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Enterprise resource planning system reforms of European Union member states in association with central government accrual accounting and IPSAS adoption

Michalis Bekiaris (Department of Business Administration, School of Business, University of the Aegean, Chios, Greece)
Antonia Markogiannopoulou (Department of Business Administration, School of Business, University of the Aegean, Chios, Greece)

Journal of Public Budgeting, Accounting & Financial Management

ISSN: 1096-3367

Article publication date: 11 November 2022

Issue publication date: 24 January 2023

68

Abstract

Purpose

This paper examines the enterprise resource planning (ERP) systems of 27 European central governments and the governments' respective information technology (IT) reforms, facilitator role and association with accrual accounting reforms as premise of the International Public Sector Accounting Standards (IPSAS).

Design/methodology/approach

This paper presents a qualitative and content analysis of 27 European Union (EU) member states (MSs) regarding the states' IT and accounting maturity in association with accrual accounting as breeding ground for IPSAS convergence based on published surveys on behalf of Eurostat, web data and emails collected from authorized officials.

Findings

This paper has found that (1) increased accounting and IT maturity scores of central governments are associated with the establishment or upgrade of ERP systems; (2) ERP systems prove to facilitate and support accrual accounting adoption; (3) in majority, EU MSs adopt similar ERP vendors to implement accrual accounting reforms; (4) with prevalence among ERP vendors, the Systems Application Products (SAP) ERP software proves to be a success story toward public sector accounting (PSA) reforms.

Research limitations/implications

Respective information on the ERP systems' facilitation to financial accounting reforms is collected only for 17 central governments.

Originality/value

This paper highlights the facilitation of ERP systems as reform drivers to accrual accounting change of EU MSs, through IT modernization. This paper links the ERP practices with specific ERP vendors pointing out the vendors' similarities. This paper presents examples of European ERP reforms and sets the reforms as reference for central governments that wish to embark on ERP and accrual accounting reforms.

Keywords

Acknowledgements

The authors would like to thank foremost the two anonymous reviewers and JPBAFM Associate Editor, Professor Isabel Brusca for the insightful input. The authors thank Professor Andreas Andrikopoulos for the valuable suggestions and remarks on earlier drafts of this paper.

Citation

Bekiaris, M. and Markogiannopoulou, A. (2023), "Enterprise resource planning system reforms of European Union member states in association with central government accrual accounting and IPSAS adoption", Journal of Public Budgeting, Accounting & Financial Management, Vol. 35 No. 1, pp. 115-140. https://doi.org/10.1108/JPBAFM-06-2021-0104

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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