The Influence of Strategic Accounting, Accounting Analytics and Management Support on Value Creation Through Digital Transformation Among Firms in Liaoning Province, China

Abstract

Digital transformation is a key lever for enterprises to restructure accounting systems, management processes, operational capacities and value creation models. In this transformation, strategic accounting and accounting analytics deliver the financial and non-financial information needed for allocating resources, assessing performance, forecasting and strategic decision making; and management support represents the organizational ability to incorporate digital technologies into the existing business processes. The research focuses on how enterprises' strategic accounting, accounting analytics and accounting management support positively influence value creation in the process of digital transformation within enterprises in Liaoning Province, China. The research sets up a mediation model, with digital transformation as the main mediating mechanism between accounting-related capabilities and enterprise value creation. The proposed model is based on strategic management theory, dynamic capability theory, resource-based theory and technology–organization–environment perspective. Development of an illustrative quantitative design with 384 enterprise respondents and measurement is on a five-point Likert scale. These include reliability, descriptive statistics, correlation analysis, confirmatory factor assessment and structural equation modelling. Based on these illustrative results, it is observed that there are positive relationships between strategic accounting and digital transformation, accounting analytics and digital transformation, and management support and digital transformation. There is a positive relationship between digital transformation and the creation of value as well. Standardized coefficients for the structural model are reported in the illustrative structural model, where strategic accounting has a coefficient of 0.31, accounting analytics 0.36 and management support 0.28, and value creation is predicted by digital transformation with a coefficient of 0.49. Indirect effects also suggest that part of the impact of accounting capabilities and management support is transferred to value creation via digital transformation. The findings place accounting not only in a reporting role but as a strategic information infrastructure for the digital transformation and creation of enterprise value. The study provides a province-specific perspective to explore the relationship between accounting ability and managerial support and digital transformation in Chinese enterprises.