The Role of Digital Transformation and Perceived Organizational Support in Enhancing Financial Reporting Quality in Kurdistan’s Small and Medium Enterprises (SMEs)

Digital Transformation and Perceived Organizational Support

Authors

DOI:

https://doi.org/10.63841/iue23547

Keywords:

Cloud accounting, Digital transformation, ERP systems, financial reporting quality, Perceived organizational support

Abstract

Abstract This study explores the role of digital transformation (DT) and perceived organizational support (POS) in enhancing financial reporting quality (FRQ) in small and medium-sized enterprises (SMEs) in Kurdistan. Structural equation modelling was applied to primary data collected from 235 respondents including accountants, managers, owners, and other professional employees across three regions (Erbil, Sulaymaniyah and Dohuk). The analysis was conducted using Smart PLS 4 for structural equation modelling. The results show that DT has a notable and direct positive effect on FRQ, so confirming that using digital tools including ERP systems and cloud-based accounting software improves the accuracy, openness and timeliness of financial reports. Furthermore, the study shows that POS has a major impact on FRQ, meaning that workers who feel organizational support are more prone to participate in actions enhancing financial reporting. The mediation hypothesis was hence rejected since the mediation effect of POS between DT and FRQ was not supported. SMEs in Kurdistan should strike a mix between digital innovation and enough organizational support for sustainable development. Although bettering financial reporting depends on technological adoption, general organizational performance depends on employees feeling supported and valued.

Author Biographies

  • Rebin Bilal Mohammed, Department of Accounting and Finance, College of Administration & Economics, Lebanese French University, Erbil, 44001, IRAQ

    Rebin Bilal Mohammed is an Lecturer in the Department of Accounting and Finance, Faculty of College of Administration & Economics, Lebanese French University, Erbil. he received a B.Sc. degree in Accounting and Finance, and an M.Sc. degree in Accounting from Near East University. His research interests are in Auditing, Financial Accounting, MIS, AIS, and Management Accounting.

    His academic interests lie in the field of Accounting and Management, in which he engages actively in both teaching and research. He is dedicated to promoting academic advancement and participating in scholarly endeavors within his department.

  • Sardar Jalal Braim , Department of Accounting and Finance, College of Administration & Economics, Lebanese French University, Erbil, 44001, IRAQ

    Sardar Jalal Braim is a Lecturer in the Department of Accounting and Finance, Faculty of College of Administration & Economics, Lebanese French University, Erbil. he received a B.Sc. degree in Accounting and Finance, and an M.Sc. degree in Accounting from Near East University. His research interests are in Auditing, Financial Accounting, MIS, AIS, and Management Accounting.

    His academic interests lie in the field of Accounting and Management, in which he engages actively in both teaching and research. He is dedicated to promoting academic advancement and participating in scholarly endeavors within his department

  • Bryar Sami Abdulrahman, Department of Accounting and Finance, College of Administration & Economics, Lebanese French University, Erbil, 44001, IRAQ

    Bryar Sami is an Assistant Lecturer in the Department of Department of Accounting and Finance, College of Administration & Economics, Lebanese French University, Erbil. he received a B.Sc. degree in Accounting and Finance, and an M.Sc. degree in Accounting and Finance from Cyprus International University. His research interests are in Auditing, Financial Accounting, MIS, AIS, Auditing, and Management Accounting.

    His academic interests lie in the field of Accounting and Management, in which he engages actively in both teaching and research. He is dedicated to promoting academic advancement and participating in scholarly endeavors within his department.

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Published

2025-07-15

Issue

Vol. 2 No. 03 (2025)

Section

Accounting

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Copyright (c) 2025 Academic Journal of International University of Erbil

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How to Cite

The Role of Digital Transformation and Perceived Organizational Support in Enhancing Financial Reporting Quality in Kurdistan’s Small and Medium Enterprises (SMEs): Digital Transformation and Perceived Organizational Support. (2025). Academic Journal of International University of Erbil, 2(03), 236-247. https://doi.org/10.63841/iue23547