DIGITAL TRANSFORMATION AND FINANCIAL REPORTING IN INDONESIA: THE ROLE OF ORGANISATIONAL READINESS, CLOUD ACCOUNTING, BIG DATA, AND AI

Digitalization transformed financial reporting activities in emerging countries, including Indonesia. This study aims to analyze the impacts of cloud accounting, big data applications, and artificial intelligence on operational efficiency and business competitiveness, with an emphasis on organizational readiness as a mediating variable. Information was collected through surveying 225 businesses from the banking, manufacturing, service, and retail sectors and further processed using structural equation modeling–partial least squares (SEM-PLS). The results show that cloud accounting, big data, and AI have positive effects on increased operational efficiency, while organizational readiness is a mediator that further increases this effect. The results also show that operational efficiency further increases the competitiveness of companies in the Indonesian market. Theoretically, the research enhances literature by articulating how digital transformation happens in financial reporting under the context of developing countries and accentuating organizational readiness as a determinant for the effectiveness of technology implementation. Practically, these results guide to managers and policymakers on how to increase digital readiness, improve reporting efficiency, and improve sustainable competitiveness.