A Perspective on Digital Annual Report as an Innovation: A Study of an Instrument Research Development Based on Diffusion of Innovation Theory

Abstract

Every public corporations must provide a published report that describes their financial and operational performances as a responsibility to their stakeholders. In Indonesia, corporate reporting is closely regulated by the government agency, OJK (Otoritas Jasa Keuangan) or Financial Services Authority of Indonesia.The transformation of corporate reporting as a channel and medium for corporations and their stakeholders to communicate involves technological advances which are related to internet-based communication and media technologies and other information technologies. This journal discloses the development of annual report in several aspects such as function, development, and relevant theories observation which is pertinent to corporatereporting in Indonesia, in relation to Diffusion of Innovation Theory which attempts to explain the characteristics of innovation which influences the process of adoption of digital annual report.Research was done by conducting a study on the main theory, which is the base of Diffusion of Innovation Theory, and two journals which adopted the Diffusion of Base Innovation Theory and focusing on the innovation’s characteristic and quality. The two applied research methods are based on two journals; Mobile Banking Adoption : Application of Diffusion of Innovation Theory oleh Jabri & Sohail (2012) and Development of an Instrument to Measure the Perceptions of Adopting an Information Technology Innovation oleh Moore & Benbasat (1991). Results which are concluded from comparing the two models of Diffusion of Innovation Theory and adopt it into new model of adjusted Diffusion of Innovation Theory that related with Digital Annual Report as a Innovation. The Identification of the quality and characteristics of digital annual report innovation in the form of variables and indicators, which influence the process of adoption, could be used as materials in qualitative and quantitative research. The results are variables of innovation quality of annual digital report complete with all indicators representing each of the characteristics that have been adapted in the context of digital annual report so the result is a ready-to-use research instrument that can be used to measure the factors that influence satisfaction in using of digital annual report.