Acceptance Model of Integrated Reporting in Iranian Universities

Document Type : Research Paper

Authors

1 Ph.D. Candidate, Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran.

2 Associate Prof., Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran.

3 Associate Prof., Department of Womens and Family Studies, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran.

4 Prof., Department of Accounting, Faculty of Social Sciences and Economic Sciences, Alzahra University, Tehran, Iran.

Abstract

Objective
This study aims to uncover the factors influencing the acceptance of integrated reporting. The goal is to find how attitudes and behavioral intentions of university managers could be positively influenced and how the adoption of integrated reporting can be made easier.
Methods
To achieve the research goal, a quantitative research design was used. Questionnaires were used to gather the required data. They were filled out by the board of directors' members, including the University president, Vice president of education, Vice president of research and technology, Vice president of finance and administration, Vice president of culture, Vice president of students, and Director of monitoring and evaluation, from 30 leading public universities in Iran. The obtained data were analyzed by fitted structural equations. The criterion used to select the top universities was the most recent ranking listed in the reference database of Islamic World Sciences.
Results
The final version of the acceptance model of integrated reporting showed that the acceptance process consists of four consecutive and path-dependent stages. The stages include knowledge; attitude (persuasion); behavioral intention (before decision); and acceptance or rejection (decision). Each stage is influenced by several innovation-specific or individual-specific variables. The specific variables of innovation include the characteristics of integrated reporting perceived by university senior managers, including perceived relative advantage, compatibility, lack of risk, and lack of complexity. The individual characteristics of these managers, such as mental norms and perceived behavior control, as well as determinants of change like perceived necessity, obligation, and guidance, are considered. Based on the presented empirical evidence, it can be claimed that the process of accepting integrated reporting in Iranian universities aligns with the Rogers decision-innovation process model. Therefore, the adoption of this new way of reporting, like many innovations, goes through the stages of knowledge, attitude, intention, and behavior. Meanwhile, the factors affecting each stage show their effects hierarchically through the mediating variables mentioned.
Conclusion
This research emphasizes the importance of a process approach in studying the dissemination and adoption of integrated reporting. It urges researchers to meticulously explore the hierarchy of innovation factors or specific variables, along with individual variables, understanding their impact mechanisms thoroughly. The outcomes of this research can inform the development of policies by the Iranian Ministry of Science regarding university reporting practices. The findings of this research determine how to smooth the path of acceptance of this new way of reporting. Research findings also demonstrated that decision-makers in the realm of adopting integrated reporting are primarily swayed by the perceived characteristics of this reporting method while paying minimal heed to its inherent features. The results obtained help planners to focus on trying to create a positive perception of people about the features of this innovation instead of focusing on the technical issues of integrated reporting. Therefore, it is advisable to conduct workshops, publish books and articles, and employ other methods of information dissemination and persuasion to enhance individuals' comprehension of the relative advantages and compatibility of this reporting method. This can alleviate concerns about the complexity of implementation and the risks associated with its adoption failure. Also, it is recommended that the administrators provide the necessary facilities for accepting integrated reporting and offering the necessary training to university employees. This will establish a foundation for university administrators to appraise positively the readiness of their team to accept and implement integrated reporting. In addition, By generating social pressures from both external and internal stakeholders, as well as reference groups, to develop and publish integrated reports in universities, it is feasible to reinforce the mental norms of university administrators in this direction. With the leading universities of the country taking the lead in this area, imitative mental norms can positively influence managers in other universities.

Keywords

Main Subjects

References

 
Abdolvand, N., Albadvi, A. & Ferdowsi, Z. (2008). Assessing readiness for business process reengineering. Business Process Management Journal, 14(4), 497–551.
Abdollahzadeh, H. & Amin, V. (2020). The Effect of Planned Behavior Theory, Ethical Commitment, and Perceived Risk on Corporate Sustainability Accounting and Reporting. Journal of Value and Behavioral Accounting, 5(9), 269-299. (in Persian)
Adhikariparajuli, M., Hassan, A. & Fletcher, M. (2021). Integrated Reporting Implementation and Core Activities Disclosure in UK Higher Education Institutions. Administrative Sciences, 52(5), 11–86.
Agarwal, R. & Prasad, J. (2000). A field study of the adoption of software process innovations by information systems professionals. IEEE Transactions on Engineering Management, 47(3), 295–308.
Al-Ali, S. (1995). Developing countries and technology transfer. International Journal of Technology Management, 10(7/8), 704–713.
Ajzen, I. & Fishbein, M. (1980). Understanding attitudes and predicting social behaviour,
Englewood Cliffs, N.J.: Prentice-Hall
Ajzen, I. (1991). The theory of planned behaviour. Organizational Behaviour and Human Decision Processes, 50(2), 179–211.
Alizadegan, L., Samadi Largani, M. & Imeni, M. (2023). An Analysis of Auditors Capability on Fraud Detection Using the Planned Behavior Theory Perspective: the Impact of Auditors Experience and Personality Type with Respect to the Role of Professional Skepticism. Financial Accounting and Auditing Researches, 57(15), 149-184. (in Persian)
Aras, G., Kutlu Furtuna, O. & Hacioglu Kazak, E. (2022). Toward an integrated reporting framework in higher education institutions: evidence from a public university. International Journal of Sustainability in Higher Education, 23(2), 426–442.
Bamberg, S., Ajzen, I. & Schmidt, P. (2003). The roles of past behaviour, habit and reasoned action. Basic and Applied Social Psychology, 25(2), 175–187.
Beer, M., Eisenstat, R. & Spector, B. (2010). Why change programs do not produce change. Harvard Business Review, 68(6), 158–166.
Bekhradi Nasab, V. (2022). Scope of Theory of Planned Behavior and Whistle-Blowing Tendency. Financial and Behavioral Researches in Accounting, 1(3), 47-70. (in Persian)
Boyd, D. & Ellison, N. (2007). Social network sites definition, history and scholarship. Journal of Computer-Mediated Communication, 13(1), 210–230.
BUFDG. (2017). Phase 2 report on Integrated Reporting is published. [Online]. Available at: Https://Www.Bufdg.Ac.Uk/Resources/News/View?G=6f0aebb3-9fb6-4f58-9a48 670726e5b409&t=Phase%202%20report%20on%20Integrated%20Reporting%20is%20.
Burnes, B. (2003). Managing change and changing managers from ABC to XYZ. Journal of Management Development, 22(7), 627–642.
Burnes, B. (2005). Complexity theories and organizational change. International Journal of Management Reviews, 7(2), 73–90.
Chung, N. & Han, H. (2017). The relationship among tourists’ persuasion, attachment and behavioral changes in social media. Technological Forecasting and Social Change, 123, 370–380.
Colino, A., Benito-Osorio, D. & Armengot, C. (2014). How much does innovation matter for economic growth? Decision, Management, 52(2), 313–325.
Cristea, M. & Gheorghiu, A. (2016). Attitude, perceived behavioral control, and intention to adopt risky behaviors. Transportation Research Part F: Traffic Psychology and Behaviour, 43, 157–165.
de Leeuw, A., Valois, P., Ajzen, I. & Schmidt, P. (2015). Using the theory of planned behaviour to identify key beliefs underlying pro-environmental behaviour in high-school students: Implications for educational interventions. Journal of Environmental Psychology, 42(1), 128–138.
Dibra, M. (2015). Rogers Theory on Diffusion of Innovation-The Most Appropriate Theoretical Model in the Study of Factors Influencing the Integration of Sustainability in Tourism Businesses. Procedia - Social and Behavioural Sciences, 195(3), 1453–1462.
Eisenhardt, K.M. & Tabrizi, B.N. (1995). Accelerating adaptive processes: product innovation in the global computer industry, Administrative Science Quarterly, Vol. 40, pp.84-110.
Eveland, J.D. (1986). Diffusion, technology transfer and implications: Thinking and talking about change, Knowledge, 8(2), 303-322.
Fallan, E. (2015). Explaining the variation in adoption rates of the information content of environmental disclosure: An exploration of innovation adoption theory. Journal of Accounting and Organizational Change, 11(2), 247–268.
Flight, R., D’Souza, G. & Allaway, A. (2011). Characteristics-based innovation adoption: scale and model validation. Journal of Product and Brand Management, 50(5), 343–355.
Fornell, C. & Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. Journal of Marketing Research, 18, 382-388.
Frambach, R., Barkema, H., Nooteboom, B. & Wedel, M. (1998). Adoption of service innovation in the business market: An empirical test of supply-side variables. Journal of Business Research, 41(2), 161–174.
French, J. R. P. & Raven, B. (1959). The bases of social power. In Cartwright D. and Zander A, Group Dynamics, New York: Harper and Row.
 
Geramirad, F., Mollanazari, M., Rahmani, A. & Homayoun, S. (2023). Identification of Integrated Reporting Indicators in Universities. Accounting and Auditing Review, 30(1), 114-148. (in Persian)
Gatignon, H. & Robertson, T.S. (1985). A propositional inventory for new diffusion
research. Journal of Consumer Research, 11, 849-867.
Gibassier, D., Rodrigue, M. & Arjalié, D. L. (2018). Integrated reporting is like God: no one has met Him, but everybody talks about Him. The power of myths in the adoption of management innovations. Accounting, Auditing & Accountability Journal, 31(5), 1349–1380.
Goh, E., Ritchie, B. & Wang, J. (2017). Non-compliance in national parks: An extension of the theory of planned behaviour model with pro-environmental values. Tourism Management, 59, 123–127.
Gomes, G. M., Moreira, N. & Ometto, A. R. (2022). Role of consumer mindsets, behaviour, and influencing factors in circular consumption systems: A systematic review. Sustainable Production and Consumption, 32(4), 1–14.
Gopalakrishnan, S. & Bierly, P. (2001). Analyzing innovation adoption using a knowledgebased approach. Journal of Engineering and Technology Management, 18(2), 107–130.
Häggman, S. (2009). Functional actors and perceptions of innovation attributes: influence on innovation adoption. European Journal of Innovation Management, 12(3), 386–407.
Halder, P., Pietarinen, J., Havu-Nuutinen, S., Pöllänen, S. & Pelkonen, P. (2016). The Theory of Planned Behavior model and students’ intentions to use bioenergy: A cross-cultural perspective. Renewable Energy, 89, 627–635.
Hamedi, F., Molanazari, M., ShoaaKazemi, M. & Rahmani A. (2023). Investigating the application of theories of innovation diffusion and planned behavior in the adoption process of integrated reporting by University administrators in Iran. Journal of Value Behavioral Accounting, 8 (14), 79-117. (in Persian)
Haji Ahmadi, E. & Kheiry, B. (2014). Developing a Model for Software-as-a-Service Adoption. Jounal of Marketing Management, 9(22), 1-26. (in Persian)
Henard, D. & Szymanski, D. (2001). Why some new products are more successful than others. Journal of Marketing Research, 38(August), 362–375.
IIRC. (2021). The integrated reporting framework. [Online]. Https://Www.Integratedreporting. Org/Wp-Content/Uploads/2021/01/InternationalIntegratedReportingFramework.Pdf.
Jackson, J. (2005). Prioritising customers and other stakeholders using the AHP. European Journal of Marketing, 35(7/8), 858–873.
Khaled Farag, I. H. (2020). Influencing Attitudes, Changing Behaviours and Embedding a Pro-sustainability Mindset in the Workplace An Innovation Diffusion Approach to Persuasive Communications. Journal of Product Innovation Management, 14(2), 458–478.
Kahneman, D., & Tversky, A. (1979). Prospect theory: an analysis of decision under risk. Econometrica, 47(2), 263–291.
 
Kim, N. & Srivastava, R. (1998). Managing intraorganizational diffusion of technological innovations. Industrial Marketing Management, 27(2), 229–246.
Klein, K. & Knight, A. (2005). Innovation implementation: Overcoming the challenge. Current Directions in Psychological Science2, 14(5), 43–246.
Kormos, C. & Gifford, R. (2014). The validity of self-report measures of proenvironmental behaviour: A meta-analytic review. Journal of Environmental Psychology, 40(2), 359–371.
Kou, L. (2013). Is environmental disclosure an effective strategy on the establishment of environmental legitimacy for organisation? Management Decision, 51(7), 1462 - 1487.
Lewin, K. (1951). Field Theory in Social Science – Selected Theoretical Papers, Harper and
Row, New York, NY.
Li, S.S. & Huang, W. (2018). Lifestyles, innovation attributes and teachers' adoption of game-based learning: Comparing non-adopters with early adopters, adopters and likely adopters in Taiwan, Computers and Education, 96, 29-41.
Lim, C. K., Haufiku, M. S., Tan, K. L., Farid Ahmed, M. & Ng, T. F. (2022). Systematic Review of Education Sustainable Development in Higher Education Institutions. Sustainability, 14(20), 13241.
Lindenberg, S. & Steg, L. (2007). Normative, gain and hedonic goal frames guiding environmental behaviour. Journal of Social Issues, 63(1), 117–137.
Makkonen, H. & Johnston, W. (2014). Innovation adoption and diffusion in business-tobusiness marketing. Journal of Business and Industrial Marketing, 29(4), 324–331.
Miaoa, L. & Weib, W. (2013). Consumers’ pro-environmental behaviour and the underlying motivations: A comparison between household and hotel settings", International Journal of Hospitality Management. International Journal of Hospitality Management, 32(2), 102– 112.
Molanazari, M. & Zeraati Fard, L. (2012). Innovative Factors Role in Successful Implementation of Enterprise Resource Planning Systems. Empirical Research in Accounting, 2(4), 95-110. (in Persian)
Montecalovo, M., Ferneti, F. & De Villiers, C. (2018). The potential of integrated reporting to enhance sustainability reporting in the public sector. Public Money & Management, 38(5), 365–374.
Moss, S., Prosser, H., Costello, H., Simpson, N., Patel, P., Rowe, S., Turner, S. & Hatton, C. (1998). Reliability and validity of the PAS-ADD checklist for detecting psychiatric disorders in adults with intellectual disability. J Intellect Disabil Res. 42(2).173–183.
Nunnally, J. C. (1978). Psychometric theory (2nd ed.). McGraw-Hill.
Premkumar, G. & Roberts, M. (1999). Adoption of new information technologies in rural
small Businesses, Omega, International Journal of Management Science, 27, 467-484.
Raymond, L. & Blili, S. (1997). Adopting EDI in a network enterprise: the case of
subcontracting SMEs, European Journal of Purchasing and Supply Management, 3(3), 165-175.
Roberto, A., Shafer, M. & Marmo, J. (2014). Predicting substance-abuse treatment providers’ communication with clients about medication assisted treatment: A test of the theories of reasoned action and planned behaviour. Journal of Substance Abuse Treatment, 47(5), 307–313.
Rogers, E. (1962). Diffusion of innovations, New York: The Free Press.
Rogers, E.M. (1983). Diffusion of innovations (3th ed.), New York: The Free Press.
Rogers, E.M. (2003). Diffusion of Innovations, (5th ed.), New York: The Free Press.
Rogers, E.M. & Shoemaker, F.F. (1971). Communication of innovations: a cross cultural
approach, New York: The Free Press.
Salehi Amniyeh Khozani, R., Aghaei Chadegani, A. (2021). Theory of Planned Behavior Role in Investment Decisions in Islamic Securities. Financial and Behavioral Researches in Accounting, 1(1), 55-67. (in Persian)
Senger, I., Borges, J. A. & Machado, J. A. (2017). Using the theory of planned behaviour to understand the intention of small farmers in diversifying their agricultural production. Journal of Rural Studies, 49(5), 32–40.
Sia, C., Teo, H., Tan, B. C. & Wei, K. (2004). Effects of environmental uncertainty on organizational intention to adopt distributed work arrangements. IEEE Transactions on Engineering Management, 51(3), 253–267.
Sheeran, P., Trafimow, D. & Finlay, K. . (2002). Evidence That the Type of Person Affects the Strength of the Perceived Behavioural Control-Intention Relationship. British Journal of Social Psychology, 41(1), 253–270.
Smith, I. (2005). Achieving readiness for organisational change. Library Management, 26(6/7), 408–412.
Sultan, F. & Chan, L. (2000). The adoption of new technology: the case of object-oriented computing in software companies. IEEE Transactions on Engineering Management, 47(1), 106–126.
Tabak, F. & Barr, S. (1998). Innovation attributes and category membership: explaining intention to adopt technological innovations in strategic decision making contexts. The Journal of High Technology Management Research, 9(1), 17–33.
Teo, T. S. & Pok, S. (2003). Adoption of WAP-enabled mobile phones among internet users. Omega, 31(2), 483–498.
Totterdell, P., Leach, D., Birdi, K., Clegg, C. & Wall, T. (2002). An investigation of the contents and consequences of major organizational innovations. International Journal of Innovation Management, 6(4), 343–368.
Veltri, S. & Silvestri, A. (2015). The Free state University integrated reporting: a critical consideration. Journal of Intellectual Capital, 16(2), 443–462.
Verhoef, P.  & Langerak, F. (2001). Possible determinants of consumers’ adoption of electronic grocery shopping in The Netherlands. Journal of Retailing and Consumer Services, 8(5), 275–285.
Wan, C. & Shen, G. (2015). Encouraging the use of urban green space: The mediating role of attitude, perceived usefulness and perceived behavioural control. Habitat International, 50(4), 130–139.
Weiss, J.A. & Dale, B.C. (1998). Diffusing against mature technology: Issues and strategy,
Industrial Marketing Management, 27, 293-304.
Wejnert, B. (2002). Integrating models of diffusion of innovations: a conceptual framework. Annual Review of Sociology, 28(3), 297–326.
Wolfe, R.A. (1994). Organizational innovation: review, critique and suggested research
directions. Journal of Management Studies, 31(3), 405-431.
Yadav, R. & Pathak, G. S. (2016). Young consumers’ intention towards buying green products in a developing nation: Extending the theory of planned behavior. Journal of Cleaner Production, 135, 732–739.
Zarzuela, P. & Antón, C. (2015). Determinants of social commitment in the young. Applying the Theory of Reasoned Action. Revista Española de Investigación de Marketing ESIC, 19(2), 83–94.
Zolghadr, M., Haghighat, H. & Kordestani, G. (2018). The Effect of Supply-Side Factors on diffusion of Management Accounting Innovations. Management Accounting, 11(39), 1-14. (in Persian)
 
Accounting and Auditing Review
Volume 31, Issue 1
2024
Pages 1-44

Files

Share

How to cite

Statistics