Determinants of accrual accounting adoption: The role of organizational culture

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This study aims to investigate the relationship between communication, training, educational background and the adoption of accrual accounting. It also examines whether organizational culture moderates the relationship between these factors and the adoption of accrual accounting. The census sampling method was utilized to choose 44 finance division staff for this investigation. Structural equation modeling (SEM) using Smart PLS version 3.0 was employed in this paper for data analysis. In addition, a systematic questionnaire was issued to the heads of financial divisions and administrative staff in Riau city, Indonesia, in order to collect relevant data. The findings of this study revealed that the adoption of accrual accounting is influenced by communication and training, while educational background has insignificant effect. Furthermore, the interaction between training and communication in accrual accounting adoption is moderated by organizational culture. Meanwhile, organizational culture does not moderate the relationship between educational background toward the adoption of accrual accounting. Therefore, this study assists local governments in providing feedback on the implementation of various government accounting policies. Moreover, it offers information on local government coordination and solutions for accrual-based accounting systems adoption, which can be utilized as a reference for the public and local government in creating and fully adopting relevant policies. Finally, it can be used to establish and improve administrative structures in the public sector.

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    • Table 1. Descriptive statistics
    • Table 2. Convergent validity and reliability
    • Table 3. PLS path analysis coefficient results
    • Conceptualization
      Meilda Wiguna, Khoirul Aswar
    • Data curation
      Meilda Wiguna, Khoirul Aswar, Eka Hariyani, Mahendro Sumardjo, Azwir Nasir
    • Formal Analysis
      Meilda Wiguna, Khoirul Aswar, Eka Hariyani
    • Methodology
      Meilda Wiguna, Khoirul Aswar, Eka Hariyani, Mahendro Sumardjo
    • Resources
      Meilda Wiguna, Mahendro Sumardjo, Azwir Nasir
    • Software
      Meilda Wiguna, Khoirul Aswar
    • Writing – original draft
      Meilda Wiguna, Khoirul Aswar
    • Writing – review & editing
      Meilda Wiguna, Khoirul Aswar
    • Supervision
      Khoirul Aswar
    • Validation
      Khoirul Aswar, Azwir Nasir
    • Investigation
      Eka Hariyani, Azwir Nasir
    • Project administration
      Mahendro Sumardjo