Publication Information
Journal: NAU Journal of Technology and Vocational Education
Volume: 8 (2023)
FINANCIAL-RELATED FACTORS IN ADOPTION OF COMPUTERIZED ACCOUNTINGSYSTEM FOR IMPROVED PERFORMANCE OF SMALL AND MEDIUMSCALEENTERPRISES (SMEs) IN ANAMBRA STATE
Okoye, K. R. K
Department of Technology and Vocational Education, NAU, Awka
Onyeneke, Euphemia Nkiruka
en.onyeneke@unizik,edu,ng Department of Technology and Vocational Education, NAU, Awka
This study assessed the financial-related factors that influence the adoption of computerizedaccounting system (CAS) for improved performance of small and medium scale enterprises (SMEs)
in Anambra State. Two research questions and two null hypotheses guided the study. The studyadopted survey research design, and 5,396 (3,137 managers and 2,259 accounting officers) of SMEs
in Anambra State were used as the population of the study. The sample was 361 managers andaccounting officers of SMEs. Structured and validated questionnaire containing 10 items on a five- point Likert scale was used for data collection. The reliability of the instrument was established usingCronbach Alpha formula which yielded apha values of .88 and .78. Mean and t-test were usedtoanalyze the data. Findings of the study showed that managers and accounting officers agreed that fundaccessibility and fund management factors influenced the adoption of CAS for improved performance. It was also found that the mean ratings of managers and accounting officers do not differ regardinginfluence of fund accessibility and fund management factors on the adoption of CAS for improvedperformance of SMEs. Based on the findings of the study, the researchers conclude that fundaccessibility and fund management factors influence the adoption of CAS for improved performanceof SMEs. It was recommended among others that; government and financial institutions in Nigeriashould ensure that loans and credit facilities provided to SMEs are easily accessible
in Anambra State. Two research questions and two null hypotheses guided the study. The studyadopted survey research design, and 5,396 (3,137 managers and 2,259 accounting officers) of SMEs
in Anambra State were used as the population of the study. The sample was 361 managers andaccounting officers of SMEs. Structured and validated questionnaire containing 10 items on a five- point Likert scale was used for data collection. The reliability of the instrument was established usingCronbach Alpha formula which yielded apha values of .88 and .78. Mean and t-test were usedtoanalyze the data. Findings of the study showed that managers and accounting officers agreed that fundaccessibility and fund management factors influenced the adoption of CAS for improved performance. It was also found that the mean ratings of managers and accounting officers do not differ regardinginfluence of fund accessibility and fund management factors on the adoption of CAS for improvedperformance of SMEs. Based on the findings of the study, the researchers conclude that fundaccessibility and fund management factors influence the adoption of CAS for improved performanceof SMEs. It was recommended among others that; government and financial institutions in Nigeriashould ensure that loans and credit facilities provided to SMEs are easily accessible
Amanamah, R. B., Morrison, A. & K Asiedu, K. (2016). Computerized Accounting Systems Usageby Small and Medium Scale Enterprises in Kumasi Metropolis, Ghana. Research Journal of
Finance and Accounting, 7(16), 18-29. Anyanwu, C. M. (2013). The role of central bank of Nigeria in enterprises financing, Seminar onsmall and medium scale industries equity investments scheme. CBN Training Centre, Lagos.
Chuthamas, C., Aminul, I., Thiyada K. & Dayang, H. M. Y. (2016). Factors Affecting Business
Success of Small & Medium Enterprises (SMEs) in Thailand. Asian Social Science, 7(5), 27- 32. Demirgüç-Kunt, A., Beck, T. & Honohan, P. (2013). Finance for all? Policies and pitfalls inexpanding access. Washington, D.C. The World Bank. Retrieved January 20th, 2018. Gholami, M. (2018). Survey of the failure causes of unsuccessful entrepreneurs in Iran. PublishedM.Sc. dissertation. Sharif University of technology. Tehran. Iran (in Persian). Ikechukwu, N. S. (2021). Availability and utilization of modern instructional materials for teachingbusiness subjects in secondary schools in Anambra State. (Unpublished M.Sc. Thesis), Nnamdi Azikiwe University, Awka. Ikem, O. C., Onwuchekwa, F. C. & Titus, I. T. (2021). Financial challenges of small and medium- sized enterprises (SMEs) In Nigeria: The relevance of accounting information. Reviewof
Public Administration & Management, 1(7), 248-276. IMF (2019). Memorandum on economic and financial policies of the federal government of Nigeriafor 1999. International Monetary Fund. Retrievedfrom: :http://www.imf.org/external/np/loi/1999/022299.htm. Ismail, T (2012). The development of entrepreneurial social competence and business networktoimprove competitive advantage and business performance of small mediumsized enterprises:
A case study of batik industry in Indonesia. Procedia-Social and Behavioral Sciences, 65, 46–51. Mabula, J. B., and Ping, H. D. (2018). Use of technology and SME managers’ financial literacyindeveloping economies. ACM International Conference Proceeding Series, 9(6), 145– 152. https://doi.org/10.1145/3241748.3241765. Marivic, A. (2013). Evaluating the security of computerized accounting information systems. Anempirical study on Egyptian banking industry. Published PhD thesis, Aberdeen University, UK. Munasinghe P. G. & Munasinghe, D. S. (2016). Factors influence on usage of ComputerizedAccounting System on small and medium scale enterprises. Retrieved on 15
th November, 2022 from httpts://www.researchgate.net/publication/293172935 factors influence on usageof computerized accounting system on small and mediumscaleenterprises/link/56b620dc08aebbdela79c81f/download
Ndekwa, A. G. (2015). Determinants of adopter and non adopter of Computerizing AccountingSystem (CAS) among Small and Medium Enterprises (SMEs) in Tanzania. IJISET-
International Journal of Innovative Science, Engineering & Technology, 2(1), 438-449. Negalign, N. O. (2020). Determinants of financial performance of SME; In case of Gamo Zone, ArbaMinch Town, Southern Ethiopia. International Journal of Research in Business Studies andManagement, 7(2), 35-49. Nkwor- Azariah, C. & Nkwor, F. A. (2015). The impact of accounting and information systemontheperformance of small and medium scale enterprises in Rivers State, Nigeria. Greener Journal
of Economics and Accountancy, 4(1), 021-028. Obamuyi, T. M. & Ohachosim, C. I. (2018). Financial challenges of SMEs in Nigeria: Emergingtasks for the accountant. Published Masters Thesis, Department of Accountancy, Universityof Nigeria, Enugu Campus.
Ohachosim, C. I., Onwuchekwa, F. C. & Ifeanyi, T. T. (2012). Financial challenges of SMEs inNigeria: Relevance of accounting information. Review of Public Administration, 1(2), 248- 277. Rogers, A. D. (2016). Examining small business adoption of computerized accounting systems usingthe technology acceptance model. (Published PhD Dissertation), Walden University. Sapkota, S. P. (2022). Computerized Accounting Information System in Nepalssese SMEs. Journal of
Balkumari College, 11(1), 33-38. Terungwa, A. (2014). Risk management and insurance of small and medium scale enterprises (SMEs)
in Nigeria. International Journal of Finance and Accounting, 1(1), 8-17. Yusoff, N. H. (2012). Supporting the development of SMEs, bridging the services if Gap. Accountants Today, 19(8), 12–4.
Finance and Accounting, 7(16), 18-29. Anyanwu, C. M. (2013). The role of central bank of Nigeria in enterprises financing, Seminar onsmall and medium scale industries equity investments scheme. CBN Training Centre, Lagos.
Chuthamas, C., Aminul, I., Thiyada K. & Dayang, H. M. Y. (2016). Factors Affecting Business
Success of Small & Medium Enterprises (SMEs) in Thailand. Asian Social Science, 7(5), 27- 32. Demirgüç-Kunt, A., Beck, T. & Honohan, P. (2013). Finance for all? Policies and pitfalls inexpanding access. Washington, D.C. The World Bank. Retrieved January 20th, 2018. Gholami, M. (2018). Survey of the failure causes of unsuccessful entrepreneurs in Iran. PublishedM.Sc. dissertation. Sharif University of technology. Tehran. Iran (in Persian). Ikechukwu, N. S. (2021). Availability and utilization of modern instructional materials for teachingbusiness subjects in secondary schools in Anambra State. (Unpublished M.Sc. Thesis), Nnamdi Azikiwe University, Awka. Ikem, O. C., Onwuchekwa, F. C. & Titus, I. T. (2021). Financial challenges of small and medium- sized enterprises (SMEs) In Nigeria: The relevance of accounting information. Reviewof
Public Administration & Management, 1(7), 248-276. IMF (2019). Memorandum on economic and financial policies of the federal government of Nigeriafor 1999. International Monetary Fund. Retrievedfrom: :http://www.imf.org/external/np/loi/1999/022299.htm. Ismail, T (2012). The development of entrepreneurial social competence and business networktoimprove competitive advantage and business performance of small mediumsized enterprises:
A case study of batik industry in Indonesia. Procedia-Social and Behavioral Sciences, 65, 46–51. Mabula, J. B., and Ping, H. D. (2018). Use of technology and SME managers’ financial literacyindeveloping economies. ACM International Conference Proceeding Series, 9(6), 145– 152. https://doi.org/10.1145/3241748.3241765. Marivic, A. (2013). Evaluating the security of computerized accounting information systems. Anempirical study on Egyptian banking industry. Published PhD thesis, Aberdeen University, UK. Munasinghe P. G. & Munasinghe, D. S. (2016). Factors influence on usage of ComputerizedAccounting System on small and medium scale enterprises. Retrieved on 15
th November, 2022 from httpts://www.researchgate.net/publication/293172935 factors influence on usageof computerized accounting system on small and mediumscaleenterprises/link/56b620dc08aebbdela79c81f/download
Ndekwa, A. G. (2015). Determinants of adopter and non adopter of Computerizing AccountingSystem (CAS) among Small and Medium Enterprises (SMEs) in Tanzania. IJISET-
International Journal of Innovative Science, Engineering & Technology, 2(1), 438-449. Negalign, N. O. (2020). Determinants of financial performance of SME; In case of Gamo Zone, ArbaMinch Town, Southern Ethiopia. International Journal of Research in Business Studies andManagement, 7(2), 35-49. Nkwor- Azariah, C. & Nkwor, F. A. (2015). The impact of accounting and information systemontheperformance of small and medium scale enterprises in Rivers State, Nigeria. Greener Journal
of Economics and Accountancy, 4(1), 021-028. Obamuyi, T. M. & Ohachosim, C. I. (2018). Financial challenges of SMEs in Nigeria: Emergingtasks for the accountant. Published Masters Thesis, Department of Accountancy, Universityof Nigeria, Enugu Campus.
Ohachosim, C. I., Onwuchekwa, F. C. & Ifeanyi, T. T. (2012). Financial challenges of SMEs inNigeria: Relevance of accounting information. Review of Public Administration, 1(2), 248- 277. Rogers, A. D. (2016). Examining small business adoption of computerized accounting systems usingthe technology acceptance model. (Published PhD Dissertation), Walden University. Sapkota, S. P. (2022). Computerized Accounting Information System in Nepalssese SMEs. Journal of
Balkumari College, 11(1), 33-38. Terungwa, A. (2014). Risk management and insurance of small and medium scale enterprises (SMEs)
in Nigeria. International Journal of Finance and Accounting, 1(1), 8-17. Yusoff, N. H. (2012). Supporting the development of SMEs, bridging the services if Gap. Accountants Today, 19(8), 12–4.