Effect Of Business Information System On The Performance Of Saccos: The Case Of Gawo Wabera Saving And Credit Cooperatives Union In Dale Wabera District, Kellem Wollega Zone, Oromia Regional State, Western Ethiopia

Abstract

This study aims to investigate the effect of business information systems on the performance of saving and credit Cooperatives: the case of Gawo Wabera saving and credit Cooperatives Union in Dale Wabera District, Kellem Wollega Zone, Oromia regional state, Ethiopia. Accordingly, the study employed the survey method and primary data were gathered with questionnaires. Self-administered questionnaires have been collected from 56 respondents. Secondary data was collected from audit reports from 2017 to 2021 by using document review as a data collection instrument. The questionnaires were analyzed using descriptive statistics like percentage, mean and standard deviation, and regression with the support of Statistical Package for Social Science version 21 for analysis and summarization purposes. The findings of the study indicate that the saving and credit Cooperatives' Union performance was mainly affected by the factors of the Accounting Information System, with a high positive correlation coefficient of 0.756, and the transaction processing system, with a low positive correlation coefficient of 0.185 collectively. In respect of the factors affecting business information systems' adoption, the study found a lack of skilled manpower to use automated accounting information systems; gaps in defining key performance indicators; the retrieval, collection, preparation and interpretation of data for monitoring and evaluating effective transaction processing systems; and limited resources and budgetary allocations for searching for effective business information systems. The researcher recommends that saving and Credit cooperative union should make use of an automated Accounting Information System in their Finance Department. In addition, management of the saving and credit Cooperatives union should engage those that are computer literate and highly experienced. They should also train with the latest information technology to ascertain the competitive effectiveness of the organization