E-Readiness Framework for Corporate Online Reporting

Abstract

The purpose of this paper is to propose a contingency framework of e-readiness for corporate online reporting as a step towards establishing an e-readiness assessment methodology regarding corporate online reporting. This framework reflects the attempt to provide a theoretical background in the field. An extensive review of a number of instruments for assessing e-readiness as well as of other previously developed accounting frameworks was performed to identify the potential factors to be included in the proposed framework. Thirteen exploratory interviews and informal discussions were conducted with academics in the area of accounting and information technology and management information systems, and a pilot questionnaire survey was distributed to collect the perceptions of four different user-groups of corporate online reporting, (financial analysts, managers, bank credit officers and auditors) regarding the potential factors that should be included in the proposed framework. The contingency perspective was employed to integrate several internal and external factors in the form of the proposed framework. A framework was developed to integrate both endogenous and exogenous factors that recognise actual features regarding the e-readiness of corporate online reporting.

Model for the Adoption of Smart Mobile Devices in Corporate Financial Reporting

“…During the last two decades the ongoing innovations in communication technology and the fast growth in the usage of global network communication around the world provide remarkable benefits to all aspects of businesses' connectivity (Al-Htaybat, 2011b;Al-Htaybat et al, 2011;Jones and Xiao, 2003;Oyelere et al, 2003;Xiao et al, 2002). Also these developments have transformed corporate dissemination practices to adopt Internet financial reporting as a new communication and disclosure tool, as the Internet provides a new arena of accessibility, interactivity and research ability, and more information availability to meet stakeholders' needs (Al-Htaybat, 2011b;Al-Htaybat et al, 2011;Beattie & Pratt, 2003;Hanafi, et al, 2009;Lodhia et al, 2004;Jones & Xiao, 2003;Oyelere et al, 2003;Xiao et al, 2002).…”

“…As one of the exogenous factors, e-infrastructure includes: network infrastructure, access, affordability, reliability and speed and functionality, which are considered by this framework as driving forces to adopt the Internet as a new innovation in financial reporting. At the macro level this framework considers market forces, such as level of international trade, investments, level of local technology industry and regulations as well as culture, factors that impact on such adoption (Al-Htaybat, 2011b). At the micro level, internal e-readiness elements, such as awareness, commitment, qualified human resources, financial resources, technological resources, corporate governance, sub-culture and legal factors are an important main domain for Internet financial reporting adoption.…”

“…The external and internal environmental factors impact on any technological or non-technological developments in financial reporting in any place and at any time (von Alberti-Alhtaybat et al, 2012;Xiao et al, 1996Xiao et al, , 1997. Xiao et al (1996;1997) Applying the principles of interactionism, the current model combines Xiao et al (1996;1997) From the providers' perspective, corporations perceive the adoption of smart mobile communication technological developments in form of mobile financial reporting based on, as categorised in the literature of financial reporting and technology innovation, corporation evaluation, which allows them to assess that to which extent their internal and external e-readiness levels support the adoption of such technological innovation (Al-Htaybat, 2011b;Molla, 2004;Molla & Licker, 2002. Molla andLicker (2002 & have used the phrase internal e-readiness or organisational e-readiness to refer to the managers' perception and evaluation of the degree to which they believe that their organisation has the awareness, resources, commitment, and governance to be ready to adopt e-commerce (Molla & Licker, 2002.…”

“…Based on the above the authors argue that corporate financial reporting, as a part of corporate connectivity, is affected by the vast and rapid growth of technological developments, and will adjust in the form of financial information communication and dissemination according to technological devices existent at that time. During the last decade, the association between technological developments and the dynamic nature of financial reporting in the form of corporate Internet reporting, has been considered the first revolutionary medium of financial communication of organisations with their stakeholders as it improves users' accessibility, interactivity and research ability, and increases information availability in the annual reports (Al-Htaybat, 2011b;Beattie & Pratt, 2003;Lodhia et al, 2004;Jones & Xiao, 2003;Oyelere et al, 2003;Xiao et al, 2002). The emergence of new technological innovations and the rapid growth of the Internet as a network communication tool have influenced the corporate financial reporting practices significantly, have increased the pressure on corporations and have raised the challenges to provide and maintain relevant information to meet interested users' needs (Al-Htaybat, 2011b).…”