Adoption of ISSB standards in emerging markets – insights from Moroccan companies’ organizational readiness

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Purpose This study aims to investigate the organizational factors determining Moroccan companies’ readiness to adopt the newly introduced International Sustainability Standards Board (ISSB) standards (International Financial Reporting Standards S1 and S2), focusing on absorptive capacity, organizational structure and size and culture and finally kakistocracy. Design/methodology/approach The research uses a quantitative approach to analyze the impact of specific organizational factors on the readiness to adopt ISSB standards by Moroccan companies. A partial least squares structural equation modeling based on a sample size of 150 Moroccan accounting professional was performed to assess the factors affecting readiness. Findings The results of the study highlight that absorptive capacity is the most significant predictor of readiness for ISSB standards adoption, with a strong positive effect and high statistical significance. Organizational structure, size and culture also positively influence readiness, though to a lesser extent. Kakistocracy has a minimal impact, suggesting its influence is limited in this context. Overall, the findings emphasize the critical role of organizational learning and structure in driving readiness, while governance issues appear to play a marginal role. Research limitations/implications The study’s limitations include the potential interaction with unmeasured variables and the reliance on self-reported data, which may introduce biases. Future research should explore additional variables and incorporate qualitative methods for deeper insights. Practical implications Policymakers should prioritize enhancing firms’ absorptive capacities through organizational improvements and targeted support while recognizing governance reforms as a secondary priority. Efforts should address barriers to ISSB adoption, such as resource limitations, regulatory alignment and stakeholder engagement, to facilitate effective integration of sustainability standards in emerging economies. Originality/value This research enriches academic discourse by providing insights into how emerging markets adapt to global sustainability frameworks. It serves as a benchmark for similar economies, guiding policymakers and corporate leaders on best practices and promoting transparency and trust among stakeholders.