The Factors Affecting Intention to Adopt Accounting Standards for SMEs and to Use Information Technology for Financial Report on SMEs: Empirical Study in Indonesia

Posted: 3 Sep 2014

Date Written: August 5, 2014

Abstract

The aim of this study is to examine factors affecting the intention to adopt accounting standards for small to medium-sized enterprises (SMEs) and to use information technology for financial reporting on SMEs in Indonesia, using several models developed by Mc Elroy et al. (2007) and Venkatesh (2003), namely situational cognitive, performance expectancy, and social influence. Situational cognitive is measured by perceived ease of use, perceived usefulness, and self-efficacy; performance expectancy is measured by budgetary pressure and evaluation period; while social influence measured by presence or absence of the competitors affect. The issue of this research is what the factors affecting the intention to adopt accounting standards for SMEs with the phenomenon that both things are rarely found in Indonesia.

The data obtained from the perception SMEs owners in some cities at Central Java Indonesia. This study is an empirical study using survey as primary data. Data analysis was using Partial Least Square to test the correlation and t-test to test the different on the two groups. The results show that accounting standards for SMEs intention and IT usage can be explained by the variability of the eight other independent variables with the corporate age as a moderating variable by 59.17%, and implementation constructs can be explained by the variability of the intention to use accounting standards for SMEs and IT usage by 41.19%.

Keywords: accounting standards for SMEs, Information Technology, financial reporting, small to medium-sized enterprises

JEL Classification: M41

Suggested Citation

Astutie, Yanti, The Factors Affecting Intention to Adopt Accounting Standards for SMEs and to Use Information Technology for Financial Report on SMEs: Empirical Study in Indonesia (August 5, 2014). Available at SSRN: https://ssrn.com/abstract=2484044

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