The impact of digitalization on business models with special reference to management accounting in small and medium enterprises in Colombo district.

Abstract

There has been a significant extent of interest for researches with regard to the dynamic role of management accounting of economic entities during the last decade. The research indicates that it has lost some relevancy for the users of management accounting and other information. There was an abundance of researches by focusing dynamics of management accounting systems, changes in approaches and procedures. The article aims to explore how digitalization has affected small-medium enterprises in Colombo district to investigate with the business models (BM) and in order to explore the contribution to practices in management accounting. An exploratory study has been carried on 155 small and medium enterprises which are vigorously using technologies to change their business models. Findings show that strategy, technology, communication and innovation economics has a favorable influence on a business model and there is a mediation impact of business model practices and the independent variables have a direct effect on management accounting practices. Results of the analysis can be used by all levels of managers and top-level executives to obtain a better knowledge of how entities investigate with business models experimentation and how it affects management accounting procedures. The analysis is one of the first research contributions for analyzing the effect of digitalization on business models with special reference to management accounting