INFLUENCE OF BUSINESS RISK ASSESSMENT FACTORS ON ADOPTION OF COMPUTERIZED ACCOUNTING SYSTEM FOR IMPROVED PERFORMANCE OF SMES IN ANAMBRA STATE

Abstract

This study investigated the influence of business risk assessment factors on adoption of computerized accounting system for improved performance of SMEs in Anambra State. One research question was raised and one hypothesis tested at 0.05 level of significance. The population of the study comprised 5,396 (3,137 managers and 2,259 accounting officers) working in the SMEs in Anambra State. A sample size of 361 (210 managers and 151 accounting officers) of SMEs was selected using Krejcie and Morgan (1970) stratified random sampling technique A-14 item structured questionnaire face validated by three experts in the field of education was used for data collection. The reliability of the instrument determined using Cronbach alpha formula yielded correlation coefficient of .74. Mean, standard deviation and t-test were used for data analysis. Findings revealed that managers and accounting officers agree that business risk assessment are factors that influence the adoption of computerized accounting system for improved performance of SMEs in Anambra State. It was also found that that managers and accounting officers did not differ significantly in their mean ratings on business risk assessment factors that influence the adoption of computerized accounting system for improved performance of SMEs in Anambra State. Based on the findings of the study, the research concluded that business risk assessment factors play a significant role in influencing the adoption of Computerized Accounting Systems (CAS) for the improved performance of SMEs in Anambra State. It was recommended that; managers of SMEs should develop effective business strategy in their organizations that will enhance the adoption of CAS for improved performance of their businesses. This is through conducting a thorough assessment of the current business operations, identifying strengths, weaknesses, opportunities, and threats.