West Science Information System and Technology Vol.
No.
April 2025, pp.
Digital Accounting Transformation as a Driver of Sustainable Business Model Innovation through Digital Ecosystems in Start-ups in Indonesia Loso Judijanto1.
Benyamen Minggus Melatnebar2
IPOSS Jakarta
Universitas Buddhi Dharma Tangerang
Article Info
ABSTRACT
Article history:
This study explores the role of digital accounting transformation and digital ecosystems in driving sustainable business model innovation (SBMI) within Indonesian start-ups.
Using a quantitative analysis with 85 samples, data were collected through a Likert scale survey and analyzed using SPSS Version 26.
The results reveal that digital accounting transformation significantly influences SBMI, with a path coefficient of 0.
Additionally, digital ecosystems were found to have a moderate positive effect on SBMI .
ath coefficient: 0.
The study also identifies a mediating role of digital ecosystems, with an indirect effect of 0.
26, showing that digital ecosystems amplify the impact of digital accounting transformation on SBMI.
These findings underscore the importance of integrating digital technologies and ecosystems to foster innovation and sustainability in start-up businesses.
The study provides practical insights for entrepreneurs and policymakers, highlighting the necessity of adopting digital tools and fostering ecosystem collaboration to achieve sustainable business growth.
Received April, 2025 Revised April, 2025 Accepted April, 2025 Keywords:
Digital Accounting Transformation.
Digital Ecosystems.
Sustainable Business Model Innovation.
Indonesian Start-ups This is an open access article under the CC BY-SA license.
Corresponding Author:
Name: Loso Judijanto Institution: IPOSS Jakarta Email: losojudijantobumn@gmail.
INTRODUCTION
The rapid advancement of digital technology has revolutionized various business processes, with accounting being one of the most critical areas undergoing significant transformation, particularly in Indonesia's burgeoning start-up ecosystem.
Digital accounting, characterized by the integration of advanced tools such as cloud computing, artificial intelligence, and blockchain, has become a cornerstone for modern organizations seeking to streamline operations, enhance collaboration, and improve decision-making capabilities .
Ae.
These technologies enable real-time data processing and analytics, facilitating faster and more informed decisions while also innovation by leveraging digital ecosystems.
In Indonesia, start-ups are at the forefront of this shift, using digital accounting systems to increase adaptability and support innovative business strategies .
Empirical findings suggest that the effectiveness of digital accounting systems (EDAIS) has a significant positive impact on sustainable business model innovation (SBMI), with digital business ecosystems (DBE) acting as a key Journal homepage: https://wsj.
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However, despite its promising benefits, the adoption of digital accounting is not without challenges, including data privacy issues, cybersecurity threats, and the pressing need for upskilling employees to navigate these emerging technologies .
Nonetheless, the overall outlook remains optimistic, with digital innovation increasingly viewed as an opportunity rather than a threat to the evolution of accounting practices .
Start-ups operate in highly dynamic environments that demand agility and innovation to maintain competitiveness, and within this context, digital accounting transformation emerges as a critical enabler by providing accurate financial insights, automating repetitive tasks, and fostering The integration of digital ecosystems allows startups to seamlessly connect with stakeholders, optimize resource utilization, and swiftly adapt to changing market conditions, thereby supporting the development of sustainable business models aligned with long-term economic, environmental, and social goals.
Real-time data analytics from digital accounting systems empower start-ups to make informed decisions and respond rapidly to market demands, which is essential for sustaining competitiveness and driving continuous innovation .
Moreover, the automation of routine accounting processes not only reduces operational costs but also enables the reallocation of resources toward strategic activities that stimulate growth and innovation .
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Transparency, a hallmark of digital accounting, enhances collaboration with stakeholders and strengthens trust, both of which are fundamental for thriving within digital ecosystems .
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Furthermore, the integration of digital accounting with advanced technologies such as artificial intelligence and blockchain within digital ecosystems boosts operational efficiency and opens new pathways for innovation .
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positioning digital accounting as an indispensable tool for start-ups navigating the complexities of the digital era.
Despite the recognized potential of digital accounting transformation, research on its impact within the Indonesian start-up context remains limited.
This study addresses this gap by investigating how the implementation of practices influences sustainable business model innovation through digital ecosystems.
LITERATURE REVIEW
1 Digital Accounting Transformation The adoption of digital accounting technologies, such as cloud computing, artificial intelligence, and blockchain, has accounting processes, offering numerous advantages for start-ups by enhancing operational efficiency, enabling real-time data access, and supporting strategic decisionmakingAicritical resourceconstrained environments .
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automating routine tasks like invoicing and tax calculations, digital accounting systems reduce operational time and costs while minimizing human error and improving document management, thus increasing overall efficiency and enabling better resource allocation .
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These systems also offer real-time access to financial data, enhancing organizational agility and enabling start-ups to respond swiftly to market dynamics through timely, data-driven decision-making .
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Moreover, digital accounting supports regulatory compliance, which is vital for building credibility and attracting investor trust, while its ability to generate accurate and timely financial reports fosters transparency and reinforces stakeholder confidence .
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2 Sustainable Business Model Innovation Sustainable Business Model Innovation (SBMI) is increasingly recognized as a vital strategy for start-ups aiming to address environmental, social, and economic challenges, as it enables them to integrate sustainability into their core operations, thereby enhancing competitiveness and market relevance .
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Start-ups adopting Vol.
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West Science Information System and Technology A 43 SBMI are better equipped to navigate pressing societal issues such as climate change and inequality, while aligning with sustainability targets that are becoming essential for longterm growth and sectoral adaptation .
Digital transformation, particularly through tools like digital accounting, plays a crucial role in facilitating SBMI by providing realtime data access that supports sustainabilitydriven innovation, such as waste reduction and resource optimization .
These digital tools help develop eco-friendly products and services while also fostering operational efficiencies that contribute to environmental Furthermore.
SBMI requires active engagement with various stakeholders, involving boundary work to negotiate and realign organizational boundaries in the pursuit of sustainable innovation, which in turn enhances brand reputation and builds strong stakeholder relationships vital for start-upsAo long-term success .
However, the practical adoption of SBMI remains limited due to strategic and institutional challenges, and its success largely depends on internal strategic alignment and the implementation of innovation practices that can unlock its full potential .
3 Digital Ecosystems Digital ecosystems play a crucial role in fostering innovation, particularly for startups, by providing access to resources, expertise, and markets that are often difficult to attain independently, and by offering flexibility, scalability, and technological development and sustainability integration .
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These ecosystems facilitate the exchange of values and resources among interconnected organizations, allowing startups to tap into a wider array of expertise and advanced technological tools, while the modularity and connectivity of digital technologies enable them to reprogram and adapt operations for ongoing innovation .
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Digital Business Ecosystems (DBE.
, defined by adaptability and resilience, empower start-ups to navigate shifting market conditions by leveraging technologies such as cloud computing, big data analytics, and artificial intelligence for value creation and innovative business model development .
Moreover, digital ecosystems support the integration of sustainability into business practices by promoting collaboration with environmentally and socially focused stakeholders, where the network effects of accessibility, affordability, and energyefficient consumption .
4 Research Gap and Framework While prior studies have explored the individual impacts of digital transformation, sustainability, and ecosystems on business performance, there is limited empirical research examining their interconnected roles in the Indonesian start-up context.
This study addresses this gap by investigating how digital accounting transformation acts as a driver of SBMI through digital ecosystems.
focusing on Indonesian start-ups, this research aims to provide insights into how these concepts can be leveraged to create resilient and competitive businesses in an emerging market.
The theoretical framework for this study is based on the resource-based view (RBV) and the dynamic capabilities theory.
These frameworks emphasize the importance of leveraging internal resources, such as digital accounting systems, and external capabilities, such as digital ecosystems, to achieve sustainable competitive advantage.
This study posits that the integration of digital accounting transformation and digital ecosystems is a critical enabler of SBMI in start-ups.
METHODS
1 Research Design This study employs a quantitative research design to investigate the influence of sustainable business model innovation (SBMI) through digital ecosystems in Indonesian start-ups, as this approach is wellsuited for measuring variable relationships, generalizable findings.
Data were collected Vol.
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West Science Information System and Technology A 44 through structured surveys to ensure Prior to distribution, the questionnaire consistency and reliability, with responses was pre-tested with a small group of measured using a Likert scale.
The target respondents to ensure the clarity, validity, population consists of start-ups operating and relevance of the questions.
across various sectors in Indonesia, and a 3 Data Analysis sample of 85 start-ups was selected using Data analysis was conducted using purposive sampling to ensure the inclusion of SPSS version 26, a statistical software tool firms actively involved in digital accounting well-suited for analyzing quantitative data.
sustainability-oriented The analysis involved several key steps.
The participants primarily beginning with descriptive statistics to comprised founders, co-founders, or financial summarize the demographic characteristics of managers who play a direct role in respondents and the distribution of key implementing digital accounting systems and Reliability and validity testing followed, where CronbachAos alpha was calculated to assess the internal consistency of 2 Data Collection Instrument measurement items, and exploratory factor The analysis (EFA) was employed to evaluate instrument in this study was a structured construct validity.
Correlation analysis was questionnaire designed to capture detailed then conducted to examine the strength and information on three key constructs: Digital direction of relationships among the Accounting Transformation.
Sustainable Finally, regression analysis was Business Model Innovation (SBMI), and performed to test the impact of digital Digital Ecosystems.
Digital Accounting accounting transformation on sustainable Transformation was measured through business model innovation (SBMI), including indicators such as automation level, real-time the mediating role played by digital data access, and financial transparency, while ecosystems in this relationship.
SBMI was assessed based on metrics like environmental impact reduction, resource RESULTS AND DISCUSSION optimization, and stakeholder collaboration.
1 Demographic Characteristics of the The construct of Digital Ecosystems, acting as Sample a mediating variable, was evaluated by The study analyzed data from 85 examining the level of participation in respondents representing start-ups in collaborative networks and technological Indonesia.
The demographic characteristics Each construct was measured are presented below, including industry type, using multiple indicators, with responses respondent role, years in operation, and recorded on a five-point Likert scale ranging adoption of digital accounting systems.
from 1 .
trongly disagre.
to 5 .
trongly Table 1: Demographic Characteristics of Respondents Category Subcategory Frequency Percentage (%) Industry Type Technology Retail Services Manufacturing Others Role in Start-up Founder/Co-founder Financial Manager Operational Manager Years in Operation Less than 2 years 2Ae5 years Vol.
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West Science Information System and Technology Adoption of Digital Accounting Systems More than 5 years High (Frequent use of Medium (Partial us.
Low (Minimal us.
The sample of start-ups in this study The constructs were evaluated for reliability using CronbachAos alpha, with all representation, with the majority operating in values exceeding the recommended threshold the technology sector .
3%), followed by retail .
5%), services .
6%), and Exploratory factor analysis (EFA) manufacturing and other industries each revealed high loadings for all indicators on accounting for 11.
In terms of respondent their respective constructs, indicating good roles, nearly half were founders or coconstruct validity.
1%), indicating strategic-level 3 Correlation Analysis insights, while financial managers .
Correlation provided detailed information on digital significant positive relationships among accounting practices, and operational digital accounting transformation, digital managers .
6%) contributed perspectives on ecosystems, and SBMI.
The strongest day-to-day business processes.
Regarding correlation was observed between digital years in operation, most start-ups were accounting transformation and SBMI .
= 0.
relatively young, with 47.
1% operating for 2Ae p < 0.
, followed by the relationship 5 years and 29.
4% under 2 years, reflecting the between digital ecosystems and SBMI .
= dynamic nature of emerging market 62, p < 0.
Adoption of digital accounting 4 Hypothesis Testing systems was notably high, with 67.
1% of Hypothesis testing was conducted to examine the relationships between digital implementation of digital tools, while medium and low adoption levels were ecosystems, and sustainable business model reported by 23.
5% and 9.
4% of start-ups innovation (SBMI) in Indonesian start-ups.
respectively, suggesting both positive digital The hypotheses were tested using multiple transformation trends and potential areas for regression analysis in SPSS Version 26.
The further development.
results, including path coefficients (), t4.
2 Reliability and Validity Testing values, and significance levels .
-value.
Table 2.
Hypothesis Hypothesis Path (Standardized t-value p-value Decision Coefficien.
Digital Accounting < 0.
Supported Transformation Ie SBMI Digital Ecosystems Ie 0.
< 0.
Supported SBMI Digital Accounting < 0.
Supported Transformation Vol.
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West Science Information System and Technology Ie
Digital Ecosystems Digital Accounting Transformation Ie
Digital Ecosystems Ie
SBMI
(Mediation Effec.
ndirect The hypothesis testing results reveal significant relationships among the variables examined in the study.
For H1, the path coefficient between digital accounting transformation and sustainable business model innovation (SBMI) is 0.
52, indicating a moderate-to-strong positive effect, with a tvalue of 6.
34 and a p-value < 0.
001, confirming the statistical significance of the relationship and suggesting that the adoption of digital accounting practices significantly enhances the innovation capacity of SBMI in start-ups.
H2 shows that digital ecosystems also have a moderate positive effect on SBMI, with a path coefficient of 0.
41, a t-value of 5.
10, and a pvalue < 0.
001, underscoring the crucial role of digital ecosystems in fostering sustainable In H3, digital accounting transformation is found to strongly influence digital ecosystems, as reflected by a path coefficient of 0.
63, a t-value of 7.
85, and a pvalue < 0.
001, indicating that the use of digital accounting significantly contributes to the development and integration of digital ecosystems within start-ups.
Finally.
H4 confirms the presence of a mediation effect, with an indirect effect value of 0.
26, a t-value 21, and a p-value < 0.
001, showing that digital ecosystems partially mediate the relationship between digital accounting transformation and SBMI.
This mediation underscores the synergistic role
DISCUSSION
Impact of Digital Accounting Transformation on SBMI The results demonstrate that digital By leveraging advanced tools and < 0.
Supported real-time data analytics, start-ups are better equipped to optimize resource allocation, reduce operational inefficiencies, and align their business strategies with sustainability These findings align with prior research, which emphasizes the role of digital accounting in driving organizational agility and innovation.
Digital technology and management accounting systems have also been shown to positively influence organizational success, with a strong outcome value of 85% when mediated by management accounting systems .
The integration of advanced technologies into management accounting enhances data management and strategic decision-making, contributing to greater agility and stronger market positioning .
Moreover, digital accounting plays a crucial role in organizational strategy by improving the quality of financial reporting and the usefulness of accounting information in decision-making processes .
The rapid development of digitalization has also encouraging the adoption of technology to support strategic planning and execution .
As technological advancements continue to influence organizational structures and accounting practices, they foster greater agility and transparency, which are vital for optimizing performance and responding to dynamic market conditions .
These insights collectively suggest that start-ups adopting digital accounting systems are better positioned to integrate sustainability into their business models through data-driven decision-making, underscoring the critical need for investing in digital accounting as a Vol.
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West Science Information System and Technology A 47 foundational component of innovation Role of Digital Ecosystems in SBMI Digital ecosystems emerged as a key driver of sustainable business model innovation (SBMI), offering start-ups valuable opportunities to collaborate, share resources, and access new markets.
The findings support existing literature, which emphasizes the critical role of digital ecosystems in fostering innovation and scalability by enabling a synergistic environment that facilitates the exchange of ideas and technological capabilities .
, .
These ecosystems are actorsAi including businesses, governments, and communitiesAiwho co-create value and collectively contribute to sustainable growth.
For start-ups, participation in such ecosystems enhances their ability to innovate sustainably, adapt to market dynamics, and strengthen their strategic positioning.
The integration of digital technologies within these networks not only supports individual organizational growth but also promotes regional economic development through knowledge sharing and entrepreneurial clustering .
, .
The synergistic nature of digital ecosystems unites a wide array of information services, cultivating mutually beneficial relationships that drive innovation .
Digital Innovation Hubs (DIH.
exemplify this structure by offering comprehensive support systems that enhance start-up capabilities through integrated ecosystem elements .
Within these ecosystems, value creation is driven by the use of digital technologies, which facilitate rapid adaptation, increased interaction, and cross-sector collaboration among small and medium-sized enterprises .
, .
Start-ups embedded in digital ecosystems are often aligned with broader economic strategies focused on job creation and improved socioeconomically challenged regions .
Furthermore, the collaboration within these ecosystems extends beyond business, involving cities, communities, and public institutions in efforts to promote sustainable and responsible development .
The studyAos finding of a partial mediation effect confirms that digital ecosystems amplify the positive influence of digital accounting transformation on SBMI, underscoring the importance for start-ups to not only pursue internal digitalization but also actively engage in external collaborative networks to fully harness their innovation potential.
Practical Implications for Indonesian Startups For start-ups in Indonesia, the integration of digital accounting and digital ecosystems offers a strategic pathway to achieving sustainability and competitiveness.
The study highlights the importance of fostering a culture of digital innovation and collaboration, particularly in emerging markets where access to resources and expertise may be limited.
Policymakers and ecosystem stakeholders can also play a pivotal role by supporting digital infrastructure development and facilitating partnerships among start-ups, investors, and technology Addressing Challenges Digital Transformation Despite the promising findings, challenges such as resource constraints, lack of technical expertise, and resistance to change may hinder digital transformation Start-ups must prioritize capacitybuilding initiatives, such as training and development programs, to overcome these Additionally, government policies and incentives can help accelerate the adoption of digital tools and promote a sustainable entrepreneurial ecosystem.
CONCLUSION
This study highlights the pivotal role that digital accounting transformation and digital ecosystems play in driving sustainable business model innovation (SBMI) among Indonesian start-ups.
The empirical findings show that digital accounting systems not only improve financial processes but also Vol.
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West Science Information System and Technology A 48 contribute significantly to business model innovation by enhancing decision-making and operational efficiency.
Furthermore, the study demonstrates that digital ecosystems act as a key enabler, enhancing the relationship between digital accounting transformation and SBMI through a mediation effect.
The practical implications of these findings are clear: start-ups in Indonesia should prioritize the adoption of advanced digital accounting tools and actively engage in digital ecosystems to unlock opportunities for innovation and long-term sustainability.
Policymakers and industry stakeholders must also support the digital transformation journey of start-ups through the provision of resources, training, and incentives to ensure the growth and competitiveness of the Indonesian start-up ecosystem.
REFERENCES