-Brust, A., Rivera, S., Félix, V. G., Ostos, R., Brito, H., Félix, R. A., & Mena, L. J. (2023). Role of digital transformation for achieving sustainability: mediated role of stakeholders, key capabilities, and technology. Sustainability, 15(14), 11221. https://doi.org/10.3390/su151411221
McClure, P. K. (2018). “You’re fired,” says the robot: the rise of automation in the workplace, technophobes, and fears of unemployment. Social Science Computer Review, 36(2), 139–156. https://doi.org/10.1177/08944393176986
Mikołajczyk, K. (2022). Changes in the approach to employee development in organisations as a result of the COVID-19 pandemic. European Journal of Training and Development, 46(5/6), 544–562. https://doi.org/10.1108/EJTD-12-2020-0171
Naveed, R. T., Alhaidan, H., Halbusi, H. Al, & Al-Swidi, A. K. (2022). Do organizations really evolve? The critical link between organizational culture and organizational innovation toward organizational effectiveness: Pivotal role of organizational resistance. Journal of Innovation & Knowledge, 7(2), 100178. https://doi.org/https://doi.org/10.1016/j.jik.2022.100178
Pargaonkar, S. (2020). A Review of Software Quality Models: A Comprehensive Analysis. Journal of Science & Technology, 1(1 SE-Review Articles), 40–53. https://thesciencebrigade.com/jst/article/view/37
Sheninger, E. (2019). Digital leadership: Changing paradigms for changing times. Corwin Press.
Trenerry, B., Chng, S., Wang, Y., Suhaila, Z. S., Lim, S. S., Lu, H. Y., & Oh, P. H. (2021). Preparing workplaces for digital transformation: An integrative review and framework of multi-level factors. Frontiers in Psychology, 12, 620766. https://doi.org/10.3389/fpsyg.2021.620766
van den Adel, M. J., de Vries, T. A., & van Donk, D. P. (2023). Improving cross-functional teams’ effectiveness during supply chain disruptions: the importance of information scouting and internal integration. Supply Chain Management: An International Journal, 28(4), 773–786. https://doi.org/10.1108/SCM-06-2022-0243
Velayutham, A. (2021). Overcoming Technical Challenges and Implementing Best Practices in Large-Scale Data Center Storage Migration: Minimizing Downtime, Ensuring Data Integrity, and Optimizing Resource Allocation. International Journal of Applied Machine Learning and Computational Intelligence, 11(12 SE-Articles), 21–55. http://neuralslate.com/index.php/Machine-Learning-Computational-I/article/view/149
Venkatesh, V., & Bala, H. (2008). Technology acceptance model 3 and a research agenda on interventions. Decision Sciences, 39(2), 273–315. https://doi.org/10.1111/j.1540-5915.2008.00192.x
Walczuch, R., Lemmink, J., & Streukens, S. (2007). The effect of service employees’ technology readiness on technology acceptance. Information & Management, 44(2), 206–215. https://doi.org/https://doi.org/10.1016/j.im.2006.12.005
Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326–349. https://doi.org/https://doi.org/10.1016/j.lrp.2018.12.001