CHAPTER THREE

METHODOLOGY

3.0 Introduction

This chapter will focus on the methodology of the study. The chapter consists of research design,

target population including sample size and sample selection procedure, research instruments

with the validity and reliability test of the data and the data gathering procedure, to analyze the

data, data analysis followed by the ethical consideration of study and limitation of the study.

3.1 Research design

Research design is the plan or strategy that outlines the steps, procedures, and methods that will

be used to conduct a research study, with the aim of answering a research question or testing a

hypothesis. It includes the selection of research participants, the methods of data collection, the

choice of data analysis techniques, and the interpretation and reporting of findings (Alam et al.,

2022).

The study will be conducted through descriptive design. The study will use this approach in

order to describe and to investigate the effect of computerized accounting system on financial

performance at some selected of companies in Mogadishu. Using information gained from the

questionnaire. This design is selected for this study because it is effective, less cost and easily

accessible for collecting information from the target population.

The survey would be designed to collect data on the effect of computerized accounting system at

some selected companies in Mogadishu, Somalia, as well as their financial performance. The

survey will include questions related to computerized Accounting system to our sub variables,

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QuickBooks, Peachtree and Spreadsheet. This design involves collecting data at a single point in

time from a representative sample of participants to examine the relationship between variables.

A random sample of companies in Mogadishu could be selected for inclusion in the survey. The

sample size should be large enough to provide a representative sample of firms in the city. The

survey could be administered in person, by phone, or online, depending on the preferences of the

participants.

3.2 Research population

The population of the study is the group of individuals, events, or objects that share one or more

characteristics of interest and that a researcher wants to generalize the findings of a study to. It is

the entire group that the researcher is interested in studying and making conclusions about, and

from which a sample is typically selected to participate in the study. The population of the study

can be defined based on various characteristics such as age, gender, geographic location,

educational level, or any other relevant factor that is of interest to the researcher. The size of the

population can range from a few individuals to a large number, depending on the scope and

nature of the research study. It is important for researchers to carefully define the population of

the study, as this will influence the selection of a sample and the generalizability of the findings.

A representative and 36 unbiased sample is required to ensure that the findings can be

generalized to the population of the study (Habib, 2011)

The target population for this study would be individuals working in various companies in

Mogadishu, Somalia, specifically those selected for the study, including Iftin Express, Kaamil

Computers, Beder Electronics, Discount Co., and Dauus Company. These individuals will be 67

respondents of employees, managers, or executives involved in the financial activities of their

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respective companies. this category was chosen because the study intends to the effect of

Computerized accounting system, QuickBooks, Spreadsheet, Peachtree on financial performance

in Mogadishu, Somalia.

Table 3.2.1 Distribution of the Population

Category Frequency Percentage

Iftin expresses 17 25.37%

Kaamil Computer 9 13.43%

Beder Electronics 10 14.93%

Discount Co. 8 11.94%

Dauus Company 23 34.33%

Total 67 100%

3.3 Sample Size

Sample size is a critical component of research design, representing the number of individuals,

cases, or units of analysis included in a study or experiment. It is typically determined based on

statistical considerations such as the level of precision, confidence, and power required to test

hypotheses or estimate population parameters. A larger sample size generally leads to more

precise and reliable results, but may also increase the costs and complexity of data collection and

analysis (Habib, 2011)

Slovene formula was being used to this study to determine the sample size. Slovene ‘s formula as

using to obtaining the sample size. Denoting by n the sample size, Slovene formula is given by,

the sample of the study is 57

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Where:

n = the sample size

N = Total population

e = Margin of error

Thus, the sample size was determined as shown below:

N = 67

e = 5% = 0.05
67 67
n= = = 57
1+67(0.05)² 1.1675

Table 3.3.1 sample of 57 was chosen

Category Sample Size Percentage

Iftin Express 15 26.32%

Kaamil Computers 7 12.28%

Beder Electronics 11 19.29%

Discount Co. 5 8.78%

Dauus Company 19 33.33%

Total 57 100%

3.4 procedure of sample selection

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The procedure of sample selection refers to the process of identifying and selecting participants

or observations to include in a research study. This involves defining the target population,

determining the sampling frame, and applying a sampling method to select a representative

sample. The goal of sample selection is to ensure that the sample is unbiased and reflects the

characteristics of the larger population, allowing for generalization of study findings (Killmeyer

et al., 2020)

This study used probability sampling; the technique was taken for random sampling to select the

sample size in the Random sampling, the researchers decided who can participant the sample; the

main objective of this sample was to collect focused information. We chose this method because

it reduces Bias.

3.5 Research quality

3.5.1 Validity

Validity refers to the extent to which data collection method accurately measures what it will

intend to measure or to the extent to which research findings are about what They are claimed to

be about (Oso & onen, 2008). Validity of the data collection instruments will do whit the help of

an expert (the research supervisor) to edit the questionnaire and the interview guide. The

researcher forwarded the structured questionnaire to supervisor who is an expert in the area

covered by the research for editing and reviewing. The validity is generally gained from the type

of instrument being used.

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3.5.2 Reliability

The reliability of the research instruments concerns with the degree to which the research,

instrument will give the same result under similar conditions. To ensure that the data is reliable a

standard of test re-test exercise will do before actually using it. (Joppa, 2000) Defines reliability

as the extent to which results are consistent over time and an accurate representation of the total

population under study is referred to as reliability and if the results of a study can be reproduced

under a similar methodology, then the research instrument is considered reliable. Needless to

say, validity and reliability are very indispensable for this research to be accurate.

3.6 Date collection procedures

This study was used for primary data, as well as should be collected from respondents in the area

of study. Data was collected using a pre-code structured questionnaire for the survey. The closed

questions are questions in which all possible so as to pre-specify answers and the respondents

make the choice from the answers provide.

Data collection was done by direct InTouch in the field of study. This is important because it is

helping the respondent to understand the questions by interpreting them to fit the respondents

understanding. This was done to ensure that the respondent answers the questions in the

appropriate sequence.

3.7 Data Analysis

After the research team collect the questionnaire from the respondents, the researchers use the

quantitative method for analyzing and interpreting data, the data have been analyzed through

correlation analyze to describe the effect of computerized accounting system on financial

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performance by using statistical package for Social Science technique (SPSS 20.0) and other

applications necessary during the study. The statistical package analyzed variables by computing

relative frequencies, means, and standard deviations to produce valid and reliable data.

In the questionnaire each selected one to five scale for where, 1= Good 2= Absolutely 3= Neutral

bad; 4=Bad 5=Absolutely bad the following table presents the mean range and its interpretation

Mean Range Descriptions Interpretation 4.24-5.0 Good Excellent 3.43-4.23 Absolutely Good

2.62-3.42 Neutral bad Average 1.81-2.61 Bad Poor 1.00-1.80 Absolutely bad Very poor

3.8 Ethical Consideration

Ethical considerations of confidentiality and privacy address. A concerted and conscious effort

make at all times to support this promise. A guarantee was given to the respondents that their

names will not be revealed in the research report. In order to ensure the success of the research,

directors will link to subordinates in such a manner that each subordinate ‘response remained

anonymous apart from being linked to a particular director.

3.9 Limitation of the study

One limitation of this study is the potential for response bias, as the data collection relied on self-

reporting through questionnaires. Respondents may provide socially desirable answers or

inaccurately represent their experiences with computerized accounting systems and financial

performance. Additionally, the study's focus on companies in Mogadishu, Somalia, may limit the

generalizability of the findings to other contexts or regions with different economic, cultural, or

regulatory environments. Furthermore, the reliance on a single point in time for data collection

may not capture changes or fluctuations in financial performance over time. Future research

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could address these limitations by employing diverse data collection methods, expanding the

study's scope to include a broader range of companies and regions, and conducting longitudinal

analyses to assess trends in financial performance more comprehensively.