19th International Conference on Computer and Information Technology, December 18-20, 2016, North South University, Dhaka, Bangladesh

Factors Affecting Employees’ Behavioral

Intention to Adopt Accounting Information
System (AIS) in Bangladesh

Md.Khaled Amin1, Shobnom Munira2, Afrin Azhar2, Afrina Amin3, Mubasshir Tahmidul Karim4

1
Department of Business Administration, Daffodil International University (DIU), Bangladesh.
E-mail: drkhaled.bba@diu.edu.bd
2
Department of Business Administration, Northern University Bangladesh (NUB), Bangladesh.
3
Department of Civil Engineering, Rajshahi University of Engineering & Technology (RUET), Bangladesh
4
Department of Computer Science, Wichita State University (WSU), USA

Abstract— Accounting Information System (AIS) is a business activities. Information system is

platform in which the core concepts of accounting,
such as, recording, classifying, storing, safeguarding
and interpreting data and reporting accounting
information are performed by using various
standardized and customized software for better
financial control. A wide range of accounting software,
such as, Tally, Troyee, AccPac, Oracle Applications,
SAP, etc. are already being installed by various
organizations in Bangladesh. Through this study, we
wanted to know the determinants of employees’
acceptance of various AIS in Bangladesh, by applying
the Technology Acceptance Model (TAM). A total
number of 82 employees from four different companies
were provided with the structured questionnaires.
Finally, 80 questionnaires were accepted and encoded.
The results of the study are based on factors, such as,
PU, PEOU, ATU, BIU, and PBC as suggested by Davis
in his model known as TAM. All variables were
analyzed by using SMART PLS, which is a full-flagged
Structural Equation Modeling (SEM) tool. The result
shows that Perceived Behavioral Control (PBC)
significantly affects employees’ behavioral intention to
use AIS through mediated effect on PU and PEOU.
Hence, PBC is acting as a strong antecedent of the
latent variables PU and PEOU in Bangladesh.
Keywords— Accounting Information System,
Technology Acceptance Model (TAM), Structural
Equation Modeling (SEM), Human Interaction,
Behavioral Intention.
I. INTRODUCTION
The development of the information
technology has made human life much easier than
before. As a result, managers and employees from
various organizations are frequently incorporating
various information technologies in all aspects of
facilitating the accountants to produce a better,
more reliable, and error-free financial statement.
Currently, accounting activities in the
business world have shifted drastically due to the
development of the Accounting Information
System. Accounting Information System (AIS) is
mainly designed for the managers and is highly
regarded as a platform, in which the core tasks of
accounting, such as, recording, classifying, storing,
safeguarding, and reporting, are performed by
using various standardized and customized
software, both online and offline.
From the strategic viewpoint, AIS is
considered as a tool for formulating strategy rather
than a tool for calculating or analyzing data. A
wide range of AIS software, such as, Tally, Troyee,
AccPac, Oracle Applications, SAP, etc. are highly
appreciated by the employees of various
organizations in Bangladesh.
The main challenge of AIS is the predicted
gap between technology and human interaction.
Implementing AIS in an organization that has not
been widely accepted by the employees is a waste
of time and a waste of valuable resources. The
employees’ positive attitude and willingness to
accept AIS is the key to achieving organizational
goals effectively and efficiently.
Therefore, an effort was carried out to
understand and identify determinants affecting
employees’ behavioral intention to adopt AIS in
Bangladesh by applying an extended Technology
Acceptance Model.

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19th International Conference on Computer and Information Technology, December 18-20, 2016, North South University, Dhaka, Bangladesh
II. REVIEW OF RELATED LITERATURES AND
STUDIES:
A. Accounting Information System (AIS):
According to[1]AIS is a system that offers
several functions, such as, collecting data,
analyzing collected data, categorizing, and
reporting. The main purpose of AIS is to convert
data into meaningful information with the aim of
providing better financial performance. Evidence
supports that the two vital roles of AIS, such as,
strategy formulation and calculating, are acting as a
mechanism in order to strengthen organization
financial control[2]. AIS is a system in which all
the transactions are stored in a database and can be
retrieved whenever needed. They could be needed
for taking effective decision with regard to the
organizational goals.
[3]analyzed the acceptance of the accounting
software by accounting students in Indonesia by
applying TAM as a base theory. Results confirmed
that all variables, except perceived ease of use
(PEOU) associated with TAM, had direct
significant effect on behavioral intention to use
(BIU).[4] Investigated the usefulness of accounting
information system in emerging economy. Through
this study, the author tried to reveal the significance
of AIS in developing countries, by showing some
empirical evidence from Iran. Result suggested that
there was a huge gap between the desired and the
actual system.
[5] Investigated the impact AIS had on
performance, management, and financial
performance. A total number of 600 questionnaires
were distributed among the accountants and
financial managers in various organizations in the
United Arab Emirates. Results confirmed a subtle
positive relationship between AIS and
organizational performance, but no relationship
was found between AIS and performance
management.
B. Technology Acceptance Model:
Technology Acceptance Model is a proven
model in examining various issues related to IS/IT
adoption. TAM is a well-established theory in
explaining IS/IT issues related to existing
phenomena as well as future phenomena. TAM,
both its original and extended version, has already
been applied extensively in M-learning, Online
Banking, E-shopping, Multimedia, Mobile
Wallet[6], and Accounting Information System.
In fact, the theory known as TAM was
actually derived from the Theory of Reasoned
Action (TRA)[7]. Besides, the most important and
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influential theories related to IS/IT adoption are the
theories of reasoned action (TRA)[7],extended
technology acceptance model (TAM2)[8], theory
of planned behavior (TPB)[9], and the most recent
one UTAUT[10]. The theories of TPB, TAM, and
UTAUT are all derived from the TRA proposed in
1975. TAM was used as a base theory in designing
Farmer Technology Acceptance Model
(FTAM)[11] and Consumer Acceptance of
Technology (CAT).
III. RESEARCH MODEL AND HYPOTHESES:
Figure 1 shows the research model of the
study derived from TAM, needs to be tested. The
research model consists of four endogenous and a
single exogenous latent variable connected with
arrows. The arrows are forming causal
relationships between two latent variables. There
are two cognitive beliefs: perceived usefulness
(PU) and perceived ease of use (PEOU). They are
postulated in TAM[12]. According to TAM, one’s
attitude and behavioral intention to use a particular
system is highly affected by the two cognitive
beliefs aforementioned.
TAM also suggests that the external variable
is affecting behavioral intention and actual system
through the mediated effect on perceived
usefulness and perceived ease of use. In our study,
we assume that PBC has a positive impact on PU,
PEOU; therefore, added with the original model.
Unlike other studies, actual use (AU) variable is
omitted in order to make the model simple and
viable.
A. Hypothesesdevelopment
Based on literature discussed above along with
researcher prior experience, this study proposes the
following hypotheses:
H1: There will be a direct significant positive
relationship between PBC and PU
H2: There will be a direct significant positive
relationship between PBC on PEOU.
H3: There will be a direct significance positive
relationship between PU and ATU
H4: There will be a direct positive relationship
between PEOU and ATU.
H5: Behavioral intention to use AIS will be
positively affected by ATU.
The above postulated hypotheses give rise to
the research model portrayed below:
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19th International Conference on Computer and Information Technology, December 18-20, 2016, North South University, Dhaka, Bangladesh

prior studies. Some wording changes were made in

order to match the research context.
Each individual was asked to indicate their
extent of agreement with the statements about the
adoption of AIS in Bangladesh. By using a seven-
point Likert Scale, ranging from (1) Strongly
Disagree to (7) Strongly Agree, answers would be
made for each factor adopted from Dawes
work[14]
All hypotheses for the study were tested and
analyzed with SMART PLS 2.0, which is a
Fig 1: Research Model complete Structural Equation Modeling (SEM) tool
B. Structural Equations: that was developed by Christian Ringle and his
team at the University of Hamburg, Germany[15].
The following structural equations were
derived from the research model portrayed above: V. RESULT

1. BIU= β43ATU + ϵ4 A. Reliability and Validity Analysis

2. ATU= β 31PU + β32PEOU + ϵ3 Table 1: Reliability Analysis (n=80)
3. PU = γ11PBC + ϵ1
LV AVE Composite R Cronbachs No
4. PEOU = γ 11PBC + ϵ2 Reliability Square Alpha of
Items
Notes: ATU 0.6984 0.9204 0.5942 0.8915 5
γ= Gamma BIU 0.8308 0.9364 0.4585 0.8980 3
β = Beta PBC 0.6916 0.8702 0.0000 0.7861 3
ϵ = Epsilon PEOU 0.6411 0.8771 0.3230 0.8128 5
PU = Perceived Usefulness PU 0.5717 0.8666 0.0781 0.8014 5
PEOU = Perceived Ease of Use
ATU = Attitude towards Using
PBC= Perceived Behavioral Control 1) Cronbach’s Alpha:A reliability analysis was
conducted for the scales used in this study by using
IV. RESEARCH METHODOLOGY Cronbach’s Alpha. As shown in the table 1, all
Cronbach’s Alpha values are above 0.70. [16]
In this study, we followed a snapshot research
approach, which is less time consuming and
relatively inexpensive in comparison to the 2) Convergent Validity:Convergent validity is
longitudinal approach[13].The respondents of this judged based on factor loading of the outer model
study are employees of the “Accounts Division” and AVE values as evaluation criteria. Based on
from different companies who are using various the default report of the SEM, it can be concluded
accounting software for interpreting financial data. that Convergent Valdity is adaquate since all factor
A total number of 82 questionnaires were loadings are above 0.70 and AVE values are above
distributed among the employees of four different 0.50[17]. Hence, all reflective constracts of the
types of companies located in Dhaka, Bangladesh. model have high level of Convergent Validity.
The survey was carried out between February and
June, 2016. A total number of 80 questionnaires 3) Composite Reliability:From the table 1, it
were accepted and encoded into SPSS for statistical can be concluded that all calculated values of
analysis; two questionnaires were rejected due to composite reliabiity are above 0.6[18].
respondent error. Thus, the response rate was 97%.
Respondents of the study were chosen based
on researcher prior knowledge and judgment. All B. Structural Model
respondents were requested to complete the
Structural model of the study consists of inner
structured and non-disguised questionnaire. Their
model and outer model. Perceived behavioral
responses would be measured in various ways,
control (PBC) is considered as an external variable
such as, to perceived usefulness (PU), Perceived
as such affecting BIU through the mediated effect
Ease of Use (PEOU), Attitude toward Usage
on PU, PEOU and ATU.
(ATU), and to Perceived Behavioral Control
(PBC). All latent variables and questionnaire items
used in this study were primarily adopted from

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19th International Conference on Computer and Information Technology, December 18-20, 2016, North South University, Dhaka, Bangladesh

In order to determine the significant

relationship between the variables, all the
hypotheses were tested by using SEM tool. The
sample size of the study was limited to 80.
Therefore, we used a significance level of 5 %( ±
1.96). If the calculated t-statistics of a
hypothesized path is greater than 1.96, the
hypothesized path between variables in the inner
model is considered as statistically significant.
Based on the table portrayed above it can be
seen that all calculated t values are above 1.96(α
=0.05) hence, all hypothesized paths are
statistically significant

Fig 2: Structural Model

VI. CONCLUSION :
All oval shaped, blue colored, latent variables
in the model portrayed above are outlining the Through this study, we wanted to identify
inner model of the structural model and containing different determinants affecting employees’
the value of R2. R2 represents the amount of behavioral intention to adopt AIS in Bangladesh.
variance explained by other endogenous and To do that, we used an organizational theory
exogenous variables in the inner model. known as TAM, which was proposed by Davis in
This study predicts 59% of the variance in ATU 1989. All the hypotheses were designed based on
from PU and PEOU. In addition, we are also TAM constructs adopted from prior studies.
predicting 45% of the ATU. Therefore, the effect Perceived Behavioral Control was added with the
size of R2 is quite large since all values exceed the original model as an external variable in order to
cut point of 0.26 [19]. design the research model. Results of the study
confirmed employees’ behavioral intention to adopt
AIS is highly affected by some factors, such as,
C. Correlation Analysis PBC, PU, and PEOU. In addition, results also
Table 2: Correlation Analysis (n=80)
confirmed that PBC affected BIU through the
mediated effect on PU and PEOU. Analysis
LV ATU BIU PBC PEOU PU
confirmed that PBC acts as a strong antecedent of
ATU 1.0000 the latent variables PU and PEOU. Therefore,
BIU 0.6771 1.0000 future studies can be undertaken to identify various
PBC 0.4931 0.4338 1.0000 antecedents of PU and PEOU in the context of
PEOU 0.6769 0.4557 0.5683 1.0000 Bangladesh.
PU 0.6667 0.5055 0.2795 0.5192 1.0000

Table 2 shows a summary of a Latent REFERENCES:

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