Several surveies about little concern IT acceptance carried out by Thong ( 1999 ) , Harrison, Mykytyn and Riemenschneider ( 1997 ) , Cragg and King ( 1993 ) , Moore and Benbasat ( 1991 ) , and Treadgold ( 1990 ) have identified a assortment of actuating factors. But, Thong ( 1999 ) has farther categorized the factors into four elements:
1. Features of the direction:
2. Features of the technological invention ;
3. Features of the organisation ; and
4. Features of the environment in which the organisation operates.
2.2 Characteristics of Management
Rizzoni ( 1991 ) stated that the features of little concern directors were critical in finding the organisation ‘s attitude to IT. In big concerns, group squads are normally involved in the IT decision-making procedure. This is in contrast to little concern where the proprietor is normally the IT determination shaper. Thong ( 1999 ) asserted that the three chief features of proprietor or director which influenced IT acceptance are:
self-control to introduce,
computing machine self-efficacy,
and degree of instruction and accounting apprehension.
2.2.1 Willpower to introduce
Some lexicons define invention as a alteration made in the constituted manner of making things. In this context, invention means the procedure of altering the manner of fixing fiscal studies from manual system to the usage of computing machine package ( accounting package bundle ) as a tool for entering and treating accounting minutess and fiscal studies. In a little and medium concern, the proprietor is the 1 who is responsible for the direction of the concern ( Thong, 1999 ) . So, the features of proprietors and direction are of import determiners of the invention attitude since they are the main individuals to take determinations. If the proprietor or director is non an pioneer, he/she will seek solutions that have already been tried and understood. On the other manus, the proprietor or director who wants to introduce will prefer solutions that have non been tried out and are hence hazardous ( Kirton, 1984 ) . However, if the owner-manager has non the self-control to introduce, there is nil that other members of the concern can make to utilize computing machines for accounting plants ( Thong, 1999 ) .
2.2.2 Computer self-efficacy
Compeau and Higgins ( 1995 ) defined computing machine self-efficacy as a “ opinion of one ‘s capableness to utilize a computing machine ” . Small concerns ‘ directors who have undertaken computing machine preparation and possess computing machine self-efficacy are more likely to implement IT ( Delone 1988, Raymond 1988 ) . However, Gableand Raman ( 1992 ) found that directors in several houses do non possess computing machine cognition and that they are less concern or have no thought of the likely benefits derived from the usage of computing machines in accounting. So, if directors could be educated about the benefits derived by utilizing general package and accounting package bundle, they would be willing to follow such computing machine engineering to treat accounting informations and bring forth timely relevant and dependable fiscal studies.
2.2.3 Degree of Education and Accounting apprehension
In some states and in some concerns, directors neither studied the accounting topic at all nor the accounting topic in the secondary degree or third degree. Since they do non cognize how to fix histories and fiscal statements or since they have small cognition about accounting, they outsource the activities of the accounting rhythm to public accounting houses. Consequently, the proprietors are non cognizant of the importance and the usage of accounting information every bit good as the benefits of utilizing computing machines to do easy accounting plants ( Lees, 1987 ; DeLone, 1988 ; Neidleman, 1979 ) . So, reluctance of computing machine package acceptance still exists because concern procedure outsourcing reduces the deficiency of accounting apprehension of proprietors. Therefore, if directors have high degree of accounting instruction or if they could be educated about the benefits of computing machine engineering to bring forth speedy and accurate accounting information, so there would be a greater chance that they implement a CAS.
2.3 Features of the Technological Invention
The features of the technological invention itself are besides an of import determiner in the determination to follow a CAS. Rogers ( 1983 ) outlined the desirable features of technological invention in footings of its comparative advantage, compatibility, complexness, and observation. These footings are defined as:
Relative advantage: how much technological invention ( computing machine package ) must be perceived better than the predecessor system ( manual accounting clerking ) ;
Compatibility: how technological invention must be consistent with the demands of the adoptive parent ( proprietors or troughs ) , such as bring forthing speedy studies as expeditiously and efficaciously as possible,
Complexity: how hard technological invention ( computing machine package ) is perceived to be to larn and utilize,
Observation: how much clip it takes for the consequences of technological invention ( computing machine package ) to happen and bring forth benefits, and
Over the past decennary, the coming of powerful, low cost personal computers together with user-friendly accounting package, have improved and lifted the barriers to IT invention. This has led to an addition in the acceptance of IT in the accounting sector of little concern ( Thong 1999 ) .
2.4 Features of the Organization
Research surveies of Fink ( 1999 ) , Burgess ( 1998 ) , Wenzler ( 1996 ) , Attewell ( 1992 ) , Yap ( 1990 ) , and Delone ( 1988 ) analyzed that the features of an organisation in act uponing the determination whether or non to follow IT. For case such organisational features are concern size, industry sector, and information-intensity. By and large, it is believed that the larger the figure of employees, the greater the gross revenues turnover, and the more information-intensive the industry, so the more likely a little concern will follow IT invention. But, little concerns tend to endure a deficiency of resources ( Thong 1999 ) in footings of fiscal capacity, available clip and IT skilled staff to ease invention acceptance. Consequently, a deficiency of resources raises the barrier to invention acceptance in little concern ( Attewell 1992 ) .
2.4.1 Business Size
The findings of Dewar and Dutton ( 1983 ) and Moch and Morse ( 1977 ) indicate that larger concerns have more fiscal resources and more physical capacity to ease the set up of a computerized accounting web. On the contrary, directors of little and average houses do non hold the same sum of fiscal resources and internal information system expertness every bit compared to big concerns. Therefore little and average concerns are less likely to follow Information Technology than big concerns ( Ein-Dor and Segev, 1978 ) . Further literature by Alpar and Reeves ( 1990 ) argued that if little concerns employ workers who have specialized accomplishments, such as cognition of accounting package bundles, so there is a more opportunity to switch from manual system to computerise system. This statement is supported in John Breen and Nick Sciulli ( 2002 ) survey, there were some clear differences between concerns that use computing machines for accounting plants and those that do their histories readying manually. In fact, those that do their histories readying manually employ less people and gaining an one-year turnover non transcending $ 1 million whereas more than a 3rd those concerns that use computing machines for accounting plants had more than 5 employees and about 80 % had a turnover in surplus of $ 1million.
2.4.2 Information Intensity
Businesss in different sectors have different information-processing demands, and those in more information-intensive sectors are more likely to follow IT to enter minutess and fix histories and bring forthing timely fiscal studies than those in less information-intensive sectors ( Yap, 1990 ) . In add-on, Porter and Millar ( 1985 ) have notified that greater information strength will take to greater utilizations of IT in concerns. Greater information strength will take the proprietor or director of little concern to comprehend computing machines as major competitory tools and hence increase the likeliness and of utilizing computing machine package.
2.4.3 Industry SEcTOR
Several research workers argued that some peculiar industries are more likely to computerise record maintaining than others. Harmonizing to the Australian Bureau of Statistics ( ABS ) 1999-2000 study, Business Use of Information Technology concerns in the belongings, concern services, electricity, gas and H2O supply industries had the highest usage of computing machines whilst the lowest computing machine usage was in the personal and other services, adjustment, coffeehouse, eating houses, conveyance, storage, retail and building. Therefore, industries in which there are more trading activities and dealing processing are more likely to implement a CAS.
2.5 Features of the Business Environment
Variables such as competition, external agents, external accounting house and comptrollers affect the features of the environment in which an organisation operates and the determination to follow a CAS.
Competition is that act or province of seeking difficult to win or derive something wanted by others. In today ‘s extremely competitory commercial clime, it is indispensable non merely to hold good information on the yesteryear and the present, but besides on the hereafter. Computerized histories ( Accounting package ) go beyond a manual system by taking the analyses of histories and widening them to give prognosiss of future tendencies. Link and Bozeman ( 2001 ) recognized that competition leads to innovative engineering acceptance and hence, competition is by and large believed as a major influence to increase the likeliness of IT acceptance ( Ives & A ; Learmonth, 1984 ; Link & A ; Bozeman, 1991 ) .
2.5.2 External Agents
Treadgold ‘s ( 1990 ) survey point out that external agent, such as trade associations, jobbers, voluntary groups and franchisers, had influenced acceptance of IT ( CAS ) in little concerns because they were looking for speedy and accurate accounting informations that merely a computerized system can supply. Furthermore, Wenzler ( 1996 ) found that little concern ‘s clients were a important ground for implementing IT, more than the influence of rivals. Still, due to miss of resources, many little concerns do non hold the available clip or financess to beginning, analyze, reappraisal and implement package applications. Fortunately, Public Practice Accountants are in a better place to supply systems analysis, design, execution, and support advice to their clients. Sometimes comptrollers could besides supply this service more expeditiously and efficaciously, than if the little concern proprietor performed the map himself or herself.
2.5.3 Role of comptroller in the acceptance of IT
Since several little and average concerns outsource their operation dealing entering and describing to external accounting houses, there are close relationships between little and medium concern proprietors and comptrollers. In add-on, little and average concerns rely to a great extent on accounting houses as their most sure concern advisers ( Davis, 1997 ) . Accounting houses have more cognition about their clients and their clients ‘ concern, that is, they know what their aims are, and can propose ways to accomplish those aims. Hence, accounting houses can significantly act upon IT acceptance among little and average concerns and furthermore those accounting houses ‘ engagement may besides lend to the success of computerized accounting execution as suggested by Yap et Al. ( 1992 ) .
Furthermore, ASCPA ( 1992 ) and Breen et Al. ( 1994 ) supported in their surveies that an comptroller can help a concern in the buying and execution of accounting package in the concern accounting rhythm since they spent much of their clip on following accounting pattern with accounting criterions. On the other manus, many concern directors are non cognizant of the extra services provided by comptrollers ( Oran 1988 ; and Shannon 1986 ) . In add-on, directors do non confer with comptrollers until a job arises ( Holmes 1987 ) . Accountants are the 1s who are most likely traveling to supply accounting package advice and support to their clients. Such recommendations are an efficient and effectual manner for concerns to choose accounting package ( Wenzler 1996 ) . As good, Gorton ( 1999 ) found that concerns that were freshly established were more likely to near an comptroller for advice than more mature concerns.
However, comptrollers must understand the impact of the usage of computing machines on the accounting processs and controls that are designed to minimise mistakes and prevent fraud. Computer package can automatize much of the everyday clerking procedures in the manual accounting systems ( e.g. poster, test balance readying ) but computing machines can non replace the judgement and penetration of knowing comptrollers. Computer package permits the comptroller to concentrate more on understanding the impact of accounting entries and methods on fiscal studies. By using accounting package more of the comptroller ‘s attempts can be focused on helping direction in understanding the impact of funding, puting and runing determinations on fiscal statements and other steps of public presentation.
2.6 Reluctance to the application of IT
Many little concerns are careful about computing machine and the function it may hold in their house. A hapless pick of hardware or package, or unequal planning when a CAS is installed can all make troubles and may hold serious long-run effects. There are several grounds systematically mentioned in literature to propose why some concerns are non willing to computerise their accounting rhythms and they are explained below.
2.6.1 Lack of Time
The research of Proudlock et Al ( 1999 ) observed that some concerns proprietors did non follow Information Technology in the fiscal accounting system because they did non hold adequate clip to happen and purchase peculiar accounting package that satisfy their concern demands, and they do non hold clip to put up the accounting package and to enter the daily concern minutess. Whilst, John Breen and Nick Sciulli ( 2002 ) found that concern operators who lack the clip to look into and or implement a computing machine package bundle are likely to hold troubles happening clip to implement a CAS. Therefore, it would look that if the proprietors or directors could hold the necessary direction and fiscal accomplishments, it may hold a good consequence on the concern overall and may assist to happen the clip to do usage of a CAS. Indeed, there is grounds in McMahon ( 2001 ) survey where it is suggested that utilizing a computerized record maintaining system really improves direction in little concerns and frees up clip.
The cost involved when pass throughing from manual system to computerized histories is besides a major trouble for little houses. Harmonizing to Head ( 2000 ) research survey, many little concern directors were loath to utilize computing machine package in the accounting system because they believed that it was a dearly-won investing. Furthermore, Head ( 2000 ) further stated that:
‘..small concern calls hapless when it comes to purchasing computing machines. ‘
It is farther advocated in the survey of John Breen and Nick Sciulli ( 2002 ) that the cost of computerising the history record maintaining procedure was seen as an obstruction chiefly from the point of the direct impact on the fiscal resources of the concern. More than half of the respondents in John Breen and Nick Sciulli ( 2002 ) survey agreed that cost is an issue particularly freshly established concerns do non hold strong hard currency flows at this phase to computerise their concerns ‘ fiscal accounting processing.
2.6.3 Lack of IT accomplishments
Accountants who do non cognize how to make his work on computing machine will evidently non traveling to act upon direction ‘s determinations to implement a CAS. John Breen and Nick Sciulli ( 2002 ) believed that there are some implicit in causes that may necessitate to be considered for the deficiency of IT accomplishments and computing machine cognition. The fact that older and less educationally qualified concern enterprisers lack assurance in their IT skills is rather apprehensible given that IT skill development is a more recent phenomenon and is normally introduced within educational plans. It would be hard to seek to turn to this issue straight with such concern operators. However it may be possible to develop IT skills within these concerns via supplying free preparation in IT.
2.6.4 Business operators prefer manual system
John Breen and Nick Sciulli ( 2002 ) classified concern operators who were satisfied with making their record maintaining manually into two groups ; Firstly, those who were satisfied at the present clip, but who may seek to present computing machine engineering in the accounting system in the hereafter as their concern demands alteration. In add-on, given that many of the concerns in the portion of the sample were little concerns and rather immature, so, it is sensible to propose that their demands will alter as the concern grows. Second, those who were non informed about the benefits of computerized accounting minutess. This deficiency of cognition may be a farther consequence of the lack in IT skills as reported by about half of the respondents of the sample selected.
2.6.5 Other grounds for non following IT in Accounting
Proudlock, Phelps and Gamble ( 1999 ) suggested that the other grounds for non following computerized systems were: deficiency of IT knowledge, deficiency of fiscal resources, and the perceptual experience that IT would be of small usage to the concern. These findings are partially supported by the Australian Bureau of Statistics ( ABS ) 1999-2000 study, Business Use of Information Technology. Its chief determination is that the largest barriers to utilizing IT are that: concerns perceive that engineering is non suited to the nature of the concern, and deficiency appropriate accomplishments or preparation. The Burgess ( 1997 ) survey, which involved both IT users and non-users, indicated that the major IT jobs were: inefficient usage of the engineering, deficiency of IT expertness, and deficiency of be aftering for execution and preparation. Overall, the chief barriers to computerise accounting records and processing are:
deficiency of clip ( Proudlock et al. 1999 ) ,
owner-manager ‘s position that the computerized histories is dearly-won ( Head 2000 ) ,
perceptual experience that the engineering is non suited to the nature of the concern ( ABS 2000 ) , and
deficiency of IT expertness ( ABS 2000 ; Burgess 1997 ) .
This overview of past research surveies were all performed in little and average concerns outside Mauritius and they investigated the variables that influenced the usage of computing machine package in the accounting environment. Finally, these past surveies have raised an arguable issue in the literature. That is, respondents of most studies were little and average concerns. As a consequence, no comparings are made between public and private companies that use computing machine package. This comparing would be utile in foregrounding the grounds for utilizing or non utilizing computerized records, every bit good as what factors would promote concerns to follow IT irrespective of their size. This present survey seeks to turn to these issues by placing and measuring the factors act uponing the usage of IT ( CAS ) in private and public companies in Mauritius every bit good as the grounds for non following IT.