Implementation of Accounting Information Systems in Large and Medium Scale Manufacturing Enterprises of Amhara Region: In Case of Selected Metropolitan Cities

Many developing countries like Ethiopia has weak accounting information system which hamper investment decisions, policy issues and contribute at large to make the entire systems in the countries inefficient. The objective of this study is examining the level of AISs implementation in large and medium scale manufacturing enterprises of Amhara region. For the purpose of this study census sampling method was employed and all large and medium scale manufacturing enterprises of Gondar and Bahirdar cities has been surveyed. Data has been collected from those enterprises through self-administered questionnaire and an in-depth unstructured interview was conducted with key informants about the subject of the study. The Collected data from the questionnaire was analyzed by using SPSS version 20 software. The regression and correlations are made to find answers for specific objectives on the basis of the result obtained from the statistical tool. Assuming the dichotomous response to the dependent variable (AISs implementation), binary logistic regression model has been used to identify the factors which influence the implementation of AISs in the study area. The finding of the study reveals that, implementation of AISs in Amhara region large and medium scale manufacturing enterprises is at its lowest level. In addition, factors such as financial capacity, organizational structure, environmental factors and relative advantage of AISs have positive and significant influence over the implementation of AISs while, complexity of AISs is found negatively influencing factor for AISs implementation. The researcher recommends that these factors should be considered by those experts of the enterprises at the time when they decide to implement AISs.