Drivers of Advanced Accrual Accounting Utilization in Municipalities: The Role of Structure, Context, and Capabilities

Although accrual accounting offers substantial advantages, local governments often encounter difficulties in utilizing it effectively to inform managerial choices. This study posits that such challenges arise because municipalities implement accrual systems primarily as a technical formality, leaving them disconnected from routine administrative decision-making processes. To determine the catalysts for advanced accrual accounting utilization within German public administrations, this paper evaluates how a municipality's contextual environment, organizational architecture, and resource allocation impact its level of accounting sophistication. The empirical findings indicate that the contextual environment in which a local government operates serves as the primary determinant of advanced accrual accounting usage. Within the proposed framework, this contextual dimension encompasses fiscal distress, political rivalry and administrative culture, as well as the prevailing regulatory framework. Additionally, the availability of adequate resources-specifically IT infrastructure capable of providing reliable and readily accessible financial data-emerges as another critical determinant. Conversely, the organizational framework of the municipality, though frequently criticized as excessively bureaucratic and a barrier to modernization, demonstrates no statistical significance...

کلیدواژه ها:

Accrual Accounting ، Institutional Theory ، Municipalities ، Change Management ، PLS-SEM