Digital Accounting and SAK EMKM: Driving MSMEs' Competitive Advantage and Accounting Performance in Bali

Ida Ayu Ratih Manuari (Universitas Mahasaraswati Denpasar)
Ni Putu Yuria Mendra (Universitas Mahasaraswati Denpasar)

Journal of the Community Development in Asia
Vol 9, No 2 (2026): May 2026

This study investigates the impact of SAK EMKM implementation, financial literacy, and digital accounting literacy on Business Accounting Performance, with Competitive Advantage as a mediating variable among 210 MSMEs in Bali. Using Structural Equation Modeling-Partial Least Squares (SEM-PLS), the research reveals that SAK EMKM implementation, financial literacy, and digital accounting literacy significantly and positively enhance Competitive Advantage. Furthermore, Competitive Advantage is found to strongly dictate accounting performance, acting as a vital mediator in the model. Notably, the strongest indirect effect is observed in the relationship between digital accounting literacy and performance, proving that technological synergy is the primary "bridge" to superior financial outcomes. The structural model demonstrates high predictive power, explaining 68.5% of the variance in Business Accounting Performance. These findings extend the Resource-Based View (RBV) theory and suggest that MSMEs must transition to digital accounting to gain strategic credibility. Policymakers should integrate digital tools into accounting standards training to foster competitive and bankable MSMEs.