The Impact of Technology Readiness on Usage of Accounting Software among Small and Medium Enterprises in Kurunegala District

Abstract

Technology in many cases, are rapidly changing faster than the employee’s knowledge, skills, awareness and compliance. Therefore, some organizations or some people reject to manipulate the technology for their accounting functions. Therefore, there is a problem implementation of IT does sufficient for enhancement of usage accounting software packages. The objective of this paper is to investigate the significant impact technology readiness on usage of accounting software among small and medium enterprise. To achieve this objective this empirical survey using closed ended questionnaire. This survey results revealed that almost half of the responded SMEs have reported that, there is a moderate impact of technology readiness on usage of accounting software among SMEs in Kurunegala district. Positive and negative related beliefs of technology readiness have affected this moderate impact. It seems that small and medium enterprises are suffering some curiosity in presenting financial reports using accounting software packages whether their organization is fully embraces with technology. As the results reveled in this study recommended Usage of accounting software in SMEs should improve rather than the manual method. However, security threats of technology, reluctance of users’ CAS knowledge and skills, mind set and human habit, are affecting negatively for usage. So through this study hope to find out that, how technology TR impact on usage of accounting software among SMEs. For this study selected 383 respondents and responses were collected by using closed ended questionnaire and analyzed using SPSS 22.0 version. This research has used a famous model which has been presented by the parasuraman, that is technology readiness model. The study survey revealed that drivers of technology readiness, optimism and innovativeness are positively impact and inhibitors of technology readiness, discomfort and insecurity are negatively impact on usage of accounting software. It is proving after rejecting all null hypothesis.

Keywords: Small and Medium Enterprises (SMEs), Technology Readiness (TR), Computerized Accounting System (CAS), Statistical Practical Software System (SPSS), Information Technology (IT)