Abstract:
Computerized Accounting System (CAS) plays prominent role in providing
information accurately and quickly to meet challenges of ever-changing business
environment.Developing countries, however,struggle and are reluctant towards
adopting CAS in SMEs. Sri Lanka as an emerging economy, few studies have
attempted to study the reticence of adopting CAS in SME sector.SME sector is
vitalin developing economy as it generates employment, promotes the growth of
Gross Domestic Product (GDP) and stimulates other economic activities. The study
examines thefactors which affect to theadoption of CAS in SMEs in Sri Lanka.
According to the literature the various factors were identified and broadly classified
underdifferent categories. In this study, four factors are included in the research
model as managers’ support, perceived usefulness, ability of bearing the cost and
human resource proficiency. This study was conducted through thestructured
questionnairesurvey method. Data was collected from118 SMEs representing
manufacturing, trading and services sectors in Matara District, Sri Lanka.The study
used Partial Least Squares (PLS) path modeling to analyze the collected data. The
study results disclosed that manager’s support and firm’s ability of bearing the cost
have a positive and statistically significant relationship with adoption of CASin
SMEs. As per survey results, it has confirmed that there is a positive relationship
between perceived usefulness and HR proficiency on adoption of CAS but it is
not statistically significant.
