Normative Isomorphism Research Articles

‘찾아가는 평생교육’ 정책의 동형화와 탈동형화 현상 분석: ‘D자치구’ 사례를 중심으로

Objectives The purpose of this study is to reveal how the ‘visiting lifelong education’ policy is accepted, settled, and changed and developed in the region from the perspective of the isomorphism theory of sociological institutionalism. Methods To this end, the case of D Autonomous District, which introduced the nation's first “visiting lifelong education” policy in 2009, was selected, focusing on the “visiting lifelong education” policy adopted and promoted by most lifelong learning cities as a major policy, and the phenomenon of isomorphism and decoupling of policies was analyzed. As a research method, in-depth interviews (FGI) were conducted with public officials and lifelong educators who worked from the introduction of the ‘D Autonomous Region’ policy until recently, and internal and external policy data were collected and analyzed to understand policy performance and changes. Results As a result of the analysis, the ‘visiting lifelong education’ policy of ‘D Autonomous Region’ was forced isomorphism according to institutional pressure and resource dependence pursued by the lifelong learning city policy to realize a learning society, and imitative isomorphism occurred while benchmarking Japan's lifelong learning city case. In addition, within the organization in charge of policy projects, a normative isomorphism pattern was also found through networking between lifelong educators and external experts. On the other hand, as policies were stabilized and systematized, decoupling phenomena such as compromise on the imbalance between supply and demand, strategic avoidance to maintain the current system and operation method, and refusal to demand social change appeared. Conclusions Through the isomorphism theory, this study was able to find out how lifelong education policies are accepted, changed, developed, and stagnated in the region in social, institutional, and organizational interactions. In the process of policy implementation, strategically selected isomorphism and decoupling strategies according to internal and external influencing factors create new policy practices and lead to policy regression and stagnation. Therefore, strategic policy choices and changes that respond quickly to changes in the historical and social environment are necessary to ensure flexible policy operation and sustainability in response to the demands of the new era.

Do institutional environment and corporate governance structures determine Islamic Banks’ sustainability performance? Evidence across key jurisdictions in Islamic finance industry

This study examines the impact of the institutional environment and corporate governance structures on Islamic banks' sustainability performance (SP). It applies a two-step System Generalized Method of Moments (GMM) estimator to analyze data gathered on a panel of 32 Islamic banks drawn from nine key Islamic finance jurisdictions from 2016 to 2021. To consistently code and quantify the Islamic banks' SP, we use the Specific Standard Disclosures for the Financial Services Sector introduced by the GRI as a framework of reference. Then, we employ the weighted content analysis method on the sustainability and annual reports of the subjected sample. Our findings indicate that the institutional factors specifically, regulatory guidelines (regulatory isomorphism) and the adherence of Islamic banks to the sustainable finance networks' specifications (normative isomorphism) are not currently determinants of their SP. Contrarily, we observe that the establishment of a sustainability committee and a better experience of sustainability disclosure improve Islamic banks' SP. In contrast to agency theory, board activity is identified to have a significantly negative relationship with SP. An important policy implication of our results is that policymakers should closely monitor Islamic banks' regulatory dependency and enhance their SF ecosystem to positively influence their SP. Finally, future research may leverage on more conducive regulatory frameworks to sustainability transition in these key jurisdictions, more effective normative structures, further disclosure of sustainability committee characteristics, the development of appropriate measures of Islamic banks' digitalization levels, and the availability of more material sustainability data to provide further insights and better understand the determinants of Islamic banks’ SP.

How HR managers develop ideas about HR reform: the role of inter-corporate knowledge exchange in Japan

Following a call for actor-centric research in HRM, we look at the modes how HR managers acquire HR knowledge. Our interview study with HR managers of large established companies in Japan finds a clear preference for direct inter-corporate knowledge exchanges instead of the engagement of outside consultants. Discussing our findings, we explain the reasons for this preference. ing from the case of Japan, we then propose with reference to institutional theory and isomorphism that the way HR knowledge is spread is linked to the nature of employment systems. In external labour markets, HR knowledge has been reported to be predominantly spread through business consultants, educational institutions, and career changes of HR professionals, resulting in normative isomorphism. We propose that in internal labour markets, like Japan’s, companies resort to direct inter-corporate knowledge exchange, which leads to mimetic isomorphism.

Quality management practices enhance the legitimacy of organizations through improved performance: a perspective from oil processing industries

PurposeQuality management practices (QMP) have stood as one of the critical strategic differentiators for enhancing firm performance. The production and manufacturing industry is the main driving force of economic growth and social development for any developed or developing country. This study aims to focus on two primary dimensions of QMP: soft quality management practices (SQMP) and hard quality management practices (HQMP) from the socio-technical system perspectives. Based on institutional theory perspectives, the study explores the impact of SQMP and HQMP on quality performance (QP), innovation performance (IVP) and financial performance (FP) in Indian oil processing organizations.Design/methodology/approachA proposed research model is validated using 289 cross-sectional survey data collected from the senior officials of oil processing firms in India. Covariance-based structural equation modeling is used to verify the proposed theoretical model.FindingsSQMP, directly and indirectly, influenced QP and IVP while only indirectly to FP mediated through QP. HQMP directly impacted only QP while indirectly to IVP and FP mediated through QP.Research limitations/implicationsImpact of organizational legitimacy in proper utilization or application of QMP in achieving the firm sustainable growth. The future study may address the following Research Question (RQ) also: How do QMP enhance the legitimacy of organizations operating in the oil processing industries? Are there specific mechanisms or pathways through which improved performance contributes to enhanced organizational legitimacy? How does legitimacy impact the success and sustainability of organizations, particularly, within the context of the oil processing industries? Are there regulatory requirements or industry certifications that organizations must adhere to in order to maintain legitimacy?Practical implicationsSimilarly, manufacturing firms establish QMP of interaction and maintaining relationships with all the stakeholders, total employee empowerment and involvement, workforce commitment and workforce management, helping to control their reputations and maintain legitimacy (Li et al., 2023). Similarly, in the health industry, the health management information system (HMIS), which uses the DHIS2 platform, establishes that isomorphism legitimizes data QMP among health practitioners and, subsequently, data quality. Further, it was concluded that mimetic isomorphism led to moral and pragmatic legitimacy. In contrast, normative isomorphism led to cognitive legitimacy within the HMIS structure and helped to attain the correctness and timeliness of the data and reports, respectively (Msendema et al., 2023). Quality, flexibility and efficiency of Big Data Analytics through better storage, speed and significance can optimize the operational performance of a manufacturing firm (Verma et al., 2023).Social implicationsThe study provides the academician with the different dimensions of QMP. The study demonstrates how a firm develops multiple performance capabilities through proper QMP. Also, it shows how vital behavioral and managerial perspectives are to QMP and statistically solid tools and techniques. The study draws their importance to risk factors involved in the firms. Since the SQMP play a vital role, thus, emphasis on the behavioral dimension of quality requires more investigation and is in line with hard technological advancements in the quality field.Originality/valueThe study of the impact of HQMP and SQMP on performance is still not established. There are inconsistencies in the findings. The study of the impact of HQMP and SQMP in oil processing industries has not dealt with before. The effects of HQMP and SQMP on the firm’s FP have least been dealt. In context to the intended influence of QM implementation, QP has not been examined as a potential mediator between FP. Research carried out in the past is limited to American and European countries. However, a limited study was done in Asia, and no study has been conducted in the Indian context.

Corporate–NGO collaboration and CSR disclosure – the moderating role of corporate profitability

Purpose This research investigates the influence of corporate–NGO collaborations on corporate social responsibility (CSR) disclosure measured in three different ways (i.e. extent, level and quality) in low-income developing economies. Additionally, it examines the moderating effect of corporate profitability in the relationship between corporate–NGO collaborations and CSR disclosure.Design/methodology/approach This research uses multivariate regression analysis based on data collected from 201 non-financial firms listed on the Pakistan Stock Exchange (PSE).Findings The findings reveal that corporations with NGO partnerships are more likely to disclose CSR information and provide high-quality information regarding workers, the environment and community-related issues. Further, corporate profitability positively moderates the corporate–NGO collaborations and CSR disclosure relationship.Research limitations/implications Research limitations are presented in the conclusion section.Practical implications The findings underline the crucial significance of NGOs and their associated normative isomorphism logics for CSR disclosure in low-income countries with weak law enforcement and relatively ineffective state institutions, which were previously believed to lack such institutions.Originality/value While some research has suggested that companies in developing countries perceive significant pressure from NGOs to adopt social disclosure, no study has specifically explored how internally driven corporate–NGO collaboration (as opposed to external NGO activist pressures) promotes CSR disclosure specifically in developing economies.

Motivations for Establishing a Corporate Foundation in Australia

ABSTRACT Similar to other countries, Australian firms are increasingly using corporate foundations (CFs) to manage their philanthropic giving. While research has explored the global expansion of CFs, there has been limited understanding on why they are established. This study involving 16 Australian CF managers used qualitative thematic analysis to identify the following four motivational factors that most influence organizational establishment of CFs: 1) centralizing corporate giving; 2) stakeholder influences; 3) financial advantages of foundation structure; and 4) strategic benefits to the establishing firm. The results suggest most Australian firms establish CFs to undertake strategic philanthropy, assisting those in need while capitalizing on the legitimizing social benefits. Many also use it to market activities to their staff, thereby enhancing internal engagement and retention. Yet despite such positive benefits, there is rarely a reduction in principal-agency costs when using a structured CF controlled by corporate executives rather than ad-hoc corporate giving. Furthermore, the decision to establish a CF is often based on normative isomorphism (copying competitors). Additionally, no CFs were established for direct taxation benefits, rather most were focused on the tax benefits associated with employee giving and donations from the general public. The uniqueness of these results, compared with other research, suggests there could be differing motivations to establish CFs based on the organization and the environment of the country where it is located.

ACCOUNTING PRACTICE AND SUSTAINABILITY REPORTING IN INSTITUTIONAL THEORY PERSPECTIVE

This article documents and classifies sustainability accounting practices carried out by companies based on the frame of institutional theory. To achieve this goal, article writing is carried out based on reviews of articles published in various academic journals. The articles that were the object of the review were research papers that investigated the accounting implementation process and sustainability reporting in business entities. In the framework of institutional theory, the implementation of accounting and sustainability reporting by companies to date can be called a change (isomorphism) from conventional accounting practices. Based on the results of the research that has been done, the isomorphism can be further classified into three dimensions of the change process, namely (a) coercive isomorphism; (b) change through mimetic isomorphism; and (c) changes due to need or obligation (normative isomorphism). Thus, the results of the research show that not all of the accounting and sustainability reporting practices carried out by the company are based on the needs and obligations according to norms, but some are simply imitating or following along, some are even based on compulsion.

Institutional isomorphism in accounting innovations : Experience in the public and corporate sectors

Accounting regulations and systems are subject to constant change. The evolution of accounting practices can be described as the outcome of different key factors. In this study, the authors examine two distinct areas of accounting, that of public sector accounting and of the corporate sector accounting using a neo institutional approach. The objective of the study is to present that, despite the differences of accounting in the two sectors, they can be examined within the same theoretical framework, and that different types of accounting innovation can be explained with institutional isomorphism. The research based on the relevant international and Hungarian literature indicates that certain groups of isomorphism can be observed in the diffusion of accounting practices. The normative one has proved to be the weakest and the coercive the strongest. It can also be concluded that in both public and corporate sector accounting innovations, the normative isomorphism emerges first, followed by the mimetic and finally the coercive one. As far as the authors are aware, this paper is the first of its kind in Hungary inasmuch as it reviews the two accounting subsystems within a uniform theoretical framework.

The Monopoly of Economic Justice: Judges versus arbitrators

The article explores the relationships between state economic courts represented by judges and arbitration courts as a manifestation of the conflict between public and private justice. The consequences of changes in state policy after the arbitration reform of 2015–2017 are discussed. Firstly, through the lens of Bourdieu’s perspective, the key factors influencing the emergence of a negative attitude in the judicial environment towards private justice are analyzed. Secondly, the establishment of the specialization of a particular subgroup of judges from the appellate instance of arbitration courts, who year after year deal with cases related to arbitration courts, is examined. During the empirical part of the research and interviews with judges from the appellate instances, it was found that their primary reference point, in addition to the law and personal convictions, is the orientation towards the higher court — the Supreme Court of the Russian Federation, where one judge largely determines the courts’ policy towards arbitration courts. Judges exhibit normative isomorphism, as similar experiences and practices prompt them to adopt similar strategies to protect their field from private justice. The article is the result of qualitative research based on interviews. Based on the assumption of the homogenization of the judicial sphere and judges’ defensive tactics to protect their field from external, private courts using institutional analysis and Bourdieu’s theories of fields and capital, the conclusion is drawn that judges of state courts tend to accumulate symbolic capital. This allows them to act as the only possible interpreters of legal norms — monopolists of justice. Through the lens of isomorphism theory, the conclusion is drawn that state courts implement the practice of coercive isomorphism, which has no other goals except forcing private courts to mimic state courts.

Mechanism of change towards the Circular Economy: a case study in the packaging sector under the lens of Institutional Theory

Purpose – This article aims to analyze normative isomorphism as a mechanism for institutional change and its potential contribution to the institutionalization of the Circular Economy in the packaging market in Brazil. Methodology – A qualitative approach through in-depth interviews with a semi-structured script. 23 people from the First sector – government, 15 people from the Second sector – market, and 15 people from the Third sector – Non-Governmental Organizations were interviewed. The snowball sampling technique was used to select the interviewees. The content analysis was conducted with categories defined while exploring the data collected, a posteriori, with NVivo software. Findings – In Brazil, the pressure for socio-environmental product improvements is concentrated on a portion of the population. Most people focus on economic issues. In addition, Non-Governmental Organizations (NGOs) and supervisory government agencies play a crucial role in directly demanding that laws are complied with and in encouraging and instructing civil society related to the Circular Economy and sustainability. Research implications – this article contributes to filling gaps identified in the literature, such as Circular Economy studies that investigate the dynamics of stakeholders. Practical implications – the research shows that there is room for organizations that operate in the packaging market in Brazil to develop and disseminate actions related to the Circular Economy and sustainability to their consumers, which can become a competitive advantage in the sector. Originality/value – the research pointed out that the perception of those involved in this supply chain is still not unanimous regarding society's demand for a circular economy and sustainable actions.

Exploring the effectiveness of the coordinated individual plan in Sweden: challenges and opportunities for collaborative care

ABSTRACT The increasing specialization and differentiation within welfare organizations in Sweden and internationally have, due to fragmentation and inflexible boundaries, resulted in ineffective care for users. In order to improve care, the Coordinated Individual Plan (CIP) was introduced by the government in Sweden in 2009, with the aim of improving collaboration between social service and health care. Persons with concomitant mental health problems and substance abuse were one of the target groups. Earlier studies by the authors indicate that CIP has had limited impact. Use of CIP has been unsystematic and the user/patient’s role less central than expected. This study investigates what can contribute to these findings, based on professionals’ experience of their participation in CIP. Interviews were conducted with 20 professionals in the social service and health care sectors and analysed by qualitative content analysis, using the theoretical perspectives of institutional isomorphism. Findings indicate that, while the professionals were positive about the idea of CIP to improve the situation for the individual user/patient, coercive isomorphism in the form of CIP also led to a more confrontational view of collaboration which does not necessarily solve problems for the individual. Organizational and professional perspectives were cited, which can be linked to issues of organizational uncertainty. The study confirms earlier findings indicating that a stronger, team-based model is needed, with development based on professional experience, as the coercive aspect tends to take precedence over professional activities connected to mimetic and normative isomorphism.

Antecedents and Consequences of Sustainable Project Management: Evidence from the Construction Industry in China

SPM (sustainable project management) is vital to enhancing the success of projects. Despite several studies dealing with the connection between SPM and project success, this nexus is still insufficiently addressed. Steered by institutional theory and resource-based value theory, the purpose of this article is to investigate not only the link between SPM and SPS (sustainable project success), but also the mediating effect of SPP (sustainable project planning) on this connection, and the antecedent role of the institutional pressures (mimetic isomorphism pressure, MIP; normative isomorphism pressure, NIP) on SPM. To test the proposed hypotheses, this article applies PLS-SEM (partial least squares structural equation modeling) and recruited 365 project professionals who have experience in participating in SPM projects in China’s construction industry. The results confirm that both MIP and NIP significantly affect SPM, with NIP being the most significant. Moreover, the findings evidence that SPM had a significantly positive impact on SPS and SPP, and SPP had a significantly positive effect on SPS. Furthermore, the results also evidence that SPP mediates the effect of SPM on SPS. These findings provide empirical evidence for construction companies to understand SPM in the Chinese construction industry. They may also help policymakers to formulate proper policies to promote SPM to achieve sustainable development.

Sustainable procurement implementation among public sector organisations in Ghana: The role of institutional isomorphism and sustainable leadership

Developing nations face institutional impediments in the implementation of sustainable procurement strategies. However, in the right institutional environment, these countries can overcome any hindrance and successfully implement sustainable procurement strategies to promote economic growth and environmental stewardship. Accordingly, this study examines the role of institutional isomorphism (mimetic, coercive, and normative isomorphism) and sustainable leadership in sustainable procurement among public sector organisations (PSOs) in Ghana. The hypothesised relationships wereanalysed using partial least squares structural equation modelling (PLS-SEM).The findings support the role of isomorphism and sustainable leadership in sustainable procurement implementation. Specifically,coercive and mimetic isomorphic forces influence sustainable leadership significantly and positively. Second, coercive and mimetic isomorphic factors, as well as sustainable leadership, influence sustainable procurement practices.Based on these findings, we recommend that development partners make significant contributions to the green transition by applying coercive actions,such as threats of withdrawal of financial support for government budgets and policies. In addition, the findings of the study suggest that coercive and mimetic forces can foster a culture of ethical responsibility, by influencing leaders to make decisions that contribute to environmentally and socially responsible procurement activities.

It is a balancing act: understanding the key audit matters disclosure in the context of a developing country

PurposeThis study aims to examine the strategies that auditors in Bangladesh follow in identifying and reporting key audit matters (KAMs). The study also examines the factors affecting auditors’ strategies in the identification and disclosures of KAMs.Design/methodology/approachThe authors have conducted interviews with audit partners, chief financial officers (CFOs) and regulators involved in KAMs reporting and monitoring. The authors have used the lens of institutional theory of coercive, mimetic and normative isomorphism and the concept of decoupling.FindingsAuditors have used a decoupling strategy by identifying and reporting greater number of industry-generic KAMs than that of other countries in an effort to minimize risks and avoid regulatory scrutiny, although they disclose remote risks as KAMs and mask severe problem areas of the client. Because of the principle-based approach of International Standards on Auditing (ISA) 701 and because of the pressure and misunderstanding from the audit committee, auditors report industry-generic items and generic descriptions of KAMs.Practical implicationsThe findings have important implications for the standard setters and local and global audit firms for the diffusion of new auditing standards in different jurisdictions. Without the development of audit firm-level capability and the corporate governance environment, changes in standards may not be effective in achieving the objectives of the standards.Social implicationsAlthough auditors consider that the KAMs reporting requirements provide with opportunities to enhance audit profession’s legitimacy and public trusts, the actual KAMs reporting practices are driven by the market logic, an urge to maintain the status quo with clients and eventual rationalization of the impairment of professional independence.Originality/valueGiven the dearth of prior research on the implementation and diffusion patterns of ISA 701 KAMs reporting, this study fills the gap in the literature. To the best of the authors’ knowledge, this is the first known study to examine auditors’ strategic responses to balance among conflicting priorities in reporting KAMs.

Institutional Homogenization through McDonaldization in the Digital-Based Minimum Service Standards Reporting System (e-monev SPM)

Digital-based governance transformation is needed to respond to dynamic global challenges. This article aims to analyze institutional isomorphism through Mcdonaldization in a digital-based minimum service standard reporting system (e-monev SPM). Various studies show that governance needs to be dynamic, collaborative and innovative to achieve an efficient system by utilizing technological developments. In contrast to previous studies, this article argues that the transformation of governance in the reporting system for the implementation of digital-based Minimum Service Standards (e-monev SPM) indicates the occurrence of McDonaldization which is characterized by changes in rationality as a feature of modern society by utilizing technological developments that lead to the occurrence of institutional homogenization. This article uses a qualitative approach with multiple methods. Data were obtained from in-depth interviews, literature studies, secondary data, official documents and digital data. The findings of the data show the occurrence of McDonaldization in 4 (four) dimensions, namely Efficiency seen from changes in reporting mechanisms and speed, Calculability seen from the ability to be used periodically for interested parties, Predictability seen from content standardization and reporting time, and Control seen from e -monev as a digital-based tool to ensure regional compliance in reporting. The institutional homogenization efforts are indicated by the occurrence of Coercive Isomorphism related to the implementation of mandates regarding changes in the reporting system, Mimetic Isomorphism which is shown through the adoption of technology in the reporting system, and Normative Isomorphism which can be seen from organizational professionalization efforts related to increasing human resource capacity, facilities and infrastructure, cooperation, and budget. However, there is also an irrational dimension of McDonaldization rationality, which is related to the readiness of infrastructure and human resources. This article contributes to efforts to improve the quality of governance by utilizing technological developments through a digital-based reporting system .

Non-Financial Disclosure: Isomorphism Effect in the Face of New Regulation

The purpose of this paper is to study the mimetic isomorphism process among firms in a context of expectations of further non-financial disclosure regulation. From the new institutionalism theory approach, we study the effect that the 2014/95/EU Directive transposition into the Spanish law had on 120 companies over an eight-year period and the isomorphism determined by their activity and leadership in reporting before (expectations period) and after the law enactment. Before the law, a trend to increase disclosure was observed, especially among environmentally sensible sectors and low-level reporting firms, while afterwards, the trend was reversed except for leading companies, highlighting the prevalence of the mimetic and normative isomorphism. This work deepens understanding of the adoption processes of coercive norms based on mimetic behaviors and coercive isomorphisms and helps in predicting the effect of a given norm after its announcement and approval, supporting more efficient designs for future legislation.

Isomorfisme Institusional LPSK dalam Penegakan Hak Rehabilitasi Psikososial Korban Tindak Pidana di Indonesia

This study explains how isomorphism develops in the Indonesian Witness and Victim Protection Agency (Lembaga Perlindungan Saksi dan Korban-LPSK) and contributes to stronger coordination among institutions in administering psychological services for crime victims in Indonesia. This study employs an organizational sociology approach with an isomorphism perspective to determine the robustness of institutions' roles and relationships in providing psychosocial care to crime victims. Using the Soft Systems Methodology (SSM) in conjunction with Textual Network Analysis (TNA), this study discovered that coercive isomorphism in government organizations is the primary driving factor behind mimetic and normative isomorphism, whereas stereotyped isomorphism drives the private sector. Isomorphism emerges to give psychosocial services to victims of criminal crimes, namely as a result of reinforcement from Law Number 31 of 2014 on the Protection of Witnesses and Victims. This reinforcement prompted mimetic isomorphism in many forms of cooperation, and as a result, normatively, it is feasible to claim that LPSK has evolved into a professional institution in delivering psychological rights services to victims of criminal crimes. Furthermore, this study makes recommendations on the role of state institutions and cooperative institutions in satisfying the rights of crime victims in Indonesia, particularly psychosocial assistance.

The Sociocultural and Institutional factors influencing Tax Avoidance in sub-Sahara Africa

Businesses find ways to reduce their tax while the government also establishes laws and policies to prevent tax avoidance. These conflicting objectives and strategies have heightened the interest in establishing the factors that influence firms’ level of tax avoidance. The study examined a country’s institutional and sociocultural elements that influence tax avoidance practices by firms in sub-Saharan Africa (SSA). The study involved one hundred seventy-three (173) listed companies from eight sub-Saharan African countries. The study used a multiple regression analysis technique to estimate the results. The results showed that a country’s institutional settings and particular sociocultural practices impact its firms’ tax avoidance practices. The findings demonstrated that the degree of tax avoidance activities of firms in SSA is influenced by management quality, regulatory quality, auditing quality, culture, and ethics of a country. This result has several policy implications. First, the management of firms can use their resources to lower the tax paid to the government. Governments can also use institutional frameworks to stop businesses from using aggressive tax avoidance strategies. As a result, the study adds to the body of research on the factors influencing tax evasion in emerging markets. The findings align with the institutional theory’s assertions that institutions, laws, and regulations can impact how businesses behave through coercive and normative isomorphism, which can affect how they avoid paying taxes.

The adoption of IFRS for SMEs in the northern sector of Ghana: A case of structural equation modeling

The current study investigated the adoption of IFRS for SMEs among 800 SMEs in the northern sector of Ghana. The study specifically determined the awareness level and extent of adoption of the standard. It also assessed how coercive, memetic, normative and environmental factors influenced the adoption of standards among the SMEs. It utilized an explanatory research design that adopted a quantitative approach to analyzing data and making inferences. Adapting a close-ended questionnaire, the PLS-SEM was used in analyzing the data. The study revealed that the majority of SMEs were aware of IFRS for SMEs in financial reporting to a high extent. The study further found that most SMEs did not fully comply to the IFRS for SMEs in preparing and presenting financial statements. Again, Coercive isomorphism and Environmental factors positively influenced the adoption of IFRS for SMEs among SMEs in the northern sector of Ghana. In contrast, mimetic and normative isomorphism played no significant role in the adoption process. The study further found that level of compliance positively moderates the effect of the level of Awareness on IFRS for SME adoption. Challenges associated with IFRS for SMEs (COF) positively influenced its adoption.

Alternative certification system for supply chain sustainability: how stakeholder alignment affects institutionalization

PurposeThis study expands the isomorphic logic on the participatory guarantee system (PGS) alternative certification method, which aims to level the supply chain sustainability field to determine how the alignment of disadvantaged agrifood stakeholders (e.g. small/applicant farmers, local organizations, consumers and volunteer auditors) might neutralize the negative effects of stakeholder heterogeneity (SH) on PGS recognition.Design/methodology/approachThe sample comprised 113 multilateral matching questionnaires collected from disadvantaged agrifood stakeholders participating in the PGS activities of the Green Conservation Label managed by Taiwan's Tse-Xin Organic Agriculture Foundation (TOAF). This study adopted hierarchical regression to test the hypotheses.FindingsStakeholder alignment, external community (EC) constructs, similar backgrounds (SBs) and value congruence (VC) diminish the negative effects of SH on PGS recognition.Social implicationsPGS is an agrifood supply chain social movement designed to allow underprivileged actors to enact solutions collectively to address social inequities and ecological problems through fair procedures, collective assignments and collaborative intentionality. PGS members who leverage VC, SB and EC will have a greater chance of successfully overcoming their institutional disadvantages.Originality/valueBased on the PGS activities initiated by disadvantaged agrifood stakeholders, this study transformed isomorphic logics, including coercive, mimetic and normative isomorphisms, into a mechanism with which individuals can build a governance structure that helps disadvantaged agrifood stakeholders develop alternative institutions by pooling their resources.