TY - JOUR
T1 - The Impact of Senior Management Competencies on the Voluntary Adoption of an Innovative Technology
AU - Boritz, J. Efrim
AU - Efendi, Jap
AU - Lim, Jee Hae
N1 - Funding Information:
The authors thank Jong-Hag Choi, Jeong-Bon Kim, Christine Wiedman, participants, discussants, and anonymous reviewers at the 2014 International Conference on Information Systems (ICIS), the 2013 American Accounting Association Annual Meeting (AAA), the 2013 Pacific Asia Conference on Information Systems (PACIS), the 2013 Canadian Academic Accounting Association Conference (CAAA), the 2013 International Symposium on Accounting Information Systems (ISAIS), the 6th University of Kansas International Conference on XBRL and Information Systems, the 2013 AAA Information Systems Section Midyear Meeting, the 25th XBRL International Conference, as well as participants at research seminars at City University of Hong Kong, KonKuk University, Queensland University of Technology, Seoul National University, Singapore Management University, University of Virginia, University of Delaware, Washington State University, The University of Sydney, and University of Waterloo. The authors are grateful to Won Gyun No and Lev Timoshenko for their assistance with data gathering. We acknowledge the funding provided by the UW-SSHRC 4A research grant program and the University of Waterloo Centre for Information Integrity and Information Systems Assurance. Professor Lim also acknowledges funding by the PricewaterhouseCoopers Professorship at the University of Waterloo.
Publisher Copyright:
© 2018, American Accounting Association. All rights reserved.
PY - 2018/6/1
Y1 - 2018/6/1
N2 - The adoption of innovative technologies holds both promise and risk. We focus on the voluntary adoption of innovative financial reporting and disclosure technologies (IFRDTs) using the voluntary adoption of XBRL as an exemplar for our study. In particular, since IFRDTs have both financial reporting (FR) and information technology aspects (IT), we examine the impact of IT and FR competencies possessed by members of the top management team (CEOs and CFOs) on the voluntary adoption of XBRL beyond the impact of environmental, organizational, technological, and financial characteristics of their firms. We find that the voluntary adoption of XBRL was positively associated with higher levels of IT competencies; but, surprisingly, voluntary adoption of this innovation was negatively associated with higher levels of FR competencies, regardless of the functional role played by the executive. These results extend the literature on the influence of management characteristics on corporate decisions and can be used as a guide for investigating top executives’ roles in the voluntary adoption of other IFRDTs, such as the use of social media for financial reporting or voluntary standardized business reporting in jurisdictions where such reporting is not mandatory.
AB - The adoption of innovative technologies holds both promise and risk. We focus on the voluntary adoption of innovative financial reporting and disclosure technologies (IFRDTs) using the voluntary adoption of XBRL as an exemplar for our study. In particular, since IFRDTs have both financial reporting (FR) and information technology aspects (IT), we examine the impact of IT and FR competencies possessed by members of the top management team (CEOs and CFOs) on the voluntary adoption of XBRL beyond the impact of environmental, organizational, technological, and financial characteristics of their firms. We find that the voluntary adoption of XBRL was positively associated with higher levels of IT competencies; but, surprisingly, voluntary adoption of this innovation was negatively associated with higher levels of FR competencies, regardless of the functional role played by the executive. These results extend the literature on the influence of management characteristics on corporate decisions and can be used as a guide for investigating top executives’ roles in the voluntary adoption of other IFRDTs, such as the use of social media for financial reporting or voluntary standardized business reporting in jurisdictions where such reporting is not mandatory.
KW - characteristics of executives
KW - eXtensible Business Reporting Language (XBRL)
KW - financial reporting (FR) competencies
KW - information technology (IT) competencies
KW - upper echelons theory
KW - voluntary adoption of innovative financial reporting technologies
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U2 - 10.2308/isys-51685
DO - 10.2308/isys-51685
M3 - Article
AN - SCOPUS:85064617346
SN - 0888-7985
VL - 32
SP - 25
EP - 46
JO - Journal of Information Systems
JF - Journal of Information Systems
IS - 2
ER -