Assessing the Influence of Adopting Innovative Accounting Information System in Small and Medium Scale Enterprises in Ghana

Abstract

In the last decade, there has been much effort by small and medium international firms (SMEs) worldwide to adopt an accounting information system in both private and public sectors. In Ghana, many firms are moving into this sphere of technology, but the influence has not been critically looked at. This study explored the Technology Organization Environment Framework (TOE) that:

• Influences SMEs,
• Analyzes the influence of adopting Accounting Information Systems (AIS),
• Takes a critical look at the role of the owners in the adoption process

The Stratified random sampling was adopted to select 110 respondents from a target group. The primary data was gathered using structured questionnaires and interviews. Cross-Sectional Survey was adopted using questionnaires and gathered data from 110 SMEs in all 16 regions of Ghana. The Quantitative research design was used in the study, and the structural equation modeling technique was adopted in analyzing hypothesized relationships with the help of Smart PLS software. Descriptive and inferential statistics were used to analyze the quantitative data. The descriptive statistics were categorized into percentages, averages, standard deviations, and frequencies. The study revealed that the cost involved in acquiring, implementing, and maintaining AIS deters most Ghanaian entrepreneurs from adopting the technology. One of the greatest challenges of SMEs in Ghana is investing in technologies that will enhance the work and thus often hampers their effort to adopt the needed ICT innovations like AIS. It is recommended that AIS vendors are to develop favorable conditions for SMEs to arouse their interests.