Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Understanding the forces and critical features of a new reporting and budgeting system adoption by Indonesian local government

Understanding the forces and critical features of a new reporting and budgeting system adoption... This paper aims to critically explore the forces and critical features relating to the adoption of a new reporting and budgeting system (RBS) in Indonesian local governments.Design/methodology/approachThe study is based on an intensive analysis of document sources and interview scripts around the institutionalization of RBS by the Indonesian government and uses the adaption of Dillard et al. (2004) institutional model in informing its findings.FindingsThe authors find that at the national level, the key drivers in RBS adoption were a combination of exogenous economic and coercive pressures and the wish to mimic accounting reforms in developed nations. At the local government level, the internalization of RBS is a response to a legal obligation imposed by the central government. Despite the RBS adoption has strengthened the transparency of local authorities reports – it limits the roles of other members of citizens in determining how local government budgets are allocated.Research limitations/implicationsThe results of the study should be understood in the historical and institutional contexts of organizations observed.Practical implicationsThe authors reinforce the notion that accounting as a business language dominates narratives and conversations surrounding the nature of government reporting and budgeting systems and how resource allocation is formulated and practiced. This should remind policymakers in other developing nations that any implementation of a new accounting technology should consider institutional capacities of public sector organizations and how the new technology benefits the public.Social implicationsThe authors argue that the dominant role of international financial authorities in the policymaking and implementation of RBS challenges the aim of autonomy policies, which grant greater roles for local authorities and citizens in determining the nature of the budgets and operation of local authorities.Originality/valueThis study extends institutional theory by adapting the Dillard et al. (2004) model in explaining the forces, actors and critical features of a new accounting system adoption by local governments. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Accounting & Organizational Change Emerald Publishing

Understanding the forces and critical features of a new reporting and budgeting system adoption by Indonesian local government

Loading next page...
 
/lp/emerald-publishing/understanding-the-forces-and-critical-features-of-a-new-reporting-and-tLYYQjmHwO

References (77)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1832-5912
DOI
10.1108/jaoc-10-2019-0105
Publisher site
See Article on Publisher Site

Abstract

This paper aims to critically explore the forces and critical features relating to the adoption of a new reporting and budgeting system (RBS) in Indonesian local governments.Design/methodology/approachThe study is based on an intensive analysis of document sources and interview scripts around the institutionalization of RBS by the Indonesian government and uses the adaption of Dillard et al. (2004) institutional model in informing its findings.FindingsThe authors find that at the national level, the key drivers in RBS adoption were a combination of exogenous economic and coercive pressures and the wish to mimic accounting reforms in developed nations. At the local government level, the internalization of RBS is a response to a legal obligation imposed by the central government. Despite the RBS adoption has strengthened the transparency of local authorities reports – it limits the roles of other members of citizens in determining how local government budgets are allocated.Research limitations/implicationsThe results of the study should be understood in the historical and institutional contexts of organizations observed.Practical implicationsThe authors reinforce the notion that accounting as a business language dominates narratives and conversations surrounding the nature of government reporting and budgeting systems and how resource allocation is formulated and practiced. This should remind policymakers in other developing nations that any implementation of a new accounting technology should consider institutional capacities of public sector organizations and how the new technology benefits the public.Social implicationsThe authors argue that the dominant role of international financial authorities in the policymaking and implementation of RBS challenges the aim of autonomy policies, which grant greater roles for local authorities and citizens in determining the nature of the budgets and operation of local authorities.Originality/valueThis study extends institutional theory by adapting the Dillard et al. (2004) model in explaining the forces, actors and critical features of a new accounting system adoption by local governments.

Journal

Journal of Accounting & Organizational ChangeEmerald Publishing

Published: Apr 20, 2020

Keywords: Indonesia; NPM; Emerging economies; Reporting and budgeting systems

There are no references for this article.