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Book part

Latifa Mbelwa

This paper seeks to establish the influence of several types of factors on the use of accounting information in the public sector within a developing country context…

Abstract

Purpose

This paper seeks to establish the influence of several types of factors on the use of accounting information in the public sector within a developing country context. Institutional theory with its branches NIS and OIE underlies the theoretical framework for explaining the factors influencing the use of accounting information. The analysis was based on structural equation modelling to test nine hypotheses. The data were collected by administering 208 questionnaires to the Tanzanian Local Government Authorities’ political and administrative actors.

Findings

At large, the findings of this study comprehend the role of institutionalised social and legal rule with professionalism in shaping actors to use accounting information instrumentally and symbolically in budget decision-making processes. Furthermore, the findings establish the importance of education and experiences on accounting and financial aspects of the actors who are involved in the public sector budget decision-making process. The findings also provide an understanding of the differences between political actors and administrative actors in terms of the factors influencing the symbolic use of accounting information in LGA’s decision-making processes.

Practical implication

Our findings challenge development partners (i.e. donors), reformers such as Central Government and National Accounting professional board such NBAA in Tanzania to coerce pressure by adoption of implementation of NPM techniques, which can lead to positive change in LGAs to influence instrumental rather than symbolic use of accounting information in the budgetary decision-making processes. For example, adoption of accrual basis accounting should also concur with the improvement of accounting information systems, legal and regulatory frameworks together with creation of trainings that increase skill and knowledge of using accounting information by the actors. This might ensure financial sustainability to LGAs that can increase provision of service with relevant quality to citizens. Moreover, the findings need the political parties to take responsibility of building capacity of their candidates. It might ensure that their representatives in the council are capable of making appropriate use of the accounting information at their disposal to improve the quality of budget decision making and their representation of the population for the benefit of their organisation and eventually of their political parties. The citizens are needed to be sources of professional behaviours to both councillors and administrators by making closer follow up and demands of quality services from their LGAs through budgeting processes.

Research limitations

The generalisation of this study’s findings can be limited because they were obtained only from LGAs operating in Tanzania

Original/value

This is the first paper that establishes the factors influencing the instrumental–conceptual use and the symbolic use of accounting information in LGAs’ budgetary decision-making processes in developing country context, in particular, in Tanzania.

Details

The Public Sector Accounting, Accountability and Auditing in Emerging Economies
Type: Book
ISBN: 978-1-78441-662-1

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Article

Yasin Mahmood, Abdul Rashid, Faisal Rizwan and Maqsood Ahmad

The purpose of this paper is to investigate the role of macroeconomic factors and the institutional environment on corporate financial flexibility (FF). Most studies focus…

Abstract

Purpose

The purpose of this paper is to investigate the role of macroeconomic factors and the institutional environment on corporate financial flexibility (FF). Most studies focus on well-developed financial markets and very little is known about corporate FF in less developed financial markets and emerging markets (Buvanendra et al., 2016). The present study contributes to filling this gap in the literature and provides a more practical and functional framework to assess the FF of firms located in emerging economies.

Design/methodology/approach

The study used annual data for the period from 1991 to 2018. To examine the relationship between macroeconomic indicators, institutional environment and corporate FF, hypotheses were tested using an unbalanced panel logistic regression model.

Findings

The paper provides empirical insights into the relationships between macroeconomic factors, institutional environment and corporate FF. The results suggest a substantial change in FF across firms. Inflation, institutional quality and banking sector development negatively affect FF, while equity market development has a significant positive impact. Gross domestic product growth was found to be an insignificant predictor of FF.

Practical implications

This study has practical implications for corporate finance managers, regulators and investors, who must consider the significant factors of this study when making economic decisions. Finance managers can thus make appropriate decisions regarding capital structure and FF. Regulators of the banking sector can take appropriate measures to enhance competition and increase the development of the banking sector. Further, regulators of the equity market can enhance the development of the market to enhance the supply of capital.

Originality/value

This study adds to the literature showing that not only firm-specific factors affect corporate FF, but country-specific macroeconomic and institutional factors also have a significant effect. It also adds to the literature in the area of corporate FF; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

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Article

Sami Salem Elhossade, Hafez Abdo and Abdulsalam Mas’ud

Environmental management accounting (EMA) has received increasing interest since 2000 and is now regarded as an effective tool to deal with environmental issues and the…

Abstract

Purpose

Environmental management accounting (EMA) has received increasing interest since 2000 and is now regarded as an effective tool to deal with environmental issues and the economic performance of companies and countries. This study aims to examine the impacts of institutional pressures on the adoption of EMA by manufacturing companies operating in Libya. The study examines how such adoption is impacted by four contingent factors, namely, company size, company age, environmental management system adoption and business type.

Design/methodology/approach

Data was collected from a sample of medium- and large-sized manufacturing companies operating in Libya by means of a questionnaire survey. Institutional pressure and contingency factors were tested against the level of EMA adoption via multiple regression analysis and moderator multiple regression.

Findings

The results indicate that the relationship between coercive pressures and EMA adoption varies as a function of company size. This result indicates that when companies face pressures, the way they respond depends on specific circumstances and characteristics of the company such as company size.

Originality/value

The key contribution of this study to the body of knowledge comes from being able to combine contingency and the new institutional sociology perspective of the institutional theory to create a complementary perspective. This was achieved by examining the moderating effect of the four contingent variables on the relationship between institutional pillars and EMA adoption in manufacturing companies in Libya.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

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Article

E. Anne Bardoel

Examines the relative importance of institutional and resource dependent explanations versus managerial explanations of variations of formal and informal work‐family…

Abstract

Examines the relative importance of institutional and resource dependent explanations versus managerial explanations of variations of formal and informal work‐family responsiveness. Work‐family responsiveness is defined in two ways: formal policies and practices that an organization offers, designed to assist employees to balance their work and family lives; and a work environment that is accommodating of its employees’ work‐family needs. Focuses attention on the important role that managerial attitudes have on the provision of work‐family practices and an accommodating work‐family workplace. Concludes that by integrating the insights of several theoretical perspectives, a more comprehensive model of organizational responsiveness in relation to work‐family practices is developed and a set of testable propositions that can guide future research can be made. Indicates that an additive theoretical model combining managerial and institutional factors offers the most appropriate theoretical explanation for identifying factors related to the provision of work‐family benefits and whether the workplace is accommodating of work‐family issues.

Details

Women in Management Review, vol. 18 no. 1/2
Type: Research Article
ISSN: 0964-9425

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Article

Cláudia Beatriz Batschauer da Cruz, Dinorá Eliete Floriani and Mohamed Amal

This study aims to advance a sub-national perspective within the OLI Paradigm by analyzing how and to what extent the Eclectic Paradigm can serve as a general model to…

Abstract

Purpose

This study aims to advance a sub-national perspective within the OLI Paradigm by analyzing how and to what extent the Eclectic Paradigm can serve as a general model to capture region-specific aspects of the location determinants of FDI, encompassing institutional effects that extend beyond the quality of institutions.

Design/methodology/approach

The authors conducted a systematic literature review of 41 selected papers published between 1990 and 2019. Using inductive content analysis, they investigated the theoretical choices used to support analyses of the effects of institutional factors on MNEs' location decisions at the sub-national level.

Findings

It was found that, when changing from the national to the sub-national level of analysis, there is no need to change the main assumptions used in the literature, although a different perspective must be adopted. The Eclectic Paradigm permeates most of the studies revised and can serve as a general model to capture the sub-national perspective. It offers a foundation for new perspectives on the dynamics of institutional and political factors and their effects on location strategies and determinants at the sub-national level. Adopting the OLI Paradigm with a sub-national approach could widen the IB literature's prevailing focus on traditional economic factors and institutional quality.

Research limitations/implications

The authors contribute to extant International Business literature Their paper enhances the literature on FDI location determinants by providing a more specific approach to development of a sub-national perspective within the OLI Paradigm, extending the institutional effects to capture more region-specific factors influencing the location of FDI. Study limitations are related to our analytical focus on the location dimension, excluding motives for FDI or firm-level location strategies. Rather than limiting analysis to quantitative studies, future research that includes qualitative studies and also covers the other dimensions of the OLI Paradigm could open additional new research avenues for advancing the sub-national perspective within the field of IB.

Practical implications

The authors’ main findings suggest that MNEs' location strategies should include a sub-national perspective, which means that firms need to assess different levels of the location and understand their interaction with nationwide constraints and limitations, as it may affect firms' ability to effectively conduct their value-adding activities. They also contribute elements that can support sub-national governments' actions and policies aiming to enhance locational advantages to attract and retain FDI.

Originality/value

This review specifically analyzes the location determinants of FDI at the sub-national level, in studies published in a broad set of journals, from a variety of fields, prioritizing articles that investigate sub-national institutional determinants. The authors derive implications for the International Business literature and propose that the sub-national dimension should be incorporated into the Eclectic paradigm in order to better understand the influence of institutional sub-national determinants.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

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Book part

Venkat Kuppuswamy, George Serafeim and Belén Villalonga

Using a large sample of diversified firms from 38 countries we investigate the influence of several national-level institutional factors or “institutional voids” on the…

Abstract

Using a large sample of diversified firms from 38 countries we investigate the influence of several national-level institutional factors or “institutional voids” on the value of corporate diversification. Specifically, we explore whether the presence of frictions in a country’s capital markets, labor markets, and product markets, affects the excess value of diversified firms. We find that the value of diversified firms relative to their single-segment peers is higher in countries with less-efficient capital and labor markets, but find no evidence that product market efficiency affects the relative value of diversification. These results provide support for the theory of internal capital markets that argues that internal capital allocation would be relatively more beneficial in the presence of frictions in the external capital markets. In addition, the results show that diversification can be beneficial in the presence of frictions in the labor market.

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Book part

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to…

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Details

E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

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Article

Aleksandra Pop‐Vasileva, Kevin Baird and Bill Blair

The purpose of this paper is to examine the work‐related attitudes (job satisfaction, job stress and the propensity to remain) of Australian academics and their…

Abstract

Purpose

The purpose of this paper is to examine the work‐related attitudes (job satisfaction, job stress and the propensity to remain) of Australian academics and their association with organisational, institutional and demographic factors.

Design/methodology/approach

Data were collected by distributing a survey questionnaire to 750 academics, from 37 Australian universities.

Findings

The results indicate a moderately low level of job satisfaction, moderately high level of job stress, and high propensity to remain. The findings reveal that the organisational factors (management style, perceived organisational support, and the characteristics of the performance management system) exhibited the most significant association with academic work‐related attitudes, with the only significant institutional factor, the declining ability of students, negatively impacting on job satisfaction and job stress. The findings revealed that work‐related attitudes differ, based on discipline, with science academics found to be more stressed and less satisfied than accounting academics. Different organisational and institutional factors were associated with the work‐related attitudes of academics from these two disciplines.

Practical implications

The findings will make university management aware of the work‐related attitudes of staff, and the factors that are associated with such attitudes, thereby assisting management in developing management policies, and taking appropriate action to address the concerns of staff.

Originality/value

The study provides an initial comparison of the work‐related attitudes (job satisfaction, job stress, and propensity to remain) of Australian academics across the accounting and science disciplines. The study also provides an important insight into the association between specific organisational and institutional factors, with the work‐related attitudes of Australian academics across both disciplines.

Details

Accounting, Auditing & Accountability Journal, vol. 24 no. 4
Type: Research Article
ISSN: 0951-3574

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Article

Yefei Yang, Antonio K.W. Lau, Peter K.C. Lee, Andy C.L. Yeung and T.C. Edwin Cheng

The Chinese Government encourages firms to diffuse their operational-level environmental management (EM) into their organization’s mission and strategy to develop…

Abstract

Purpose

The Chinese Government encourages firms to diffuse their operational-level environmental management (EM) into their organization’s mission and strategy to develop strategic EM to promote sustainable development. The purpose of this paper is to utilize two concepts of institutional theory (isomorphic pressures and decoupling behavior) to assess how different institutional forces arising from Chinese macro-level factors (market pressure, business turbulence, legal voids, carbon policy, structural-level governmental interference and guanxi with government) influence the efficacy of strategic EM.

Design/methodology/approach

In partnership with a major consulting firm in China, the authors collect multi-informant survey data from 183 manufacturing firms drawn from a variety of industries for testing the hypotheses posited.

Findings

The efficacy of strategic EM in the sampled firms is confirmed by the positive association with environmental performance. The authors also find that the efficacy of strategic EM is weakened by market pressure, business turbulence and legal voids, whereas it is strengthened by structural-level governmental interference. However, carbon policy and guanxi with government do not impact it significantly.

Research limitations/implications

To extend the findings on the environmental importance of strategic EM, future research can develop and validate a management framework to guide the adoption of strategic EM. With regard to the four valid macro-level factors influencing the efficacy of strategic EM, future research can identify the reasons (e.g. conflict with corporate functions) behind them to aid manufacturers to mitigate their negative influence or enhance the positive influence on strategic EM.

Social implications

China’s Government and its manufacturers (or those sharing a similar institutional environment) can expand the scope of their EM efforts from operational-level EM practices to strategic EM. The findings on the valid macro-level factors have led to practical suggestions for government bodies and manufacturers to improve the efficacy of strategic EM adoption. Overall, the implications help achieve the higher levels of firm-level environmental performance and alleviate the global pollution problem.

Originality/value

A particular value of this work lies in the demonstration of combining institutional theory (organization decoupling, isomorphic pressures) with practical consideration such as guanxi with government in the particular institutional environment of China to help address an important and context-related problem, environmental performance.

Details

International Journal of Operations & Production Management, vol. 39 no. 1
Type: Research Article
ISSN: 0144-3577

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Article

Talah S. Arabiyat, Metri Mdanat, Mohamed Haffar, Ahmad Ghoneim and Omar Arabiyat

The purpose of this paper is to improve understanding of how different aspects of the national institutional environment may influence the extent of innovative…

Abstract

Purpose

The purpose of this paper is to improve understanding of how different aspects of the national institutional environment may influence the extent of innovative entrepreneurial activities across countries. Several institutional and conductive factors affecting a country’s capacity to support innovative entrepreneurship are explored.

Design/methodology/approach

Institutional theory is used to examine the national regulatory, normative, cognitive and conducive aspects that measure a country’s ability to support innovative entrepreneurship. A cross-national institutional profile is constructed to validate an entrepreneurial innovation model. The impacts of country-level national institutions on innovative entrepreneurial activity as measured by Global Entrepreneurship Monitor data are assessed through structural equation modeling.

Findings

Knowledge about the influence of specific institutional aspects on innovative entrepreneurship, and hence of institutional structures within and across countries, is enhanced. For new innovative enterprises, conductive and regulatory aspects seem to matter most. All conductive factors have a significant and positive impact on entrepreneurial activity rates.

Research limitations/implications

Results could support policy makers and practitioners in evaluating government policies’ effects on innovative entrepreneurship. Interventions should target both individual attributes and context. Future research could include longitudinal designs to measure the direction of causality.

Practical implications

Aspects such as regulatory institutions, and conductive factors such as information communication technology use and technology adoption, are important for innovation entrepreneurship development.

Originality/value

The literature on institutional theory and innovative entrepreneurship is highly limited. This study complements growing interest in empirical analysis of the effects of national institutions on innovative entrepreneurial activities and substantiates previous empirical work.

Details

Journal of Enterprise Information Management, vol. 32 no. 3
Type: Research Article
ISSN: 1741-0398

Keywords

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