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 adopti...

Full description

Saved in:
Bibliographic Details
Main Authors: Peter Sappor, Francis Atta Sarpong, Rezikatu Ahmed Seidu Seini
Format: Article
Language:English
Published: Taylor & Francis Group 2023-12-01
Series:Cogent Business & Management
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23311975.2023.2180840
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849769359468134400
author Peter Sappor
Francis Atta Sarpong
Rezikatu Ahmed Seidu Seini
author_facet Peter Sappor
Francis Atta Sarpong
Rezikatu Ahmed Seidu Seini
author_sort Peter Sappor
collection DOAJ
description 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.
format Article
id doaj-art-6b6a16cd865a4cb89e31eba4abb87f5f
institution DOAJ
issn 2331-1975
language English
publishDate 2023-12-01
publisher Taylor & Francis Group
record_format Article
series Cogent Business & Management
spelling doaj-art-6b6a16cd865a4cb89e31eba4abb87f5f2025-08-20T03:03:25ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110110.1080/23311975.2023.2180840The adoption of IFRS for SMEs in the northern sector of Ghana: A case of structural equation modelingPeter Sappor0Francis Atta Sarpong1Rezikatu Ahmed Seidu Seini2Department of Accounting, University for Development Studies, Tamale, GhanaSchool of Finance, Zhongnan University of Economics and Law, Wuhan, Hubei, ChinaDepartment of Accounting, University for Development Studies, Tamale, GhanaThe 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.https://www.tandfonline.com/doi/10.1080/23311975.2023.2180840IFRS adoptioncoercive isomorphismnormative isomorphismenvironment factorsstructural modeling
spellingShingle Peter Sappor
Francis Atta Sarpong
Rezikatu Ahmed Seidu Seini
The adoption of IFRS for SMEs in the northern sector of Ghana: A case of structural equation modeling
Cogent Business & Management
IFRS adoption
coercive isomorphism
normative isomorphism
environment factors
structural modeling
title The adoption of IFRS for SMEs in the northern sector of Ghana: A case of structural equation modeling
title_full The adoption of IFRS for SMEs in the northern sector of Ghana: A case of structural equation modeling
title_fullStr The adoption of IFRS for SMEs in the northern sector of Ghana: A case of structural equation modeling
title_full_unstemmed The adoption of IFRS for SMEs in the northern sector of Ghana: A case of structural equation modeling
title_short The adoption of IFRS for SMEs in the northern sector of Ghana: A case of structural equation modeling
title_sort adoption of ifrs for smes in the northern sector of ghana a case of structural equation modeling
topic IFRS adoption
coercive isomorphism
normative isomorphism
environment factors
structural modeling
url https://www.tandfonline.com/doi/10.1080/23311975.2023.2180840
work_keys_str_mv AT petersappor theadoptionofifrsforsmesinthenorthernsectorofghanaacaseofstructuralequationmodeling
AT francisattasarpong theadoptionofifrsforsmesinthenorthernsectorofghanaacaseofstructuralequationmodeling
AT rezikatuahmedseiduseini theadoptionofifrsforsmesinthenorthernsectorofghanaacaseofstructuralequationmodeling
AT petersappor adoptionofifrsforsmesinthenorthernsectorofghanaacaseofstructuralequationmodeling
AT francisattasarpong adoptionofifrsforsmesinthenorthernsectorofghanaacaseofstructuralequationmodeling
AT rezikatuahmedseiduseini adoptionofifrsforsmesinthenorthernsectorofghanaacaseofstructuralequationmodeling