Electronic Invoicing in Finland - attitudes towards electronic invoicing by financial managers in small- to

mid-sized companies

Anna Rofhök-Björni

Master’s of Science Thesis in Accounting

Swedish School of Economics and Business Administration

2006

II

SWEDISH SCHOOL OF ECONOMICS AND BUSINESS ADMINISTRATION

Department: Accounting Type of work: Master of Science Thesis

Author: Anna Rofhök-Björni Date: 25.01.2006

Title: Electronic Invoicing in Finland - attitudes towards electronic invoicing by

financial managers in small- to mid-sized companies

Abstract:

Electronic invoicing is a fairly new phenomenon that is facing a surge in popularity

in Finland at the moment. There has not been a lot of research made previously on

electronic invoicing and attitudes towards using it by potential users. This thesis aims

to fill this gap.

The research objective is to ascertain what the attitudes are towards electronic

invoicing by financial managers employed by SMEs in Finland. A questionnaire has

been sent to financial managers with questions about electronic invoicing. The

response rate was good.

The result of the study showed that the attitudes towards electronic invoicing are

positive. There were some concerns regarding the cost and safety of using electronic

invoicing but the majority of the respondents believe that using electronic invoicing

would be beneficial.

Keywords: electronic invoicing, XML, ebXML, eInvoice, Finvoice, electronic

commerce, TEAPPSXML, PostiXML, EDIFACT

III

Table of Contents

1 Introduction ______________________________________________________ 1

1.1 Background ________________________________________________________ 1

1.2 Research objective __________________________________________________ 1

1.3 Structure of the thesis________________________________________________ 1

2 Electronic Invoicing in Finland ______________________________________ 3

2.1 Introduction________________________________________________________ 3

2.2 The invoice_________________________________________________________ 3

2.3 Electronic invoicing _________________________________________________ 4

2.4 Techniques and standards ___________________________________________ 10

2.5 Electronic invoicing in Finland _______________________________________ 13

2.6 Laws and regulations _______________________________________________ 18

2.7 Summary _________________________________________________________ 19

3 Theories and prior research ________________________________________ 20

3.1 Introduction_______________________________________________________ 20

3.2 Theories of adoption of new information technology _____________________ 20

3.3 Previous research-findings on factors affecting attitudes towards adoption __ 23

3.4 Summary _________________________________________________________ 28

4 Research model and Methodology ___________________________________ 29

4.1 Introduction_______________________________________________________ 29

4.2 Research model and hypotheses ______________________________________ 29

4.3 Data collection_____________________________________________________ 34

4.4 The results ________________________________________________________ 37

5 Discussion ______________________________________________________ 62

5.1 The research and its limitations ______________________________________ 62

5.2 The results and their implications_____________________________________ 62

IV

5.3 Suggestions for further study_________________________________________ 66

5.4 Conclusion ________________________________________________________ 66

6 Bibliography_____________________________________________________ 67

7 Appendix _______________________________________________________ 71

7.1 Appendix 1________________________________________________________ 71

7.2 Appendix 2________________________________________________________ 77

List of Tables

Table 2.1 Costs of paper invoices versus electronic invoices (Elma Electronic Trading, 2006) ...............10 Table 4.1 Current electronic invoicing status ............................................................................................38 Table 4.2 Preferred electronic-invoicing solution......................................................................................39 Table 4.3 Electronic invoicing is hard to understand ................................................................................39 Table 4.4 There is a risk of error increase when using electronic invoicing .............................................40 Table 4.5 Electronic invoicing is tiresome to learn....................................................................................40 Table 4.6 It would be difficult to check accuracy when using electronic invoicing ...................................41 Table 4.7 Technically safe..........................................................................................................................41 Table 4.8 There are financial restrictions in our company to acquire electronic invoicing ......................42 Table 4.9 ERP Systems in use in our company...........................................................................................43 Table 4.10 Regression analysis 1 ...............................................................................................................45 Table 4.11 Regression analysis 2 ...............................................................................................................47 Table 4.12 Regression analysis 3 ...............................................................................................................50 Table 4.13 Regression analysis 4 ...............................................................................................................52 Table 4.14 Regression analysis 5 ...............................................................................................................55 Table 4.15 Summary of hypotheses ............................................................................................................59 Table 4.16 Correlation Matrix ...................................................................................................................60 Table 4.17 Questions for correlation matrix in table 4.14 .........................................................................60

List of Figures

Figure 2.1 Elma for RosettaNet (Elma Electronic Trading, 2006) ______________________________12 Figure 2.2 eInvoice model (e-invoice consortium, 2005)_____________________________________14 Figure 3.1 The Technology Acceptance Model (TAM) (Gullkvist, 2005) _________________________21 Figure 3.2 The Theory of Reasoned Action (TRA) (Gullkvist, 2005) ____________________________22 Figure 4.1 Research model ____________________________________________________________30 Figure 4.2 Technically safe ___________________________________________________________41 Figure 4.3 Normality Probability Plot Regression No1 ______________________________________45

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Figure 4.4 Normality Probability Plot Regression No 2______________________________________48 Figure 4.5 Normality Probability Plot Regression No 3______________________________________50 Figure 4.6 Normality Probability Plot Regression No 4______________________________________53 Figure 4.7 Normality Probability Plot Regression No 5______________________________________56 Table 4.17 Questions for correlation matrix in table 4.14 ____________________________________60 Figure 4.8 Correlations in research model ________________________________________________61 Figure 5.1 The significant factors in the research model_____________________________________63

Acknowledgements

I would like to thank everybody who has helped me during the time I have been writing

this thesis. I want to thank Thomas Lönnquist at eCraft Oy Ab who gave me the idea to

write about electronic invoicing as well as Johan Andersson at Iversum who has sent me

lots of information. Additionally, I would like to thank Janneke von Wendt and Tove

Gordin-Lydman who translated the questionnaire from English to Finnish. Also, Oana

Velcu, thank you so much for helping me out with all the technical stuff as well as

giving me information on how to analyse my results. I would also like to thank Heli

Salmi who agreed to meet with me and discuss electronic invoicing in Finland. And of

course, Professor Anders Tallberg who has given advice on how to write the thesis and

how not to. Last but not least, I want to thank my husband Janne for putting up with me

and my writing – it took longer than I planned. Thanks for your support!!

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1 Introduction

1.1 Background

In Finland, the Finns can use information networks for almost any everyday activity.

Dealings with governmental departments, bank transactions and purchasing flight or concert

tickets can be handled online. Eighty percent of the population in Finland is familiar with

the Internet and almost fifty percent of them use the Internet daily. Finland has been ranked

three times as one of the most developed IT economies by World Economic Forum (WEF)

in the beginning of the 21st century. Additionally, Finland has many times been cited as a

good “test laboratory” for innovations and services because the Finnish people are

technically oriented and interested in trying new products. Exploring electronic invoicing

and financial managers’ views on its use and adoption in Finland will therefore give an

interesting picture of the future of electronic invoicing (ICT Cluster Finland Review 2005).

There has been a lot of research made regarding attitudes towards and adoption of

electronic commerce by SMEs (Small and Middle-sized Enterprises) which has shown that

SMEs are reluctant to adopt e-commerce (Grandon & Mykyton, 2004). Considering these

findings, it is of interest to establish financial managers’ thoughts regarding electronic

invoicing.

1.2 Research objective

Electronic invoicing is currently a much discussed topic because of the time and cost

reductions it can offer. Many different solutions and techniques have been introduced and

tested. Even though there are numerous studies on attitudes towards information technology

and electronic commerce and their adoption, there is no current research available on the

attitudes towards electronic invoicing. The main purpose of this thesis is to fill this gap.

The objective is to identify the attitudes towards electronic invoicing and its adoption

among financial managers and accountants working for SMEs in Finland. This study will as

a consequence increase our knowledge of attitudes towards new technology in general and

electronic invoicing in particular.

1.3 Structure of the thesis

The first chapter of the thesis serves as an introduction to the topic of electronic invoicing.

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The second chapter will discuss electronic invoicing in Finland. A general description of the

traditional invoice will be offered and discussed before continuing with the electronic

invoice. There will be definitions and introductions of what kinds of electronic invoicing

there are. Subsequently, benefits that can be won by using electronic invoicing are

discussed. Chapter two continues by discussing techniques and standards that are used to

make electronic invoices and also the most common solutions available on the Finnish

market. The chapter will end by briefly introducing laws and regulations that need to be

considered.

Chapter three discusses theories on new information technology adoption and previous

research in this area. In this chapter various factors influencing adoption decisions and

attitudes are identified.

Next part of the thesis, chapter four outlines the research methodology, the research itself

and the results. The last part, chapter five will discuss the findings and their limitations and

implications.

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2 Electronic Invoicing in Finland

2.1 Introduction

Electronic invoicing is facing a surge in popularity at the moment and especially in Finland

suppliers of electronic invoicing and new solutions are increasing. In this section I will

establish what an electronic invoice is, what options are available, the techniques and

standards and finally some solutions on the market in Finland and the laws and regulations.

2.2 The invoice

To understand the electronic invoice, it is useful to be aware of what an invoice is. The

commercial invoice is according to the CEN/ISSS e-Invoicing Focus Group (2005) the most

important document exchanged between business partners. It is not only of commercial

value but it is also an accounting document and it has legal implications for both the sender

and the receiver of the invoice. According to Verohallinto (2005), an invoice is

verification or a message in either paper or electronic format that fulfils the regulations of

VAT (Value Added Tax) laws. In Finland, the invoice forms the basis for the VAT

declaration and reclamation as well as the statistics declaration for intra community trade

and the export and import declaration for extra community trade (CEN/ISSS e-invoicing

focus Group, 2005). The invoice is made by the seller for a sale made to document the

transaction and it subsequently supports accounting and auditing functions. In Finland, a

typical invoice includes the following items:

• Date of invoice

• Number of invoice

• The issuer’s VAT-number

• Issuer’s and recipient’s name and address

• The amount and kind of goods or services

• Date of delivery, date of performance or date of payment (if it is a prepayment)

• The tax-base for every taxable item, price per unit excluding VAT as well as price

reductions and discounts.

• Taxbase

• Amount of VAT to be paid (Verohallinto, 2005)

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2.3 Electronic invoicing

2.3.1 Definitions

According to the e-invoice consortium (2005), an electronic invoice is a modern, reliable,

cost-efficient and practically paperless method of handling and processing invoices for

goods, services and other expenses. Electronic invoicing is suitable for both large and small

firms and companies as well as private customers and both large and small volumes of

invoices can be sent. It is an especially efficient method of invoicing when there are many

recipients. The recipient is sent the invoicing data and an invoice image for circulation,

approval and archiving in electronic format (Elma Electronic Trading, 2005). The electronic

invoice can be graphically displayed on the computer screen similarly to a traditional

invoice. Consequently, archiving, distribution and approval procedures are improved.

Business customers can receive the electronic invoice straight into their financial

information system (e-invoice consortium, 2005). Private customers can receive invoices in

their internet bank. Private customers will not be dealt with in depth as this thesis will

mainly concentrate on B2B (Business to Business) invoicing solutions.

2.3.2 Invoicing electronically

To be able to receive electronic invoices there has to be at least an internet connection, a

workstation, and an agreement with an internet bank or similar where the invoices will

arrive. Sending is usually done through the company’s invoicing system but it can be done

through the Internet as well (Tieke, 2005).

Most financial administration services can send electronic invoices through the Internet

without anything but a browser. The invoices are divided into electronic invoices,

EDIFACT invoices or eKirje invoices to be printed in paper format and subsequently sent

forward to the recipients. The recipient can also receive the invoices electronically straight

into the financial information system provided that the account entries are already marked

on the invoice. All the recipient has to do is to approve the invoice for payment. Sales and

purchase invoices can for example be accessed and transmitted while performing other

bank-transactions (Vahtera Pauli, 2005).

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2.3.2.1 Scanning of invoices

The most basic method of electronic invoicing is scanning. The invoice is issued by the

sender in paper format and subsequently scanned so that the receiver can process them

electronically. The receiver or a third party usually performs the scanning. In this case, the

invoices do not use any electronic messaging.

The receiver has good control of the internal handling of invoices, the processing system

and the status right through the processing as well as the archiving (CEN/ISSS e-Invoicing

Focus Group, 2005). However, the benefits from electronic invoicing compared to paper

invoices are non-existent if the financial information system does not use a system which

can handle the electronic invoice. Consequently, scanning of invoices is only using a small

part of the possibilities that electronic invoices can offer (Vahtera, 2002).

2.3.2.2 Insular electronic invoice

The next type of electronic invoice is the insular electronic invoice. This is when the

receiver wishes to receive invoices electronically in his/her system but where the preceding

messages have not been electronic. This may help to streamline the receiver’s internal

processing of invoices but the processing will nevertheless involve many manual actions

such as verification and matching of the invoice against orders, and cut-and-paste

operations to make the invoice information possible to manage in the ERP system. These

invoices could be in text format (HTML, Word, Excel and the like) or graphical format (for

example PDF or TIFF) (CEN/ISSS e-Invoicing Focus Group, 2005).

2.3.2.3 Electronic invoicing on Web forms

This option involves a web site where the invoices are entered. An example would be a

large, powerful buyer who wants to receive electronic invoices but buys irregularly or not

very often from small suppliers. The supplier is then referred to a web site, usually one that

is accessed through user id and password and he/she can enter the invoice manually there.

The web site might also offer additional services such as storing of invoices and printed or

electronic copies of the invoices entered. If the web site is also the point of access for orders

to the supplier, his/her amount of invoicing data to be inserted may be considerably

reduced. The buyer has full authority on the format of the invoices so that they can be

processed automatically when received. The buyer or a third party runs the web site and is

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in control of how the invoices are stored and the security surrounding the invoices.

The web site could be in the supplier’s control if the situation is reversed and the supplier is

influential and can persuade the buyers to collect invoices from there. In this scenario the

supplier controls the invoice format and procedures. Using a web site for electronic

invoicing could however cause duplication of data entry for the receiver (CEN/ISSS e-

Invoicing Focus Group, 2005).

2.3.2.4 Electronic invoicing through a consolidator

Many companies find using a consolidator convenient. A third party such as a bank or an

ASP (Application Service Provider) operator is used to overcome differences in networks,

communication protocols and message formatting standards by converting the invoice data

between the sender and the receiver. The invoices are electronic throughout the process and

even though the invoices are formatted differently, they are structured and intended for

automatic processing. Consequently, a company only has to have one format of invoices

instead of matching formats for every recipient (CEN/ISSS e-Invoicing Focus Group,

2005).

The consolidator is responsible for the sender’s invoice traffic, the format of the invoice and

the transfer to the recipient. The electronic invoices to be sent are gathered from the sender

by the consolidator. Credit invoices can be sent separately or included. The consolidator

subsequently checks the sender and its right to send electronic invoices and distributes the

electronic invoice to the recipient according to the recipient’s identifier. If the recipient

cannot be identified or if the data is erroneous, an error message is received. If the recipient

uses a service provider, it is his/her responsibility to collect his/her electronic invoices. If

the service provider is a bank for example, electronic invoices could be accessed when

collecting bank statements or paying invoices (e-invoice consortium, 2005)

2.3.2.5 Electronic Invoicing under trading partner framework agreement

In this scenario, the business partners have an agreement for a period of time stating the

conditions for trade. The business process is agreed upon as well as products and prices. A

Price List transaction may be used to change products and prices during the period. A Call-

off/Order transaction is used for individual deliveries followed by an order response. When

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the sale is fulfilled an invoice is used to request payment (CEN/ISSS e-Invoicing Focus

Group, 2005).

2.3.2.6 Direct Electronic Invoices

An electronic invoice can also be collected directly from the electronic invoice provider or

straight from the sender. Software-specific direct connections have been developed for key

accounting and workflow applications in association with software providers and ASP-

operators (e-invoice consortium, 2005).

2.3.3 Benefits to issuers and recipients

The potential benefits have caused a fast growing interest in electronic invoicing. According

to Luo et al. (2000), the most obvious benefits for using electronic invoicing are the

reductions in time and cost when processing invoices. It has been estimated that around 200

million business-to-business (B2B) invoices and 150 million business-to-customer (B2C)

invoices are sent in Finland yearly. On average, when including both issuer’s and

recipient’s costs the handling of a B2B invoice is around EUR30. Eighty percent of this

amount constitutes the handling of a received invoice (e-Finland Forum, 2004).

The process of receiving an invoice payment in Finland is largely automated using

reference numbers, with the introduction of electronic invoicing, the recipient’s accounting

and payment of invoices could be automated as well. The cost reduction could be up to as

much as 80-90% (Vahtera, 2005). In addition, the automation of the invoice processing

reduces the risk of incorrect entries. Electronic invoices are also more environmentally

friendly because of its paperless system (Rautajoki, 2003). According to the e-invoicing

focus group, the introduction of electronic invoicing will furthermore aid tax administrators

to implement new tools and procedures for controlling purposes that are less intrusive on

the trading partners. It has also been said to offer better competitiveness to the economy as a

whole if the number of users is large enough (ICT Cluster Finland Review 2005).

The sender of electronic invoices can reap the following benefits:

Fast invoicing

Lowering of costs of material

Better customer service and cost-savings for customers

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Less manual work process - enhanced efficiency and reduced human error risk

Possibility for electronic storage

Possibility for outsourcing

The receiver of electronic invoices can reap the following benefits:

No manual invoice entry

Automation of VAT services

Fast circulation of invoices

Easier filing

Less errors in data entry and handling

Automation of accounting

Reduced cost of invoice handling (Tieke, 2005, Elma Electronic Trading, 2006)

Typically, large companies have more bureaucracy when processing an invoice. Different

companies have different processes for handling invoices and different invoices have

different handling requirements. Pauli Vahtera and Heli Salmi have made a calculation (see

table 2.1), where two companies with different needs are compared on the time it takes to

handle an incoming paper invoice as well as the time and cost-savings when using

electronic invoicing.

Company A

(based on Internet and EDI in Effective Accounting

by Salmi-Vahtera):

Paper Electronic

Invoice

Handling phase Time (min) Time (min)

Opening the mail 1

Date stamping the invoice 1

Copying the original 1

Organising copy in a folder according to alphabetical

order

1

Checking and posting the invoice 2

Entry into the purchase ledger 2

Checking 1 1

Approval 2 1

Posting the invoice to the data system 1,5

9

Approval of payment 0,5

Archiving the invoice (in numerical order) 1

In-house mailing (9 copies of the invoice) 10

Error handling (10% of invoices) 2 1

TOTAL (min) 26 3

Hourly rate 34 EUR

Minute rate 0,6 EUR

Cost / invoice EUR 14,57 1,68

Savings / invoice 12,89 EUR

Savings as a percent 88,5 %

Company B

(based on Paperiton kirjanpito [Paper-free

Bookkeeping] by Vahtera-Salmi):

Paper

Electronic

Invoice

Handling phase Time (min) Time (min)

Purchase invoice from the post

Supplier number, receipt stamp and receipt number

marked onto the invoice

0,5

Entry into the ledger 1

Entry into the order processing system

Finding the despatch note for the invoice; the despatch

note is clipped to the invoice, the invoice is placed in a

post box, someone takes it to the purchase team

Approval in the team 0,5

The invoice returns to bookkeeping 10

A copy of the invoice is taken

The despatch note is stapled to the copy 0,5

10

The copy and the despatch note are placed into a

folder in receipt order

0,5

The original invoice is approved

Approval 0,5 0,5

The chief accountant checks the invoice posting 0,5

The invoice is taken from the ledger and posted 0,5

The invoice is archived in receipt number order 0,5

TOTAL (min) 14 1,5

Hourly rate 34 EUR

Minute rate 0,6 EUR

Cost / invoice EUR 7,8 0,8

Savings / invoice 7,0 EUR

Savings as a percent 89,3%

Table 2.1 Costs of paper invoices versus electronic invoices (Elma Electronic

Trading, 2006)

2.4 Techniques and standards

2.4.1 Introduction

There are many different techniques and standards available on the international market for

electronic invoicing. As this thesis’ focus is on the Finnish market I will concentrate on the

techniques and standards used in Finland. The main ones are the eInvoice, the Finvoice,

TEAPPSXML, PostiXML, VaLo and EDIFACT but there are others.

The eInvoice was developed by an organisation which was formed to facilitate the

development of electronic invoicing in Finland , the e-invoicing consortium. The e-

invoicing consortium agreed on technical data content as well as the information to be

included in the electronic invoice supported (the eInvoice). The eInvoice standard has two

possibilities: XML or ASCII. The Finvoice was introduced by the Finnish Bank Association

and was developed according to ebXML. In addition to these, TietoEnator has its own

product TEAPPSXML which is compatible with both the eInvoice standard and the

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Finvoice. Having many standards on the market is not a problem as the service providers

transform the electronic invoices to the format required. In Finland, large corporations still

use EDIFACT but according to Vahtera this will diminish as the other alternatives are

stronger and less expensive (Vahtera, 2005).

2.4.2 EDIFACT & ANSI

EDIFACT (Electronic Data Interchange for Administartions, Commerce and Transport) and

ANSI (American National Standards Institute) are traditional standards of EDI. These

standards set fields for documents such as purchase orders, invoices and payments

(Hasselbring & Weigand, 2001).

2.4.3 XML (eXtensible Markup Language)

XML is a mark-up language and is used to create self-descriptive data. It is a meta-

language. XML is independent of any application or platform and both humans and

machines can read its syntax. (Hasselbring & Weigand, 2001) It has been widely used to

describe data and creating mark-up languages (Deitel et al, 2003).

2.4.4 RosettaNet

Rosetta Net a consortium that develops an electronic business framework for business

processes definition. It is a non-profit organisation and it is creating open standards so that

supply-chain partners can coordinate business processes more efficiently. To accomplish

this goal, RosettaNet has developed dictionaries and frameworks that assist organisations in

implementing business-process standards. The core properties of RosettaNet is the

definition of terms called PIPs (Partner Interface Processes). PIPs are XML specifications

and describe processes and business documents shared in the supply chain (Deitel et al,

2003). The RosettaNet framework is for example used by Elma Electronic Trading in their

Elma for RosettaNet.

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Figure 2.1 Elma for RosettaNet (Elma Electronic Trading, 2006)

2.4.5 EbXML (Electronic Business XML)

This technical framework was developed jointly by OASIS (Organization for the

Advancement of Structured Information Standards) and UN/CEFACT (United Nations

Centre for Trade Facilitation and Electronic Business) to standardise XML business

specifications and make it possible for XML to be used consistently for electronic business

data exchange. EbXML provides a technical framework through which companies

regardless of size and industry can communicate and exchange data using XML or EDI

syntax. EbXML draws on extensive experience with EDI syntax and semantics and on

current initiatives for converting EDI to XML (ebXML forum, 2005). In Finland, the

Finvoice was developed using ebXML.

2.4.6 Biztalk

BizTalk is a tool developed by Microsoft for communication between different systems.

With BizTalk, data can be marked up as XML and subsequently transferred between

different applications regardless of different platforms or programming languages. BizTalk

actually includes three things; the BizTalk Server, the BizTalk Framework and the BizTalk

Schema Library. The server parses and translates every message and the framework is a

schema structuring the messages to be sent (Deitel et al 2003). Biztalk has been used in

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Finland for electronic invoicing solutions by ASP operators.

2.5 Electronic invoicing in Finland

2.5.1 Introduction

As Finland is one of the forerunners in electronic banking, there is considerable expertise in

the electronic business area and the internet banking and payment infrastructure is greatly

developed. In addition, there has been a great deal of collaboration between banks, ASPs

and others and this has resulted in a development of functional and cost-efficient

procedures, standards, models and instructions for electronic invoicing. As a consequence,

Finland has proven to be a good market for solutions for electronic invoicing to be

developed in (Vahtera, 2002).

2.5.2 Solutions available

Electronic invoicing has been used in Finland over 30 years already. The first electronic

invoices were sent between large corporations according to internal standards. In the 1970s,

the KOTVA-standard was introduced and many large businesses traded invoices. At the end

of the 80s, the international EDIFACT standard was established which is still used by big

firms today (Vahtera, 2002). In 1998, payment of electronic invoices through the internet

was commenced. International credit card-companies have their own electronic invoices

and also other large international corporations have their own systems which are based on

internal standards, EDIFACT and US ANSI standard. Invoices in pdf-format or email

invoices have also been used as electronic invoices. The Post’s eKirje can be printed but is

electronic in the seller’s accounting system (Vahtera, 2002). Tietoyhteiskynnan

kehittämiskeskus (Tieke, 2005) has developed a website where electronic invoice users can

register when they are able to receive and send electronic invoices (Tieke, 2005). The

biggest players on the Finnish market are according to Heli Salmi, Elma Electronic Trading,

Nordea, TietoEnator and BasWare. In this section, I will describe some of the most

common solutions available on the Finnish market.

2.5.2.1 The eInvoicing Consortium

The e-Invoice consortium was initiated in 1999 and the eInvoice solution was developed

(Elma Electronic Trading, 2006). Providers of electronic invoicing and banks in Finland

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agreed upon a common standard so that electronic invoices could be sent and received in a

secure manner in a common trunk network. Consequently, invoicing between sellers and

buyers is made in a uniform way even though they are using different providers.

The eInvoicing consortium is focused on securing the eInvoice and making it reliable. The

providers install the connections the customer needs to be able to send and receive

electronic invoices. This can be done in collaboration with the financial administration

software providers or ASP operators or independently. The banks and the providers then

handle the set-up, maintenance, support and backup of the network connections as well as

format conversions that might be necessary to let the customers use the method of receiving

and sending e-invoices best suitable (e-invoice consortium, 2005).The parties in the

consortium transmit the data to the receiver according to the technical address in the

invoice. Standards for the invoice data has been developed by the consortium (Elma

Electronic Trading, 2006).

Figure 2.2 eInvoice model (e-invoice consortium, 2005)

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The eInvoicing model is based on EDI (Electronic Data Interchange). EDI includes the

electronic transfer, from computer to computer, of commercial and administrative data with

the use of an agreed standard. In other words, EDI can mean both EDIFACT messages as

well as XML messages. Electronic invoicing is based on agreements between the parties

involved:

• the invoice issuer and the service provider or bank

• agreements between the parties in the consortium

• the invoice receiver and the service provider or bank. ¨

Verification of origin is established by the use of VPN (Virtual Private Network) protocol.

The VPN protocol secures the origin, integrity and confidentiality of the message. In FTP-

connections the FTP (File Transfer Protocol) user is identified with a user id and a

password. Banks demand MAC (Message Authentication Code) digest in their connections.

The verification of integrity is verified with start and end segments.

In international transactions the transmission can be secured by:

• The invoice sender and the receiver make an EDI-agreement where the security

methods are established

• Verification of origin is established by using VPN protocol

• The verification of integrity can be secured by a digest, which is included in the

data. In all cases the integrity of the data can and will be verified with start and end

segments (Elma Electronic Trading, 2006).

2.5.2.2 Elma E-Invoice

Elma is part of the eInvoicing consortium and offers several solutions to their customers

depending on the customers’ situation. Elma offers the Elma eInvoice, the Elma eInvoice

Basic and Elma eInvoice.com. The Elma eInvoice is suitable for large and mid-sized

organisations and the Elma eInvoice Basic and the Elma eInvoice.com are more fitted to

small and medium-sized companies. All of the products support several standards, message

descriptions and operational models available on the market. In addition, all Elma e-invoice

products are based on the standards and operating procedures identified by the eInvoice

consortium. Customers can therefore choose the method of receiving and sending electronic

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invoices that suits them best. Elma’s products support, among others, the following

formats: PDF, TIFF, eInvoiceXML, eInvoice ASCII, TEAPPSXML (TietoEnator), EPL

(Finland Post Ltd), and EDIFACT.

The Elma eInvoice is made to look like a regular, printed invoice. According to Elma

Electronic Trading, this aids checking, circulation and archiving of the electronic invoice. It

can easily be linked to the organisation’s invoicing system. The recipient can receive the

invoice in whatever format required, whether it is another Elma eInvoice, an EDI invoice or

in paper format (printed by the Elma Invoice service). Invoice payment information is

automatically integrated into the recipient’s system. The invoices can be accessed and

viewed from the organisation’s ERP system. It can be printed, saved on a workstation or

forwarded by e-mail.

If the recipient uses the eInvoice Repository Connection (eRC) the Elma eInvoice can be

received directly into the financial information system. The eRC uses the Elma data

warehouse technology and an FTP (File Transfer Protocol) application interface to make

this possible. The recipient’s software supplier is then responsible for transferring the data

and integrating the invoices. With the eRC Plus, the recipient can also receive electronic

invoices from other operators and banks who are part of the eInvoice consortium.

EDI invoices are transferred automatically using the ElmaEDI connection from the sender’s

ERP system to the receiver’s system. Orders and order confirmations often forms the basis

for EDI invoices according to the SCM (Supply Chain Management) - model. EDI invoices

are mainly for companies sending many invoices.

For customers wanting invoices in paper format, the Elma Invoice service can be used. The

issuer sends the invoice files electronically to Elma and the Elma Invoice service prints the

invoices and sends them to the customer. A customer can furthermore receive scanned

paper invoices by using the Elma eCom Connection. Paper purchase invoices are then

converted into electronic format such as PDF or TIFF files.

In addition to the connections in Elma’s products, Elma eInvoices can be received through

several ASP operators. The operators then transmit the invoice data between themselves and

the operators are responsible for their service. Each operator can use different ways to send

the invoice data. The Elma eInvoice can be transmitted through the Internet as well as

17

through fixed connections. Currently, the Elma eInvoice supports the following distribution

channels: Finland Post Ltd, TietoEnator, Elisa Solutions Ltd, Proha Oyj, ProCountor.Com,

WM-data Novo, and BasWare Business Transactions.

Elma eInvoice Basic uses the same technology and distribution channels as the eInvoice but

has limited customisation.

The Elma eInvoice.com is a service where companies can send and receive invoices

electronically without installing a new application to their own system. An internet browser

is all that is needed. The invoices are subsequently sent straight to the recipient’s system.

For security, the invoice traffic is encrypted using SSL (Secure Socket Layer), MAC

(Message Authentication Code) and PATU (Banking standard for secure customer

connections). Automatic watchdog technologies are used to control the buffers for the

invoices and the servers are placed safely and securely and under constant supervision

(Elma Electronic Trading, 2006).

2.5.2.3 Finvoice

The European Committee for Banking Standards (ECBS) introduced in July 2003 a

standard for electronic invoicing called the electronic Payment Initiator (ePI). The ePI was

created to be used both domestically as well as internationally. In Finland, the ePI standard,

SOAP (Simple Object Access Protocol) and ebXML-compliant descriptions were employed

to develop a format for electronic invoices called Finvoice (ebxml forum, 2005). The

Finvoice was created by Finnish banks and uses XML syntax. The Finvoice can as such, be

presented in a browser in a form similar to a paper invoice as well as be understood by an

application. Consequently, the Finvoice can be printed as a paper invoice and processed

traditionally if the need arises (The Finnish Bankers‘ Association, 2005).

A Finvoice consists of three things; a transmission frame consisting the information

necessary for forwarding the invoice, a specification of the information needed for approval

and accounting purposes and payment information. As mentioned earlier, the Finvoice can

be opened for viewing and printing using a normal browser but it can also be processed

fully automatically (The Finnish Bankers‘ Association, 2005).

18

2.6 Laws and regulations

According to Directive 2001/115/EC, all Member States must accept documents or

messages in paper or electronic format as invoices if they meet the conditions outlined in

Directive 2001/115/EC. It is also stated in the Directive that Member States can require

special conditions, procedures or measures according to the national requirements. This can

cause conflicts in cross-border trading. In such cases, the VAT rules of the issuer’s Member

State will apply (e-Invoicing Focus Group, 2005).

Directive 2001/115/EC entails requirements on electronic invoices regarding the guarantee

of integrity of content and authenticity of origin for VAT purposes. As stated earlier, an

electronic invoice should be accepted as long as the authenticity of the origin and the

integrity of the contents are guaranteed. The authenticity of the origin is to know for a fact,

the identity of the sender of the electronic invoice. The integrity of the contents means that

any changes that have occurred during transport or storage can be detected. This should be

accomplished through:

- an Advanced Electronic Signature (AES).

- or an electronic data interchange (EDI).

- or any other electronic means subject to acceptance by the Member State in question.

The conditions will if necessary be adjusted according to any future technological

developments in this field by 31.12.2008 the latest.

In addition to these conditions the following need to be considered:

- some Member countries might require a summary document in paper format of the

invoices issued.

- some Member countries might require prior notification but only until the end of 2005.

- signed invoices should not be required.

- regarding cross border invoicing, the terms and conditions of the agreement and of the

acceptance procedures are to be according to the regulations of the State in which the goods

or services are supplied.

- regarding non EU countries, the Member State where the taxable person is registered can

require specific conditions for electronic invoices issued from a country with which there is

no legal agreement regarding invoices if the goods and/or services are supplied in the

Member State.

According to the e-Invoicing Focus Group (2005), the Directive furthermore states that

19

copies of all invoices whether received or issued are to be stored. The authenticity of the

origin, the integrity of the content and the invoices’ readability have to be guaranteed

throughout the period of storage. The content may not be changed and it has to be legible

throughout the period. If the invoices are stored in message format then the required

directory and code sets required for conversion to clear format must also be stored. The

place of storage is optional as long as the invoices or the information stored are available

without unnecessary delay to the authorities. Invoices are required to be stored for fiscal

administration for a period of six years (CEN/ISSS e-Invoicing Focus Group, 2005). In

Finland, electronic storage of invoices is allowed according to the Finnish accounting laws

as long as they can be retrieved easily (kirjanpitolautakunnan yleisohjeet, 2000).

The Finnish Ministry of Finance has proposed modifications in the national VAT legislation

based on the EU directive. These modifications were accepted by the Parliament in

February 2003. There will be no specific requirements for electronic invoicing in Finland.

The proposal declared that there have not been any taxation difficulties in electronic

invoicing and legislation should not include too strict requirements (Elma Electronic

Trading, 2006).

2.7 Summary

As presented in this section, there are a number of options available for companies

interested in using electronic invoicing with the two main ones being electronic

invoicing using a consolidator and making a solutions especially fitted to serve the

company in question. The benefits of using electronic invoicing are several but the most

important ones are the savings a company can make in time and cost. In addition, entry

errors are reduced. The main products on the Finnish market are the eInvoice, the Finvoice,

TEAPPSXML, and EDIFACT. The eInvoice standard uses XML or ASCII, the Finvoice

was developed using ebXML and the TEAPPSXML is compatible with both the Finvoice

and the eInvoice. In Finland there are no laws especially for electronic invoicing.

20

3 Theories and prior research

3.1 Introduction

The vast availability of new information technology, as well as the nature of the “global

village”, have changed the way organizations work. For example, adoption decisions have

now become more difficult for management to make (Dasgupta et al 1999). Adoption of

information technology has been greatly studied in recent years and has been defined as the

decision to invest in, or to accept, a new technology (Dasgupta et al, 2002) and is

characterised by the making of the adoption decision and the investment following the

decision (Dasgupta et al 1999). As there is no set framework made for studying the attitudes

towards adoption of electronic invoicing I have decided to use a selection of theories on IT

adoption as a basis for my research. In this section I will present these theories and what has

been discovered to determine attitudes towards new information technology and its

adoption and how I will apply them in my study on attitudes towards electronic invoicing

and its adoption.

3.2 Theories of adoption of new information technology

3.2.1 Introduction

Adoption of new information technology has been widely researched and there are several

theories that have been used to study this subject, for example the Theory of Reasoned

Action, the Technology Acceptance Model, the Motivational Model, the Theory of Planned

Behaviour, the Innovation Diffusion Theory and the Social Cognitive Theory (Venkatesh et

al 2003). A selection of these will be introduced below.

3.2.2 Technology Acceptance Model

The Technology Acceptance Model (TAM) was proposed by Davis in1989 as a tool to

predict acceptance of information technology. It has since then been widely used and

validated. The model states that adoption of information technology is dependent on the

perceived ease of use and the perceived usefulness of the technology by the user. More

recent research has extended the model to include factors such as perceived system quality,

performance and prior use. Social norms and prior performance showed to have an

21

influence on technology adoption. The TAM has mainly been used to predict adoption of

new technology by individuals but not by organisations (Dasgupta 2002). Many other

theories on information technology adoption are based on the TAM and previous research

often refers to the model. For example, Pavlou (2003) states that internet technology

acceptance can be partially explained with the TAM.

External variables

Perceived usefulness

Perceived ease of use

AttitudeTowardusing

Behavioural intention to use

Actual system use

Technology Acceptance Model (TAM)

Figure 3.1 The Technology Acceptance Model (TAM) (Gullkvist, 2005)

3.2.3 The Theory of Reasoned Action and the Theory of

Planned Behavior

The Theory of Reasoned Action, TRA and the Theory of Planned Behavior, TPB, are both

well-known theories of intention and have been used with success in many different

settings. These two theories suggest that behaviour can be predicted according to the

intentions of the person in question. The intentions are in turn influenced by the person’s

attitude (favorable or unfavorable evaluation) and subjective norm (perceived social

pressure to perform) towards the behavior (Grandon and Mykytyn 2004).

The TRA involves using an individual’s attitude and his/her subjective norm towards the

behavior to predict intentions (Riemenschneider and McKinney, 2001-2002). The TRA has

been used to gain understanding of behavior and has been applied in many behavioral

science disciplines. The TRA has for example been used by Davis, Bagozzi and Warshaw

to examine user acceptance of computer technology and their conclusion was that

22

individuals’ use of computers can be predicted based on their intentions. (Riemenschneider

and McKinney, 1999, Grandon and Mykytyn, 2004).

The TPB builds on the TRA and has the addition of perceived behavioral control. (PBC).

PBC involves the influence of past experiences as well as anticipated barriers. The theory

with attitude, subjective norm and PCB is documented using belief-based measures and

direct measures (Grandon and Mykytyn 2004). This theory has been validated in many

different settings and situations and has proven to be useful in predicting managerial

behavior in regards to adoption of new information technology (Riemenschneider and

McKinney, 1999, Grandon and Mykytyn 2004).

Beliefs and Evaluation

Normative Beliefs andMotivation to comply

Attitude towardBehaviour

Subjective Norm

BehaviouralIntention

Actual Behaviour

Theory of Reasoned Action (TRA)

Figure 3.2 The Theory of Reasoned Action (TRA) (Gullkvist, 2005)

3.2.4 Technology-Organization-Environment framework

The technology-organization-environment (TOE) framework uses three aspects of a firm’s

context as influences on adoption and implementation of an innovation: technological,

organizational and environmental context.

The technological context involves the internal and external technologies that are relevant

to the firm. The organizational context involves the size of the firm, centralization,

formalization and complexity of managerial structure, the quality of its human resources

23

and the availability of internal slack resources. The environmental context entails the

environment in which the firm is doing business i.e. industry, competitors, resources, and

government (Zhu et al 2004).

The TOE framework has been confirmed by many researchers such as Swanson, Kuan and

Chau and Iacovou. Iacovou et al (1995) discusses adoption of EDI by small firms. The

TOE-framework is used and different adopters and non-adopters are identified.

3.2.5 The theory of diffusion of innovation

The theory of Innovation Diffusion is increasing in popularity as a reference theory for

studying information technologies. It provides tools to assess adoption and identifies factors

that facilitate or inhibit technology adoption and implementation. It has many similarities to

the TAM. For example, diffusion theory involves relative advantage and complexity, which

can be seen as the same as TAM’s perceived usefulness and perceived ease of use. Fichman

(1992) explains that factors facilitating or hindering adoption of technology that can be

identified by diffusion innovation theory include characteristics of the technology,

characteristics of adopters, how adopters hear about the technology and how they are

persuaded to adopt (Fichman 1992).

3.3 Previous research-findings on factors affecting attitudes

towards adoption

3.3.1 Introduction

In this section, previous research findings will be presented. Previous research in this area

has shown the following to be motivations for IT adoption

• sustaining competitive advantage

• improvement of efficiency

• protecting market share

• assisting in innovative activities

• increasing productivity and profitability (Wang et al (2004))

24

In addition to these motivations, many other factors have been introduced and validated or

discarded. I have decided to include personal factors, organizational factors, environmental

factors, technological factors and economical factors as these are the most prevalent in

previous research.

3.3.2 Personal factors

Personal factors include attitude, perceived benefits, perceived ease of use and perceived

usefulness. These are included in the theories introduced in the previous section such as the

TAM and the TRA. Chau (2003) uses the TAM when studying acceptance of internet

banking but extends it by adding the variable attitude. In Chau’s study, perceived ease of

use showed to be the most significant determinant of acceptance. He therefore goes on to

conclude that perceived ease of use will be of importance for any new technology in the

early days of adoption. McCloskey (2003-2004) also found in her study that perceived ease

of use and perceived usefulness were determinants of acceptance. In addition, Gullkvist

(2005) learned in her study of the electronic paper in Finland that perceived usefulness and

perceived ease of use were important factors affecting attitudes toward the electronic paper.

Pavlou (2003) proposes an e-commerce acceptance model that draws on the TRA. He states

that perceived trust and risk are important variables when predicting B2C e-commerce

acceptance. He found that perceived usefulness was a determinant of acceptance but the

importance of trust is due to the high level of uncertainty concerning on line transactions.

The adopters of web-based e-commerce in Riemenschneider and McKinney’s study (2001-

2002) had stronger beliefs as to the advantages to be gained than non-adopters

(Riemenschneider and McKinney 2001-2002). This was also found in the research made by

Wang et al (2004) where higher perceived benefits led to a greater motivation to adopt.

Iacovou et al (1995) discovered in their study of EDI adoption in small firms that there was

low awareness of the benefits of EDI before adoption. As a consequence, the relationship

between perceived benefits and adoption of EDI was moderate (Iacovou et al, 1995).

3.3.3 Organisational factors

Organizational factors include culture, ownership, management skill and support among

others. Dasgupta et al (1999) discovered that if an organization has a high performance-

25

oriented culture the level of computerization tends to be higher. This type of culture

emphasizes people, team, detail, outcome orientation and innovativeness. Companies

sustaining a stability-oriented culture were believed to be less likely to adopt new

information technology as they tend to resist change but the study could not find any

support for this theory. The conclusion was that even change-resisting firms need to adopt

some amount of new technology to stay competitive. Foreign or domestic ownership did not

show to be significant either (Dasgupta et al 1999).

Chong (2000) identifies managerial factors such as lack of managerial and or technical skill

that influence adoption or non-adoption. In addition, lack of managerial support has been

found to influence adoption. This has been verified by Wang et al (2004) where strong

support from top managers was shown to have positive influence on IT adoption.

Availability of qualified personnel is another important factor discussed by Bertschek and

Fryges (2002). Dasgupta et al (1999) also found that greater involvement of Information

Systems staff in the decision making regarding adoption had a negative influence on

adoption. However, Gullkvist (2005) discovered that managerial support as well as IT

support did not have a big effect on the attitudes of accountants and auditors and states that

these factors affect actual usage and not attitudes.

3.3.4 Firm Size

Firm size is one of the most frequently studied factors on adoption and has been validated in

many different settings as a determinant of adoption of new information technology.

Riemenschneider and McKinney (2001-2002) found in their study of belief differences in

small business adopters and non-adopters of web-based e-commerce using the TPB, that

large firms were more likely to adopt e-commerce than small firms. This was also evident

in Bertschek and Fryges‘(2002) study of German companies regarding B2B e-commerce

adoption. Firm size is a factor that determines adoption, the larger the firm the more likely

adoption is. Dasgupta et al (1999) discovered the same thing. The degree of

computerization was found to be larger in larger firms. Iacovou et al (1995) looked at the

relationship between firm size and adoption of EDI and stated that adopters tend to be larger

firms (in terms of sales volume) than non-adopters. This is a result of the resources that are

available to the firm. Size measured as number of employees on the other hand does not

seem to have an impact (Iacovou et al 1995). Kelley and Helper (1999) state, that a

business’ likeliness to adopt new technology is a function of its organizational capabilities

26

in relation to its size and its history with similar technologies. Larger firms are more likely

to adopt new technology due to the fact that large firms have more liquidity and can

therefore more easily afford it. If the firm in addition has experience of similar technology

adoption the uncertainty is reduced. Then management has some idea of the disruption it

will cause and how to minimize it. This will reduce the cost of adoption and therefore it is

more likely to happen. Wang et al (2004) contradicted Zhu’s (Zhu et al, 2002) claim that

large firms are more likely to adopt commerce. Wang et al claimed that any firm, large or

small can adopt commerce and do business on the Internet. But their study contradicted this

claim and proved yet again that size does matter.

3.3.5 Technology characteristics

Technological factors such as the perceived relative advantage, compatibility, trialability,

complexity, observability have also been noted in Chong‘s study (2000). Wang et al (2004)

provide a new categorizing method for IT adoption using internal and external factors.

Internal factors include firm size, system support readiness and a clear IT strategy.

Accessibility, alliance services and personalization were also found to be important in

Chau‘s study of internet banking. Unexpectedly, task familiarity proved to have low

importance (Chau, 2003). Gullkvist (2005) found that trust in the technique was an

important variable determining perceived usefulness and perceived ease of use.

3.3.6 Environmental factors

Kelley and Helper (1999) claimed that if the firm is practicing in an environment where the

industry mix is diverse it is more likely that management hears of new technologies and the

benefits and therefore it is more likely that they adopt the technology. In addition, in such

an environment the new technology and the people needed to implement it are more

available. Smaller firms are especially influenced by their geographical and network

positions. In addition, Bertschek and Fryges (2002) found that international pressure is also

important as well as the industry the company is in. If other firms are adopting the

technology they have to follow. This was the most significant factor in their study. In

Chong’s study (2000), external factors such as fluctuating interest rates, reliability of

supply, competition, and critical mass were noted as important. If critical mass is limited

27

there might be a lack of infrastructure, suitable platforms and compatible technological

standards. In addition, national infrastructure and government support is also important.

3.3.7 Competitive effects

Dasgupta et al (1999) found in their study that firms facing heavy competition were more

likely to adopt new information technology than others. Wang et al (2004) found that the

network position in a supply chain is significant; the closer to the core the higher the

likeliness of adoption. Other competitive factors they found were stable business network

linkage, inter-firm collaboration and mutual IT adoption along the supply chain.

Zhu et al (2004) uses the Technology-Organization-Environment Framework to investigate

factors which may influence the value of e-business. They found among other things that

competitive pressure is a factor driving firms to adopt e-business. Iacovou et al found in

their study that the main reason for small firms to adopt EDI was external pressure

especially from trading partners (Iacovou et al, 1995).

3.3.8 Economic factors

Computer hardware and software prices also showed to influence adoption decisions

(Dasgupta et al 1999). Adopting new information technology not only requires investments

in hardware and software but also employee training and system integration (Zhu et al,

2004). Transaction costs per invoicing need also be considered. According to Heli Salmi,

who is coordinator of expert services at Elma Electronic Trading, cost was more of an issue

earlier. Nowadays, it is important that the cost per invoice is lower than postage fees. This is

also dependent of the size of the firm.

3.3.9 Paperless Accounting

Benita Gullkvist has made a study called the Electronic Paper in Accounting – Studies in

Attitudes and Consequences among Accounting Professionals (2005). Her main research

question was how accounting professionals in Finland view electronic accounting systems.

She used both surveys and interviews among accountants and auditors employed in

accounting agencies to accomplish this aim. Gullkvist has based her study on theories such

as the Technology Acceptance Model and the Theory of Reasoned Action among others.

She found that perceptions of the usefulness and ease of use of the system were important

28

factors determining attitudes towards paperless accounting. In addition, she found

experience, institution conformity (work routines, accounting norms, and the organization),

technical factors, economic factors, social norms and attitudes towards using to be

important. She could however, not find support for organizational factors such as

management support (Gullkvist, 2005).

3.4 Summary

Many theories have been developed about attitudes towards and implementation of new

information technology. In this section, I have introduced a selection of these; the

Technology Acceptance Model (TAM), the Theory of Reasoned Action (TRA), the Theory

of Planned Behaviour (TPB), the theory of diffusion of innovation and the Technology-

Organisation-Environment (TOE) framework. The theories that will be mostly used in my

research are the TAM and the TRA with some aspects of the TOE framework as well.

There has also been an overview of previous research findings. Many factors have been

verified as having an effect on attitudes towards new technology and adoption decisions and

a collection of these have been introduced in this section. I have included personal factors,

organizational factors, environmental factors, technological factors and economical factors

as these are the most prevalent in previous research. My research has furthermore been

influenced greatly by Benita Gullkvist’s study (2005) called Electronic Paper in

Accounting. Studies in Attitudes and Consequences among Accounting Professionals and

this study has also been introduced in this section.

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4 Research model and Methodology

4.1 Introduction

As attitudes towards electronic invoicing and its adoption in Finland have not been studied

previously, the aim of this research is to fill this gap. To accomplish this, a questionnaire

was sent to SMEs in Finland dealing in B2B activities. In the study, Benita Gullkvist’s

research (2005) was used as a roadmap. She studied the attitudes towards electronic

accounting among accountants and auditors and her questionnaire served as a model to

mine. The theories mentioned previously such as the TAM and the TRA were also used to

develop the questionnaire to investigate the attitudes toward electronic invoicing and its

adoption in Finland. In this section I will develop the research model and the hypotheses to

be tested.

4.2 Research model and hypotheses

Using Gullkvist’s (2005) model as inspiration, my research model is similarly based on the

TRA-model and the TAM-model. These models have been validated in the past and have

proven useful in similar circumstances as indeed in Gullkvist’s study. Figure 4.1 has been

developed using Gullkvist’s research model. Since the purpose of the study is to find out

about attitudes, the focus is as in Gullkvist model, instead of on actual usage, on intention to

use. Also, since electronic accounting and electronic invoicing are quite novel, it might not

be possible to measure what affects actual usage.

There are a few differences between Gullkvist’s model and mine. The intention to use is

influenced by the attitudes towards usage and perceived usefulness in both models. In my

model however, intention to use is also affected by perceived ease of use. In Gullkvist’s

model, intention to use is influenced by a variable called social pressure which involves

attitudes among co-workers and the like. I have changed this factor to environmental factors

which involve customers, suppliers and competition as I felt this was more appropriate

since I am studying the attitudes of financial managers in SMEs. Attitude towards usage is

in my model, similar to Gullkvist’s model, affected by perceived usefulness and perceived

ease of use, but also by organisational factors and technical factors. Technical factors are

also affecting perceived ease of use in my model whereas in Gullkvist’s model they only

affect perceived usefulness. Gullkvist also has an additional factor in her study called

30

accounting practices which I excluded since my study is about electronic invoicing.

Personal factors

Organisational factors

Technical factors

Economical factors

Environmentalfactors

Perceivedusefulness

Perceivedease of use

Attitude Towardsusage Intention to use

Figure 4.1 Research model

Personal factors

In this segment, personal factors of the respondent such as age, sex, work experience as

well as experience of electronic invoicing are studied, to see if they affect the attitudes

towards electronic invoicing. Gullkvist (2005) discusses the likelihood of demographic

variables affecting attitudes towards electronic accounting. She points out that previous

research have found that older people and people with longer work experience are more

prone to feel negatively towards new technology. On the other hand, there is research that

point out that previous experience with the technique in question is associated with positive

attitudes (Gullkvist, 2005).

Hypothesis 1:

Previous experience of electronic invoicing or similar techniques affects perception of

electronic invoicing.

31

Hypothesis 2:

Age and previous work-experience influence perceptions of electronic invoicing.

Organizational factors

In this segment, factors such as availability of IT personnel, support from management and

the firm’s business activities are studied. Dasgupta et al (1999) investigated the possibility

that the availability of IT personnel to train employees and to facilitate the adoption process

have been influential on decisions to adopt a new product, but found that this had little

significance. Iacovou et al, (1995) found that most respondents were concerned with the

lack of know-how. I would like to see if the same holds true in this situation.

In addition, individuals seldom have the right to decide on investment decisions or new

information technology usage in the company and as a consequence the perception of

management support could influence attitudes (Fichman, 1992). Gullkvist (2005) found in

her study that implementing electronic accounting would not only introduce new

technology but to receive all potential benefits, processes were to be changed as well. I

would like to see whether the perceptions of a change in processes affect the attitudes

towards electronic invoicing.

Hypothesis 3

Having qualified IT personnel in the company affects perceptions of electronic invoicing.

Hypothesis 4

If there is a perception that management would support adoption, financial managers are

more positive towards electronic invoicing.

Hypothesis 5

If there is a perception that changes in processes will be big, managers are less likely to

want to use electronic invoicing

Hypothesis 6

Most firms have not implemented electronic invoicing but will within 5 years

Hypothesis 7

Adoption depends on the business activities of the firm

32

Environmental factors

Outside pressure such as opinions and actions of supplier and customers are studied in this

section. Especially for small firms, it has been found that the actions of suppliers and

competition affect adoption decisions made by SMEs, as small firm are more susceptible to

outside pressure (Iacovou et al, 1995).

Market share is also examined. When a company is faced with a great deal of competition

one of the options to achieve cost efficiencies may be to invest in new information

technology (Dasgupta et al, 1999). As a consequence, if there is little competition, there is

less need to invest in new information technology.

Hypothesis 8

Pressure from suppliers and/or customers can determine intention to use electronic

invoicing

Hypothesis 9

The larger the market share the less important electronic invoicing will be.

Technological factors

Safety and implementation issues are studied in this part. Kelley and Helper (1999) found

that if a company has implemented similar technology before, it was more positively

inclined towards new technology. As SMEs aren’t likely to have invested in similar

technology before I wanted to see if recent ERP system adoption would affect attitudes

towards electronic invoicing. Trust in the safety of the technique has been found to

determine perceived usefulness and perceived ease of use (Gullkvist, 2005). According to

Heli Salmi, the technical safety of electronic invoicing is perceived as good nowadays and I

would like to see if this holds true. In addition, I wanted to see if electronic invoicing is

perceived to be easy to learn.

Hypothesis 10

If other technology adoption has been made recently, the company is more likely to have a

positive attitude towards electronic invoicing.

33

Hypothesis 11

Electronic invoicing is perceived as technically safe.

Hypothesis 12

Electronic invoicing is perceived as easy to learn

Economical factors

In this part, economical issues are studied. Previous studies have shown that economical

reasons have an affect on the intention to adopt new information technology (Iacovou et al

1995). As SMEs often have less available financial resources than large corporations, the

costs associated with investing new information technology can be perceived as too high.

Hypothesis 13

Economical reasons are often cited as reasons for not implementing.

Usefulness and ease of use

The perceived usefulness and ease of use is examined in this section. Perceived usefulness

and perceived ease of use have been found to be important determinant of acceptance of

new technology (Chau, 2003, McCloskey, 2003-2004) as well as affecting attitudes towards

electronic accounting (Gullkvist, 2005). Therefore, I anticipate that if electronic invoicing is

perceived as useful and easy to use the attitudes will be positive.

Hypothesis 14:

If electronic invoicing is perceived as useful, the attitude towards electronic invoicing is

positive.

Hypothesis 15:

If electronic invoicing is perceived as easy to use, the attitude towards using it is positive.

Hypothesis 16:

If electronic invoicing is perceived as useful, the intention to use is positive.

Hypothesis 17:

If electronic invoicing is perceived as easy to use, the intention to use is positive.

34

Attitudes and intention to use

The attitudes of the respondents are examined here to see whether the intention to use is

positive. Gullkvist’s (2005) results showed that attitudes towards using hade an affect on

the respondents’ intention to use.

Hypothesis 18:

If the attitude towards electronic invoicing is positive, the intention to use is positive.

4.3 Data collection

4.3.1 The method

To test the hypotheses, the best method was decided to be conducting a survey. A

questionnaire was formulated and sent to 200 SMEs in Finland by email. The email

contained a cover letter including a link to a web-page where the questionnaire was located.

The respondents were given two weeks to reply. When the first week had gone, a reminder

was sent.

4.3.2 Questionnaire design

The questionnaire was based on the literature review in general and Gullkvist’s study in

particular. It was designed as a web-page and contained 52 questions. The questions were

either multiple choice or open text. The questions were formulated so that both adopters and

non-adopters of electronic invoicing could answer. As it was considered more likely that

respondents would prefer to answer in their mother-tongue, the questionnaire was translated

into Finnish to increase the response rate. Both the Finnish version and the original English

version can be found in the appendix.

The beginning of the questionnaire contained questions regarding the respondent such as

sex, age and work experience. Next, questions regarding the company were raised. These

included queries about number of employees, number of employees in the finance

department, market share and industry. After this, questions about the amount of import

export and purchase and sales invoices the company handles yearly. In addition, the

respondents were required to convey how many employees were occupied processing

invoices and if the company has domestic or foreign owners. After this, questions regarding

35

the electronic invoicing status and preferences were raised as well as queries into what kind

of ERP system is in use, when it was implemented and whether there was any automation of

the supply chain.

The next part of the survey included questions where the respondents were asked to express

their agreement or disagreement to posed statements on a five-point Likert scale. Number 1

is set as strongly disagree and number 5 is set as strongly agree. In this section, questions

regarding experience, organizational support, attitudes and opinions are posed.

The final part of the questionnaire invites the respondents to predict when all invoicing will

be electronic in Finland and internationally. The last questions involve the respondent

giving an opinion on the benefits and risks with electronic invoicing as well as the biggest

reasons, in their opinion, for not implementing electronic invoicing.

4.3.3 The Population

The objective of the study was to ascertain the opinions of financial managers and

accountants in small- to middle-sized companies in Finland. The target-group was therefore

individuals working with accounting and finance in small- to middle-sized companies in

Finland. The companies were selected randomly from Hanken’s voitto database according

to turnover (>1 million <100 million euro per year). Two hundred companies were deemed

to form a sufficient sample of the population for the study and were picked from the list

drawn from the database. All the companies in the sample conduct B2B activities.

Since the questionnaire was sent via email, email-addresses for the respondents were to be

found. This was accomplished by searching companies’ websites. This means that

companies that do not have a website were not included in the study neither were those not

posting the email address of the financial manager/accountant on the web. There is

therefore a possibility that the results are somewhat atypical but was deemed necessary

since many small companies outsource their accounting and invoicing.

4.3.4 The response rate

I received 43 replies out of 200 questionnaires sent, which constitutes a response rate of

21,5 percent. This amount of respondents is deemed to be sufficient to make statistical

36

analyses (Nyberg 1999) and is close to the response rate (26 percent) that Gullkvist (2005)

reached in her study of the electronic paper among accountants and auditors.

4.3.5 Descriptive statistics

Out of the 43 replies, 90, 7 percent were made by women (39 replies) and 9,3 percent (4

replies) by men..According to Gullkvist (2005) who had similar results, there is however, a

tendency that accounting professionals are female and therefore these results are not

surprising.

Out of 43 respondents, 42 conveyed their age. Out of the 42, the oldest was born in 1944

and the youngest in 1974. The average year of birth of the respondents was 1958. This

means that the sample is a bit older than Gullkvist’s sample where the respondents had a

mean age of 40 years old (Gullkvist, 2005). Gullkvist commented on the fact that older

people can be more resistant to changes and new processes and they are therefore not

enthusiastic towards the idea of electronic accounting.

Years of experience among the respondents varied from four to forty-five with an average

of twenty-two years. The experience of this sample group is therefore longer than in

Gullkvist’s study where the average was fourteen years. This corresponds to the fact that the

average age also was higher.

The respondents were, as previously mentioned, employed by SMEs, the smallest company

employing five people and the largest forty-five people. The average amount of employees

was twenty-two people. In the finance department an average of two people were employed.

The largest number of personnel employed to do finance and accounting was five and the

smallest number was one. Out of the respondents only forty-two answered the question

about how many employees were processing invoices. The number ranged from 0.25 to four

people, with an average of one person. The yearly amount of purchase and sales invoices

was given by forty-one respondents. The amount of purchase invoices ranged from fifty-one

to 5000 with an average of 1746 and sales invoices ranged from 100 to 14000 with an

average of 2130.

Thirty-five respondents gave the amount of import and export the company is involved in.

The average amount of import was twenty-seven percent of purchases with the lowest

37

amount being zero and the highest 100. The corresponding figure for export was sixteen

percent on average and a low of zero and a high of ninety. Only fourteen people wanted or

could rate the amount of market share the company has. The smallest percentage of market

share was one and the highest sixty. The average showed thirty-two percent. Ninety-three

percent (40 companies) were wholly domestically owned while two companies (4,7

percent) were owned by foreign interests and one company was a mixture of both. Sixteen

companies (37 percent) were from metal-related industries while the others were from

various industries.

A note should be made however, that the sample could have been affected by the fact that

the questionnaire was sent out electronically. People that are more interested or have a more

positive attitude towards new techniques could have been more prone to participate in the

survey as opposed to those who feel negatively about new techniques.

4.4 The results

4.4.1 Introduction

To establish whether the hypothesis made in the earlier section have any relevance, a

statistical analysis were performed. All the statistical analyses were made using the statistics

program SPSS. The analyses made were t-tests, to compare the means between two groups

and regression analyses, to see if there were any connections between different variables.

The descriptive analyses were also made using SPSS.

4.4.2 Descriptive analyses

In order to ascertain how common it is for SMEs to have electronic invoicing or if they

intend to implement it in the future, the respondents were asked to select the option that

suited them the best. As can be seen from table 4.1, only three companies, or seven percent

are currently using electronic invoicing, but 32,6 percent or fourteen respondents answered

that they will adopt electronic invoicing within one year’s time and 30,2 percent or thirteen

respondents answered that they will adopt electronic invoicing within three years. Only five

respondents or 11,6 percent said that they will not adopt electronic invoicing at all. This

indicates that most of the respondents have a positive attitude towards electronic invoicing

and it supports hypothesis 6. On average, the respondents also believe that electronic

38

invoicing will be used by everyone in Finland within 10 years and internationally within 15

years.

Hypothesis 6: Most firms have not implemented electronic invoicing but will within 5

years.

Table 4.1 Current electronic invoicing status

The respondents were asked to select which electronic invoicing solution they were using or

if they were not currently using one which one was their preference. Two of the respondents

using electronic invoicing, stated that they are using a bank as a consolidator and the third

one is using EDI. The respondents’ replies can be viewed in table 4.2. The majority would

prefer using banks as consolidators. As many as 51, 2 percent had chosen this option. Seven

respondents or 16, 3 percent each chose custom-made direct invoicing and through another

service provider as consolidator.

Option

Frequency

Percent

Are using

3

7,0

Will not employ

5 11,6

Planning to employ within one year

14 32,6

Planning to employ within 3 years

13 30,2

Planning to employ within 5 years

8 18,6

Total

43

100,0

39

Options Frequency Percent

No answer

5 11,6

EDI

2 4,7

Custom-made direct invoicing

7 16,3

Trough a bank as consolidator

22 51,2

Through other consolidator

7 16,3

Total

43 100,0

Table 4.2 Preferred electronic-invoicing solution

Table 4.3 outlines the replies to the statement that electronic invoicing is hard to

understand. Most, or 44,2 percent, selected the option that they did not agree at all. Only 3

respondents selected options 4 (somewhat agree) and 5 (Fully agree).

Frequency Percent

1 19 44,2

2 9 20,9

3 12 27,9

4 2 4,7

5 1 2,3

Total 43 100,0

Table 4.3 Electronic invoicing is hard to understand

In the statement that electronic invoicing causes the risk of error to increase most were

unsure. 39,5 percent or 17 respondents selected option number 3 which is non-committal.

However, as can be seen in table 4.4, only 6 respondents had selected an option agreeing

with the statement.

40

Frequency Percent

1 10 23,3

2 10 23,3

3 17 39,5

4 3 7,0

5 3 7,0

Total 43 100,0

Table 4.4 There is a risk of error increase when using electronic invoicing

Similar results were found in the statement that electronic invoicing would be tiresome to

learn. Table 4.5 shows that 27,9 percent selected the non-committal option while most, or

37,2 percent said they totally disagreed. This confirm hypothesis 12.

Hypothesis 12: Electronic invoicing is perceived as easy to learn

Frequency Percent

1 16 37,2

2 10 23,3

3 12 27,9

4 3 7,0

5 2 4,7

Total 43 100,0

Table 4.5 Electronic invoicing is tiresome to learn

The majority of respondents appear quite uncertain on the statement that it is difficult to

check the accuracy when using electronic invoicing. Table 4.6 shows that the tendency is

however leaning towards disagreeing with the statement.

41

Frequency Percent

No answer 1 2,3

1 8 18,6

2 12 27,9

3 14 32,6

4 4 9,3

5 4 9,3

Total 43 100,0

Table 4.6 It would be difficult to check accuracy when using electronic invoicing

To the question whether electronic invoicing is technically safe and trustworthy, the

majority were non-committal (37, 2 percent) while 27, 9 percent agreed somewhat and 23, 3

percent fully agreed. This confirms hypothesis no. 11 that electronic invoicing is perceived

to be technically safe.

Hypothesis 11: Electronic invoicing is perceived as technically safe.

Figure 4.2 Technically safe

Table 4.7 Technically safe

Frequency Percent

1 1 2,3

2 4 9,3

3 16 37,2

4 12 27,9

5 10 23,3

Total 43 100,0

1 3 4 50

5

10

15

20

Count

42

Two respondents chose not to answer the question about whether there were any financial

restrictions in the company to implement electronic invoicing. The replies can be seen from

table 4.8. Nineteen respondents (44, 2 percent) disagreed to the statement that there were no

restrictions whereas fourteen respondents (32, 6 percent) agreed. This corresponds to the

hypothesis that economical reasons are often cited as reasons for not implementing. In the

last section of the questionnaire where the respondents could write freely on the most

important reasons for not adopting electronic invoicing the following statements could be

found:

“Modifications to the existing software would be expensive”

“Invoicing costs, sending attachments, software prices and maintenance costs”

“Economic reasons – the investment is too large for an SME”

This suggests that even though the benefits are there, economic factors are considered more

important.

Hypothesis 13: Economical reasons are often cited as reasons for not implementing.

Frequency Percent

No answer 2 4,7

1 9 20,9

2 10 23,3

3 8 18,6

4 10 23,3

5 4 9,3

Total 43 100,0

Table 4.8 There are financial restrictions in our company to acquire electronic invoicing

There were many different ERP (Enterprise Resource Planning) systems in use and 13

people chose not to respond to the question about what ERP system they were using. The

most prevalent software was Sonet with 14 percent, followed by Nova which was used by

11, 6 percent. Table 4.3 outlines the replies.

43

Frequency Percent

No answer 13 30,2

Sonet 6 14

Nova 5 11,6

Oscar 3 7

Liinos 2 4.7

Control 9000 2 4,7

Econet 2 4,7

Visio 2 4,7

Other 7 16,1

Nothing 1 2,3

Total 43 100

Table 4.9 ERP Systems in use in our company

A t-test was made to examine whether those who had implemented the ERP systems

recently i.e. in 2001 or after were more likely to implement electronic invoicing than those

with not so recent experience of IT implementation. There were, however no difference of

significance identified. In addition, a test was also made to ascertain whether the attitudes

were different. There were no significant differences in opinion except in the question about

liking to work with electronic invoicing. Those who had implemented a new ERP system in

the year 2001 or later were more positive towards electronic invoicing. The mean was 3,82

whereas the other group showed a mean of 3,00. The Sig (2-tailed) was 0,074. This gives a

weakly significant result to hypothesis 10.

Hypothesis 10: If other technology adoption has been made recently the company is more

likely to have a positive attitude towards electronic invoicing.

T-tests were also made testing if companies handling a larger amount of invoices were more

likely to adopt electronic invoicing but this was not the case. Importing and exporting did

not seem to effect the implementation decision either.

As previously mentioned, since so many of the respondents were part of the metal industry,

a t-test was performed to see if there were any differences in opinions between the metal

44

industry and the other industries regarding e-invoicing implementation but none were

discovered. Therefore, it was concluded that hypothesis 7 had no significance, at least not

for the metal industry compared to others.

Hypothesis 7: Adoption depends on the business activities of the firm

4.4.3 Multiple regression analysis

To establish whether the other hypothesis were valid and to find out more about what is

affecting attitudes towards electronic invoicing, a series of multiple regression analyses

were performed. By performing multiple regression analyses it can be ascertained whether a

combination of factors are contributing to a positive or negative attitude towards electronic

invoicing.

Regression model 1

In this model, variables for experience, an organizational factor such as availability of IT-

personnel, a technical factor such as trust in the technique, size in terms of employees and

age are used as independent variables. The model examines whether these variables can

explain how the respondents perceive the usefulness of electronic invoicing.

Y1 = a + X1 + X2 + X3 + X4 + X5

Where

Y1 = Useful in work (Question 11c) -> perceived usefulness

X1 = previous experience of electronic invoicing (Question 1a)

X2 = trust that electronic invoicing is technically safe (Question 9)

X3 = available IT –personnel (Question 2)

X4 = Employees (Question 2 in company information section)

X5 = Year of birth (Question 3 in personal information)

45

Dependent variable:

perceived usefulness

Standardized

Coefficients Beta

t-value Sig

Constant -1,280 0,209

Previous experience 0,277 1,974 0,056

Technically safe 0,576 4,223 0,000

Available IT personnel -0,299 -1,882 0,068

Size in terms of

employees

-0,060 -0,430 0,669

Year of birth 0,168 1,296 0,203

R Square = 0,445 R Square Adjusted = 0,368

F = 5,779 Sig = 0,001 Durbin-Watson = 1,809

Table 4.10 Regression analysis 1

In the Pearson’s correlation test, the experience variable, the technological variable and the

age variable all correlate positively with the dependent variable of useful in work (,238 ,546

and ,320). However, the other two independent variables size and available IT personnel

show very low values (-,023 and -.071 respectively) indicating that there is no relationship

between these independent variables and the dependent variable. There is no excessive

correlation between the independent variables (none is above ,7) and both the Tolerance and

the VIF values in the coefficients table indicate that there is no multicollinearity between

the variables.

As can be noted from figure 4.3, there is normality. The points are positioned in a somewhat

straight diagonal line. This is a sign that there are no deviations from normality.

Normal Probability Plot

Observed Cum Prob

1,0,8,5,30,0

Expe

cted

Cum

Pro

b

1,0

,8

,5

,3

0,0

Figure 4.3 Normality Probability Plot Regression No1

46

Table 4.10 shows that the R Square of the regression is ,445 indicating that 44,5 percent of

perceived usefulness is explained by the independent variables. The adjusted R Square is

lower (,368) but is still quite good. The ANOVA result is 0.001 indicating that this

regression model has statistical significance.

Subsequently the independent variables will be examined. Table 4.10 outlines the results

obtained and it can be noted that the variable technically safe has the highest Beta value

(0,576). This means that technically safe contributes the most to predicting perceived

usefulness. Availability of IT personnel is the second highest (-,299) followed by

experience (,277) and Year of Birth (,168). Size in terms of employees contributes the least

to perceived usefulness (-,060). The only variables making any significant unique

contribution to predicting perceived usefulness are technically safe, previous experience and

availability of IT personnel. They give a Sig. value of ,000, 0,056 and ,068. The other

variables show no unique contribution. Hypothesis 11, 1 and 3 were hereby supported.

Technically safe, previous experience of electronic invoicing and the availability of IT staff

have effect on perceived usefulness. Interestingly, the result for the availability of IT staff is

negative.

Hypothesis 11: Electronic invoicing is perceived as technically safe.

Hypothesis 1: Previous experience of electronic invoicing or similar techniques affects

perception of electronic invoicing.

Hypothesis 3: Having qualified IT personnel in the company affects the perceptions of

electronic invoicing.

Hypothesis 2 was refuted. Age did not show to have any significance in predicting

perceived usefulness of electronic invoicing.

Hypothesis 2: Age and previous work-experience influences perceptions of electronic

invoicing.

Regression model 2

In the second model, variables affecting attitudes towards electronic invoicing are

47

examined. The dependent variable is I like/would like to use electronic invoicing and is set

against an organizational factor such as the perception of management approval of adoption

of electronic invoicing, a technical factor such as trust in the technique, the variable

perception of usefulness and also the perception of ease of use.

Y1 = a + X1 + X2 + X3 + X4

Where

Y1 = I like/would like to work with electronic invoicing (Question 22) -> attitude towards

electronic invoicing

X1 = perception of management approval of adoption of electronic invoicing (Question 3)

X2 = trust that electronic invoicing is technically safe (Question 9)

X3 = Useful in work (Question 12)

X4 = Ease of use (Question 13)

Dependent variable: I

would like to work with

electronic invoicing

Standardized

Coefficients Beta

t-value Sig

Constant -0,547 0,588

Technically safe 0,367 3,000 0,005

Management approval 0,193 1,801 0,080

Useful in work 0,177 1,411 0,166

Ease of use 0,295 2,285 0,028

R Square = 0,685 R Square Adjusted = 0,652

F = 20,704 Sig = 0,000 Durbin-Watson = 2,060

Table 4.11 Regression analysis 2

In the Pearson’s correlation test, technically safe, management approval, useful in work and

ease of use all correlate positively with the dependent variable of like to work with

electronic invoicing (,722, 552 ,623 and ,690) and the correlation between the independent

variables is not too high. In addition, both the Tolerance and the VIF values in the

coefficients table indicate that there is no multicollinearity between the variables.

48

As can be noted from figure 4.4, there is normality. The points are positioned in a rather

straight diagonal line. This is a sign that there are no deviations from normality.

Normal Probability Plot

Observed Cum Prob

1,0,8,5,30,0

Expe

cted

Cum

Pro

b

1,0

,8

,5

,3

0,0

Figure 4.4 Normality Probability Plot Regression No 2

Table 4.11 shows that the R Square of the regression is ,685 indicating that 68,5 percent of

I like to work with electronic invoicing is explained by the independent variables. The

adjusted R Square is lower (,652) but the result is still significant. The ANOVA result is

0.000 indicating statistical significance of the regression.

Next, the independent variables, in this case technically safe, management approval,

usefulness in work and ease of use will be analysed. It can be seen from table 4.11 that the

Beta value for technically safe is the highest of the four (,367) indicating that this variable

contributed the most to the prediction of I like to work with electronic invoicing. Ease of

use is also showing strong contribution (,295). The other two showed considerably lower

values, (management approval ,193 and useful in work ,177) with management approval

having a slightly higher value than useful in work. All of the variables, except for useful in

work are however, making a statistically significant unique contribution to the prediction of

the dependent variable. As the Sig. value for technically safe was ,005 this variable made a

very strong unique contribution. Ease of use also made a contribution with a Sig. value of

,028. Management approval made a weaker contribution (,080) and useful in work did not

show a unique contribution at all (0,166). This regression model gives support to the

hypotheses that management approval and perception of ease of use affect attitudes towards

49

electronic invoicing but not that perception of usefulness affects attitudes towards electronic

invoicing.

Hypothesis 4: If there is a perception that management would support adoption, managers

are more positive towards electronic invoicing.

Hypothesis 15: If electronic invoicing is perceived as easy to use, the attitude towards using

it is positive.

However, hypothesis 14 was not supported by this regression. Useful in work did not affect

the attitude towards electronic invoicing in the extent that was expected from the research

model.

Hypothesis 14: If electronic invoicing is perceived as useful, the attitude towards electronic

invoicing is positive.

Regression model 3

In the third model, variables affecting intention to use electronic invoicing are examined.

The dependent variable is I would use electronic invoicing if I could and is set against

personal factors such as the perception of the changes in processes electronic invoicing

would cause and its ease of use, and environmental factors such as supplier and customer

usage and whether important customers have requested adoption of electronic invoicing. .

Y1 = a + X1 + X2 + X3 + X4 + X5

Where

Y1 = I would use if I could (Question 14) -> intention to use electronic invoicing

X1 = perception of change of processes if electronic invoicing is adopted (Question 8)

X2 = Ease of use (Question 13)

X3 = Supplier usage (Question 6)

X4 = Customer usage (Question 5)

X5 = Important customer has requested (Question 7)

50

Dependent variable: I

would use if I could

Standardized

Coefficients Beta

t-value Sig

Constant 1,728 0,092

Change in processes -0,045 -0,344 0,733

Ease of use 0,503 3,917 0,000

Supplier usage -0,279 -2,055 0,047

Customer usage 0,018 0,113 0,911

Important customer

request

0,306 1,922 0,062

R Square = 0,420 R Square Adjusted = 0,342

F = 5,364 Sig = 0,001 Durbin-Watson = 1,867

Table 4.12 Regression analysis 3

The Pearson’s correlation test show that the independent variables have some correlation to

the dependent variable even though change of processes show a very low value (-0,61).

Ease of use show the highest correlation (,549), important customer request gives the

second highest value (,325 ) and supplier usage and customer usage were quite similar (,142

and ,125 respectively). None of the variables had too high correlations between each other.

The Tolerance and the VIF results are also an indication that there is no multicollinearity.

The regression is showing normality. This can be seen from figure 4.5 where the line is

quite diagonal and straight.

0,0 0,2 0,4 0,6 0,8 1,0

Observed Cum Prob

0,0

0,2

0,4

0,6

0,8

1,0

Expe

cted

Cum

Pro

b

Dependent Variable: would use if I could

Normal P-P Plot of Regression Standardized Residual

Figure 4.5 Normality Probability Plot Regression No 3

51

The R Square of this regression is ,420 (see table 4.12) signifying that 42 percent of I

would use electronic invoicing if I could is explained by the independent variables. This is a

good result but not spectacular. The adjusted R Square is ,342. The Anova result is 0,001

indicating that the results are statistically significant.

Next we’ll have a look at the analysis of the independent variables. It can be seen from table

4.12, that easy to use gives the highest Beta value (,503) signifying the fact that this variable

is the most important in predicting I would use if I could. Important customer request comes

second (,306), supplier usage third (,279), change in processes fourth (0,045) and the

weakest contribution comes from customer usage (,018). Only two of the variables make a

unique contribution to the prediction of I would like to use. Ease of use gave a Sig. value of

0.000 demonstrating a strong contribution and supplier usage gave a Sig. value of 0,047.

Consequently, this confirms hypothesis 17 as well as parts of hypothesis 8.

Hypothesis 17: If electronic invoicing is perceived as easy to use, the intention to use is

positive.

Hypothesis 8: Pressure from suppliers and/or customers can determine intention to use

electronic invoicing

If suppliers are using electronic invoicing seems to have greater influence than usage by

customers. As these companies are quite small it might be more likely that the suppliers are

using electronic invoicing than the customers.

However, changes in processes did not show any significance in the prediction of I would

like to use electronic invoicing and therefore I conclude that this hypothesis is wrong.

Hypothesis 5: If there is a perception that changes in processes will be big, managers are

less likely to want to use electronic invoicing

Regression model 4

In the fourth model, I wanted to continue to examine other variables that could affect the

intention to use electronic invoicing in the future. The dependent variable is again “would

use if I could” and the independent variables are perception of financial restrictions of the

52

company, perception of the usefulness of electronic invoicing in work, the age of the

respondents, the approval of the finance department i.e. the people working with and

affected by electronic invoicing and attitude.

Y1 = a + X1 + X2 + X3 + X4 + X5

Where

Y1 = I would use if I could (Question 14) -> intention to use electronic invoicing

X1 = perception of financial restrictions (Question 10)

X2 = perception of finance department approval of implementation (Question 4)

X3 = Useful in work (Question 12)

X4 = Year of Birth (Question 2 in personal information)

X5= Attitude (Question 22 -> I would like to work with electronic invoicing)

Dependent variable: I

would use if I could

Standardized

Coefficients Beta

t-value Sig

Constant -0,196 0,846

Financial restrictions 0,345 3,051 0,004

Finance department

approval

0,399 2,681 0,011

Useful in work 0,433 3,271 0,002

Year of Birth 0,004 0,032 0,975

Attitude -0,151 -0,935 0,356

R Square = 0,637 R Square Adjusted = 0,586

F = 12,614 Sig = 0,000 Durbin-Watson = 2,114

Table 4.13 Regression analysis 4

Firstly, the Pearson’s was performed to check that there is some correlation between the

independent variables and I would use if I could. The test showed that all variables have

correlation even though Year of birth was quite low (,290). Out of the other variables useful

in work gave the highest value (,642) followed by Finance department approval (,622),

financial restrictions (,531). and attitude (,524) The correlation between the independent

variables is not too high. The Tolerance and the VIF results also show that there is no

multicollinearity.

53

The regression is showing normality. This can be seen from figure 4.6. The line is quite

diagonal and straight indicating that there are no deviations from normality.

Normal Probability Plot

Observed Cum Prob

1,0,8,5,30,0

Expe

cted

Cum

Pro

b

1,0

,8

,5

,3

0,0

Figure 4.6 Normality Probability Plot Regression No 4

The R Square of this regression is ,637 (see table 4.13) signifying that 63,7 percent of I

would use electronic invoicing if I could is explained by the independent variables. This is

quite a high number and the adjusted R Square is slightly lower at ,586 but still a significant

result. The Anova result is 0,000 demonstrating that the results are statistically significant.

Now that we have established that the combination of these independent variables have an

affect on the dependent variable of I would use electronic invoicing if I could, the

independent variables will be analysed separately. It can be seen from table 4.12, that useful

in work gives the highest Beta value (, 433) signifying the fact that this variable is the most

important in predicting I would use if I could. Financial department approval is the next

important variable (,399), followed by financial restrictions (,345). Attitude showed a lower

contribution (-,151) and year of birth showed a very weak contribution (,021). All

independent variables except attitude and year of birth showed to be uniquely contributing

to predicting I would use if I could. Useful in work gave a Sig. value of 0.002

demonstrating a strong contribution and financial restrictions gave a Sig. value of 0,004.

Financial department approval gave a Sig. value much lower than the other two but still

significant; 0,011. The Sig. value of attitude was ,356 and year of birth was ,854.

54

This regression gives support to hypothesis 13. The perception of the financial restrictions

of the firm regarding the cost of implementation is affecting the intention to use electronic

invoicing.

Hypothesis 13: Economical reasons are often cited as reasons for not implementing.

Hypothesis 16 is also confirmed by this regression. Useful in work proved to contribute

strongly to prediction of intention to use.

Hypothesis 16: If electronic invoicing is perceived as useful, the intention to use is positive.

However, year of birth did not show any significance in the prediction of I would use

electronic invoicing if I could and therefore I conclude that age is irrelevant to predicting

the intention to use electronic invoicing.

Hypothesis 2: Age and previous work-experience influence perceptions of electronic

invoicing.

Attitude did not either show any significance to intention to work and therefore hypothesis

18 was not supported.

Hypothesis 18: If the attitude towards electronic invoicing is positive, the intention to use is

positive.

Regression model 5

In the fifth and last model, I wanted to examine variables that could affect perception of

easy to use. The dependent variable is “easy to use” and the independent variables are

technically safe, experience with electronic invoicing, employees, management support and

the availability of IT personnel in the firm

Y1 = a + X1 + X2 + X3 + X4 + X5

Where

Y1 = Easy to use (Question 13)

55

X1 = Technically safe (Question 9)

X2 = Experience with electronic invoicing (Question 1a)

X3 = Employees (Question 2 in company information section)

X4 = Management support (Question 2 in personal information)

X5= Available IT personnel (Question 2)

Dependent variable: Easy

to use

Standardized

Coefficients Beta

t-value Sig

Constant 0,730 0,470

Technically safe 0,461 2,979 0,005

Experience with e-

invoicing

0,272 1,877 0,068

Employees 0,108 0,728 0,471

Management support 0,160 1,039 0,306

Available IT personnel -0,126 -0,797 0,430

R Square = 0,397 R Square Adjusted = 0,315

F = 4,870 Sig = 0,002 Durbin-Watson = 1,956

Table 4.14 Regression analysis 5

Firstly, the Pearson’s was performed to check that there is some correlation between the

independent variables and the perception of easy to use. All the variables in this regression

were correlated to Easy to use. Technically safe has the highest correlation (,552),

Management support comes next (,391) followed by Experienced with e-invoicing (,332)

and the availability of IT personnel (,242). Employees has the lowest correlation of ,197.

The variables are not showing too high correlation too each other. There is no

multicollinearity according to the tolerance and VIF results.

The regression is showing normality. This can be seen from figure 4.7. The line is diagonal

and straight demonstrating that there are no deviations from normality.

56

Normal Probability Plot

Observed Cum Prob

1,0,8,5,30,0

Expe

cted

Cum

Pro

b

1,0

,8

,5

,3

0,0

Figure 4.7 Normality Probability Plot Regression No 5

The R Square of this regression is ,397 (see table 4.14) indicating that 39,7 percent of Easy

to use is explained by the independent variables. This is not as high number as many of the

previous regressions and the adjusted R Square is slightly lower at ,315 but the result is still

significant. The Anova result is 0,002 demonstrating that the results are statistically

significant.

The analyses of the independent variables show that the highest Beta value (,461) is

produced by technically safe, followed by experienced with electronic invoicing (, 272)

indicating that these two are the most important variables making electronic invoicing

perceived to be easy to use. As can be seen from table 4.14, the other variables did not

contribute as much and did not have a unique contribution to predicting easy to use.

4.4.4 Summary of findings

In this section the results are summarized and demonstrated in tables and figures to

increase the overview of the research. Table 4.15 gives a summary of the hypotheses

and whether they were supported or not. As can be seen, ten of the hypotheses were

verified, one was partly supported, one could not be tested and the rest were not

supported.

57

Hypothesis

No

Hypothesis Significant

support

Comments

1 Previous experience of

electronic invoicing or similar

techniques affects perception of

electronic invoicing.

Yes

2 Age and previous work-

experience influence

perceptions of electronic

invoicing.

No

3 Having qualified IT personnel

in the company affects

perceptions of electronic

invoicing

Yes

4 If there is a perception that

management would support

adoption, managers are more

positive towards electronic

invoicing.

Yes

5 If there is a perception that

changes in processes will be

big, managers are less likely to

want to use electronic invoicing

No

6 Most firms have not

implemented electronic

invoicing but will within 5

years

Yes

7 Adoption depends on the No There were no significant

58

business activities of the firm

differences in adoption

plans between firms in

the metal industry and

others.

8 Pressure from suppliers and/or

customers can determine

intention to use electronic

invoicing

Partly The supplier part was

confirmed but there were

no indication that

pressure from customers

had any influence.

9 The larger the market share the

less important electronic

invoicing will be.

Could not be

tested –

sample too

small

Only fourteen

respondents had replied

to the question about

market share.

10 If other technology adoption

has been made recently the

company is more likely to have

a positive attitude towards

electronic invoicing.

Yes

11 Electronic invoicing is

perceived as technically safe.

Yes

12 Electronic invoicing is

perceived as easy to learn

Yes

13 Economical reasons are often

cited as reasons for not

implementing.

Yes

14 If electronic invoicing is

perceived as useful, the attitude

towards electronic invoicing is

positive.

No

59

15 If electronic invoicing is

perceived as easy to use, the

attitude towards using it is

positive.

Yes

16 If electronic invoicing is

perceived as useful, the

intention to use is positive.

Yes

17 If electronic invoicing is

perceived as easy to use, the

intention to use is positive.

Yes

18 If the attitude towards

electronic invoicing is positive,

the intention to use is positive.

No

Table 4.15 Summary of hypotheses

The results from the regression analyses were quite high; some had Adjusted R square

around 65 percent. This is similar to the results that Gullkvist obtained in her study (2005).

She also found that many of the independent variables studied significantly affected the

dependent variable used. Similarly to my study, she also found that there were high

correlations between the variables in the study.

As the correlations in the regression analyses were quite high, I have included a correlation

matrix (see table 4.16) where the correlations between the questions in the survey can be

overviewed. Only correlations at the 5% risk level have been included.

60Correlation Matrix 1a 3. 4. 9. 10. 11a. 11b. 11c. 12. 13. 14. 15. 17. 18. 19. 21. 22. 23. 24.

1 a. 0,348* 0,338* 0,332* -0,362*

3. 0,748** 0,514** 0,319* 0,307* 0,391** 0,361* 0,552** -0,533**

4. 0,748** 0,663** 0,341* 0,538** 0,455** 0,513** 0,621** 0,620** 0,449** -0,388* 0,386* -0,473** 0,710** -0,576**

9. 0,514** 0,663** 0,339* 0,442** 0,389* 0,526** 0,552** 0,456** 0,505** -0,533** -0,337* 0,412** -0,543** 0,722** -0,433** -0,542**

10. 0,319*' 0,339* 0,362* 0,398** 0,336* 0,531** -0,385* 0,341* -0,457**

11a. 0,348*' 0,341*' 0,362* 0,865** 0,912** 0,727** 0,497** 0,431** 0,607** -0,410** 0,486** -0,330* 0,413** -0,422**

11b. 0,538**' 0,442** 0,865** 0,890** 0,816** 0,537** 0,562** 0,678** -0,515** 0,552** -0,353* 0,544** -0,401** -0,350*

11c. 0,338*' 0,455**' 0,389* 0,398** 0,912** 0,890** 0,788** 0,506** 0,488** 0,705** -0,516** 0,444** -0,436** 0,562** -0,412** -0,450**

12. 0,307*' 0,513**' 0,526** 0,727** 0,816** 0,788** 0,659** 0,641** 0,721** -0,411** -0,303* 0,573** -0,383* 0,623** -0,414** -0,452**

13. 0,332*' 0,391**' 0,621**' 0,552** 0,336* 0,497** 0,537** *0,506** 0,659** 0,549** 0,514** -0,397** -0,631** 0,561** -0,599** 0,690** -0,455** -0,650**

14. 0,361*' 0,620**' 0,456** 0,531** 0,431** 0,562** 0,488** 0,641** 0,549** -0,339* -0,400** 0,526** -0,470**

15. 0,449**' 0,505** 0,607** 0,678** 0,705** 0,721** *0,514** -0,384* -0,330* 0,590** -0,416** 0,570** -0,380* -0,468**

17. -0,388*' -0,533** -0,410** -0,515** -0,516** -0,411** -0,397** -0,339* -0,384* 0,608** -0,448** 0,550** 0,467**

18. -0,337* -0,303* -0,631** -0,330* -0,312* 0,429** -0,496** 0,340* 0,557**

19. 0,386*' 0,412** 0,486** 0,552** 0,444** 0,573** 0,561** 0,590** -0,312* 0,519** -0,560** -0,351*

21. -0,473**' -0,543** -0,385* -0,330* -0,353* -0,436** -0,383* -0,599** -0,400** -0,416** 0,608** 0,429** -0,566** 0,543** 0,659**

22. 0,552**' 0,710**' 0,722** 0,341* 0,413** 0,544** 0,562** 0,623** 0,690** 0,526** 0,570** 0,448** -0,496** 0,519** -0,566** -0,507** -0,684**

23. -0,362*' -0,433** -0,422** -0,401** -0,412** -0,414** -0,455** -0,380* 0,550** 0,340* -0,560** 0,543** -0,507** 0,332*

24. -0,533**'

-0,576**' -0,542** -0,457** -0350* -0,450** -0,452** -0,650** -0,470** -0,468** 0,467** 0,557** -0,351* 0,659** -0,684** 0,332*

Table 4.16 Correlation Matrix

**Correlation is significant at the 0,01 level (2-tailed) * Correlation is significant at the 0,05 level (2-tailed)

1 a.Experienced using e-invoice 11b. E-invoicing would increase productivity 17. Difficult to check accuracy with e-invoicing 3. Management support of acquiring e-invoicing 11c. E-invoicing would increase efficiency 18. Tiresome to learn how to use e-invoicing 4. Finance dpt approval of acquiring e-invoicing 12. E-invoicing would be useful in work 19. E-invoicing would lead to error reduction 9. E-invoicing is technologically safe 13. E-invoicing would be easy to use 21. E-invoicing offers benefits but prefer paper invoicing 10. No Financial restriction to acquire e-invoicing 14. Would use e-invoicing if possible 22. Would like to work with e-invoicing 11a. E-invoicing would increase quality 15. E-invoicing would offer time and cost savings 23. There is risk of error increase with e-invoicing 24. E-invoicing would be hard to understand

Table 4.17 Questions for correlation matrix in table 4.14

61

As can be seen from table 4.13, the number of significant correlations is quite high. As

pointed out previously, this was also noted in Gullkvist’s study (Gullkvist, 2005). In figure

4.8, the most significant figures of correlations between the factors have been included.

This figure is drawn according to the research model presented in figure 4.1. Most factors

correlate to each other but this has not led to any multicollinarity in the regression analyses.

Personal factors

Organisational factors

Technical factors

Economical factors

Environmentalfactors

Perceivedusefulness

Perceivedease of use

Attitude Towardsusage Intention to use

0,345*

0,531**0,336*

Correlations >0,300

**Correlation is significant at the 0,01 level (2-tailed)

* Correlation is significant at the 0,05 level (2-tailed)

0,690**

0,526**

0,623**

0,641**

0,659**

0,552**

0,526**

0,549**

0,375*

0,514**

0,513**

0,332*

0,710**

0,722**

0,345*

Figure 4.8 Correlations in research model

As can be seen from figure 4.8, even though the regression analyses did not show that

perceived usefulness had an affect on attitude towards usage, the two variables are still

correlated. This is similar to Attitude towards usage and Intention to use. It can also be

seen that perceived ease of use and perceived usefulness are correlated. The effect they

have on each other was not tested in the regressions however.

62

5 Discussion

In this section I will discuss the research, the results and their limitations.

5.1 The research and its limitations

The research was aimed to investigate the opinions of financial managers employed by

SMEs in Finland. A questionnaire was sent out to 200 companies and 43 replies were

received. The response rate was good. However, the replies came from very small

companies and therefore the research does not cover the population intended which was

SMEs in Finland. According to the replies, none of the companies employed more than 45

people. As a result, there was no information obtained regarding how financial managers

and accountants employed by larger firms feel about electronic invoicing.

As stated previously, the respondents could be more inclined to have a positive attitude

towards electronic invoicing as they were found working for companies having websites i.e.

they could be more used to working electronically. Also, the survey was sent out by email

and this could have prompted respondents who are positively set towards working using

electronic tools to answer whereas respondents preferring working with paper where

discouraged.

In addition, there were only three of the respondents who were using electronic invoicing

presently which had an effect on what analyses could be made. It would have been

interesting to ascertain from a bigger sample of actual users what their opinions regarding

electronic invoicing was and what influenced the adoption decision. This could also be an

effect of the size of the companies. Previous research has shown that size is a big

determinant when it comes to adoption of new technology.

5.2 The results and their implications

The result of the statistical analysis did not introduce any surprising findings. I will

however, in this section discuss the results and how they relate to previous research

findings. The findings on what factors affect perceived usefulness, perceived ease of use,

attitudes and intention to use can be viewed in figure 5.1.

63

Personal factors

Organisational factors

Technical factors

Economical factors

Environmentalfactors

Perceivedusefulness

Perceivedease of use

Attitude Towardsusage Intention to use

Figure 5.1 The significant factors in the research model

The personal factors studied were age, previous experience, sex, attitudes, perceived

benefits, perceived ease of use and perceived usefulness. Age and previous work experience

are related to each other but neither of the two showed any signs of affecting how the

respondents felt about electronic invoicing. As mentioned earlier, Gullkvist discussed

resistance to changes and new processes by older people, but this was not confirmed in my

research. In addition, change in processes did not have any affect on intention to use.

Perceived ease of use and perceived usefulness have been cited in many studies as the most

significant determinants of acceptance (Chau, 2003, McCloskey 2003-2004). Gullkvist

(2005) found that they were important factors in affecting attitudes as well and in my study,

I could also see that the perceived usefulness and the perceived ease of use had an effect on

whether the respondents view electronic favorably and intended to use it in the future.

However, perceived usefulness did not affect the attitude towards electronic invoicing even

though it had an affect on intention to use.

Similar to Gullkvist’s (2005) study, I found that trust in the technique was an important

determinant of perceived usefulness. I also found that trust in the technique was an

important factor on how easy electronic invoicing was perceived to use. Pavlou (2003) also

states that perceived trust and risk are other important determinants of acceptance regarding

64

e-commerce acceptance because of uncertainty with online transactions. In this study, the

respondents viewed electronic invoicing as technically safe and as such had trust in it.

However, when asked to name the biggest risks in using electronic invoicing many

respondents cited uncertainty and data security as the major risks. There were also a few

statements that there were no risks involved. This is a selection of the biggest risks

according to the respondents:

- Data security and transaction disturbances

- Technical failure of computers, email or electronic invoicing

- Errors and uncertainty

- Untrained, careless users or operators

- Finding correct electronic invoicing address and receiving payment on time

- Losing information

- Mismatch with ERP system and the expense

Previous research has shown that adopters of e-commerce viewed the advantages gained

more positively than non-adopters (Riemenschneider and McKinney, 2001-2002, Wang et

al, 2004). The respondents in this study quoted the following to be the biggest benefits that

could be gained:

- Facilitates and increases speed of invoicing and payment cycle

- Reduces amount of paper, paperwork and filing

- Reduces postage and enveloping

- Increases efficiency, reduces workload and saves time

- Increases accuracy and customer satisfaction,

- Reduces amount of false and lost invoices

- Cost efficient

Lack of management support has been one of the organizational factors that have shown to

have a strong affect on adoption of new information technology. The same was found in

this study where the focus was on attitudes. Even though management support was not the

strongest factor it was still significant. The perception of management approval of

electronic invoicing showed to have some significance when predicting how much the

respondent wanted to work with electronic invoicing. This is different from the results in

Gullkvist’s study (2005) where management support did not show an effect on usefulness

65

and perceived ease of use. Bertschek and Fryges (2002) discussed the importance of the

availability of qualified IT personnel and in my study this could also be seen.

The size of the firm and how it affects adoption decisions have been studied greatly in the

past. Dasgupta et al (1999), for example, found that the level of computerisation was larger

in larger firms. Iacovou et al (1995) also found that adopters of EDI tend to be larger firms.

The size is however measured in sales volume and is probably a result of the larger

resources the firm has available. Iacovou et al (1995) also found that size measured by

number of staff does not affect adoption. In this study, I tested to see if firm size in terms of

number of employees had an effect on how useful the respondents felt electronic invoicing

to be but size did not have any significant effect.

Competitive factors have proven previously to affect adoption of new technology but this

study did not find as much support for competitive factors having an affect on attitudes

towards electronic invoicing as anticipated. Iacovou et al (1995) found in their study that

adoption of EDI by small firms was influenced by external pressure especially from trading

partners and the results in this study somewhat agreed with this. Usage by suppliers showed

to have an affect on intention to use in the future but customer usage had not. Requests from

important customers did show to have some importance in conjunction with ease of use,

supplier usage, customer usage and change in processes.

Dasgupta et al (1999) found in their study that firms facing heavy competition were more

likely to adopt new information technology than others. I wanted to see if the same applied

to attitudes but unfortunately only fourteen respondents stated the amount of market share

the firm has thus, making the sample too small.

Another competitive effect mentioned is positioning in the supply-chain. Wang et al (2004)

stated that inter-firm collaboration was important regarding the likelihood of adoption. Only

a few of the respondents indicated that they had any automation of the supply-chain

suggesting that there is little electronic co-operation throughout the supply-chain.

Economic factors proved to be very important to the respondents. Since most of the

companies are quite small in terms of employees, there might not be an abundance of

resources available and therefore the economic factors have such a large impact.

66

Much of this research was based on the TAM and the TRA. The perceived usefulness and

perceived ease of use from the TAM both had an affect on intention to use but only

perceived ease of use had an affect on attitudes. In addition, attitudes did not show to have

an effect on intention to use. This could perhaps be a result of the question “I would like to

use electronic invoicing” which I used as a factor for attitude.

5.3 Suggestions for further study

As noted previously, there was no information obtained from financial managers and

accountants working for middle-sized companies. Since these companies usually have more

employees and perhaps more funds available it would be interesting to investigate whether

they are closer to acquire electronic invoicing than the small companies in this study.

In addition, only three of the respondents were currently using electronic invoicing and

as a consequence, opinions from actual users could not be obtained. It would be

beneficial for providers of electronic invoicing services to know how users are feeling

about electronic invoicing in order to improve the product.

5.4 Conclusion

Electronic invoicing will be important in the future. The benefits received from using it is

too big to be ignored. To what extent and in what pace SMEs in Finland decide to

implement electronic invoicing could not be ascertained for sure by this study but I can

conclude that the majority of the respondents feel positively about electronic invoicing.

Most of them also realized the benefits that can be gained. Since many where concerned

with the expense of implementing electronic invoicing, there will however, probably take

some time before the majority or SMEs are using electronic invoicing.

67

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71

7 Appendix

7.1 Appendix 1

The questionnaire

Cover letter for questionnaire

What are your opinions and intentions regarding electronic invoicing?

Dear Sir/Madame,

I am a student at the Swedish School of Economics and Business Administration in

Helsinki, doing the Master Program of Advanced Financial Information Systems (PAFIS).

This survey is part of my Masters’ thesis. The purpose of the survey is to establish the

opinions and intentions of managers of SMEs in Finland regarding electronic invoicing. In

this survey, electronic invoicing refers to electronic transmission of an invoice.

I am trying to establish what or whether there are any determinants of adoption of electronic

invoicing. You may or may not be using some kind of electronic invoicing presently. To

participate in this survey it is not necessary to have any previous experience of electronic

invoicing.

To be successful in my endeavor it is very important for me that you fill out the attached

questionnaire. It should not take you more than 15 minutes. Please return the questionnaire

by the 1st of November, 2005. The answers will be totally confidential and no reference to

you and/or your company will be made.

If you have any questions, please do not hesitate to contact me.

Thank you for your participation.

72

Anna Rofhök-Björni

ATTACHEMENT Questionnaire

Questionnaire

Please circle the alternative that suits you best and fill out the missing information. Please

answer all questions.

Sex and year of birth- woman, year _________ - man, year___________

Title _________________________Total work experience ____________ year(s)

Company information

Number of employees in the finance department __________company total _________

Industry ______________________Market share ______________________

Amount of import (% of purchases) ___________ Export (% of sales)____________

How many sales and purchase invoices do you send and receive yearly?

Sales ___________________ Purchase __________________

How many employees are busy processing invoices? _____________________

What is your current status regarding electronic invoicing?

1. We are using electronic invoicing

2. Will not employ

3. Planning to employ within one year

4. Planning to employ within 3 years

5. Planning to employ within 5 years

73

Please circle the alternative that is most applicable to your company.

The company is owned Domestically Foreign Both

What solution is the most applicable to your company?

EDI

Custom-made direct invoicing

Through Bank

Trough software provider

What ERP system are you currently using and when was it

implemented?_____________________________________

Is any part of the supply chain automated presently and if so what part?

______________________________________________________________________

The following section offers a number of statements where you tick the option which most

accurately corresponds to your situation. Please select only one option.

Fully disagree Fully agree

1. I am very experienced in using

electronic invoicing 1 2 3 4 5

electronic payments 1 2 3 4 5

electronic accounting 1 2 3 4 5

2. In our company there are IT personnel that are responsible

for assisting us in technical issues

1 2 3 4 5

3. Management approves/would approve of adopting

electronic invoicing 1 2 3 4 5

4. The finance department approves/would approve of

74

adopting electronic invoicing 1 2 3 4 5

5. Our customers are using electronic invoicing

1 2 3 4 5

6. Our suppliers are using electronic invoicing

1 2 3 4 5

7. Our most important customers are requesting/requested

that we adopt electronic invoicing

1 2 3 4 5

8. The changes that was incurred/would be incurred in

adoption of electronic invoicing would not change our

existing routines

1 2 3 4 5

9. Electronic invoicing is/would be technically safe and reliable

1 2 3 4 5

10. There are no/were no financial restrictions to adopt

electronic invoicing in our company

1 2 3 4 5

11. Through using electronic invoicing I can/could

Increase the quality of my work

1 2 3 4 5

Increase the productivity

1 2 3 4 5

Increase efficiency

1 2 3 4 5

12. Electronic invoicing is/would be useful in my work

1 2 3 4 5

75

13. Electronic invoicing is/would be easy to use

1 2 3 4 5

14. I intend to use electronic invoicing to the extent possible

1 2 3 4 5

15. Electronic invoicing offers/would offer cost and time savings

1 2 3 4 5

16. Electronic invoicing would/could lead to personnel cuts

1 2 3 4 5

17. It is/would be difficult to check the data accuracy when using

electronic invoicing 1 2 3 4 5

18. It is / would be time-consuming and tiresome to learn how

to use electronic invoicing

1 2 3 4 5

19. Electronic invoicing leads/would lead to error reduction

1 2 3 4 5

20. Electronic invoicing leads/would lead to more reports

1 2 3 4 5

21. Even though electronic invoicing offers/would offer benefits

I prefer to work with paper invoices.

1 2 3 4 5

22. I love/would love to work with electronic invoicing

1 2 3 4 5

23. The risk of error is/would be increased with electronic

invoicing

1 2 3 4 5

76

24. Electronic invoicing is hard to understand and is/would

be frustrating to work with

1 2 3 4 5

I think all invoicing will be totally electronic within ____ year(s) in Finland___ year(s)

internationally.

In your opinion, what are the biggest benefits of implementing electronic invoicing?

______________________________________________________________________

______________________________________________________________________

In your opinion, what are the biggest risks of implementing electronic invoicing?

_________________________________________________________________________

___________________________________________________________________

In your opinion, what would be the most important reason NOT to implement electronic

invoicing?

_________________________________________________________________________

___________________________________________________________________

Thank you for you participation!

77

7.2 Appendix 2

Questionnaire in Finnish The cover letter Mitkä ovat mielipiteenne ja aikomuksenne sähköisen laskutuksen suhteen?

Hyvä %s,

Minun nimeni on Anna Rofhök-Björni ja opiskelen kauppatieteen maisteriksi

ruotsinkielisessä kauppakorkeakoulussa Helsingissä, eli Hankenilla, Master Program of

Advanced Financial Information Systems - ohjelmassa. Osana loppututkintoani kartoitan

Pk-yritysten johdon mielipiteitä ja aikomuksia sähköisen laskutuksen suhteen. Pro gradu-

tutkielmassani sähköisellä laskutuksella tarkoitetaan laskun sähköistä siirtoa. Lähetän

ohessa linkin tutkimukseen, joka on osa maisteri tutkielmaani.

Tutkimuksellani yritän löytää sähköisen laskutuksen omaksumista määrääviä tekijöitä.

Osallistuaksenne tutkimukseen Teillä ei tarvitse olla sähköistä laskutusta käytössänne tällä

hetkellä. Teillä ei myöskän tarvitse olla aiempaa kokemusta sähköisestä laskutuksesta.

Tutkimukseni kannalta minulle on erittäin tärkeää että Te täytätte liitteenä olevan

kyselylomakkeen. Sen täyttämiseen menee noin 15 minuuttia. Ystävällisesti palauttaka

lomake 1 marraskuuta mennessä. Vastauksenne käsitellään täysin luottamuksellisesti ja

täten teihin tai yritykseenne ei tule viittauksia tutkimuksessani.

Ottakaa minuun yhteyttä, jos teillä on jotain kysyttävää tutkimukseen liittyen.

Kiitos osallistumisestanne!

Anna Rofhök-Björni

KYSELYLOMAKE http://www.pafis.shh.fi/~annrof03/survey/q.php?id=%d

Sähköisen laskutuksen kyselylomake

78

Valitkaa vaihtoehto joka parhaiten kuvailee tilannettannne ja täyttäkää myös

puuttuvat tiedot. Vastatkaa ystävällisesti kaikkiin kysymyksiin. Kiitos!

Perustiedot

Sukupuoli

Nainen

Mies

• Syntymävuosi

• Titteli

• Työkokemus vuotta

Yritystietoa

• Yrityksemme talousosastolla työskentelee henkilöä

• Yrityksemme palveluksessa on henkilöä

• Yrityksemme toimiala

• Yrityksemme markkinaosuus toimialalla

Tuonnin osuus (% hankinnoista)

Viennin osuus (% myynnistä)

79

Kuinka monta osto- ja myyntilaskua lähetätte ja vastaanotatte vuodessa?

Osto

Myynti

Kuinka monta henkilöä laskutus työllistää?

Mikä on tämänhetkisen laskutuksen tilanne? Valitse vaihtoehto joka parhaiten kuvailee

tilannettanne

Käytämme sähköistä laskutusta.

Emme aio ottaa käyttöön sähköistä laskutusta.

Suunnittelemme ottavamme sähköisen laskutuksen käyttöön vuoden sisällä.

Suunnittelemme ottavamme sähköisen laskutuksen käyttöön 3 vuoden sisällä.

Suunnittelemme ottavamme sähköisen laskutuksen käyttöön 5 vuoden sisällä.

En ole koskaan kuullut sähköisestä laskutuksesta.

Yritys on

Suomalaisomistuksessa

Ulkomaisomistuksessa

Suomalais- ja ulkomaalaisomistuksessa

Sähköisen laskutuksen kannalta, mikä ratkaisu sopii parhaiten / sopisi parhaiten

yrityksellenne?

EDI

Räätälöity suoralaskutus

Sähköinen laskutus pankin kautta

80

Palvelu muulta sähköisen laskutuksen palveluntarjolta

Mitä toiminnanohjausjärjestelmää käytätte tällä hetkellä? ja koska se otettiin

käyttöön?

Onko mikään osa tilaus - toimitusketjustanne automatisoitu tällä hetkellä, ja jos vastaus on

myöntävä mikä osa siitä?

Valitkaa väittämä joka parhaiten kuvaa tilannettanne. Valitkaa vain yksi vaihtoehto

kysymystä kohden.

Olen täysin eri

mieltä

Olen täysin samaa

mieltä

1. Olen erittäin kokenut

• sähköisen laskutuksen

käyttäjä

• sähköisten maksujen

käyttäjä

• sähköisen kirjanpidon

käyttäjä

2.

Yrityksessämme on IT

henkilöstöä, joka on

vastuussa meidän

teknisestä tuesta.

3.

Johto hyväksyy / tulee

hyväksymään sähköisen

laskutuksen

käyttöönoton.

81

4.

Talousosasto hyväksyy

/tulisi hyväksyä

sähköisen laskutuksen

käyttöönoton.

5. Asiakkaamme käyttävät

sähköistä laskutusta.

6.

Hankkijamme /

toimittajamme käyttävät

sähköistä laskutusta.

7.

Tärkeimmät

asiakkaamme pyytävät /

ovat pyytäneet että

ottaisimme sähköisen

laskutuksen

käyttöömme.

8.

Sähköisen laskutuksen

käyttöönotto ei

muuttanut / tulisi

muuttamaan olemassa

olevia käytäntöjämme.

9.

Sähköinen laskutus on /

olisi teknisesti

turvallista ja

luotettavaa.

10.

Sähköisen laskutuksen

käyttöönotolle ei ole /

ollut mitään rajoituksia

82

yrityksessämme.

11.

Ottamalla käyttöön

sähköisen laskutuksen

voin / voisin

• Parantaa työni laatua

• Nostaa tuottavuuttani

• Lisätä tehokkuuttani

12.

Sähköinen laskutus on /

olisi hyödyllistä työni

kannalta

13. Sähköinen laskutus on /

olisi helppo käyttää.

14.

Aikomukseni on

käyttää sähköistä

laskutusta siinä määrin

kun se on mahdollista.

15.

Sähköinen laskutus

johtaa kustannus- ja

ajansäästöihin.

16.

Sähköinen laskutus

johti / johtaisi

henkilöstövähennyksiin.

17. Sähköistä laskutusta

käyttäessä on / olisi

83

vaikeaa tarkistaa tiedon

täsmällisyyttä.

18.

On /olisi aikaa vievää ja

vaikeaa oppia

käyttämään sähköistä

laskutusta.

19.

Sähköinen laskutus

johtaa / johtaisi

vähempiin virheisiin.

20.

Sähköinen laskutus

johtaa / johtaisi

usemman raportin

tekemiseen.

21.

Sähköisestä

laskutuksesta on / olisi

hyötyä, mutta haluaisin

mielummin

työskennellä

paperimuotoisen

laskutuksen parissa.

22.

Teen mielelläni / tekisin

mielelläni työtä

sähköisen laskutuksen

parissa.

23.

Virheiden riski kasvaa

sähköisessä

laskutuksessa.

84

24.

Sähköistä laskutusta on

vaikea ymmärtää ja on /

olisi turhauttavaa tehdä

työtä sen parissa.

Uskon että kaikki laskutus

tapahtuu sähköisesti

vuoden sisällä

Suomessa, ja

vuoden sisällä

kansainvälisesti.

Mitkä ovat mielestänne suurimmat hyödyt sähköisen laskutuksen käyttöönotosta?

Mitkä ovat mielestänne suurimmat riskit sähköisen laskutuksen

käyttöönotossa?

Mikä on mielestänne tärkein syy olla ottamatta sähköistä laskutusta käyttöön?

Kiitos erittäin paljon osallistumisestanne!

82.181.98.213 179

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