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Unveiling the secrets: decoding the factors influencing MSMEs' accounting process and strategic debtors' management in Oman

Maha Ali Alalawi (University of Nizwa, Nizwa, Oman)
Mohammed Muneerali Thottoli (University of Nizwa, Nizwa, Oman)
Aisha Hamed Al-Shukaili (University of Nizwa, Nizwa, Oman)
Fatema Khamis Al-Amri (University of Nizwa, Nizwa, Oman)

Management & Sustainability: An Arab Review

ISSN: 2752-9819

Article publication date: 14 September 2023

94

Abstract

Purpose

This study investigates determinant factors (influence of the third party (ITP), credit policy (CP) and follow-up process (FP)) of micro, small and medium enterprises' (MSMEs) accounting processes (APs) and strategic debtors' management.

Design/methodology/approach

The study employed a sequential mixed-method approach, combining quantitative and qualitative methods for comprehensive data analysis. Phase I involved purposively selecting and interviewing 10 MSME owners or accountants to gain insights into debtors' management. In Phase II, a quantitative approach was used for collecting survey data from 72 MSME owners or accountants. Structural equation modeling-partial least squares (SEM-PLS) are the statistical tools that validated the study's proposed hypotheses.

Findings

The findings indicate that determinant factors (ITP, CP and FP) positively affect MSMEs' AP, significantly influencing strategic debtors' management. As a result, sole proprietors can use this study's findings to create value through systematic management of their debtors, guaranteeing sustainable firm growth and profitability.

Practical implications

The sample has restricted to MSMEs in Oman, where the findings may not be generalized to other companies. Overall, the findings suggest that it requires considering the proposed determinant factor of MSMEs' AP to manage their debtors or accounts receivable (AR) to be more profitable.

Originality/value

MSMEs play an essential role in the growth of any country's economy. However, the dearth of comprehensive research on influential factors of MSMEs' debtors’ management studies justifies the significance of the current study.

Keywords

Acknowledgements

This research was funded by The Research Council (TRC), Oman, URG grant number BFP/URG/ICT/20/060.

Citation

Alalawi, M.A., Thottoli, M.M., Al-Shukaili, A.H. and Al-Amri, F.K. (2023), "Unveiling the secrets: decoding the factors influencing MSMEs' accounting process and strategic debtors' management in Oman", Management & Sustainability: An Arab Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MSAR-05-2023-0023

Publisher

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Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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