Mechanism for the Selection of Appropriate Computerized Accounting Packages for SMEs in Developing Economies

Abstract

This paper designed and tested a customized model for the selection, customization and adoption of appropriate computerized accounting software package (CASP) for SMEs in developing countries. It is aimed at reducing the risks of selecting the wrong ones out of the highly proliferated CASPs that has flooded the software market lately. Six variables were considered in the design of the model- Basic Functionality (BF) General determinants (GM), Package features (PF), Customization Capabilities (CC), Financial Reporting Capabilities (FRC) and IS/IT Auditor. The study was cross-sectional which purposively sampled professional experts from local and international accounting firms operating in Ghana, and staff from selected SMEs across Ghana to evaluate the six variables in the model. 260 experts participated in the assessment. The Delphi Technique was used to reach consensus on
the applicability of the variables in the model. The variable measurement items in the model were subjected to three rounds as required by the Delphi Technique. Multiple Regression Analysis was also computed to determine the correlation among the variables in making appropriate CASP selection decision. The results point to a positive association between all the variables assessed. This is substantiated by the average Kendall’s W of 0.17. Chi square (X2) values ranging between 134.55 and 497.28 for all the three rounds of evaluation and an Intra-class correlation values ranging from 0.56 – 0.95 affirmed that consensus was achieved. Multiple regression analysis computed indicated that for BFC to be selected, there is a 35%, 44%, 42%,39% and 45% chance that GM, PF,CC, FRC and IS/IT respectively would have been selected.