FACTORS INFLUENCING ACCOUNTING TECHNOLOGY ADOPTION IN SELECTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study examines the factors influencing accounting technology adoption in selected Deposit Money Banks (DMBs) in Nigeria using Principal Component Analysis (PCA). The objective was to identify and prioritize the key determinants driving the adoption of accounting technologies across Nigerian banks. Data were analyzed through PCA, which extracted four principal components explaining 93.4% of the total variance in the dataset, with eigenvalues ranging from 0.2640 to 1.7120. The first component (PC1) had the highest eigenvalue (1.7120) and accounted for 42.8% of the total variation, identifying technology acquisition (TAC = 0.6959) and cost of software maintenance (CSM = 0.5825) as the strongest loadings. This indicates that technology investment and system upkeep are the dominant drivers of accounting technology adoption. The second component (PC2), explaining 29.9% of the variance, showed that bank size (BS = 0.7573) and training cost (COT = −0.5202) significantly influence adoption decisions, implying that larger banks with greater resources are more capable of implementing advanced systems. The third component (PC3) emphasized cost of training (COT = 0.8007) as a critical factor in sustaining technology usage, while PC4 revealed a negative relationship between technology acquisition (−0.6897) and cost factors, suggesting acquisition cost remains a major constraint. The results underscore the multidimensional nature of technology adoption, shaped by financial capacity, human capital readiness, and organizational priorities. The study concludes that Deposit Money Banks that strategically invest in both technological and human infrastructures are better positioned to achieve operational efficiency, accuracy, and compliance in their accounting processes.