Abstract:
ABSTRACT
The aim of this study is to explore the factors that influence the adoption of
computerized accounting information system (CAIS) among MMDAs in Ghana.
It also sought to examine how the identified factors influence the financial
performance of the MMDAs and the mediating role of internal control system in
the identified linkage. Relying on data collected from the operators and
controllers of CAIS of 227 MMDAs across the sixteen regions of Ghana using
questionnaire as the main instrument, factor analysis was applied to identify four
factors that determine the adoption of CAIS among MMDAs. These include; Cost
of adoption; CAIS complexity, Data security and cost and then Readiness to adopt
CAIS. Using these factors as exogenous constructs and applying structural
equation modelling, the study observed that, whiles cost of adopting CAIS and
readiness to adopt CAIS significantly influence the financial performance of
MMDAs, CAIS complexities and data security cost and threat have no significant
influence on financial performance. It was again observed that whiles internal
control system mediates the relationship between CAIS complexities and
financial performance, and then data security threat and cost, internal control
system does not mediate the relationship between cost of adopting CAIS and
financial performance and then readiness to adopt CAIS and financial
performance. It is recommended among others that Government interventions
should aim at improving technology adoption among MMDAs. Also, Government
should speed up the adoption and implementation of GIFMIS to cover all
MMDAs. Again, MMDAs should consider CAIS technology on the basis of
Software-as-a-service (SaaS).
