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

Abstract

The increasing competition and the highly demands of globalization, Malaysia government attempt for SmallMedium Enterprise, SME for the development of innovative, competitive with high technology. Computerizedaccounting 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 theadoption among SMEs in Melaka. A survey was carried out through a set of questionnaires to examine the CEOInnovativeness Factors Scale, Perceive Usefulness Factors Scale, Perceive Ease of Use Factors Scale andBusiness 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 descriptivestatistics, 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 thesignificant of independent variables and proved the relationships have been substantiated to the dependentvariable which contribute to the usage of CAS adoption between SMEs in Melaka. The findings indicate thatCEO innovativeness; perceive ease of use and business competitiveness negatively correlated to the adoption ofCAS. 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 thatCEO 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.