Digital Accounting Practice and Performance of Microfinance Bank: Theoretical and Conceptual Perspectives

Abstract

The focus of this study is to create a discourse as to the extent to which digital accounting practices are variables that drives the performance of microfinance banks based on the premise that the adoption and deployment of digital accounting tools/solutions would assist microfinance bank performance, whether financial or non-financial performance. The theory of technology acceptance model, resource-based view and diffusion of innovation theory underpins the framework concerning the nexus between digital accounting practices and performance. Research has been conducted on the nexus between automated accounting tools and financial performance in deposit money banks and SMEs however, there are fewer research efforts on digital accounting practices and performance in microfinance banks. Hence, this study recommended the need to develop the body of knowledge in this regard as the present review has conceptualised the incorporation of automated accounting practices as mechanisms for financial performance in deposit money bank and SMEs.

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