The Role of Perceived Safety System Accounting and Its Impact on Financial Performance (survey of SMEs in Cimahi City)

Abstract

This study aims to analyse the influence of Perceived Safety System Accounting (PSSA) on Intention to Adopt Digital Payment (IADP) and its impact on Financial Performance (FP) among small and medium enterprises (SMEs) in Cimahi City. This study uses a quantitative approach with purposive sampling techniques on 376 respondents. Data analysis was conducted using Structural Equation Modelling (SEM) with the assistance of AMOS software. The results indicate that PSSA significantly influences IADP, and IADP significantly influences FP. Additionally, IADP was found to be a significant mediating variable in the relationship between PSSA and FP. These findings indicate that perceptions of accounting system security can increase SME actors' intentions to adopt digital payments, which ultimately has a positive impact on their business financial performance. In other words, while perceptions of security are important, their impact on financial performance will only be felt if SME actors actually adopt digital payment systems. These results underscore the importance of enhancing literacy and trust in financial technology as part of efforts to accelerate the digital transformation of the SME sector in Indonesia.