Factor affecting investment decision on computerized accounting system - special reference to small and medium enterprises

Abstract

Small and medium enterprises face many challenges in the industry. In order to cope up with those challenges, companies need to align their business strategies with information systems. Information systems often provide competitive advantage to firms and a proper computerized accounting system could be one of the key factors for the success of business organizations. The objective of this research is to evaluate the factors affecting the decision making in IT investments, in particular Computerized Accounting Systems. In this regards, a survey was conducted among the registered SMEs in the Chamber of Commerce in 2012 from Polonnaruwa District of North Central Province in Sri Lanka. The collected data were analyzed using statistical software and found that the factors such as diversity of technology, user involvement, management support, software creditability and organizational factor are having positive relationship with investment decision on Computerized Accounting Systems and negative relationship with Management Knowledge.