Computerised Accounting Information Systems Adoption among SMEs in Ghana

Abstract

Although SMEs are touted as the engines of economic growth, recent empirical findings suggest that non-application of appropriate Information Technology (I.T), and Improper Accounting Practices often lead to their non-performance. Yet to be successful in the Information Era requires businesses to apply I.T in managing key business functions like accounting. This therefore necessitates research at the intersection of I.T and accounting. The study sought to investigate constructs within the Technology-Organization-Environment Framework (TOE) and the Diffusion of Innovation Theory (DOI) that influence SMEs adoption of Computerised Accounting Information Systems (CAIS). Cross-Sectional Survey using Questionnaires was employed in gathering data from 194 SME owners in the Greater-Accra, Ashanti and Western Regions of Ghana. SMEs were drawn from databases of the National Board for Small Scale Industries, and the Association of Ghana Industries. Using the PLS-SEM technique of analysis, findings of the study suggest that SME owner innovativeness has significant direct, and indirect influence on CAIS adoption. Other factors which were found to have a significant influence on CAIS adoption include Government support, Relative advantage, and Cost of technology adoption. Neither competitive pressure, technology Complexity nor Security Concern were significant. It is recommended that policy directives aimed at increasing technology adoption be focused on ICT education and training programmes. Also, SMEs should consider adopting CAIS on the basis of Software-as-a-Service (SaaS) since it is relatively cheaper than locally hosted CAIS systems. The originality of the study lies both in the context of the study and in the fact that existing studies did not consider the mediating role of organizational readiness in technology adoption.