ASSESSMENT OF FINANCIAL INVESTMENT FACTORS INFLUENCING THE ADOPTION OF COMPUTERIZED ACCOUNTING SYSTEM (CAS) FOR ENHANCED PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN ANAMBRA STATE, NIGERIA

Abstract

The need to enhance the performance of SMEs necessitated this study. The study assessed the financial investment factors that influence the adoption of Computerized Accounting System (CAS) for enhanced performance of small and medium scale enterprises (SMEs) in Anambra State, Nigeria. Two research questions and two null hypotheses guided the study. The study adopted survey research design, and 5,396 (3,137 managers and 2,259 accounting officers) of SMEs in Anambra State were used as the study population. Three hundred and sixty one (361) 361 managers and accounting officers of SMEs drawn using Krejcie and Morgan (1970) table for determining sample size was used as the sample size. A-12 item structured questionnaire containing 12 items on a Likert scale was face validated using three experts in the field of business education and measurement and evaluation. The reliability of the instrument was established using a trial testing and scores obtained were subjected to Cronbach Alpha formula which yielded correlation coefficients of. 87 and .87 for clusters B1 to B2 respectively with an overall reliability value of .87 obtained. The researcher administered copies of the questionnaire to the respondents with the help of three researcher assistants. Statistical mean and t-test were used to analyze data collected. Findings of the study showed that managers and accounting officers agreed that investments-in-fixed and current assets factors influenced the adoption of CAS for i enhanced performance of SMEs. It was also found that position in the company was not a significant factor in the mean ratings of managers and accounting officers regarding the influence of investments-in-fixed and current assets factors on the adoption of CAS for enhanced performance of SMEs. Based on the findings of the study, the researchers conclude that investment in fixed and current assets factors influence the adoption of CAS for enhanced performance of SMEs. It was recommended among others that; owners of SMEs in Nigeria should invest in both fixed and current assets so as to be able to fund the overall cost of implementing CAS for enhanced performance of SMEs.