Small business adoption of integrated computerized accounting information systems

Abstract

Small businesses have a significant impact on the economy of the United States. Although many small businesses lack resources such as technology, integrated computerized accounting information systems (ICAIS) are accessible. An accounting information system (AIS) can be instrumental in producing financial information for management decision-making. In addition, the ability to automate software, called robotic process automation (RPA), is accessible to small businesses. Accounting systems can be automated to more quickly, easily, and accurately process the data from business transactions and produce financial information. In Essay 1, I used the technology, organization, and environment (TOE) framework to explain ICAIS adoption by small businesses in the United States. I surveyed small business owners using Qualtrics surveys sent out by Centiment, a research company. The survey asked small business owners about their company’s technology infrastructure and compatibility, firm size, and owner support of ICAIS. The survey also asked the small business owners about their perceptions of their customer and vendor willingness and capabilities to interact with an ICAIS. The goal was to capture factors that influence adopting an ICAIS. In Essay 2, I conducted an experiment with small business owners. I hypothesized that small business owners will trust RPA AIS output more when the RPA implementation is conducted by an external accountant versus an internal accountant, and the technology readiness (TR) of owners will positively moderate their trust in automated AIS. In addition, the difference in trust of the RPA AIS output implemented by an external versus an internal implementer is greater for business owners with low TR than for business owners with high TR. Further, I expected small business owners are more willing to commit to continuing with the implementation from an external accountant versus an internal accountant after the use of the RPA resulted in data inconsistencies, extra monitoring, and a higher level of managing exceptions than expected. Lastly, I predicted owners with high TR will be more likely to continue with the RPA implementation following data inconsistencies, extra monitoring, and unexpected human intervention than owners with low TR. The research provides insight into small business AIS adoption and RPA implementation.