CONCEPTUAL MODEL FOR EXAMINING THE FACTORS THAT INFLUENCE THE LIKELIHOOD OF COMPUTERISED ACCOUNTING INFORMATION SYSTEM ( CAIS ) ADOPTION AMONG MALAYSIAN SMES

The purpose of this study is to propose and discuss a conceptual model for investigating the influential factors of computerised accounting information systems (CAIS) adoption in Malaysian SMEs. This study examines the existing empirical studies in information technology (IT) and information systems (IS) adoption research related to adoption at organizational level. In particular, the Technological-OrganizationalEnvironmental (TOE) framework has been widely used in examining the factors influencing IT adoption. However, studies attempted to use this framework to measure CAIS adoption are limited. In contrast to other theories commonly used for explaining innovation adoption, TOE framework does not only cover the technological aspects but more importantly also explores their organizational and environmental contexts. Hence, this model provides a complete analysis of the possible aspects to be considered. The inclusion of Diffusion of Innovation (DOI) theory in the technological context and the application of Thong’s SME model make the proposed model more robust. A summary and conclusion along with research contribution, limitations, and the direction for future research are also presented in this paper.

[1]  A. Ozturk.  Factors Affecting Individual and Organizational Rfid Technology Adoption in the Hospitality Industry , 2010 .

[2]  B. Wernerfelt,et al.  A Resource-Based View of the Firm , 1984 .

[3]  Govindan Marthandan,et al.  E-commerce usage and business performance in the Malaysian tourism sector: empirical analysis , 2009, Inf. Manag. Comput. Secur..

[4]  Afzaal H. Seyal,et al.  A quantitative analysis of factors contributing electronic data interchange adoption among Bruneian SMEs: A pilot study , 2007, Bus. Process. Manag. J..

[5]  Thompson S. H. Teo,et al.  Adopters and non-adopters of e-procurement in Singapore: An empirical study , 2009 .

[6]  Nick Wilson,et al.  Working Capital and Financial Management Practices in the Small Firm Sector , 1996 .

[7]  Hong Cheong Looi,et al.  E-Commerce Adoption in Brunei Darussalam: A Quantitative Analysis of Factors Influencing Its Adoption , 2005, Commun. Assoc. Inf. Syst..

[8]  J. Thong,et al.  CEO characteristics, organizational characteristics and information technology adoption in small businesses , 1995 .

[9]  R. Barrett,et al.  Understanding financial information used to assess small firm performance: An Australian qualitative study , 2010 .

[10]  ThuyUyen H. Nguyen.  Information technology adoption in SMEs: an integrated framework , 2009 .

[11]  Princely Ifinedo,et al.  Understanding information systems security policy compliance: An integration of the theory of planned behavior and the protection motivation theory , 2012, Comput. Secur..

[12]  Hart O. Awa,et al.  Upper echelon theory (UET): A major determinant of information technology (IT) adoption by SMEs in Nigeria , 2011, J. Syst. Inf. Technol..

[13]  E. Anderson,et al.  The Antecedents and Consequences of Customer Satisfaction for Firms , 1993 .

[14]  Suzanne Nasco,et al.  Comparing theories to explain e-commerce adoption , 2011 .

[15]  David C. Yen,et al.  Factors affecting the adoption of electronic signature: Executives' perspective of hospital information department , 2007, Decision Support Systems.

[16]  B. Reich,et al.  EXECUTIVE DECISIONS ABOUT WEBSITE ADOPTION IN SMALL AND MEDIUM-SIZED ENTERPRISES , 2006 .

[17]  Chinyao Low,et al.  Understanding the determinants of cloud computing adoption , 2011, Ind. Manag. Data Syst..

[18]  Hsiu-Fen Lin,et al.  Empirically testing innovation characteristics and organizational learning capabilities in e-business implementation success , 2008, Internet Res..

[19]  Hsiu-Fen Lin,et al.  Determinants of e-business diffusion: A test of the technology diffusion perspective , 2008 .

[20]  N. M. Fadhil.  Managing Company’s Financial Among Small And Medium Non-Manufacturing Companies , 2011 .

[21]  M. Porter,et al.  How Information Gives You Competitive Advantage , 1985 .

[22]  Peter Kawalek,et al.  Predicting SMEs' adoption of enterprise systems , 2009, J. Enterp. Inf. Manag..

[23]  Ozgur Turetken,et al.  ORGANIZATIONAL ADOPTION OF INFORMATION TECHNOLOGIES: A LITERATURE REVIEW , 2012 .

[24]  Mohd Zulkeflee Abd Razak,et al.  End-User Computing Satisfaction (EUCS) in Computerised Accounting System (CAS): Which the Critical Factors? A Case in Malaysia , 2009, Comput. Inf. Sci..

[25]  Al Nahian Riyadh,et al.  The adoption of e-banking in developing countries: A theoretical model for SMEs , 2009 .

[26]  Rahat H. Bokhari,et al.  The relationship between system usage and user satisfaction: a meta-analysis , 2005, J. Enterp. Inf. Manag..

[27]  Tiago Oliveira,et al.  Understanding e-business adoption across industries in European countries , 2010, Ind. Manag. Data Syst..

[28]  James Y. L. Thong,et al.  An Integrated Model of Information Systems Adoption in Small Businesses , 1999, J. Manag. Inf. Syst..

[29]  Binshan Lin,et al.  Internet-based ICT adoption: evidence from Malaysian SMEs , 2009, Ind. Manag. Data Syst..

[30]  France Bélanger,et al.  Leveraging on Mobile Business to Enhance Firm Performance: an Organizational Level Study , 2012, ECIS.

[31]  Dan J. Kim,et al.  E-business for Nations: A Study of National Level E-business Adoption Factors Using Country Characteristics-Business-Technology-Government Framework , 2011, J. Theor. Appl. Electron. Commer. Res..

[32]  Fiona H. Rohde,et al.  Enacted Capabilities on Adoption of Information Systems: A Study of Small- and Medium-Sized Enterprises , 2015, Communications of the IIMA.

[33]  Michael J. Shaw,et al.  Standard Making: a Critical Research Frontier for Information Systems Misq Special Issue Workshop the Adoption and Diffusion of Interorganizational System Standards and Process Innovations , 2022 .

[34]  Long Zhang,et al.  Assessing the effects of service quality and justice on customer satisfaction and the continuance intention of mobile value-added services: An empirical test of a multidimensional model , 2012, Decis. Support Syst..

[35]  M. Proudlock,et al.  IT adoption strategies: best practice guidelines for professional SMEs , 1999 .

[36]  Kar Yan Tam,et al.  Factors Affecting the Adoption of Open Systems: An Exploratory Study , 1997, MIS Q..

[37]  M. Nasrin,et al.  Appreciation of Computerized Accounting System in Financial Institutions in Bangladesh , 2011 .

[38]  G. Premkumar,et al.  Adoption of new information technologies in rural small businesses , 1999 .

[39]  Felix Ter Chian Tan,et al.  A Perception-Based Model for Technological Innovation in Small and Medium Enterprises , 2010, ECIS.

[40]  Paul H. Schwager,et al.  SME ADOPTION OF WIRELESS LAN TECHNOLOGY: APPLYING THE UTAUT MODEL , 2003 .

[41]  Ramakrishnan Ramanathan,et al.  The impact of e-commerce on Taiwanese SMEs: Marketing and operations effects , 2012 .

[42]  Cynthia K. Riemenschneider,et al.  Executive Decisions About Adoption of Information Technology in Small Business: Theory and Empirical Tests , 1997, Inf. Syst. Res..

[43]  Patrick Y. K. Chau.  Inhibitors to EDI Adoption in Small Businesses: An Empirical Investigation , 2001, J. Electron. Commer. Res..

[44]  William H. DeLone.  Determinants of Success for Computer Usage in Small Business , 1988, MIS Q..

[45]  Princely Ifinedo,et al.  Internet/e-business technologies acceptance in Canada's SMEs: An exploratory investigation , 2011, Internet Res..

[46]  Afzaal H. Seyal,et al.  A Preliminary Investigation of E-Commerce Adoption in Small & Medium Enterprises in Brunei , 2003 .

[47]  Anol Bhattacherjee,et al.  Explaining information technology usage: A test of competing models☆ , 2008 .

[48]  Tiago Oliveira,et al.  Literature Review of Information Technology Adoption Models at Firm Level , 2011 .

[49]  A. Scupola,et al.  The Adoption of Internet Commerce by SMEs in the South of Italy: An Environmental, Technological and Organizational Perspective , 2003 .

[50]  M Azam,et al.  Adopting Standard Business Reporting (SBR) in Australia: Are CFOs Persuaded by Technology Attributes? , 2011 .

[51]  Kenneth L. Kraemer,et al.  Innovation diffusion in global contexts: determinants of post-adoption digital transformation of European companies , 2006, Eur. J. Inf. Syst..

[52]  Peter Kawalek,et al.  SME Adoption of Enterprise Systems in the Northwest of England - An Environmental, Technological, and Organizational Perspective , 2007, Organizational Dynamics of Technology-Based Innovation.

[53]  Cynthia K. Riemenschneider,et al.  Understanding it adoption decisions in small business: integrating current theories , 2003, Inf. Manag..

[54]  Richard G P Mcmahon,et al.  Growth and Performance of Manufacturing SMEs: The Influence of Financial Management Characteristics , 2001 .

[55]  Wen-Lung Shiau,et al.  Development of measures to assess the ERP adoption of small and medium enterprises , 2009, J. Enterp. Inf. Manag..

[56]  Sufi M. Nazem,et al.  Sources of software and levels of satisfaction for small business computer applications , 1990, Inf. Manag..

[57]  Moez Limayem,et al.  Understanding information systems continuance: The case of Internet-based learning technologies , 2008, Inf. Manag..

[59]  Viswanath Venkatesh,et al.  Determinants of Perceived Ease of Use: Integrating Control, Intrinsic Motivation, and Emotion into the Technology Acceptance Model , 2000, Inf. Syst. Res..

[60]  Izak Benbasat,et al.  Research Report: Empirical Test of an EDI Adoption Model , 2001, Inf. Syst. Res..

[61]  Huei-Huang Chen,et al.  Determinants of satisfaction and continuance intention towards self-service technologies , 2009, Ind. Manag. Data Syst..

[62]  Tom E. Yoon,et al.  An empirical investigation of factors affecting organizational adoption of virtual worlds , 2009 .

[63]  J. Michael Pearson,et al.  Electronic commerce adoption: an empirical study of small and medium US businesses , 2004, Inf. Manag..

[64]  Ajay Adhikari,et al.  Firm characteristics and selection of international accounting software , 2004 .

[65]  G. Prem Premkumar,et al.  A Meta-Analysis of Research on Information Technology Implementation in Small Business , 2003, J. Organ. Comput. Electron. Commer..

[66]  Steven D. Sheetz,et al.  The determinants of inter-organizational and internal in-house adoption of XBRL: A structural equation model , 2012, Int. J. Account. Inf. Syst..

[67]  Marvin D. Troutt,et al.  Decision Factors for the Adoption and Continued Use of Online Direct Sales Channels among SMEs , 2011, J. Assoc. Inf. Syst..

[68]  Upkar Varshney,et al.  Communications of the Association for Information Systems , 2000 .

[70]  Constantinos J. Stefanou,et al.  The complexity and the research area of AIS , 2006, J. Enterp. Inf. Manag..

[71]  I. Ajzen.  The theory of planned behavior , 1991 .

[72]  Alain Yee-Loong Chong,et al.  Adoption of interorganizational system standards in supply chains: An empirical analysis of RosettaNet standards , 2008, Ind. Manag. Data Syst..

[73]  Ling Zhu,et al.  B2B e-commerce adoption decisions in Taiwan: The interaction of cultural and other institutional factors , 2006, Electron. Commer. Res. Appl..

[74]  Ting-Peng Liang,et al.  A resource-based perspective on information technology and firm performance: a meta analysis , 2010, Ind. Manag. Data Syst..

[75]  S. S. Alam.  Adoption of internet in Malaysian SMEs , 2009 .

[76]  Nabeel A. Y. Al-Qirim.  The Adoption of eCommerce Communications and Applications Technologies in Small Businesses in New Zealand , 2006, AICCSA.

[77]  Kris Ven,et al.  An Empirical Investigation into the Assimilation of Open Source Server Software An Empirical Investigation into the Assimilation of Open Source Server Software , 2018 .

[78]  T. C. Powell,et al.  Information technology as competitive advantage: the role of human , 1997 .

[79]  M. A. Quaddus,et al.  The adoption and continued usage intention of RFID: an integrated framework , 2011, Inf. Technol. People.

[80]  N. Al-Qirim.  The adoption and diffusion of e-commerce in developing countries: The case of an NGO in Jordan , 2007 .

[81]  John M. Ward,et al.  Understanding the successful adoption and use of IS/IT in SMEs: an explanation from Portuguese manufacturing industries , 2002, Inf. Syst. J..

[82]  Frantz Rowe,et al.  An Empirical Study of Determinants of E-Commerce Adoption in SMEs in Vietnam: An Economy in Transition , 2012, J. Glob. Inf. Manag..

[83]  Sree Nilakanta,et al.  Implementation of Electronic Data Interchange: An Innovation Diffusion Perspective , 1994, J. Manag. Inf. Syst..

[84]  Noor Azizi Ismail,et al.  Factors Influencing AIS Effectiveness Among Manufacturing SMEs: Evidence From Malaysia , 2009, Electron. J. Inf. Syst. Dev. Ctries..

[85]  K. Ramamurthy,et al.  The Role of Interorganizational and Organizational Factors on the Decision Mode for Adoption of Interorganizational Systems , 1995 .

[86]  Alain Yee-Loong Chong,et al.  Structural equation modeling for multi-stage analysis on Radio Frequency Identification (RFID) diffusion in the health care industry , 2012, Expert Syst. Appl..

[87]  Ada Scupola,et al.  SMEs' e-commerce adoption: perspectives from Denmark and Australia , 2009, J. Enterp. Inf. Manag..

[88]  Fred D. Davis.  Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology , 1989, MIS Q..

[89]  Annette Mills,et al.  A model of Internet adoption by SMEs , 2001, Inf. Manag..

[90]  Jungwoo Lee,et al.  Adoption of Information Technology in Small Business: Testing Drivers of Adoption for Entrepreneurs , 2001, J. Comput. Inf. Syst..

[91]  Ahmad A. Abu-Musa.  Investigating the Perceived Threats of Computerized Accounting Information Systems in Developing Countries: An Empirical Study on Saudi Organizations , 2006, J. King Saud Univ. Comput. Inf. Sci..

[92]  Magid Igbaria,et al.  End-user computing effectiveness: A structural equation model , 1990 .

[93]  Poh-Ming Wong Winnie.  The Impact of Trustworthiness and Customer e-Loyalty and e-Satisfaction , 2014 .

[94]  Jason D. Ellis,et al.  Open source software adoption by South African MSEs: barriers and enablers , 2009 .

[95]  L. G. Tornatzky,et al.  Innovation characteristics and innovation adoption-implementation: A meta-analysis of findings , 1982, IEEE Transactions on Engineering Management.

[96]  Patrick Y. K. Chau,et al.  A perception-based model for EDI adoption in small businesses using a technology-organization-environment framework , 2001, Inf. Manag..

[97]  Mohd Rizaimy Shaharudin,et al.  Determinants of electronic commerce adoption in Malaysian SMEs' furniture industry , 2012 .

[98]  Robert M. Davison,et al.  SME adoption of IT: the case of electronic trading systems , 2006, IEEE Transactions on Engineering Management.

[99]  Izak Benbasat,et al.  Electronic Data Interchange and Small Organizations: Adoption and Impact of Technology , 1995, MIS Q..

[100]  Chalermsak Lertwongsatien,et al.  E-Commerce Adoption in Thailand: An Empirical Study of Small and Medium Enterprises (SMEs) , 2003 .

[101]  Michael Parent,et al.  A model of electronic commerce adoption by small voluntary organizations , 2004, Eur. J. Inf. Syst..

[102]  Shin-Yuan Hung,et al.  Critical factors of hospital adoption on CRM system: Organizational and information system perspectives , 2010, Decis. Support Syst..

[103]  N. Ismail,et al.  Usage of accounting information among Malaysian bumiputra small and medium non-manufacturing firms , 2009 .

[104]  Prodromos D. Chatzoglou,et al.  Computer acceptance in Greek SMEs , 2010 .

[105]  Nick Sciulli,et al.  The Use of Computerised Accounting Systems in Small Business , 2003 .

[106]  E. Rogers,et al.  Diffusion of innovations , 1964, Encyclopedia of Sport Management.

[107]  Magid Igbaria,et al.  Personal Computing Acceptance Factors in Small Firms: A Structural Equation Model , 1997, MIS Q..

[108]  Stuart M. Speedie,et al.  Factors influencing health information technology adoption in Thailand's community health centers: Applying the UTAUT model , 2009, Int. J. Medical Informatics.

[109]  Katherine T. Boswell,et al.  The Importance of Capturing and Using Financial Information in Small Business , 2009 .

[110]  Detmar W. Straub,et al.  Examining Trust in Information Technology Artifacts: The Effects of System Quality and Culture , 2008, J. Manag. Inf. Syst..

[111]  MOTIVATION AND BARRIERS OF ICT ADOPTION IN SMALL AND MEDIUM-SIZED ENTERPRISES Klára Antlová , 2022 .

[112]  Jose Benitez-Amado,et al.  Adoption of E-Commerce Applications in SMEs , 2011, Ind. Manag. Data Syst..

[113]  Husnayati Hussin,et al.  INNOVATING BUSINESS THROUGH E-COMMERCE : EXPLORING THE WILLINGNESS OF MALAYSIAN SMEs , 2005 .

[114]  Pi-Shen Seet,et al.  Dissecting Behaviours Associated with Business Failure: A Qualitative Study of SME Owners in Malaysia and Australia , 2009 .

[115]  Wahidah Husain,et al.  A Study on Implication of Adopting E-Business Technology by SMEs , 2012 .

[116]  A. Halabi,et al.  Empirical Evidence Examining the Accounting Information Systems and Accounting Reports of Small and Micro Business in Australia , 2007 .

[117]  Yu Min Wang,et al.  Understanding the determinants of RFID adoption in the manufacturing industry , 2010 .

[118]  Eric T. G. Wang,et al.  A Virtual Integration Theory of Improved Supply-Chain Performance , 2006, J. Manag. Inf. Syst..

[119]  Kevin Zhu,et al.  Migrating to internet-based e-commerce: Factors affecting e-commerce adoption and migration at the firm level , 2006, Inf. Manag..

[120]  Haesun Park-Poaps,et al.  Technology adoption by apparel manufacturers in Tirupur town, India , 2009 .