Determinants of the use of accounting systems in microenterprises: evidence from Chile

Abstract

PurposeThe purpose of this research is to contribute to knowledge-building on microenterprises in emerging economies, by assessing the determinants that drive their use of accounting systems.Design/methodology/approachA probabilistic model was developed to determine the likelihood that a micro-firm would adopt an accounting registry system as a function of a series of contingencies and personal characteristics of their owners/managers. Data from the Microentrepreneurship Survey (EME), from the National Institute of Statistics of Chile for 2017 was used.FindingsThe findings suggest that access to external funds, the size and the use of technology strongly influence micro-firms' adoption of accounting systems.Research limitations/implicationsDespite the richness and scope of the data, direct measurements of entrepreneurial orientation and environmental uncertainty, both central variables of the contingency theory, were missing. Hence, duly justified proxies were applied. It is also likely that there would be other variables that also influence the probability of using accounting tools.Practical implicationsThe study contributes to a better understanding of microenterprises, and the factors that determine the use of accounting systems. The results highlight that public policies aimed at fostering microenterprises should facilitate access to technology and external funds. Consistent with previous studies, the authors’ findings highlight the importance of training owner/managers on issues related to their business.Originality/valueThis paper contributes to theory by arguably being the first study to confirm that contingency theory does explain the adoption of accounting systems in microenterprises in emerging countries.

The influence of accounting information system on management control effectiveness: The perspective of SMEs in Yemen

“…Government should assist the adoption and use of AIS in SMEs to assure their success and survival, which would benefit the country's economic development. For instance, IS, including AIS, are notoriously expensive, particularly for SMEs (Kareem et al, 2019; Ruiz and Collazzo, 2021) in LDCs. This could have a negative impact on the adoption/using AIS in SMEs and benefit from them, leading to a failure (Mohammad, 2018).…”

“…IT/IS adoption and utilization can provide effectiveness, efficiency, innovation, growth, and competitiveness. These advantages offer SMEs opportunities to continue working and their success and survival (Consoli, 2012; Ghobakhloo et al, 2012; Nyathi et al, 2018; Ruiz and Collazzo, 2021). In return, this helps the country's economic development as the continuity and success of these enterprises contribute to it (Andoh-Baidoo, 2016; Ilavarasan, 2017; Qureshi, 2020).…”