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While adopting knowledge management can improve firm performance, it is determined by use of accounting information system. Furthermore, it plays mediating role in the relationship between accounting information system and organization performance. This paper employs regression analysis using SPSS 20 to investigate causal relationships among the variables and to examine the mediation of knowledge management. The empirical findings from a survey of 350 employees in SMEs industrial firms in Jordan confirmed that knowledge management exert a mediating effect on the relationship between accounting information system and organization performance. The main implication of the findings for firms is that use accounting information system working are more likely to achieve higher performance, as a result of strengthened knowledge management. The findings offer evidence on relationships among the variables as well as mediating role of knowledge management in effect of accounting information system on firm performance. This paper is useful to management researchers as well as business managers.

The Effect of Accounting Information System on Organizational Performance in Jordanian Industrial SMEs: The Mediating Role of Knowledge Management