Combining theories to investigate the acceptance of accrual accounting

• Date: 21 March 2024
• Pages: 531-554
• DOI: https://doi.org/10.1108/IJPSM-08-2023-0256
• Published date: 21 March 2024
• Subject Matter: Public policy & environmental management,Politics,Public adminstration & management
• Author: Michalis Bekiaris,Thekla Paraponti,Foteini Spanou

Combining theories to

investigate the acceptance

of accrual accounting

Michalis Bekiaris, Thekla Paraponti and Foteini Spanou

Department of Business Administration, School of Business,

University of the Aegean, Chios, Greece

Abstract

Purpose –This paper develops and tests a theoretical model that draws on the Diffusion Contingency Model

and the Theory of Human Behavior to explain the factors influencing users’acceptance of accrual accounting in

terms of two distinct dimensions: behavioral intention and usage behavior.

Design/methodology/approach –Based on surveyeddata from financial departments anddirectorates of

different Greek general government entities, the paper uses factor analysis to build a theoretical model that

assessesthe factors influencingbehavioral intention to adoptand usage behavior of accrualaccounting. Then, it

tests the relationship between behavioral intentionand usage behavior through structuralequation modeling.

Findings –The theoretical model suggests that the expected improvement of the quality of financial

information and political and financial support are the most important determinants of behavioral intention.

Usage behavior is mainly influenced by the compatibility between the existing legal framework and the new

accounting system. The structural equation modeling identifies a statistically significant positive influence of

behavioral intention on usage behavior.

Practical implications –The study provides valuable insights regarding the timing and focusof the actions

taken by policymakers when designing accounting reforms. Special attention is drawn to the factors

influencing behavioral intentions, as these are found to influence usage behavior significantly.

Originality/value –The study extends prior research on the diffusion of accounting innovations by breaking

down the diffusion process into intentions-oriented actions aiming to promote accrual accounting and increase

acceptance and implementation-oriented actions aiming to facilitate successful implementation.

Keywords Accounting innovations, Government accounting, Public sector accounting reforms,

Theory of human behavior, Diffusion contingency model

Paper type Research paper

1. Introduction

Despite the significant public sector accrual accounting reforms of the last 2 decades, not all

efforts have been successful (Adhikari and G



arseth-Nesbakk, 2016). Research highlights the

difficulties faced by several jurisdictions during the transition process (Adhikari and

G



arseth-Nesbakk, 2016;Bekiaris and Paraponti, 2023;Polzer et al., 2019), as well as the

significant differences in the way that the adoption of accrual accounting materializes from

country to country (Baskerville and Grossi, 2019;Polzer et al., 2019,2021), as well as within

jurisdictions (Soguel and Luta, 2021). Furthermore, local conditions, as well as the role of

organizational actors, have been identified as significant factors influencing the outcome of

the reforms (Adhikari and G



arseth-Nesbakk, 2016;Baskerville and Grossi, 2019;Brusca et al.,

2013;Cohen and Karatzimas, 2016,2018).

Accrual accounting has been identified as an innovation in the public sector (Caperchione

et al., 2019;Cohen et al., 2021), and as such, it has been studied through the lens of Innovation

Theory (Godfrey et al., 2001;Rogers, 1995). Prior literature identifies various factors

influencing the successful implementation of ac counting reforms, such as technical

Acceptance of

accrual

accounting

531

The authors would like to thank the anonymous reviewers for their insightful and appreciated feedback.

Funding: There is no funding for this paper.

The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/0951-3558.htm

Received 25 August 2023

Revised 24 November 2023

5 February 2024

18 February 2024

Accepted 21 February 2024

International Journal of Public

Sector Management

Vol. 37 No. 4, 2024

pp. 531-554

© Emerald Publishing Limited

0951-3558

DOI 10.1108/IJPSM-08-2023-0256

knowledge and training (Abdulkarim et al., 2020;Brusca et al., 2016;Ismail et al., 2018),

perceived benefits of the reforms (Gomes et al., 2023) and technical assistance by experts

(Christensen et al., 2019;Hepworth, 2003). Other studies explore the factors influencing the

use and usefulness of accounting information, identifying isomorphic pressures (Gomez-

Villegas et al., 2020), organizational characteristics and individual traits (Gigli et al., 2018)as

important determinants. Our study adds to the existing literature by exploring the factors

influencing two distinct dimensions of the accounting reform process: the intention of users to

adopt and implement accrual accounting. Our focus lies on the perspective of the employees

expected to implement the new system and not on the adopting organizations. To do so, we

combine Godfrey et al.’s(2001) Diffusion Contingency Model (DCM) with Triandis’(1971,

1980) Theory of Human Behavior (THB). While the DCM provides a useful framework for

explaining the roles of different actors at the different stages of public sector accounting

reforms, the THB introduces the distinction between intentions and usage in the analysis.

Starting from this distinction, we develop a theoretical model that combines the two

theories to study the ongoing accounting reform of the Greek general government. Using a

structured questionnaire, we examine the perceptions of public sector financial employees

and managers and assess the factors influencing their attitude toward the reform and the

implementation of the new accounting system.

Our researchis relevant for various reasons.First, it identifiesthe areas where the attention

of policymakersshould focus by highlightingthe factors influencing theimplementation of the

new system. Second, it adds to the existing literature on intern ational accounting

harmonization, as Greece provides an illustrative example of the challenges raised by

accrual accounting. Therefore, the results of this study could provide useful insights for the

design of accounting reforms in other settings where similar challenges are faced. Finally, it

contributes to the discussion on public sector accounting reforms by introducing a new,

psycho-sociological dimension to investigating public sector accounting innovations.

The rest of this paper is organized as follows. Section two theorizes the diffusion of

accounting innovations and presents the relevant literature. Section three discusses Greece’s

public sector accounting reforms and briefly analyzes the new accounting framework.

Section four presents the theoretical construct and develops the research hypotheses. Section

five analyses the methodology, and section six presents the results. Finally, section seven

discusses the findings and concludes the paper.

2. Theorizing the diffusion of public sector accounting innovations

Godfrey et al.’s(2001) DCM merges Rogers’(1995) Innovation Diffusion Theory (IDT) and

L€

uder’s (1992) Contingency Model to explain the organizational processes of public sector

accounting innovations. Rogers (1995) examines how innovations are disseminated and

describes how the perceptions and actions of different key actors (social, political and

organizational) may influence the adoption rate. L€

uder (1992) identifies two main factors that

justify jurisdictional differences in the level and rate of accrual accounting adoption: the

interaction of key players involved in the innovation decisions and the influence of three

types of factors (stimuli, socio-political and administrative) on the users and producers of

accounting information. Godfrey et al. (2001) focus on the producers of accounting

information and divide the innovation process into two phases (initiation and

implementation), aiming to capture the interactions between the characteristics of the

organization (government) and the innovation (accrual accounting) at the different stages of

accounting reforms and to examine the role of organizational actors within this context.

On the other hand, theTHB (Triandis, 1971,1980) providesa useful theoretical framework

for analyzing perceptions, which, according to Rogers (1995), significantly influence an

innovation’sadoption r ate. Triandis(1971,1980) identifiesthree main determinantsof behavior:

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