Exploring the role of innovation in the level of readiness to adopt IPSAS
Journal of Accounting & Organizational Change
ISSN: 1832-5912
Article publication date: 31 August 2020
Issue publication date: 18 October 2020
Abstract
Purpose
The purpose of this study is to investigate the level of readiness of the public sector in Qatar to adopt International Public Sector Accounting Standards (IPSAS), based on the innovation diffusion theory. The responses of accountants (preparers) and auditors employed in the public sector are explored in this regard, and challenges faced in IPSAS implementation are highlighted.
Design/methodology/approach
A primary research approach was adopted using a questionnaire that yielded 101 responses. Five dimensions are focused on: relative advantage, top management support, satisfaction with the current accounting system, barriers to adopting IPSAS, and attitudes towards innovation.
Findings
Relative advantage, barriers to adopting IPSAS and satisfaction with the current system were found to be the most significant. The influence of these variables appears to promote or hinder the implementation of IPSAS in the public sector of Qatar and, perhaps, the wider region.
Practical implications
Even if professionals understand the potential benefits of adopting IPSAS, they are unlikely to advance such adoption without upper echelon-sanctioned cost-benefit analyses and approval. Hence, policymakers should consider the need for a top-down shift in the way IPSASs are viewed and promoted to enable their successful implementation in the public sector.
Social implications
The positive association between satisfaction with current systems and the level of IPSAS implementation suggests that respondents view the usefulness and ease of use of their current systems as a primary reason to adopt IPSAS as an ‘upgrade’.
Originality/value
This study advances the understanding of the pre-transition process by drawing on innovation theory, which reveals determinants of IPSAS implementation in the case of Qatar. This study adds to prior studies on government accounting in developing nations.
Keywords
Acknowledgements
The authors would like to thank the editor Prof. Zahirul Hoque, and two anonymous reviewers for their insightful and appreciated feedback. Special thanks go to Dr Josette Caruana for her valuable time in giving detailed comments on the earlier version of this paper. The authors would also like to thank Prof. Mostafa Kamal Hassan for his generous feedback on the survey.
Citation
Abdulkarim, M.E., Umlai, M.I. and Al-Saudi, L.F. (2020), "Exploring the role of innovation in the level of readiness to adopt IPSAS", Journal of Accounting & Organizational Change, Vol. 16 No. 3, pp. 469-495. https://doi.org/10.1108/JAOC-12-2019-0119
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited