Implementation of Accounting Information Systems in Ethiopia: Evidence from Small and Medium Enterprises in Bahir Dar City
Science Journal of Business and Management
Volume 6, Issue 6, December 2018, Pages: 107-115
Received: Sep. 28, 2018; Accepted: Jan. 5, 2019; Published: Jan. 28, 2019
Views 287      Downloads 65
Author
Abera Aynekulu Abate, Department of Accounting and Finance, Debark University, Gondar, Ethiopia
Article Tools
Follow on us
Abstract
Understanding the interplay between information technology implementation and productivity growth is the foundation for projecting the future economic growth rate of developing countries in general and the development of Small and Medium enterprises (SMEs) in particular. The study explores factors affectingimplementation of Accounting Information Systems (AISs) among SMEs in Ethiopia takingSMEsin Bahirdarcityas a reference. In doing so, mixed research approach was found to be appropriate in this study. Besides, in order to collect data, self-administeredstructured questionnaire and in-depth interview tools were utilized. The statistical societies of the study were included using random sampling technique with cross-sectional surveydesign. Collected data were analyzed using SPSS software version 22 and descriptive statistics and regression analysis were made to find answers for pre-determined hypotheses. Given the dichotomous response to the dependent variable (AISs implementation), binary logistic regression model was used aimed to identify major influential factors. The result of the study foundthatimplementation of AISs is at its lowest level among SMEs in Ethiopia and factors such asgovernment support, employees’ IT competence, complexity of AISs, organizational readiness, and owner (manager) support were found to be significantly influencing AISs implementation in Ethiopia. The study helps concerned stakeholdersto understand determinants of AIS technologies implementation among SMEs in Ethiopia and thereby helps todesign appropriate policies that would modernize and automate their accounting systems and practices. This study also contributes to AIS literature on determinants of AISs implementation among SMEs in developing countries.
Keywords
Accounting Information Systems, Implementation, Small and Medium Enterprises, Ethiopia
To cite this article
Abera Aynekulu Abate, Implementation of Accounting Information Systems in Ethiopia: Evidence from Small and Medium Enterprises in Bahir Dar City, Science Journal of Business and Management. Vol. 6, No. 6, 2018, pp. 107-115. doi: 10.11648/j.sjbm.20180606.12
Copyright
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
References
[1]
United Nations Industrial Development Organization, 2015. Industrial Development Report, 2016. The Role of Technology and Innovation in Inclusive and Sustainable Industrial Development. Vienna, Austria.
[2]
Addis Fortune newspaper (September, 2016), Interview with AsfawAbebe, Director of Small and Medium Manufacturing Industry Development Agency. Addis Ababa, Ethiopia.
[3]
Jabar, J., Soosay, C., Santa, R. (2010). Organizational learning’s an antecedent of technology transfer and new product development: A study of manufacturing firms in Malaysia. Journal of Manufacturing Technology Management, 22(1).
[4]
Lim, C. F. (2013). Impact of Information Technology on Accounting Systems. Asia-pacific journal of Multimedia Services Convergent with Art, Humanities, and Sociology, 3(2).
[5]
Sailer, E. R. (1966). Accounting, Information systems, and underdeveloped nations. The Accounting Review, 41(4), 652-656.
[6]
Ndekwa, G. A. (2015). Determinants of adopter and non-adopter of computerized accounting information systems among small and medium enterprises in Tanzania. International Journal of Innovative Science, Engineering & Technology, 2(1), 438-449.
[7]
Grande, Estebanez, &Colomina (2011). The impact of Accounting Information Systems (AIS) on performance measures: empirical evidence in Spanish SMEs. The International Journal of Digital accounting Research, 11(1).
[8]
Abate, A. A. (2018). Determinants of Accounting Information Systems adoption in Ethiopia: Empirical evidence from large and medium manufacturing enterprises in Addis Ababa. International Journal of applied research, 4, 4-12.
[9]
Alamin, A., Yeoh, W., Warren, M. & Salzman, S. (2015). An empirical study of factors influencing accounting information systems adoption among accountants. Twenty-Third European conferences on Information Systems, Münster, Germany.
[10]
Lutfi, A. A., Indris, M. K., &Mohamad, R. (2016). The influence of Technological, Organizational & Environmental factors on accounting information systems usage among Jordanian small and medium-sized enterprises. International journal of economics &financial issues, 6(7), 240-248.
[11]
Nyang’au, R. N., Okibo, B. W., & Nyanga’u, A. (2015). Constraints affecting adoption of computerized accounting systems in Nyeri, Kenya. International Journal of Economics, Commerce and Management, 3(5), 1536 - 1554.
[12]
Sam, M. F. M., Hoshino, Y., & Tahir, H. N. (2012). The adoptions of computerized accounting systems in small and medium enterprises in Melaka, Malaysia. International Journal of Business and Management. 7(18), 12-25.
[13]
Ngadiman, Pambudi, D., Wardani, D. K, & Sabandi, M. (2014). Determinants of accounting information technology adoption in Syria microfinance institutions. Journal of Asian Social Science, 10(14), 93-105.
[14]
Awosejo, P. P., Ajala, E. B., & Agunbiade, O. Y. (2014). Adoption of Accounting Information Systems in an Organization in South Africa. African Journal of Computer & ICT, 7(1), 127-136.
[15]
Rosli, K., Yeow, P. H., & Eu-Gene, S. (2013) Adoption of Audit Technology in Audit Firms. 24th Australasian Conference on Information Systems. Melbourne, Australia.
[16]
Muhrtala, O., & Ogundeji, G. M. (2013). Determinants of accounting software choice. An empirical approach. Universal Journal of Accounting and Finance, 2(1), 24-31.
[17]
Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS quarterly, 3(27), 425-478.
[18]
Edison, G., Manuere, F., & Joseph, M. (2012). Evaluation of factors influencing adoption of accounting information system by small to medium enterprises in Chinhoyi. Interdisciplinary journal of contemporary research in business, 4(6), 1126-1141.
[19]
Thong, J. Y. L. (1999). An Integrated Model ofInformation Systems Adoption in Small Businesses. JournalofManagement Information Systems, 15(4), 187-214.
[20]
Damanpour, F., and Schneider, M. (2009). Characteristics of Innovation and Innovation Adoption in Public Organizations: Assessingthe Role of Managers. Journal of Public Administration Research and Theory, 19(3), 495-522.
[21]
Al-Qirim, N. (2007). The adoption of e-commerce communications and applications technologies in small businesses in New Zealand. Electronic Commerce Research and Applications, 6, 462-473.
[22]
Premkumar, G., & Roberts, M. (1999). Adoption of new information technologies in rural small businesses. Omega: International Journal of Management Science, 27(4), 467–484.
[23]
Ismail, W. N. S & Ali, A. (2012). Conceptual model for examining the factors that influence the likelihood of computerized accou20nting information systems (CAIS) adoption among Malaysian SMEs. International Journal of Information Technology and Business Management, 15(1), 122-151.
[24]
Kumlachew, M. (2015). Technology adoption of Ethiopian manufacturing firms: the case of Textile and Leather sector. Master’s thesis submitted to Public Administration and Development Management of Addis Ababa University, Ethiopia.
[25]
Greene, W. H. (2003). Econometric analysis. 5th edition, Prentce Hall, Inc.
[26]
Micro and small enterprises development strategy, provision framework and methods of Implementation (2011). Federal democratic republic of Ethiopia. Addis Ababa, Ethiopia.
[27]
Field, A. (2009). Discovering statistics using SPSS. 3rd edition. SAGE publications inc. Los Angeles, USA.
[28]
Gujarati, N. D. (2003). Basic econometrics. 4th edition. McGraw-Hill. New York, USA.
[29]
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E. and Tatham, R. L. (2010). Multivariate data analysis (7th ed.), Prentice Hall Upper Saddle River, NJ.
[30]
Amanamah, R. B., Morrison, A., &Asiedu, K.(2016). Computerized Accounting Systems Usage by Small and Medium Scale Enterprises in Kumasi Metropolis, Ghana. Research Journal of Finance and Accounting, 7, 16-29.
[31]
Juris, U. (2011). Information and communications technology factors for adoption andusage determinants in Latvian companies, doctoral thesis, Latvia.
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186