Human Resource Competence, Utilization of Accounting Technology, and Tax Reporting Compliance as Determinants of UMKM Performance
DOI:
10.51601/ijersc.v7i4.1057Published:
2026-08-13Downloads
Abstract
This study aims to analyze the effect of human resource competence, accounting technology utilization, and tax reporting compliance on UMKM performance in Rantauprapat City. The population is all UMKM in Rantauprapat City with a sample of 100 UMKM selected using purposive sampling technique. Data were collected through questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4 software. The results show that: (1) human resource competence has a positive and significant effect on UMKM performance (β = 0.284; p = 0.000); (2) accounting technology utilization has a positive and significant effect on UMKM performance (β = 0.358; p = 0.000) and is the most dominant determinant; (3) tax reporting compliance has a positive and significant effect on UMKM performance (β = 0.301; p = 0.000); (4) simultaneously, the three variables explain 62.3% of the variation in UMKM performance (R² = 0.623) with Q² = 0.485 indicating good predictive relevance. This study concludes that human resource competence, accounting technology utilization, and tax reporting compliance are simultaneously important determinants for improving UMKM performance in Rantauprapat City. Suggestions include: UMKM actors should improve accounting competence and adopt digital accounting technology; local government should intensify accounting training and encourage UMKM digitalization; and the tax office should enhance socialization of the latest tax policies and simplify tax reporting procedures.
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