Small-Medium Enterprises Stickiness on the Traditional Accounting Systems

This study aims to identify the causes of the limited absorption of the accounting information system (AIS) in SMEs that are members of the UPPKS (Upaya Peningkatan Pendapatan Keluarga Sejahtera -in English: Business to Increase Prosperous Family Income) Program in Medan City.This research is necessary because, inpreliminary research observations, the researcher found that 81.30% of SMEs who are members of the UPPKS Medan City have not used AIS in accounting records.Eventhough in this digital era, the use of information technology is regular in every activity.The sample of this research is the SMEs that are members of the UPPKS in Medan City.UPPKS is a family empowerment program to maximize economic income through entrepreneurial activities.The program is organized by the Government of the Republic of Indonesia through the National Population and Family Planning Agency.The data collection in this study was using an electronic questionnaire collected using the snowball method.With simple random sampling, this study managed to collect 122 data.The entire data was then analyzed using descriptive statistics.The results showed that the SMEs that were members of the UPPKS in Medan City experienced Knowledge Stickiness.This condition hinders the performance of SMEs in utilizing AIS to achieve its competitive advantage.This study recommends UPPKS administrators to be able to manage SMEs' knowledge to be able to absorb knowledge from external parties and exploit it to produce measurable innovations.The innovation in question can generate increased economic benefits among SMEs.