The Adoption of Computerized Accounting System in Small Medium Enterprises in Melaka, Malaysia

International Journal of Business and Management; Vol. 7, No. 18; 2012

14 Pages Posted: 21 Jan 2013

See all articles by Mohd Fazli Mohd Sam

Mohd Fazli Mohd Sam

University of Technical Malaysia Melaka; Aichi University

Yasuo Hoshino

International Pacific University

Md Nor Hayati Tahir

University of Technical Malaysia Melaka

Date Written: September 16, 2012

Abstract

The increasing competition and the highly demands of globalization, Malaysia government attempt for Small Medium Enterprise, SME for the development of innovative, competitive with high technology. Computerized accounting system (CAS) adoption may be decisive factor for an organization to be success and also to survive. This research project which aimed to investigate SME practice of CAS and to identify the factor affecting the adoption among SMEs in Melaka. A survey was carried out through a set of questionnaires to examine the CEO Innovativeness Factors Scale, Perceive Usefulness Factors Scale, Perceive Ease of Use Factors Scale and Business Competitiveness. The sample selected comprised of CEOs of SMEs in three districts in Melaka, namely Melaka Tengah, Alor Gajah and Jasin. The data gathered were coded and analyzed using descriptive statistics, linear regression analysis, Pearson Correlation analysis and Analysis of Variance (ANOVA). This study reveals that CAS adoption rate in SMEs in Melaka is high. Results from the analysis also shown the significant of independent variables and proved the relationships have been substantiated to the dependent variable which contribute to the usage of CAS adoption between SMEs in Melaka. The findings indicate that CEO innovativeness; perceive ease of use and business competitiveness negatively correlated to the adoption of CAS. Results reveals that only perceive usefulness are significantly positive correlated to CAS adoption. Therefore it can be deduced that adoption of CAS among SMEs in Melaka is caused by its usefulness. The findings reveal that types of business and business location influence the adoption of CAS. However, size (paid up capital, sales turnover and number of employee) do not influence the adopter. Results also indicate that CEO literacy on ICT, accounting and CAS has influence the responded CEO to adopt CAS in their business. However, the advantages by using the accounting systems software were not fully utilized by CAS adopters.

Keywords: computerized accounting system, small and medium enterprise, adoption, innovativeness, business competitiveness

Suggested Citation

Mohd Sam, Mohd Fazli and Mohd Sam, Mohd Fazli and Hoshino, Yasuo and Tahir, Md Nor Hayati, The Adoption of Computerized Accounting System in Small Medium Enterprises in Melaka, Malaysia (September 16, 2012). International Journal of Business and Management; Vol. 7, No. 18; 2012, Available at SSRN: https://ssrn.com/abstract=2204182

Mohd Fazli Mohd Sam (Contact Author)

Aichi University ( email )

Grad. Sch. Acc. 2-10-31
Tsutsui, Higashi-ku
Nagoya, 461-8641
Japan

University of Technical Malaysia Melaka ( email )

Hang Tuah Jaya
Durian Tunggal
MELAKA, AK MELAKA 76100
Malaysia

Yasuo Hoshino

International Pacific University ( email )

Faculty of Bus Ad. 721
Kannonji Seto-cho, Higashi-ku
Okayama, 709-0863
Japan
+81-86-908-0371 (Phone)
+81-86-908-0280 (Fax)

HOME PAGE: http://yasuohoshino.com

Md Nor Hayati Tahir

University of Technical Malaysia Melaka ( email )

Hang Tuah Jaya
Durian Tunggal
MELAKA, AK MELAKA 76100
Malaysia

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