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Article
Publication date: 14 September 2023

Maha Ali Alalawi, Mohammed Muneerali Thottoli, Aisha Hamed Al-Shukaili and Fatema Khamis Al-Amri

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…

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.

Details

Management & Sustainability: An Arab Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2752-9819

Keywords

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