DIGITAL TECHNOLOGIES AND BUSINESS PERFORMANCE IN FINANCIAL INSTITUTIONS: A MODIFIED MODEL OF ACCOUNTING INFORMATION SYSTEMS, ARTIFICIAL INTELLIGENCE, CLOUD COMPUTING, AND FINANCIAL MANAGEMENT

Abstract

This study examines how digital technologies, namely Accounting Information Systems (AIS), Artificial Intelligence (AI), and Cloud Computing (CC), together with Financial Infrastructure and Management Practices (FIMP), influence Business Performance (BP) in Iraqi financial institutions. Driven by Iraq’s ongoing economic development and the strategic importance of the financial sector in fostering sustainable growth, the study assesses both the direct effects of these technologies and practices on BP and the extent to which FIMP shapes these relationships. Data were obtained through a cross-sectional survey, yielding 316 usable responses from senior executives and employees representing 45 financial institutions that actively utilise these technologies. The analysis was conducted using Partial Least Squares Structural Equation Modelling (PLS-SEM) through SmartPLS 4. The results demonstrate that AIS, AI, CC, and FIMP each contribute positively and significantly to BP. Nevertheless, the moderating influence of FIMP produced varied outcomes. Specifically, FIMP exerted a significant negative moderating effect on the relationship between CC and BP, while its interaction with AIS and AI showed no statistically significant impact on BP. These results indicate that although robust financial structures and management mechanisms can directly improve organisational performance, they may simultaneously constrain the adaptability required to maximise the benefits derived from cloud-based technologies.