SPREADSHEET USE BY ACCOUNTANTS: AUSTRALIA, CANADA & NEW ZEALAND COMPARED by David Coy*, Mort Nelson#, John Buchanan* & Jim Fisher# * School of Management Studies, University of Waikato, Hamilton, New Zealand # School of Business & Economics, Wilfrid Laurier University, Ontario, Canada
Paper prepared for: 10th Asia-Pacific Conference on International Accounting Issues Maui, Hawaii, October 1998
CORRESPONDING AUTHOR Dr David Coy School of Management Studies University of Waikato Hamilton New Zealand Phone: Fax: Email:
0064-07-838-4247 0064-07-838-4332
[email protected]
TOPIC Technology and International Accounting
ACKNOWLEDGEMENTS Professor Dennis Taylor and Peter Van Dijk of Curtin University contributed to the collection of the Australian data for this study. Thanks to the University of Waikato School of Management Studies Research Fund, Wilfrid Laurier School of Business and Economics and Curtin University School of Accounting for financial assistance that made this research possible. We also acknowledge the support of the Institute of Chartered Accountants in New Zealand [ICANZ], the Canadian Institute of Chartered Accountants [CICA] and the Institute of Chartered Accountants in Australia [ICAA] who assisted with data collection. Thanks to the chartered accountants in the three countries who responded to the survey. As always, responsibility rests entirely with the authors.
SPREADSHEET USE BY ACCOUNTANTS: AUSTRALIA, CANADA & NEW ZEALAND COMPARED
ABSTRACT This study uses a self-administered postal questionnaire to compare spreadsheet use by accountants in Australia, Canada and New Zealand in 1996-97. The objectives are to identify differences, if any, between countries in uptake and use of spreadsheets by accountants. Overall the study found a high level of spreadsheet diffusion in all three countries, with Canada being a little ahead of Australia and New Zealand on some evidence. We estimate that in 1996 about 80% of accountants used spreadsheets in Canada and Australia, and slightly less, 75%, in New Zealand. The PC machine is overwhelmingly the preferred hardware platform in all three countries and among accountants; the Apple Macintosh has an insignificant role. Excel is the preferred spreadsheet brand in all three countries, although Lotus is a stronger second in Canada than either of the other two countries. Just over 80% of respondents have a personal computer with sole access at work and just under 80% have access to a computer at home. Budgeting is the clear most frequently done task with spreadsheets in all three countries. Saving time on calculations and being more confident about the accuracy of their work are the most important benefits identified.
KEYWORDS Spreadsheet use, Technology diffusion, Accountants, International comparison
SPREADSHEET USE BY ACCOUNTANTS: AUSTRALIA, CANADA & NEW ZEALAND COMPARED
INTRODUCTION The past two decades have witnessed a technological transformation in the way that business is conducted and office jobs are undertaken. The computer chip has spawned a wide array of developments that have revolutionized, among other things, the way we communicate, keep records, settle transactions and analyze data. Such tasks are at the heart of accountants’ work and of all the information technology now commonly used by accountants, the electronic spreadsheet has had a pervasive influence.
To investigate the uptake and use of spreadsheets by accountants Coy and O’Grady (1992) carried out a longitudinal study in the rural New Zealand province of Manawatu in 1986 and 1991. At a further five year interval, in 1996, the study was replicated and extended to the commercial center of New Zealand, Auckland and also to Australia and Canada. The 1996 New Zealand study is reported in Coy & Buchanan (1997); this paper compares the results of the Australian, Canadian and New Zealand studies.
The objectives of the research are to compare the diffusion of spreadsheets among professional accountants in Australia, Canada and New Zealand, and identify any differences, if any, between countries in the uptake and use of spreadsheets by accountants. In particular, the following issues are investigated: • the proportion of accountants using spreadsheets, • the type of hardware and software used, • the ease of access to spreadsheets, • the nature of tasks done with spreadsheets,
2 • the perceived benefits, and • the reasons for not using spreadsheets.
Background A developing website managed by Professor Ray Panko of the University of Hawaii is almost certainly the most comprehensive reference source of research into spreadsheets in the world1. At December 1997 the website had details of 125 publications and references about spreadsheets divided into the categories shown at Appendix A. The earliest paper was published in 1984; 32 of the items were published during the 1980s and the balance in the 1990s indicating the growing research interest during this decade. About two thirds of these reported items address the issue of errors in spreadsheets. Research into the diffusion and use of spreadsheets by accountants or other business professionals has not been identified at this website or elsewhere, apart from earlier work by the authors of this paper (Coy & O’Grady, 1992; Coy & Buchanan, 1997).
Two papers which address related aspects of this research are those by Brancheau and Wetherbe (1990) and Chan and Storey (1996). Brancheau and Wetherbe investigate the IT diffusion process within US organizations using questionnaires and structured interviews about the adoption and use of spreadsheet software by accounting and finance officers. Their findings support hypotheses that earlier adopters of spreadsheet software are younger, more highly educated, more attuned to mass media, more involved in interpersonal communication, and more likely to be opinion leaders. However, contrary to their hypothesized role as change agent, they found that IS departments played a minor role in the diffusion process.
1
The website address is: http://www.cba.hawaii.edu/panko/ssr
3 Chan and Storey (1996) investigate the use of spreadsheets within organizations via a mailed questionnaire sent to 1,000 business analysts whose names were provided by Lotus Magazine.
A 25% response rate was achieved.
Their study sought to investigate the
relationship between end-user’s proficiency with spreadsheets and the complexity of tasks performed with spreadsheets. The results suggest that users’ spreadsheet proficiency has a greater impact on the tasks than tasks have on spreadsheet proficiency. They also found that users often do not use many of the commonly available spreadsheet features, and in particular do not use alternative software such as databases even where the alternative might be more suitable for the task.
Doolin et al. (1993, 1994), in two separate studies, examine the impact of information technology on the role of management accountants in Australia and New Zealand. Approximately 100 practising management accountants provided usable responses to a postal questionnaire in each study. They conclude that the tools of greatest benefit were word processing, graphics and spreadsheet software. The focus in the use of these tools is on improving the way things are done in organizations, rather than on changing the role of management accountants.
Some researchers have questioned whether the huge investments made in information technology in recent years have made a discernible impact on national productivity (Drucker, 1991; Brynjolfsson & Hitt, 1996). Brynjolfsson and Hitt (1996) investigate the relationship between investments in computer technology and aggregate national output statistics in the US and conclude that up until 1991 there had been a ‘productivity paradox of information technology’, increasing investment had not been accompanied by improvements in output.
4 However, further studies by Brynjolfsson and Hitt (1997) using a data set of 600 firms from 1987 to 1994 suggest that computers did increase productivity both directly and by making new types of work organization possible over time.
The literature review, including the spreadsheet research website, confirms that there is little empirical research evidence available describing spreadsheet use by accountants, or other professions, either within countries or making inter-country comparisons. The 1986 and 1991 New Zealand studies revealed, to the authors at least, a surprisingly low uptake with one third of accountants using spreadsheets in 1986, and two thirds by 1991. In extending the 1996 study to Australia and Canada the authors are interested in making inter-country comparisons. This research makes comparisons about the uptake and use of leading edge technology, and enables each country to assess its progress relative to the others. In turn, the results could be a catalyst for seeking ways of improving future use of the technology, particularly in those countries which appear to be trailing.
Method A postal questionnaire, developed for the 1986 New Zealand study and modified for recent technology changes, was used for data collection. The questionnaire has sections on profile information about the respondent, hardware and software used, applications, productivity issues, and an open ended qualitative section and a section for non-users. The Canadian and Australian studies replicated the New Zealand questionnaire2.
The questionnaire was distributed to members of professional accounting bodies in selected rural and urban regions in each of the three countries. In New Zealand, the Manawatu (rural) 2
Copies of the questionnaires are available from the first author by request.
5 and Auckland (urban) were selected; in Australia, the Hunter Valley (rural) and Perth (urban); in Canada, Kitchener-Waterloo (rural) and Winnipeg (urban). Rural and urban areas were selected for the 1996 studies because the earlier New Zealand studies were undertaken in the rural province of Manawatu. The researchers hypothesized that the results for a rural locality may not be generalisable to the country as a whole, because the technology may be slower to disseminate to localities which are geographically separate from the main commercial centers. In replicating the studies to Australia and Canada similar urban and rural localities were selected. This would enable differences between uptake in rural and urban areas in each country to be identified, and might provide the motivation for addressing any shortcomings identified.
The subjects in New Zealand were members of the New Zealand Society of Accountants3, the only accounting professional body in that country; in Australia members of the Institute of Chartered Accountants in Australia (ICAA) were selected, one of the two major professional accounting bodies4; in Canada members of the Canadian Institute of Chartered Accountants (CICA), one of three professional accounting bodies5, were selected. The New Zealand data were collected between June and September 1996; the Canadian data between September and December 1996 and the Australian data between January and March 1997.
In New Zealand, response rates of 61% and 55% were obtained for the Manawatu and Auckland studies following two postings of the questionnaire.
In the Australian and
3
Renamed Institute of Chartered Accountants in New Zealand (ICANZ) in October 1996.
4
The other Australian accounting body is the Australian Society of Certified Practising Accountants.
5
The other two Canadian accounting bodies are the Certified General Accountants’Association of Canada and the Society of Certified Management Accountants of Canada.
6 Canadian studies only one posting was made and response rates of 32% and 34% were obtained respectively in Hunter Valley and Perth; and 37% and 25% respectively for Kitchener-Waterloo and Winnipeg.
7 RESULTS Rural and urban localities The results show few differences between rural and urban users across almost every questionnaire category in each of the three countries and this analysis is reported elsewhere (Buchanan & Coy, 1997; Van Dijk, Taylor, Nelson & Fisher, 1997; Fisher & Nelson, 1997). Because of the similarity in the results between the rural and urban studies in each country, in the analysis that follows, the results for both samples in each country are aggregated.
Users and non-users In estimating the proportion of spreadsheet users among respondents care must be taken to make allowance for non-response bias6. In the New Zealand studies, 90% of questionnaire respondents are users but after allowing for non-response bias through the use of follow-up letters to non-respondents, it is estimated that 75% of accountants are users (Coy & Buchanan, 1997).
In the Australian studies 95% (249 out of 263) of questionnaire
respondents are users and in the Canadian studies, 94% (224 out of 239).
Logistical
considerations did not permit follow-up tests in these two studies. The proportion of users among respondents is slightly higher in Australia and Canada. Extrapolation of the New Zealand data suggests that around 80% of accountants in Australia and Canada are spreadsheet users or, surprisingly to the authors at least, about one-fifth of qualified accountants in the mid-1990s don’t ever use spreadsheets.
Characteristics of users and non-users Tables 1a and 1b summarize the age and experience of users and non-users in the three countries. The differences are significant and not unexpected. In all cases users are younger, 6
The nature of this study suggests that users of spreadsheets are more likely to respond, and non-users
8 and have been in their present jobs and with their present employers for shorter periods than non-users. This supports the findings of Brancheau and Wetherbe (1990) who found that earlier adopters of spreadsheet software in organizations were younger than later adopters. [Tables 1a & 1b about here]
Canadian users are generally older, have been both with their employer, and in the workforce, longer. About three quarters of respondents in each country are male, with a slightly higher proportion of females among the New Zealanders (Australia and Canada 23% female; New Zealand 26%). Almost all female respondents are users in Australia (98%) and Canada (100%), whilst 81% of New Zealand female respondents are users compared with 89% of New Zealand male respondents.
Business organizations The types of organization where respondent spreadsheet users are employed is summarized in Figure 1. In each country, the highest proportions of respondent users are employed in accounting practices although there is a marked difference between countries; 60% (Australia); 47% (Canada) and 36% (New Zealand). Approximately 25-30% of respondent users in total in each country are employed in manufacturing, commerce and by government.
The nature of the employer organization could influence the uptake of new technology, such as spreadsheets. However, the study results reveal a similar and high proportion of users across all organization types. This is testimony to the versatility of spreadsheets and their suitability to a wide range of tasks undertaken by accountants working in diverse organizations. We conclude that spreadsheets are not more favored by accountants in less likely. Follow-up telephone surveys of non-respondents in the earlier studies revealed that most
9 particular kinds of organization. [Figure 1 about here] Job titles Accountants work in a wide variety of jobs and it is possible that some jobs lend themselves more to working with spreadsheets than others. Table 2 summarizes users’ job titles, listed in descending order by the proportions of Australian respondents.
Chartered accountant,
financial controller, management accountant and financial accountant in that order are the most common job titles. There is a similar pattern of users’ job titles between the three countries. [Table 2 about here]
The wide range of job titles is interesting but not necessarily a meaningful indicator of differences in accountants’ work between the three countries. Some titles such as financial controller may signal differences in the membership of the professional accounting associations sampled, cultural nomenclatures between countries, level of seniority and some respondents’ perception of their work.
For example, many who classed themselves as
auditors may equally have been included in the chartered accountant category. It appears that the management / financial accounting dichotomy, which is a common demarcation in the professional accountancy curriculum, is not supported by the data.
Comparatively few
accountants in all three countries appear to be employed specifically as either financial or management accountants, possibly indicating that most accountants do both kinds of work.
Experience using computers and spreadsheets
non-respondents were non-users.
10 Users were asked to indicate how long they had been using spreadsheets, how much time they spend working on computers each week and of that time, how much using spreadsheets. The mean scores are shown in Table 3. The results for years of experience with spreadsheets have been adjusted for the timing differences in data collection. [Table 3 about here]
In experience with spreadsheets there is no difference between Australia and New Zealand, and the Canadians have more experience than both other countries, although statistically the difference between Australia and Canada is marginally significant. In time spent using computers, the Canadians are higher than both other countries although in the statistical test comparisons only that with New Zealand is significant.
It is estimated that users spend between about 13 hours per week on average working on computers in each of the three countries. However this estimate could be wide of the mark because of the way data was collected for this question and the heavily skewed responses. In collecting data, respondents were asked to select categories from ‘up to 2 hours per week’ to ‘greater than one day per week’. Because of the heavy skew towards the upper end, the estimate of 12 to 13 hours may understate the true position. The results indicate slightly higher usage in Canada compared with Australia and New Zealand although T-tests show that only the difference between Canada and New Zealand to be significant.
Respondents were also asked to indicate the proportion of their computer time spent using spreadsheets, and from this data, we estimate that the proportions of overall computer time spent on spreadsheets is 39% (Australia), 40% (Canada) and 46% (New Zealand). T-tests show that New Zealand is significantly different from both Canada and Australia.
11
In summary, among the three countries, Canadian accountants have more experience using spreadsheets and spend more time using computers than Australians and New Zealanders. New Zealanders spend proportionally more time using spreadsheets than both of the others, and therefore less time using other applications.
Access to computers at work and at home In the 1980s computers were relatively more expensive than in 1996, and the few portable computers available were particularly expensive, physically heavy and awkward to carry to the extent that they attracted epithets such as ‘luggables’.
It was common in many
workplaces for access to microcomputers to be shared among staff. For example, Coy and O’Grady (1992) report that in 1986 only 17% of spreadsheet users in New Zealand had sole access to a computer running a spreadsheet at work. In New Zealand, home computers were rare in the mid-1980s.
Access to computers at work and at home show a radically transformed position in 1996 as summarized in Table 4. Proportionally fewer New Zealand accountants have sole access to a computer at work and at home than their counterparts in Australia and Canada.
This
information, along with other results supports the conclusion that diffusion of spreadsheets and related computer technology among accountants, is higher in Australia and Canada than in New Zealand. [Table 4 about here]
Use of email and internet
12 As an aside from the prime study into spreadsheet use, users were asked whether they use electronic mail and the internet, and if they did, how frequently they use these facilities. The results are summarized in Table 5. [Table 5 about here]
The rankings for computer access revealed in Table 4 repeats in the results for use of email and internet reported in Table 5. Canada reports the highest percentage of users of both email and the internet, and New Zealand, the lowest. In frequency of use of both technologies, New Zealand is the lowest with 64% of users using email ‘almost every day’ compared with 77% and 78% for Canada and Australia respectively. These results align with the previous results on computer access and support the suggestion that Canadian and Australian accountants are ahead of their New Zealand counterparts in the adoption of this new computer technology.
Brands of software and hardware used Figure 2 reveals the dominance of Microsoft Excel in all three countries; being greatest in Australia (70% of user respondents) followed by New Zealand (58%) and Canada (52%). Lotus is the clear second favored brand in all three countries with 42% in Canada, 28% Australia and 23% New Zealand. In New Zealand, Lotus was the most favored brand in 1986 (46%) and 1991 (43%) (Coy & O’Grady, 1992, p. 176). Other spreadsheet brands such as Quattro-Pro and Supercalc, which have held quite prominent market positions at times over the past decade, now have an insignificant proportion of users among accountants. [Figure 2 about here]
13 Respondents were asked to indicate the other kinds of software used in addition to spreadsheets. Wordprocessing is the most common in all three countries being used by 92% of spreadsheet users in Australia, 93% in Canada and 88% in New Zealand. Accounting packages are the second most commonly used additional software; Australia 79%, Canada 65% and New Zealand 71%. Presentation graphics are third most important in Canada (47%) and New Zealand (40%), and databases are the third most important in Australia (49%). Statistical packages are used by less than 10% of spreadsheet users in all three countries. However, given the statistical capabilities of spreadsheets, it is inevitable that accountants use spreadsheets for some statistical applications.
Hardware used in the three countries is more difficult to compare because of the multiplicity of brands, particularly the large number of so-called PC-clones. Tables 6 and 7 summarize the hardware used by types of computer used and brands. [Table 6 about here] [Table 7 about here]
The insignificance of the Apple Macintosh family of computers among accountants in all three countries is confirmed in both Tables 6 and 7, as is the dominance of PC hardware. Apple hardware is used by between 3-7% of users in each of the three countries. In desktop PCs, Australia and Canada have proportionally more pentiums than 486 machines, whereas in New Zealand the proportion of 486 machines is double that of pentiums. As changing technology forces most firms into continuous upgrading of hardware (and software), it is likely that the timing of the data collection is a factor in interpreting this data. The New Zealand data was collected about four months before the Canadian data and seven months before the Australian.
14
Notebook / laptop PCs have a strong showing in all three countries, being used by one quarter to one fifth of respondents. Canada has the highest proportion of notebook users (29%) and New Zealand the lowest (18%). Table 7 confirms the strong position of local brands of PC clone machines in all three countries, accounting for about one half of users. The two prominent international brands, Compaq and IBM, consistently represent 30% of users in all three countries.
Spreadsheet functions used Spreadsheets may be used with varying levels of sophistication between users, some limiting themselves to the basics only such as cut and paste, and simple arithmetic and other users taking advantage of the wide range of features available such as macros, graphics, advanced formulae etc.
To capture differences in the sophistication of spreadsheet usage, the
questionnaire offered eleven common spreadsheet functions to which respondents were asked to indicate frequency of use from ‘never’ (1) to ‘always’ (3). The results are summarized in Tables 8 in descending order for Australia. [Table 8 about here]
In comparing the rank ordering of the spreadsheet functions between countries, the Spearman-rank order test was applied to the top six items (those above the horizontal line in Table 8) and this shows no difference. Overall this data set confirms the similarities in use of spreadsheets by accountants in the three countries rather than evidence of any pronounced differences.
15 This analysis reveals a common pattern for all three countries with the copy, database and algebraic commands being most frequently used in each country and the LOOKUP and IRR functions being the least used. Rankings for all eleven items among all three countries show a similar pattern. The overall scores of 1.8 (out of 3.0) are also very similar. Pairwise Ttests7 show that Australians use the copy command and graphics more than the others, Canadians export data more than the other two and the New Zealanders use the algebraic commands less than the others.
Tasks done with spreadsheets Respondents were asked to indicate what tasks they do with spreadsheets from a list of thirteen identified from literature reviews and researchers’ experience. These items were used in the corresponding New Zealand studies in 1986 and 1991.
The results are
summarized in Tables 9a and 9b and are shown in descending order for Australia.
There is a similar ranking of response for all three countries, although the pairwise T-tests identify significant differences in the ratings of each task on over half the between country comparisons. Operating budgets are the task most frequently done with spreadsheets in all three countries, followed by management reports. Basic recordkeeping and variance analysis were also rated at over 2.0 in all three countries. Other tasks to gain over 2.0 (out of 3.0) were modeling in Australia (2.237) and New Zealand (2.082), depreciation schedules in Canada (2.041), capital budgets in Australia (2.037) and financial accounts in New Zealand (2.041). The least supported tasks also show a common pattern in all three countries and
7
A T-test was used to test for significant difference because the large sample sizes (>200) of this data set indicate that a normal distribution is likely. Note that a non-parametric data test is less likely to identify a significant difference than a parametric test, such as a T-test.
16 these were livestock reconciliations, presumably done more in localities involved with commercial animal husbandry, foreign exchange analysis and payroll calculations. [Table 9a & 9b about here]
Three items have significant differences in all three pairwise comparisons reflecting clear differences in ratings. Modeling, rated relatively highly in all three countries, has strongest support in Australia followed by New Zealand then Canada. Depreciation schedules are rated highly in Canada, but below the overall average ratings in both New Zealand and Australia. Again capital budgets show clear differences with relatively strong support in Australia followed by New Zealand then Canada. The Spearman rank order test was applied to the top 9 items in Table 9a (those above the horizontal line) and reveals that Australia and New Zealand are the same, and Canada is different. The Canadians give more emphasis on operational tasks such as depreciation and basic recordkeeping; this may be explained by the earlier observation of there being more chartered accountants among the Canadian sample. Further research, possibly using case studies and observation, would enable researchers to gain a clearer understanding of what accountants use spreadsheets for, and possibly some of the subtle nuances in their use.
Benefits of using spreadsheets Data was collected about the benefits of spreadsheets using a 5-point scale from ‘extremely unimportant’ (1) to ‘extremely important’ (5). The benefits were classified into three groups of ‘number manipulation’, ‘translation from draft to final copy’ and ‘psychological’ as shown in Table 10, where the results are listed in descending order for Australia within each category. [Table 10 about here]
17
On a category basis, the number manipulation benefits have the strongest support in all three countries, followed by the psychological benefits and then draft to final copy. Overall, the ratings for the ten individual benefits are similar for all three countries with a range from 3.949 (New Zealand) to 4.022 (Australia). The most important single benefit is ‘saving time on calculations’ and the least strongly supported is ‘enabled easier exchange of information’ which, nevertheless, has good support at over 3.5 (out of 5) in all three countries. Three other benefits are rated strongly at over 4 (out of 5) in all three countries and are worth noting. These are ‘more timely result was produced’, ‘more confident of the accuracy of the result’ and ‘job done with less strain than formerly’.
The common thread running through these results is the notion of spreadsheets leading to improvements in efficiency and reducing stress on accountants by virtue of their accuracy and reliability. However, with the passage of time improved efficiency may lead to more work being expected of accountants which in turn may be a catalyst of more stress on individuals, and not less.
The pairwise comparisons reveal only three significant differences in the entire data set. New Zealand accountants rate ‘enables more what-if analysis to be done’ less strongly than the others, and New Zealanders rate ‘job done with less strain than formerly’ less strongly than the Australians.
Reasons for not using spreadsheets Finally, the research investigated the reasons why some accountants do not use spreadsheets. It was noted earlier that over 90% of questionnaire respondents in all three countries use
18 spreadsheets and that non-users are significantly older accountants than users.
The
questionnaire invited non-users to indicate whether any of five suggested reasons for non-use listed in the questionnaire are applicable to them. The results are summarized in Table 11. [Table 11 about here]
The small number of non-users for both Australia (14) and Canada (15) makes it hazardous to generalize from these results. This is the only data set in the entire study which does not give a uniform response for all three countries. For all of the comparisons noted so far, all differences reflect the strength of support for a particular characteristic which is common to each country. In this case though, different prime reasons explain non-use. The most often cited reason for not using spreadsheets by Australian respondents (43%) is that spreadsheets are ‘not relevant to my work’. The Canadians give ‘never had the inclination to learn’ (40%) and the New Zealanders ‘never had the time to learn’ (63%). It is difficult to comment further on these results. The low proportion of non-users suggests that this issue may not be a concern to the accounting profession, and not worthy of further investigation.
DISCUSSION The overall impression obtained from the study is the similarity in the results for all three countries. Spreadsheets have been widely adopted by accountants and although there are differences in the extent of usage or adoption of some aspects or features, overall it is the similarity of the results, and not the differences, between countries that are most noteworthy.
No differences were found in uptake and use between rural and urban areas indicating that at the close of the 20th century within the accounting profession the diffusion and use of this technology appears to be similar between rural and urban areas within countries.
This
19 provides an interesting contrast with the likely distribution patterns of current technology within countries earlier in the century. It is inevitable that at the beginning, and even the middle, of this century the spread and uptake of new technology within these countries would have been much slower, reflecting presumably, lower level of general education and less sophisticated transport and communication systems. It is likely that in other professions such as medicine, engineering and law this hypothesized reduction of the technology dissemination gap has also occurred. These results suggest that, at least for accounting in our study context, the notion of rural backwaters has become an anachronism.
Indeed, these results are probably another example of the globalisation which has affected so many aspects of work and leisure over the past quarter century permeating the professions. The big players in the computer hardware and software business, Intel, IBM, Compaq, Hewlett-Packard and Microsoft are all US companies with a strong international presence. Possibly, the only non-US company with comparable standing in this industry would be the Japanese company, Toshiba. Each of the three countries studied has strong political, cultural and commercial links with the US, as well as a common language. It would be interesting to carry out a similar study between countries with different languages at comparable levels of development to Australia, Canada and New Zealand, and which are not so obviously under the US sphere of influence.
There is a marked difference on only one of the data sets captured in the study and this is the reasons given for non-use of spreadsheets. The prime reason for non-use is different in all three countries. However, as only small numbers of non-users are identified in the Australian (14) and Canadian (15) studies, this result is indicative rather than conclusive.
20 Although the results for users of spreadsheets have a marked similarity there are some differences which suggest that Australia and Canada are up to a year ahead of New Zealand, after allowing for timing differences in the data collection. Differences in experience using spreadsheets were about six months, 8.9 years for New Zealand compared with 9.1 and 9.5 years for Australia and Canada respectively. It could be argued too that after even a year or two of using spreadsheets any productivity differences are explained by characteristics of users and their organizations rather than longevity of use.
More telling in the context of advancement are the proportions of users with sole access to computers at work (see Table 4), access to computers at home, use of machines with pentium chips as opposed to 486 chips and use of notebook computers. Higher proportions in each of these statistics suggest greater advancement by Canada, with Australia and New Zealand being close, and perhaps Australia marginally ahead of New Zealand. These inferences are supported by the results for the proportions using email and the internet, and the extent of its use (see Table 5).
In the use of specific spreadsheet functions there are no systematic differences which support the notion that one country is any more proficient than the others. To support such a hypothesis one might expect more advanced users to make more use of sophisticated and difficult functions such as macros, look-up tables and merging files and there are no differences found in these data between countries. Similarly, the data about tasks done with spreadsheets suggest that any differences are due to differences in the nature of respondents’ work rather than sophistication of use or relative advancement in the use of technology.
21 The results show a widespread adoption of this technology in all three countries. Furthermore, the age distribution of users and non-users suggests that within a decade most non-users will have retired and the spreadsheet will be generic to the accounting profession in all three countries, assuming that further technological advances do not overtake the spreadsheet in the meantime.
Perusal of employment advertisements for accountants
supports the notion of universality in use of spreadsheets and other information technologies. Commonly, advertisements in the mid-1990s specifically identify knowledge of, and competence in using, information technology including spreadsheets as part of the requirements of candidates.
The literature review identified a preponderance of reported research into spreadsheet errors and related topics and a dearth of descriptive studies of spreadsheet use. From a societal viewpoint perhaps one of the most important issues surrounding spreadsheet use (and information technology) is its impact on overall national productivity. What effect has the spreadsheet had on efficiency, productivity, the gross domestic product and societal welfare? These are bottom line questions that are difficult to research and answer. Some writers have questioned whether discernible productivity gains have occurred at the national level from the recent massive investments in information technology (Drucker, 1991; Brynjolfsson, 1993).
Although this research study has attempted to address productivity issues by identifying the kinds of tasks spreadsheets are used for and the benefits of spreadsheet use, questionnaire methodologies cannot delve into this question in depth, or with rigor.
For example,
budgeting is identified as the single most common task done by accountants with spreadsheets in all three countries. However, budgets may be short and simple or long and
22 complex and it is impossible using self-administered postal questionnaires as used in this study to gauge the true nature of the tasks being done.
Case study methodologies would enable the researcher to observe the technology use in the workplace setting at first hand and make normative judgments about the extent and quality of their use. Richer data could be collected and some of the finer issues identified of use, misuse and abuse, which cannot be captured using postal questionnaire methodologies. Undoubtedly, huge investments have been, and are being, made in information technology and it is of considerable importance to understand whether appropriate benefits are gained and how IT might be used to better effect at both the individual and organizational levels.
SUMMARY This study is part of a decade-long project into spreadsheet use by accountants in New Zealand from 1986 to 1996, which was extended to Australia and Canada in 1996. The objectives of the research are to compare the diffusion of spreadsheets among professional accountants in Australia, Canada and New Zealand, and identify differences, if any, between countries in the uptake and use. In particular, the following issues are investigated; the proportion of accountants using spreadsheets, the type of hardware and software used, the ease of access to spreadsheets, the nature of tasks done with spreadsheets, the perceived benefits, and the reasons for not using spreadsheets.
Overall the study found a high level of spreadsheet diffusion in all three countries, with Canada and Australia being a little ahead of New Zealand on some evidence. We estimate that in 1996/7 about 80% of accountants used spreadsheets in Canada and Australia, and slightly less, 75%, in New Zealand.
The PC machine is overwhelmingly the preferred
23 hardware platform in all three countries and among accountants, the Apple Macintosh has an insignificant role. Excel is the preferred spreadsheet brand in all three countries, although Lotus is a stronger second in Canada than either of the other two countries. Just over 80% of respondents have a truly personal computer with sole access to a machine at work and just under 80% have access to a computer at home. Budgeting is the clear most frequently done task with spreadsheets in all three countries. Saving time on calculations and being more confident about the accuracy of their work are the most important benefits identified. The small number of non-users give different reasons for not using spreadsheets. In Australia, lack of relevance is most important, in Canada lack of inclination and in New Zealand, lack of time.
On the important question of productivity benefits this research provides some preliminary insights which would be better further investigated using different methodological approaches, such as case studies. This would enable many of the subtle nuances of usage to be identified so we may seek ways of improving the efficiency and effectiveness with which spreadsheets and related technologies are used as we enter the new millennium.
REFERENCES Brancheau, J. and J. Wetherbe. 1990. The adoption of spreadsheet software: testing innovation diffusion theory in the context of end-user computing, Information Systems Research, 1 (2) : 115-143. Buchanan, J. and D. Coy. 1997. Spreadsheet use, Chartered Accountants’ Journal, 76 (4) May : 24-26. Brynjolfsson, E. 1993. The productivity paradox of information technology: Review and assessment, Communications of the ACM, 20pp. Brynjolfsson, E and L. Hitt. 1996. Paradox lost? Firm-level evidence on the returns to information systems spending, Management Science, Vol. 42 (4), April : 541-558. Brynjolfsson, E & L. Hitt. 1997. Computing productivity: Are computers pulling their
24 weight?, unpublished paper, MIT Sloan School of Management, Cambridge, MA. Chan, Y. and V. Storey. 1996. The use of spreadsheets in organizations: Determinants and consequences, Information & Management 31 : 119-134. Coy, D. and J. Buchanan. 1997. Spreadsheet use: A 10-year study, Chartered Accountants’ Journal, 76 (3) April : 62-66. Coy, D. and W. O’Grady. 1992. The changing use of spreadsheets by accountants in New Zealand: A comparison of 1991 with 1986. Journal of Information Systems, 6 (2) : 171-81. Doolin, B., J. Fisher, J. McCutcheon and M. Nelson. 1994. IT and management accounting: An Australian study, Charter, May : 33-34. Doolin, B., M. Nelson, J. McCutcheon and J. Fisher. 1993. Information technology and the management accountant, Accountants' Journal, July : 36-39. Drucker, P. F. 1991. The new productivity challenge, Harvard Business Review, NovemberDecember : 69-79. Fisher, J. and M. Nelson. The use of electronic spreadsheets by Canadian chartered accountants, unpublished working paper, School of Business & Economics, Wilfrid Laurier University, Ontario, Canada. Van Dijk, P., D. Taylor, M. Nelson and J. Fisher. An assessment of chartered accountants as end-users of electronic spreadsheets, unpublished working paper. School of Accounting, Curtin University, Australia.
Electronic Reference Panko, R. Spreadsheet Research Website at: http://www.cba.hawaii.edu/panko/ssr
25 APPENDIX A Spreadsheet Research Website Managed by Professor Ray Panko of University of Hawaii Website address: http://www.cba.hawaii.edu/panko/ssr Summary of website sections and number of references in each as at December 1997
• Spreadsheet errors • Cell entry stage (3 items) • Draft stage (5) • Testing stage (2) • Operational stage (6) • Surveys of developers (5) • Development policies (7) • Error research and spreadsheet error research (7) • Errors in practice (14) • Errors found during audits of real world spreadsheets (7) • Errors found during spreadsheet development experiments (11) • Errors found during spreadsheet auditing experiments (6) • Questionnaire and interview research (including some general end-user computing studies) (34) • Cognitive, behavioural and numerical research (8) • Prescriptive studies (6) • The year 2000 problem (4)
ence of users and non-users: Australia, Canada and New Zealand, 1996/7
Users
Australia Non-users
Difference
Users
Canada Non-users
Difference
T-test
ent employer
Users
New Zealand Non-users
Difference
T-test
T-test
(years)
(years)
(Critical p-values)
(years)
(years)
(Critical p-values)
(years)
(years)
(Critical p-values
37.0
51.7
0.000
40.1
56.9
0.000
38.7
46.3
0.000
4.9
8.3
0.129
6.0
10.2
0.159
5.0
12.3
0.000
6.5
10.7
0.146
8.3
17.5
0.010
7.3
17.2
0.000
11.5
25.7
0.000
13.8
32.7
0.000
11.9
21.3
0.000
han 0.010 indicate a significant difference at greater than 99% confidence; less than 0.05, 95% confidence
.10, 90% confidence
s of differences in means in Table 1a - (p-values) Australia v Canada Users Non-users
Australia v New Zealand Users Non-users
Canada v New Zealand Users Non-users
0.000
0.081
0.030
0.064
0.089
0.000
0.044
0.065
0.855
0.533
0.056
0.553
ent employer (years)
0.004
0.140
0.186
0.099
0.100
0.954
alifying
0.002
0.107
0.554
0.290
0.013
0.001
job (years)
han 0.010 indicate a significant difference at greater than 99% confidence; less than 0.05, 95% confidence
.10, 90% confidence
Table 2 Percentage of user respondents by job category
Chartered Accountant Financial Controller Management Accountant Financial Accountant Auditor Manager Tax advisor Business Consultant Chief Executive Other
Australia 39.8 16.1 10.0 8.4 6.8 5.2 4.4 3.2 1.2 4.8
Percentage Canada 32.1 21.9 1.8 4.5 9.8 4.5 9.4 2.2 3.6 10.3
NZ 23.7 14.0 10.5 14.9 8.0 6.1 3.3 5.0 3.6 11.0
100.0
100.0
100.0
Table 3 Time using spreadsheets & computers Australia 9.1 12.8 39.1% 5.0
Experience with spreadsheets (yrs) Hrs per week using computers % of computer time using spreadsheets Hrs per week using spreadsheets
Canada 9.2 13.4 40.3% 5.4
NZ 8.4 12.3 45.5% 5.6
NOTE: Shaded items are significantly different from all others, at p < 0.02
Table 4 Access to computers at work and home Sole access to computer at work Access to computer at home
Australia 88.4% 73.9%
NOTE: Shaded items are significantly different from all others
Canada 92.5% 82.5%
NZ 78.3% 67.2%
2
Table 5 Use of email and internet Use email Use email almost every day Use internet Use internet almost every day
Australia 60.2% 77.6%
Canada 69.9% 76.5%
NZ 54.4% 64.1%
34.8% 14.9%
54.7% 21.4%
16.2% 14.5%
Table 6 Types of computer used: % of users Desktop PC Pentium Desktop PC 486 Notebook/laptop PC Macintosh Other
Australia 36% 31% 24% 3% 6% 100%
Canada 33% 26% 29% 7% 5% 100%
NZ 22% 44% 18% 6% 10% 100%
Australia 47% 19% 12% 12% 4% 6% 100%
Canada 46% 12% 19% 9% 6% 9% 100%
NZ 50% 17% 13% 8% 4% 7% 100%
Table 7 Brand of computer used PC clone / local brand Compaq IBM Toshiba Macintosh Don't know
3
Table 8 Proportion of users using specific spreadsheet functions
Copy command SS database commands Algebraic commands IF function Graphics Import data Merging spreadsheet files Macros Export data LOOK-UP function IRR function Overall
Australia 2.765 2.202 2.020 1.975 1.922 1.829 1.704 1.650 1.635 1.535 1.481
Canada 2.627 2.136 2.099 1.995 1.738 1.927 1.798 1.751 1.749 1.472 1.392
NZ 2.633 2.138 1.866 1.895 1.798 1.840 1.706 1.676 1.630 1.433 1.415
1.883
1.880
1.821
Canada 2.245 2.243 1.943 2.114 2.032 1.734 1.944 1.972 2.041 1.552 1.436 1.377 1.072
NZ 2.410 2.303 2.082 2.156 2.061 1.909 2.041 1.772 1.833 1.524 1.371 1.321 1.262
1.823
1.850
NOTE: where: 1 = never; 2 = sometimes; 3 = often Shaded items are significantly different from all others
Table 9 Accounting tasks done with Spreadsheets Australia Operating budgets 2.492 Management reports 2.346 Modelling 2.237 Basic recordkeeping 2.132 Variance analysis 2.097 Capital budgets 2.037 Financial accounts 1.903 Tax calculations 1.830 Depreciation schedules 1.642 CVP analysis 1.564 Payroll calculations 1.380 Foreign exchange analysis 1.203 Livestock reconciliations 1.116 AVERAGE
1.845
NOTE: where: 1 = never; 2 = sometimes; 3 = often Shaded items are significantly different from all others, p < 0.05
4
Table 10 Mean responses to suggested Benefits Number manipulation Saved time on CALCULATIONS Enables more WHAT-IF analysis to be done Group average Translation from draft to final copy More TIMELY result was produced Saved time on copy TYPING Saved time on PROOF READING and corrections Enabled easier EXCHANGE OF INFORMATION Group average Psychological benefits More CONFIDENT of the accuracy of the result Job done with less STRAIN than formerly Group average Overall average
Australia
Canada
NZ
4.644 3.864 4.254
4.534 3.796 4.165
4.549 3.564 4.057
4.137 3.802 3.645 3.617 3.800
4.126 3.833 3.687 3.576 3.806
4.103 3.780 3.740 3.584 3.802
4.262 4.204 4.233
4.193 4.077 4.135
4.263 4.009 4.136
4.022
3.978
3.949
NOTE: 5-point likert scale, where 1=very unimportant; 3=neutral and 5=very important Shaded items are significantly different from all others
Table 11 Reasons for not using spreadsheets Reason Do not have hardware/software available Not relevant to my work Never had the time to learn Never had the inclination to learn Cannot justify the expense n NOTE: Shaded item is the most frequently given reason
Australia 0% 43% 29% 36% 21%
Canada 0% 13% 20% 40% 7%
NZ 27% 35% 63% 28% 10%
14
15
44
5
Figure 1 Proportion of respondent users by business type: Australia, Canada & New Zealand, 1996/7 70%
Proportion of Users
60% 50% 40% 30% 20% 10% 0% Commerce
Government
Manufacturing
Australia
Canada
Practice
Others
NZ
Figure 2: Brand of spreadsheet used 80%
Proportion of Users
70% 60% 50% 40% 30% 20% 10% 0% Excel
Lotus
Quattro Australia
Canada
Supercalc NZ
Other
