Iranian Journal of Finance

Accounting Modeling for Startups in the Financial Business Ecosystem

Document Type : Original Article

Authors

Touraj Bahrami 1
Saeid Jabbarzadeh Kangarluei 2
Ali Ashtab 3
Masoud Ahmadi Mansourabad 4

1 Department of Accounting, Ur. C, Islamic Azad University, Urmia, Iran

2 Department of Accounting, Ur.C., Islamic Azad University, Urmia, Iran

3 Department of Accounting, Faculty of Economics and Management, Urmia University, Urmia, Iran

4 Department of Accounting, Ma.C, Islamic Azad University, Mamaghan, Iran

10.30699/ijf.2025.513542.1509
Abstract
This research aims to model the accounting of startup companies within the financial business ecosystem.This research is philosophically based on the interpretivist paradigm and was conducted with an inductive approach. It is also applied - developmental in terms of purpose and descriptive in terms of method and data collection timeframe. A nested research design was used to achieve the research objective. The research participants included theoretical experts (professors of financial management and accounting) and empirical experts (managers of startup companies). Theoretical sampling was used until theoretical saturation was reached, and eventually, 24 individuals participated in the study. Data collection tools included semi-structured interviews and a questionnaire based on a decision matrix. The validity of the interview was confirmed based on four criteria: credibility, transferability, confirmability, and dependability. The reliability of the qualitative section was estimated to be favorable by calculating Holst's coefficient at 0.817 and Cohen's Kappa coefficient at 0.706. Data analysis was performed using grounded theory in the qualitative section and the SWARA method in the quantitative section. Based on the research model, it was determined that causal conditions (technical factors, managerial factors, governmental factors, and accounting factors) influence the core phenomenon (startup accounting). The core phenomenon, contextual conditions (financial business ecosystem infrastructure and financial business ecosystem financial resources), and intervening conditions (financial business ecosystem regulations) influence strategies and actions (technological strategy and financial strategy). This research provides a comprehensive model for understanding startup accounting within the financial business ecosystem. The findings highlight the critical influence of technical, managerial, governmental, and accounting-related factors on core accounting practices. Furthermore, the interplay between these practices, the broader ecosystem infrastructure, financial resources, and the regulatory framework shapes startups' strategic decisions (both technological and financial). These strategic choices, in turn, directly affect both the financial and non-financial performance outcomes of these nascent firms. The model underscores the need for a nuanced approach to startup accounting that takes into account the specific context of the financial business ecosystem.

Keywords

Startup Accounting
Business Ecosystem
Financial Business
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Iranian Journal of Finance
Volume 9, Issue 3
2025
Pages 135-165

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