Factors influencing adoption of computerized accounting information system by small and medium enterprises: case of jimma town small and medium enterprise

Abstract

The study investigated factors that influence adoption of accounting information system with respect to the barriers which can influence SMEs from taking advantage of CAIS system and expected benefits derived by adopting the system. A mixed research approach was used to answer the research questions that emerge through the review of existing literature. The study statistically analyzes data obtained from the survey questionnaire. A research framework developed based on technology-organization-environment framework and Technology acceptance model to guide the study to guide the study. A sample size of 125 SMEs were chosen from a population of 181 SMEs using the stratified sampling followed by random sampling. Questionnaires and interviews were used for data collection. The result of the study indicated that, the major barriers SMEs faces in the adoption of CAIS are, security risk, lake technological availability , lack vender support, lack computation, lack of government support, financial constraints, lack of skilled labor to implement CAIS, high implementation cost , lack of technical and managerial skills on the use technological innovation ,strongly influence non adoption of CAISs by SMEs whereas owner/manager’s resistance to changing, as well as Satisfaction with Manual System are weak predicators of non adoption by SMEs. The study also identified perceived ease of use and perceived usefulness as a driver of adopting CAIS. The researcher recommended government intervention through providing finance, subsidies as well as training on CAIS to SMEs through micro and small enterprise development agency for easy adoption.