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Computerized Accounting Case Study

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Objective of the Study This study aims to determine the factors for non-adoption of computerized accounting among merchandising SME’s in Davao City.
Specifically, this will seek to attain the following objectives:
1. To determine the profile of Small Medium Enterprises (SME’s) in Davao City in terms of: 1.1 Firm’s size 1.2 Firm’s age
2. To determine the factors for non-adoption of computerized accounting.
Statement of Hypothesis
Ho: There is no significant difference of the factors for non-adoption in relation to the profile
Significance of the Study The study gives information on computerized accounting system on SME’s in Davao City as a basis for financial reporting. This study provides benefits for the following: Computerized accounting …show more content…

Factors for Non-adoption of Computerized Accounting. Wang (2004), established that accounting information technology adoption by the SMEs in West China has a relatively low success rate due to various reasons, such as the relatively low development degree of the marketization, economically backwardness, apart from the small-size, poor credit reputation, and weak innovation capability. Small equity capital is caused by failure to secure loans from banks and other lenders due to lack of collateral security and high probability of failure. Gibson et al (2000) suggested that AIS adoption and implementation could be a highly complex task in which strong managerial and strategic competences are required to achieve the best fit between the business peculiarities and the system itself and to deal with the unavoidable organizational impact induced by AIS. Both strong managerial and strategic competencies are a deficiency in SME’s and thus it results in failure to …show more content…

This study is anchored on the theory of Attawel’s (2004) that companies tend to delay technology adoption due to the lack of knowledge about how to implement and operate AIS.
Similarly, Ismail and King (2007) noted the lack of managers understanding of strategic accounting information inhibits SME’s from aligning their AIS capacity with AIS requirements.
Conceptual Framework
This study aims to determine the factors for non-adoption of computerized accounting by merchandising SMEs in Davao City and their profile. Figure 1 shows the moderating and main variable

Figure 1.0 Conceptual Framework of the Study
Graham and Nikkinen (2012) stated that firm size refers to total assets of owners and management to finance the company, company’s age or its number of years affects technological innovation. The main variable is the response of non-adapters of Accounting Information System among Small-Medium Enterprises. It shows on how non-adapters of AIS by SMEs in Davao City respond to adapting AIS that focused on recording, summarizing and validating of data about business financial

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