Technology Relatedness Accounting System and Entrepreneur’s Decision-Making Style on The Company Performance of SMEs:The Moderating Role of Product Diversification

This study examines the effects of Technology Relatedness Accounting Systems (TRAS) and Entrepreneur’s Decision-Making Style on the ‎performance of small and medium-sized enterprises (SMEs), with Product Diversification as a moderating variable. Using survey data from ‎‎318 technology-adopting SMEs in Indonesia, the study applies Structural Equation Modeling with Partial Least Squares (SEM-PLS) to test ‎the proposed relationships. The results indicate that technology-relatedness—conceptualized as a second-order construct reflecting the complementarity of IT strategy, IT vendor management, IT human resources, and IT infrastructure—has a significant positive effect on SME ‎performance. An entrepreneur’s decision-making style also positively influences performance. Product diversification significantly negatively ‎moderates the relationship between technology-relatedness and performance, suggesting that excessive diversification may increase coordination complexity and reduce the effectiveness of technological complementarities in resource-constrained SMEs. However, product diversification does not moderate the relationship between decision-making style and performance. This study contributes to the Resource-Based ‎View by demonstrating that the performance impact of technology-related resources depends on their internal integration and strategic ‎alignment rather than on diversification breadth alone. The findings provide actionable insights for SME managers and policymakers regarding effective digital capability development and diversification strategies.