Determinants of Cloud-Based Accounting Adoption in Nigerian Deposit Money Banks

Abstract

Abstract

This study examines the factors that determine the adoption of cloud-based accounting in Nigerian
deposit money banks. A cross-sectional survey research design was employed in the study. The
population of study was 391 deposit money bank branches operating in northwestern Nigeria as
of December 31, 2021, as obtained from the Central Bank of Nigeria Database. A sample of 177
deposit money bank branches in northwestern Nigeria was used. The cluster sampling technique
was employed in selecting the respondents. The study retrieved 364 questionnaires that represent
a response rate of 68.5%. The collected data were analyzed using descriptive and inferential
statistics. PLS-SEM was employed for hypothesis testing, and the study found that human factors
and perceived trust have a significant and positive relationship with cloud-based accounting
adoption, as predicted, whereas technological and organizational factors revealed an insignificant
relationship. On the other hand, environmental factors showed a significant but negative
association with cloud-based accounting adoption. Therefore, this study recommends that banks
and other vendors of cloud-accounting technology should build clients' trust in cloud-based
applications by ensuring that sensitive personal information is reliably encrypted and by providing
evidence that the system allows users to maintain control over the data they share. In addition,
banks should carry out strong public awareness programs that can help enlighten the general public
about the security and other benefits of cloud accounting adoptions.