Accounting Software Used by Micro Enterprises in Palestine: Do they meet general quality features and satisfy users’ needs?

Abstract

Purpose: This research aims to contribute to the knowledge-building on micro enterprises (MEs) in the emerging economy of the Gaza Strip (GS) of Palestine. It provides empirical evidences on the extent the general quality features, already implemented in the available accounting software applications (ASAs), are being used, and the extent these ASA applications themselves are meeting the users’ needs. Methodology: In this research, some hypotheses were developed to explore (1) the extent the general quality features available in the ASAs are used by MEs and (2) the extent this ASA software meet the users’ needs. Based on these hypotheses, a structured questionnaire was designed and used to collect the data for this study. Copies of this questionnaire were hand delivered to a large sample of MEs in the GS of Palestine. A descriptive statistical analysis was performed on the collected quantitative data using the SPSS software. Findings: The findings of this research suggest that the general quality features implemented in the ASAs used by MEs in the GS of Palestine meet the users’ needs at varying levels. Research limitations: This study has three main limitations. First, it is limited to MEs having no more than 5 employees and one Owner/Manager. Second, the study is limited to MEs operating within the emerging economy of the GS of Palestine. MEs based in the West Bank region of Palestine could not be included, because crossing the borders between the West Bank and the GS is currently not allowed. For the past 15 years, the Israeli military has been imposing a strict blockade on the GS. However, sending the questionnaires to the MEs in the West Bank by email and having them return them by email could be possible if the researcher was able to go there and directly contact the MEs to construct the sample. Third, although this study investigated the extent the ASAs used by the Palestinian MEs meet their users’ needs, it did not explore and specify the type of needs these software applications should meet. Practical implications: The study provides a better understanding of ASAs usage by the MEs. The results of the study highlight that the public policies aimed at fostering MEs should facilitate access to technology, and these policies should monitor the work of ASAs in MEs. The study also contributes to the government’s effort for developing a strategy to strengthen ASAs adoption by strengthening the quality of the MEs. Consistent with previous studies, the findings also highlight the importance of training the Owner/ Managers (O/Ms) of the MEs on information technology issues related to their business. Originality/value: This is the first study that investigates the ASAs used by MEs in the emerging economy of Palestine. It explored the extent the general quality features of ASA are being realized and the extent these features meet the user’s needs. It is also a unique study because it is done for MEs in a territory under economic blockade in a developing economy that has not yet gained its independence.