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Paper on AIS presented at ICBER 2012, Bandung, 10-11 Mac 2012


  • 1. UNDERSTANDING ACCOUNTING INFORMATIONSYSTEMS CONTINUANCE INTENTION AMONG SMEs IN TERENGGANU, MALAYSIA By: Azwadi Ali, Mohd Shaari A. Rahman & W.N. Syahida Faculty of Management and Economics, Universiti Malaysia Terengganu, MALAYSIA. Bandung, Indonesia. 12-13 March 2012.
  • 2. Introduction Examine the effect of antecedents to attitudes and the mediating effect of satisfaction on AIS users intention to continue using AIS. Continuance intention to use AIS as a more reliable measure of AIS implementation than a mere adoption after all, majority of business organizations have adopted AIS. Unit of analysis SMEs in Terengganu. SMEs as backbone of a nations economy effective use of IT is important for proper accounting reporting. Self-report survey. Use Partial Least Squares (PLS) path modelling to test hypotheses.
  • 3. Accounting Information Systems & Continuance Intention AIS include computerized accounting applications ranging from simple Excel, off-the-shelve accounting packages to bespoke sytems. AIS help proper accounting records and reporting to assist management decision making. Users may range from innovators (quick to adopt) or followers (wait and see). Since IT has dominated business applications, it is more important to assess the effectiveness of AIS through users intention to continue using them than a mere adoption (many earlier studies on AIS) Continued use of a systems is only possible when users are highly satisfied with it. Antecedents and attitude as well as satisfaction as mediators are included in the research model.
  • 4. Antecedents and mediators Attitudes and satisfaction are conceptualized as mediators. Antecedents of attitudes include Cost (Premkumar & Robert 1999), Relative Advantage (Rogers 1992; P&R 1999), Perceived Strategic Benefits (Chau 2001), Ease of Use (Davis 1986), Organizational Readiness (Ramdani & Kawalek 2007), Compatibility (Rogers 1995), Competition (R&K 2007) and Vendor Support (Thong 1999). The model is developed after synthesizing variables of Davis Technology Acceptance Model and Rogers Diffusion of Innovation into Olivers Expectation-Confirmation Theory.
  • 5. Research Model
  • 6. Research HypothesesH1: Cost is negatively related to Attitude towards AISH2: Relative Advantage is positively related to Attitude towards AISH3: Perceived Strategic Benefit is positively related to Attitude towards AISH4: Ease of Use is positively related to Attitude towards AISH5: Readiness is positively related to Attitude towards AISH6: Compatibility is positively related to Attitude towards AISH7: Competition is positively related to Attitude towards AISH8: Vendor Support is positively related to Attitude towards AISH9: Attitude towards AIS is positively related to SatisfactionH10: Satisfaction is positively related to Continuance Intention
  • 7. Methods Study population was identified through business directory available from SMECorp nearly 300 SMEs in Terengganu. Trained enumerators distributed the questionnaire. 80 enterprises declined to participate, 38 indicated that they did not use AIS in their businesses and 24 were failed to be found. 146 usable responses were successfully gathered during the 6- week of survey administration. Measures of variables were not piloted since they were validated through previous studies. Use PLS analysis due to small sample (less than 200 responses).
  • 8. Results CFA performed on antecedents of AT extracted 5 factors with PSB and EOU combined with RA, while COMP was removed due to low loadings of items. Model was tested using PLS algorithm (300 maximum iteration, standardized values and centroid weighting scheme). Loading of measures were all above 0.65. the minimum construct composite reliability is 0.88 (COST) while the minimum construct AVE is 0.56 (RA) all above thresholds. The structural model explains 51%, 68% and 63% of the variances for attitudes towards AIS, satisfaction and continuance intention, respectively. Only two of the antecedents of attitudes are significant while both attitudes and satisfaction are highly significant in predicting continuance intention.
  • 9. Structural ModelNote - CFA performed on antecedents of AT extracted 5 factors with PSB and EOU combined withRA, while COMP was removed due to low loadings of items.
  • 10. Discussion Only Relative Advantage and Readiness ( = 0.406 & 0.180) in the formation of users attitudes. Cost was not significant maybe due to decreased AIS price (or possibly due to abundance of pirated applications). Compatibility was not found significant maybe due to computerized applications these days are developed user- friendly in the first place to be compatible with organizations differing technological platforms (though many are windows- based). although vendor support was not found to be a significant determinant of attitude, after-sale services are still important because users may still consider continuing using the AIS despite of poor support from vendors due to considerable negative consequences from not using AIS at all.
  • 11. Limitations and Conclusion Modest sample size of 146 and focus in Terengganu state. Pre-identified antecedent variables of attitudes. Could include size, age of business and owners characteristics as moderators. This study contributes to related literature in the use of information technology. developers of AIS should consider aspects that can encourage positive affects in users when designing and improving AIS so that loyalty in their products can be expected.
  • 12. THANK YOUContact: Faculty of Management and Economics, Universiti Malaysia Terengganu, MALAYSIA.