Abstract

E-accounting practice is referred to implement e-invoice, e-payment, e-reconciliation e-reminders and e-storage of the economic transactions with the use of internet based accounting software. Responding to the evidence that RMG factories of Bangladesh largely do the practice, the study is aimed to explore the actual scenario of the practice with identifying the influencing factors and investigating the financial effects of the practice. To achieve these objectives, the study collected and analyzed primary as well as secondary data. In primary data collection and analysis, the study adopted mixed research design consisted with pseudo case study and survey. Implementing the DeLone and McLean’s Updated Information System Success Model (2003), as the theoretical lens, Ram’s Innovation Resistance Model (1987) as the additional model and e-accounting literature as supportive theoretical background, a preliminary research model was formed. Utilizing semi-structured interview schedule, case study was conducted on purposively selected ten e-accounting practicing RMG factories. With the content analysis of case findings, structured questionnaire was formed for survey. The survey was carried out on 300 number of RMG factories. The sample was calculated using G power 3.1 sample size calculating formula. In doing survey, convenience and snowball sampling technique were used. In both research strategies, respondents were policy makers of the factories such as owners, managers or chief accountants. The collected survey data were analyzed using Microsoft Excel, SPSS 20.0 and Smart PLS 3.3.3. The study reveals that about 86% of RMG factories implement the e-accounting practice. Competitiveness forces RMG owners towards updated technology adoption. Infrastructural bottleneck and less skilled employees are the obstacles on the path of the modern accounting practice. The study identifies that system quality, information quality, and service quality positively and perceived resistances negatively influence RMG owners to adopt e-accounting practice. The study results that e-accounting practice has a significant effect on financial performance of the sector. This research also discovers that e-accounting practice has material effect on operating expenses minimizing but a little effect on revenue enhancing of RMG industry of Bangladesh.  

Keywords: E-accounting Practice, System Quality. Information Quality, Service Quality, Perceived Resistances, Financial Performance, Ready-made Garments Industry.