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1 – 10 of over 1000
Article
Publication date: 2 February 2022

Elina Haapamäki

Neo-institutional theory (NIT) has strengthened its position as one of the theories and frameworks used to investigate accounting as organizational, legislative, social…

Abstract

Purpose

Neo-institutional theory (NIT) has strengthened its position as one of the theories and frameworks used to investigate accounting as organizational, legislative, social and policymaking phenomena. This study aims to review how aspects of NIT are used and understood by accounting researchers. As a growing body of accounting and auditing articles in recent years has used NIT as a theoretical framework, this paper reviews and analyzes articles using NIT.

Design/methodology/approach

This study develops a comprehensive synthesis of current academic knowledge about NIT in accounting and auditing regulation literature. Further, it reveals areas requiring further examination.

Findings

The findings of this study indicate that prior studies have found evidence that accounting and auditing regulation is associated with all forms of isomorphism (coercive, mimetic and normative). For instance, institutional pressures influence the accounting and auditing standards adoption in different environments. Therefore, the synthesis of the literature suggests that coercive, mimetic and normative pressures have played a significant role in the harmonization of accounting and auditing practices worldwide. To conclude, NIT has become one of the relevant alternative approaches used to explore accounting and auditing regulation as a complex phenomenon.

Research limitations/implications

Accounting has often been referred to as a “narrow” and “technical” topic. In a way, NIT broadens the research field by extending, for instance, the approach of which external and internal pressures are associated with accounting standards adoption and why different accounting practices are adopted.

Originality/value

This study informs accounting scholars as to how NIT has been applied, and can be applied, in the accounting and auditing regulation literature. This benefits accounting researchers if they are considering whether to use NIT in their research. This study evaluates the contribution of NIT within this research field. It can be suggested that accounting researchers need to become more aware of the debates within the NIT literature, particularly as the theory is seen as conceptually ambiguous. To conclude, the synthesis highlights that NIT has offered a range of important contributions and has drawn attention to the link between accounting and auditing regulation research and the institutional environment.

Details

Managerial Auditing Journal, vol. 37 no. 3
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 23 September 2019

Olfa Riahi and Walid Khoufi

The purpose of this paper is to discern the impact of main behavioral factors that could affect the decision of adopting IFRS in developing countries (DCs). In other…

Abstract

Purpose

The purpose of this paper is to discern the impact of main behavioral factors that could affect the decision of adopting IFRS in developing countries (DCs). In other words, this work looks to identify the different variables that are likely to influence the adoption of IFRS in these countries.

Design/methodology/approach

The methodological orientation of this research is to highlight and analyze the correlation between the cited factors and the IFRS adoption in DCs. Tested models are functions of logistic regression. To assess the parameters of these functions, the commonly used method is not that of ordinary least square but the maximum likelihood technique. In short, this study followed a hypothetical-deductive methodology by referring to the application of a logistic regression for each of the variables presumed to be analyzed. The authors implement this empirical model by using the neo-institutional approach and basing on a sample of 108 DCs.

Findings

The empirical results show that there exists a bidirectional causal relationship between the majority of the developed behavioral variables and the decision of whether adopting or unadopting IFRS by DCs. They also indicate through multivariate analysis that the selection of IFRS by DCs is primarily legitimized by institutional and social pressures (institutional isomorphism).

Research limitations/implications

It is essential to indicate that some limits might be assigned to the study. They are attached principally to the use of a dichotomous dependent variable which presents a restriction in a sense where the robust inequality at the level of the numbers of the countries of sub-samples can relatively weaken the findings. There are also few studies that jointly analyze the behavioral dimensions within a country and the adoption of IFRS. Institutional theory emanated from the research has proved useful in escaping this limit.

Practical implications

These empirical insights are of particular interest to local accounting standard setters of the selected countries since they can provide a better discernment of factors that can encourage the adoption of IFRS. Indeed, the research can be a reference for governments to better identify the economic, political and institutional obstacles that have an impact on behaviors which could compel countries to flee the adoption of IFRS. This paper will also be helpful for future research studying the links between human behavior and accounting in a general way. It should be noted that the results will be significant for future studies looking for real behavioral factors that drive a country to adopt an accounting framework. The studies will be able to use the empirical variables as a starting point and then they can extract new measures to identify the impact of behavior on decisions to adopt any standards.

Originality/value

At the present study, the authors strive to provide input to the literature by focusing on the determinants of the choice of an accounting practice in a DC reverberating to a new dimension which is the behavioral attribute.

Details

Journal of Applied Accounting Research, vol. 20 no. 4
Type: Research Article
ISSN: 0967-5426

Keywords

Book part
Publication date: 1 March 2021

Henny Murtini, Djoko Suhardjanto, Djuminah Djuminah and Agung Nur Probohudono

The objective of the study is to prove the suitability between the implementation of human capital disclosures on the financial statements of local governments in…

Abstract

The objective of the study is to prove the suitability between the implementation of human capital disclosures on the financial statements of local governments in Indonesia and the political system, economic system, legal system, social and cultural system, and accounting infrastructure system based on institutional theory. The study is carried out by conducting a meta-analysis on human capital disclosure fit to institutional theory. The study finds that it is more appropriate using accounting infrastructure system for human capital disclosures on the financial statements of local governments in Indonesia. Based on a meta-analysis, it is found that the normative isomorphism is widely used in Indonesia. It should be implemented on human capital disclosures on the financial statements of local governments in Indonesia. Then, it is also found that there are many regulations on human capital but there are only a few human capital disclosures on the financial statements of local governments in Indonesia.

Details

Recent Developments in Asian Economics International Symposia in Economic Theory and Econometrics
Type: Book
ISBN: 978-1-83867-359-8

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Article
Publication date: 20 April 2015

Rusdi Akbar, Robyn Ann Pilcher and Brian Perrin

This paper aims to explore the perceived drivers behind the implementation of performance measurement systems (PMSs) in Indonesian local government (ILG). It analytically…

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Abstract

Purpose

This paper aims to explore the perceived drivers behind the implementation of performance measurement systems (PMSs) in Indonesian local government (ILG). It analytically assesses Indonesia’s attempt to introduce PMSs by addressing three research questions: Do organisations in developing countries actually use PMSs to aid decision-making and help plan for future performance improvement? (RQ1) Do the three isomorphic pressures exist in the development and use of PMSs? (RQ2) and If institutional isomorphism is evident, can accountability exist within the development and use of PMSs given these pressures? (RQ3).

Design/methodology/approach

This research explores the perceived drivers behind the implementation of performance measurement systems (PMSs) in Indonesian local government (ILG). It analytically assesses Indonesia’s attempt to introduce a PMS by addressing three research questions: RQ1 Do organisations in developing countries actually use PMSs to aid decision-making and help plan for future performance improvement? RQ2 Do the three isomorphic pressures exist in the development and use of PMSs? and RQ3 If institutional isomorphism is evident, can accountability exist within the development and use of PMSs given these pressures.

Findings

Results determined that although employees perceived coercive isomorphism as being a driver of ILG compliance with President B.J. Habibie’s presidential instruction (Inpres No. 7/1999), the Laporan Akuntabilitas Kinerja Institusi Pemerintah/Performance Accountability Report of State Apparatus (known as LAKIP), many councils were still not reporting and those who were, were not doing it well. Many councils lacked management motivation, with some choosing to merely mimic (mimetic isomorphism) what others were doing. Better-resourced councils made use of external consultants or local universities where knowledge was shared (normative isomorphism).

Practical implications

An understanding of factors influencing the development and use of performance measures, in turn, can be used not only to improve PMSs in the future but to improve the quantity and quality of LAKIP reporting.

Originality/value

The theoretical development and interpretation of this research is drawn from institutional theory with a major contribution being that it provides an in-depth conceptual overview and understanding of factors influencing the development and use of performance measures. Further, it fills a gap in the literature exploring PMSs and accountability in a developing country – in this case, Indonesia.

Details

Qualitative Research in Accounting & Management, vol. 12 no. 1
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 6 September 2022

Abdullahi B. Saka, Daniel W.M. Chan and Saheed O. Ajayi

Although there has been a surge in the adoption of building information modelling (BIM) in the construction industry, the small and medium-sized enterprises (SMEs) are…

Abstract

Purpose

Although there has been a surge in the adoption of building information modelling (BIM) in the construction industry, the small and medium-sized enterprises (SMEs) are still struggling and perceive its adoption as risky. The SMEs in developing economies are especially on the disadvantaged side of the digital divide. Extant studies have focused on large firms and there are scanty studies on the influence of the external environments on BIM adoption in SMEs. Thus, this study espouses institutional theory (INT) to examine the influence of coercive, mimetic, and normative pressures on BIM awareness and adoption in SMEs.

Design/methodology/approach

A quantitative approach was employed, and data were collected from the Nigerian construction SMEs via an empirical questionnaire survey using a sequential stratified and convenient sampling method. Hypothesized relationships between the coercive, mimetic, and normative pressure and BIM in SMEs were empirically tested using the partial least squares structural equation modelling (PLS-SEM) technique and the model was validated with the “PLSpredict” procedure.

Findings

The results revealed that coercive and mimetic pressures significantly influence BIM adoption in SMEs while normative pressures have the strongest influence on BIM in SMEs. Also, BIM awareness is an important predictor of BIM adoption. The findings also shed light on the influence of firmographics on BIM awareness and adoption in Nigerian SMEs.

Originality/value

The study empirically validates the applicability of INT and highlights that BIM adoption is not only influenced by internal responses to the need for efficiency but also by external pressures. It implies a clear need for intentional isomorphic pressures in driving BIM adoption in SMEs. The study employs the INT to explain a phenomenon that has not been theoretically explored in the context of SMEs in developing economies. Lastly, the study provided valuable insights into driving BIM adoption, together with the effective practical implications for implementation and potential research areas for further studies.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 17 June 2021

Bernard Owens Imarhiagbe, David Smallbone, George Saridakis, Robert Blackburn and Anne-Marie Mohammed

This article examines access to finance for SMEs in the Baltic States and the South Caucasus countries following the financial crisis of 2007 and is set within the context…

Abstract

Purpose

This article examines access to finance for SMEs in the Baltic States and the South Caucasus countries following the financial crisis of 2007 and is set within the context of the rule of law for businesses.

Design/methodology/approach

The article uses the cross-sectional dataset from the Business Environment and Enterprise Performance Survey (BEEPS) for 2009 to examine access to finance for SMEs and the court system in the Baltic States and the South Caucasus countries. An ordered probit estimation technique is used to model access to finance and the court system in the Baltic States and the South Caucasus countries. The analysis draws upon institutional theory to explain access to finance for SMEs.

Findings

The results show variations from one Baltic State and South Caucasus country to another in relation to fairness, speed of justice and enforcement of court decisions. The analysis suggests that if access to finance is not an obstacle to business operations and the court system is fair, impartial and uncorrupted, it determines the likelihood of strength in entrepreneurship. Additionally, the results show that, within the Baltic region, businesses experiencing constraints in accessing finance are more likely to have females as their top managers. However, for the South Caucasus region, there was no gender difference.

Research limitations/implications

This research is based on evidence from the Baltic States and the South Caucasus region. However, the findings are relevant to discussions on the importance of the context of entrepreneurship, and more specifically, the rule of law. The institutional theory provides an explanation for coercive, normative and mimetic institutional isomorphism in the context of access to finance for SMEs. Coercive institutional isomorphism exerts a dependence on access to finance for SMEs. In coercive institutional isomorphism, formal and informal pressures are exerted by external organisations such as governments, legal regulatory authorities, banks and other lending institutions. These formal and informal pressures are imposed to ensure compliance as a dependency for successful access to finance goal.

Practical implications

This research creates awareness among entrepreneurs, potential entrepreneurs, business practitioners and society that reducing obstacles to access finance and a fair court system improve entrepreneurial venture formation. This has the potential to create employment, advance business development and improve economic development.

Originality/value

This paper makes an original contribution by emphasising the significance of access to finance and a fair court system in encouraging stronger entrepreneurship. The institutional framework provides a definition for coercive institutional isomorphism to show how external forces exert a dependence pressure towards access to finance for SMEs.

Details

Journal of Small Business and Enterprise Development, vol. 28 no. 5
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 30 March 2022

Hela Borgi and Vincent Tawiah

This paper aims to examine the institutional factors that influence the adoption of eXtensible Business Reporting Language (XBRL) at the country level.

Abstract

Purpose

This paper aims to examine the institutional factors that influence the adoption of eXtensible Business Reporting Language (XBRL) at the country level.

Design/methodology/approach

The authors use a large sample of 175 developed and developing countries over 14 years. Data is obtained from different sources including, World Development Indicators, the Reports on the Observance of Standards and Codes (ROSC) website and the Quality of Government database.

Findings

The results highlight the significance of coercive, mimetic and normative pressures in terms of ROSC reports, the extent of accounting globalisation and education. However, in further analyses, the authors found that coercive pressure is pronounced in developing countries. Nevertheless, mimetic pressure is an important, influential factor for all countries regardless of their status as developed or developing.

Originality/value

This study responds to the lack of research on the country-level factors of countries’ adoption of XBRL. The present study contributes to the literature by providing additional evidence on the country-level factors influencing XBRL adoption. Using the institutional theory, the authors provide a better understanding of the global diffusion of XBRL, which has attracted little attention. The study also complements prior literature on the adoption of international accounting and financial reporting practices.

Details

International Journal of Accounting & Information Management, vol. 30 no. 3
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 21 November 2016

Jeffry R. Phillips and Allan Y. Jiao

The purpose of this paper is to determine the extent to which constructs of institutional isomorphism apply to Los Angeles Police Department’s (LAPD) performance…

Abstract

Purpose

The purpose of this paper is to determine the extent to which constructs of institutional isomorphism apply to Los Angeles Police Department’s (LAPD) performance measurements of the US Department of Justice’s federal consent decree.

Design/methodology/approach

A case-study approach was used to gather and analyze the data, including documentary research, personal interviews, and observations.

Findings

The findings demonstrate that isomorphic pressures existed in the LAPD’s Audit Division and influenced the development of performance measures for reforms although not in a straightforward or unidimensional manner.

Originality/value

Police auditing in the context of the federal consent decree is shown to be a viable approach for institutionalizing police reforms, but further research is necessary on specific performance measurements of police operations and relationship between these measures and police effectiveness.

Details

Policing: An International Journal of Police Strategies & Management, vol. 39 no. 4
Type: Research Article
ISSN: 1363-951X

Keywords

Article
Publication date: 8 April 2014

Corina Joseph, Robyn Pilcher and Ross Taplin

This study aims to examine determinants of the extent of sustainability reporting on Malaysian local council web sites using a disclosure index within an institutional…

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Abstract

Purpose

This study aims to examine determinants of the extent of sustainability reporting on Malaysian local council web sites using a disclosure index within an institutional theory framework.

Design/methodology/approach

Adopting a simplified disclosure index to measure the extent of sustainability reporting, the unit of analysis for this research is Malaysian local council web sites. To reduce any subjectivity, the disclosure index is unweighted and consists of 57 items.

Findings

Several findings were apparent including size, Local Agenda (LA) 21 and public sector award all being found to be significant predictors of disclosure. Overall, the findings indicate the presence of institutional isomorphism – particularly coercive pressure – in explaining the extent of sustainability reporting on web sites.

Research limitations/implications

The research has multiple implications as it provides insights into web site sustainability reporting in a developing country. It also adds support to institutional isomorphism as a valid theoretical framework within this context. Based on there being no mandatory requirement for local authorities to produce annual reports, one limitation is that this paper assumes that the web sites of local authorities are the primary medium for communicating sustainability information.

Practical implications

One of the most significant practical implications relates to LA 21 which has a significant impact on sustainability disclosure on Malaysian local council web sites. With 113 countries in total implementing LA 21 to some degree (ICLEI), Malaysia's recognition as a key (developing country) player in advancing sustainable development should be acknowledged.

Originality/value

With an apparent lack of web site sustainability reporting research in developing country public sector organisations, this study is unique in that it appears to be the first research conducted in Malaysia analysing sustainability web site reporting using a disclosure index in a local government setting – all within an institutional theory framework. Not only can the disclosure index be used as a tool for future public sector corporate social responsibility related research, but the “new” disclosure instrument provides insights into the extent of sustainability reporting in local authorities.

Details

Pacific Accounting Review, vol. 26 no. 1/2
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 11 March 2019

Alexander Glebovskiy

The purpose of this paper is to discuss the criminogenic nature of isomorphism and groupthink in business organisations with a view to developing a conceptual model of the…

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Abstract

Purpose

The purpose of this paper is to discuss the criminogenic nature of isomorphism and groupthink in business organisations with a view to developing a conceptual model of the criminalisation process leading to criminal behaviour within businesses.

Design/methodology/approach

This paper draws on institutional theory and social psychology theory to discuss how isomorphic and groupthink processes may lead to criminal behaviour in the corporate world. The paper is based on a rigorous review of the relevant literature and theoretical frameworks regarding isomorphic dynamics, processes, factors, forces and mechanisms in the business context. The review was guided by a question of how isomorphic and groupthink processes can transform business organisations and its members into offenders. The approach applied was to transfer the existing theories of isomorphism and groupthink into the field of criminology, in order to devise a new model of the process of criminalisation.

Findings

The effects of isomorphic and groupthink processes can have a criminogenic effect on businesses and individuals in organisational settings which may coerce agents to engage in criminal behaviour. In crime-facilitative circumstances, isomorphism and groupthink foster criminal activity by cultivating homogeneous behaviour, conformity, resemblance, shared values and identical ways of thinking across and within firms. This herd behaviour can be regarded as one of the explanations for the pervasiveness of criminal and unethical behaviour in the corporate world, the consequences of which could be devastating.

Research limitations/implications

This is a theoretical analysis, not one based on empirical findings, though it does suggest a model for future testing.

Practical implications

This study explains the criminogenic nature of isomorphic and groupthink processes and contributes to the debate on the casualisation of corporate crime. This has important implications for the deterrence of illegal and unethical activities at both the organisational and institutional levels.

Originality/value

This study provides a conceptual model of the criminalisation process in businesses fostered by criminogenic isomorphism and groupthink.

Details

International Journal of Organization Theory & Behavior, vol. 22 no. 1
Type: Research Article
ISSN: 1093-4537

Keywords

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