Computerised Accounting and Decision-Making of Selected Telecommunication Companies in Mogadishu, Somalia

ABSTRACT 

This study examined how computerized accounting impacts on decision-making of selected telecommunication companies operating in Mogadishu, Sonmlia. The objectives included to examine the effectiveness of computerized accounting information employed by selected telecommunication companies; to assess the decision-making of the selected telecommunication companies; to find out whether there is significant relationship between effectiveness of computerized accounting and decision-making of telecommunication companies in Mogadishu, Somalia. The research findings indicate that computerized accounting practices among the selected telecommunication companies were effective. This study found out that the decision-making in the selected companies was effective and finally, this study also found out that there is strong, positive and significant relationship between effectiveness in computerized accounting and decision—making of the telecommunication companies. Regarding computerized accounting, this study concludes that the computerized accounting systems in the selected teleconmmnication companies in Mogadishu are generally effective; on decision—making, this study concludes that the decision-making among the selected telecommunication companies in Mogadishu, Somalia is effective; and on the relationship between the two variables, this study concludes that effectiveness in computerized accounting leads to improvement in the decision—making of the selected telecommunication companies as regards to the need for achievement, ability to focus and pursue a goal and optimism. This study recommends that since data validation of the companies is still ineffective, the management of the selected telecommunication companies together with their accountants should ensure that data validation matches the current universal standards as computerized accounting systems in the selected telecommunication companies cannot still compare the same input data with some predefined standards or known data; the management of the selected telecommunication companies and their accountants should learn the principles of storing data such that it can be well processed to make use of the Query facility to produce desired information; and that the management of the three selected telecommunication companies should be discreet and rely on neutral position while making decisions as excessive optimism hurdles acknowledging some risks and may lead to serious damage on the business and even to its complete failure while making decisions.

Table of Contents

DECLARATION

APPROVAL

DEDICATION

ACKNOWLEDGEMENT IV

ABBREVIATIONS AND ACRONYMS v

LIST OF TABLES AND FIGURES

ABSTRACT X

CHAPTER ONE 1

INTRODUCTION 1

1.1 Introduction 1

1.2. Background of the Study 1

1.2.1 Historical Perspective 1

1.2.2 Theoretical Perspective 3

1.2.3 Conceptual Perspective 4

1.2.4 Contextual Perspective 4

1.2 Statement of the Problem 5

1.4 Purpose of the Study 6

1.5 Specific Objectives 6

1 .6 Research Questions 6

1.7 Null Hypotheses 6

1.8 Scope of the Study 6

1,9 Significance of the study 7

1.10 Operational Definition of Key Terms S

CHAPTER TWO 10

LITERATURE REVEIW 10

2.1 Introduction 10

2.2 Theoretical Review 10

2.3 Conceptual Framework 11

2.4 Computerized Accounting Systems 11

2.6 Computerized Accounting and Decision-making 15

2.7 Existing Gaps in the Literature 17

CHAPTER THREE

METHODOLOGY 18

3.1 Introduction 18

3.2 Research Design 18

3.3 Research Population 18

3.4 Sample Size 19

3.5 Sampling Procedure 20

3.6 Data Collection Instruments 20

3.7 Validity and Reliability of the Instruments 21

3.8 Data Gathering Procedures 22

3,9 Data Analysis 23

3.10 Measurement of Variables 23

3.11 Ethical Considerations 24

3.12 Limitations of the Study 24

CHAPTER FOUR 26

DATA PRESENTATION, ANALYSIS AND INTERPRETATION 26

4.0 Introduction 26

4.1 Demographic Characteristics of Respondents 26

4.2 Effectiveness of Computerized Accounting in Telecommunication Companies 29

4.3 Effectiveness in Decision-Making among the Selected Telecommunication Companies in Mogadishu, Somalia 34

4.5 Relationship between Computerized Accounting and Decision-Making among the Selected Telecommunication Companies in Mogadishu 38

CHAPTER FIVE 42

DISCUSSION OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 42

5.0 Introduction 42

5.1 Discussion of Findings 42

5.2 Conclusions 47

5,3 RecommendatiOns 48

5.4 Areas for Further Research 49

REFERENCES so

APPENDICES 55

APPENDIX 1: QUESTIONNAIRE TO RESPONDENTS .55

APPENDIX III: PROPOSED BUDGET 60

APPENDIX IV: WORK PLAN 61