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EARLY EVIDENCE ON THE XBRL ADOPTION PROCESS IN MALAYSIA: DRIVERS AND CHALLENGES ON THE TECHNOLOGICAL PERSPECTIVE
Corresponding Author(s) : Erlane K Ghani
Humanities & Social Sciences Reviews,
Vol. 8 No. 2 (2020): March
Abstract
Purpose: This study aims to identify technological factors and how these factors influence the XBRL adoption process of the regulators in Malaysia.
Methodology: This paper applied Rogers’s (1983) adoption process and DiPietro, Wiarda, and Fleischer’s (1990) Technological, Organisational, and Environmental (TOE) framework. The paper adopted a case study approach consisting of an interview and document analysis. The data has been analysed with thematic analysis.
Results: This paper shows ten (10) factors within the technological perspective—the relative advantage as driving factor while trialability are the challenging factor in the knowledge and persuasion phase. In the decision-making phase, compatibility of XBRL taxonomy and stability production of XBRL instance documents are the driving factors whilst stability of XBRL taxonomy, standardised XBRL taxonomy, standardised XBRL submission, availability of tools and software and observability are challenges in the XBRL adoption process. In the implementation and confirmation phase, the complexity of the XBRL taxonomy is considered a challenge in the XBRL adoption process.
Implications: The findings in this paper serve as strategies to the other regulators that have plans to adopt XBRL as well as to attract the different government agencies to start with XBRL for reporting.
Keywords
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- Abdullah, A., Khadaroo, I., & Shaikh, J. (2009). Institutionalisation of XBRL in the USA and UK. International Journal of Managerial and Financial Accounting, 1(3), 292. https://doi.org/10.1504/IJMFA.2009.025057 DOI: https://doi.org/10.1504/IJMFA.2009.025057
- Abhishek, Dr., Ashoka, M. D. L. & Divyashree, M. S., M. L. (2018). A Conceptual Study on XBRL Implementation in India: Issues and Challenges.Open Journal of Economics and Commerce, 1(4), 45-51. https://doi.org/10.9734/AJEBA/2018/45843 DOI: https://doi.org/10.9734/AJEBA/2018/45843
- Alkhatib, E., Ojala, H., & Collis, J. (2019). Determinants of the voluntary adoption of digital reporting by small private companies to Companies House: Evidence from the UK.International Journal of Accounting Information Systems, 1-62. https://doi.org/10.1016/j.accinf.2019.06.004 DOI: https://doi.org/10.1016/j.accinf.2019.06.004
- Benbasat, I., Goldstein, D. K., & Mead, M. (1987). The Case Research Strategy in Studies of Information Systems. MIS Quarterly, 11(3), 369. https://doi.org/10.2307/248684 DOI: https://doi.org/10.2307/248684
- Cavaye, A. L. (1996). Case study research: a multiâ€faceted research approach for IS. Information systems journal, 6(3), 227-242. https://doi.org/10.1111/j.1365-2575.1996.tb00015.x DOI: https://doi.org/10.1111/j.1365-2575.1996.tb00015.x
- Cohn, M. (2018, June 28). SEC approves Inline XBRL for tagged financial data. Retrieved from https://www.accountingtoday.com/news/sec-approves-inline-xbrl-for-tagged-financial-data
- Cordery, C. J., Fowler, C. J., & Mustafa, K. (2011). A solution was looking for a problem: factors associated with the non-adoption of XBRL. Pacific Accounting Review, 2(1), 69-88. https://doi.org/10.1108/01140581111130634 DOI: https://doi.org/10.1108/01140581111130634
- David, J. (2016). The non-adoption of XBRL by professional and government organisations in New Zealand and its implications for stakeholders. (PhD), Victoria University of Wellington. Retrieved from: http://researcharchive.vuw.ac.nz/xmlui/handle/10063/5459
- Depietro, R., Wiarda, E., & Fleischer, M. (1990). The Context for Change: Organization, Technology and Environment. (, 1990). The processes of technological innovation, Lexington, Mass.: Lexington Books, 151-175.
- Doolin, B., & Troshani, I. (2007). Organizational Adoption of XBRL. Electronic Markets, 17(3), 199-209. https://doi.org/10.1080/10196780701503195 DOI: https://doi.org/10.1080/10196780701503195
- Dunne, T., Helliar, C., Lymer, A., & Mousa, R. (2013). Stakeholder engagement in internet financial reporting: The diffusion of XBRL in the UK. The British Accounting Review, 45, 167-182. https://doi.org/10.1016/j.bar.2013.06.012 DOI: https://doi.org/10.1016/j.bar.2013.06.012
- FASB (2000), Steering Committee Report Series, 2000. Business Reporting Research Project (BRRP).Electronic Distribution of Business Reporting Information. Financial Accounting Standards Board. Retrieved from http://www.fasb.org/cs/ContentServer?c=Document_C&pagename=FASB%2FDocument _C%2FDocumentPage&cid=1175801856611
- Henderson, D., Sheetz, S. D., & Trinkle, B. S. (2012). The determinants of inter-organizational and internal in-house adoption of XBRL: A structural equation model. International Journal of Accounting Information Systems, 13, 109-140. https://doi.org/10.1016/j.accinf.2012.02.001 DOI: https://doi.org/10.1016/j.accinf.2012.02.001
- Hoffman, C. (1999): The XML Files, Journal of Accountancy 187 (5), 71-77.
- Homayoun, S., Rahman, R. A., & Bashiri, N. (2011). Internet corporate reporting among public listed companies in Malaysia: An exploratory study. African Journal of Business Management, 5(30), 11863-11873. https://doi.org/10.5897/AJBM10.1406 DOI: https://doi.org/10.5897/AJBM10.1406
- Ilias, A., & Ghani, E. K. (2015). Examining the adoption of extensible business reporting language among public listed companies in Malaysia. Procedia Economics and Finance, 28, 32-38. https://doi.org/10.1016/S2212-5671(15)01078-3 DOI: https://doi.org/10.1016/S2212-5671(15)01078-3
- Ilias, A., Ghani, E. K., Azhar, Z. & Said, J. (2016). Governance Issues On Non-Adoption Of Xbrl In Malaysia. International Conference On Accounting Research And Education (Icare 2016) (1-9). ISSN :978-967-5741-45-6.
- Jeyaraj, A., Rottman, J. W., & Lacity, M. C. (2006). A review of the predictors, linkages, and biases in IT innovation adoption research. Journal of Information Technology, 21, 1-23. https://doi.org/10.1057/palgrave.jit.2000056 DOI: https://doi.org/10.1057/palgrave.jit.2000056
- Kim, J. B., Kim, J. W., & Lim, J. H. (2019). Does XBRL Adoption Constrain Earnings Management? Early Evidence from Mandated US Filers. Contemporary Accounting Research, 1-40. https://doi.org/10.1111/1911-3846.12493 DOI: https://doi.org/10.1111/1911-3846.12493
- Liu, D., Jun Tang, X. U. Yanlong, & Bang, J. U. (2019). XBRL-based global data standardization platform system and construction method thereof. U.S. Patent Application 16/320,692, filed May 30, 2019.
- Lymer, A., Debreceny, R., Gray, G. L., & Rahman, A. (1999). Business Reporting on the Internet. A Report for the International Accounting Standard Committee. ISBN 0905625773.
- Miles, M. B., Huberman, A. M., & Saldana, J. (2014). Qualitative data analysis. Sage Publication.
- Mousa, R. (2010). E-Government Adoption Process: XBRL Adoption in HM Revenue and Customs and Companies House. (PhD), University of Birmingham. Retrieved from: https://etheses.bham.ac.uk/id/eprint/1752/
- Mousa, R. (2013). E-Government Adoption in the U.K.: XBRL Project. International Journal of Electronic Government Research, 9(2), 101-119. https://doi.org/10.4018/jegr.2013040106 DOI: https://doi.org/10.4018/jegr.2013040106
- Oliveira, T., & Martins, M. F. (2011). Literature Review of Information Technology Adoption Models at Firm Level. The Electronic Journal Information Systems Evaluation, 14(1), 110-121.
- Perdana, A., Robb, A., Rohde, F., & Birt, J. (2018). Standard Business Reporting (SBR) Adoption in Australia, Critically Acclaimed, Box Office Flop: Constructivist and Ecological Rationalities in Information Systems (IS) Adoption. Australasian Journal of Information Systems, 22. https://doi.org/10.3127/ajis.v22i0.1680 DOI: https://doi.org/10.3127/ajis.v22i0.1680
- Pinsker, R., & Li, S. (2008). Costs and Benefits of XBRL Adoption: Early Evidence. Communication of the ACM, 51(3), 47-50. https://doi.org/10.1145/1325555.1325565 DOI: https://doi.org/10.1145/1325555.1325565
- Pollock, K. S., & Papiernik, J. C. (2001). XBRL: A New Common Language for Business Information Reporting. The Ohio CPA Journal, 60(1), 38-41.
- Rogers, E. M. (1983). Diffusion of Innovations (3rd ed.). New York: Free Press.
- Rogers, E. M. (2003). Diffusion of Innovations (5th ed.). New York: Free Press.
- Steenkamp, L., & Nel, G. (2012). The Adoption of XBRL in South Africa: an empirical study. The Electronic Library, 30(3), 409-425. https://doi.org/10.1108/02640471211241672 DOI: https://doi.org/10.1108/02640471211241672
- Troshani, I., & Doolin, B. (2007). Innovation diffusion: a stakeholder and social network view. Europian Journal of Innovation Management, 10(2), 176-200. https://doi.org/10.1108/14601060710745242 DOI: https://doi.org/10.1108/14601060710745242
- Troshani, I., & Rao, S. (2007). Drivers and Inhibitors to XBRL Adoption: A Qualitative Approach to Build a Theory in Under-Researched Areas. International Journal of E-Business Research, 3(4), 98-111. https://doi.org/10.4018/jebr.2007100106 DOI: https://doi.org/10.4018/jebr.2007100106
- Troshani, I., & Doolin, B. (2005). Drivers and Inhibitors Impacting Technology Adoption: A qualitative investigation into the Australian Experience with XBRL. Proceedings of 18th Bled eConference integration in Action, (1-16). Bled, Slovenia.
- XBRL International (2018). An Introduction to XBRL. Retrieved from: https://www.xbrl.org/
References
Abdullah, A., Khadaroo, I., & Shaikh, J. (2009). Institutionalisation of XBRL in the USA and UK. International Journal of Managerial and Financial Accounting, 1(3), 292. https://doi.org/10.1504/IJMFA.2009.025057 DOI: https://doi.org/10.1504/IJMFA.2009.025057
Abhishek, Dr., Ashoka, M. D. L. & Divyashree, M. S., M. L. (2018). A Conceptual Study on XBRL Implementation in India: Issues and Challenges.Open Journal of Economics and Commerce, 1(4), 45-51. https://doi.org/10.9734/AJEBA/2018/45843 DOI: https://doi.org/10.9734/AJEBA/2018/45843
Alkhatib, E., Ojala, H., & Collis, J. (2019). Determinants of the voluntary adoption of digital reporting by small private companies to Companies House: Evidence from the UK.International Journal of Accounting Information Systems, 1-62. https://doi.org/10.1016/j.accinf.2019.06.004 DOI: https://doi.org/10.1016/j.accinf.2019.06.004
Benbasat, I., Goldstein, D. K., & Mead, M. (1987). The Case Research Strategy in Studies of Information Systems. MIS Quarterly, 11(3), 369. https://doi.org/10.2307/248684 DOI: https://doi.org/10.2307/248684
Cavaye, A. L. (1996). Case study research: a multiâ€faceted research approach for IS. Information systems journal, 6(3), 227-242. https://doi.org/10.1111/j.1365-2575.1996.tb00015.x DOI: https://doi.org/10.1111/j.1365-2575.1996.tb00015.x
Cohn, M. (2018, June 28). SEC approves Inline XBRL for tagged financial data. Retrieved from https://www.accountingtoday.com/news/sec-approves-inline-xbrl-for-tagged-financial-data
Cordery, C. J., Fowler, C. J., & Mustafa, K. (2011). A solution was looking for a problem: factors associated with the non-adoption of XBRL. Pacific Accounting Review, 2(1), 69-88. https://doi.org/10.1108/01140581111130634 DOI: https://doi.org/10.1108/01140581111130634
David, J. (2016). The non-adoption of XBRL by professional and government organisations in New Zealand and its implications for stakeholders. (PhD), Victoria University of Wellington. Retrieved from: http://researcharchive.vuw.ac.nz/xmlui/handle/10063/5459
Depietro, R., Wiarda, E., & Fleischer, M. (1990). The Context for Change: Organization, Technology and Environment. (, 1990). The processes of technological innovation, Lexington, Mass.: Lexington Books, 151-175.
Doolin, B., & Troshani, I. (2007). Organizational Adoption of XBRL. Electronic Markets, 17(3), 199-209. https://doi.org/10.1080/10196780701503195 DOI: https://doi.org/10.1080/10196780701503195
Dunne, T., Helliar, C., Lymer, A., & Mousa, R. (2013). Stakeholder engagement in internet financial reporting: The diffusion of XBRL in the UK. The British Accounting Review, 45, 167-182. https://doi.org/10.1016/j.bar.2013.06.012 DOI: https://doi.org/10.1016/j.bar.2013.06.012
FASB (2000), Steering Committee Report Series, 2000. Business Reporting Research Project (BRRP).Electronic Distribution of Business Reporting Information. Financial Accounting Standards Board. Retrieved from http://www.fasb.org/cs/ContentServer?c=Document_C&pagename=FASB%2FDocument _C%2FDocumentPage&cid=1175801856611
Henderson, D., Sheetz, S. D., & Trinkle, B. S. (2012). The determinants of inter-organizational and internal in-house adoption of XBRL: A structural equation model. International Journal of Accounting Information Systems, 13, 109-140. https://doi.org/10.1016/j.accinf.2012.02.001 DOI: https://doi.org/10.1016/j.accinf.2012.02.001
Hoffman, C. (1999): The XML Files, Journal of Accountancy 187 (5), 71-77.
Homayoun, S., Rahman, R. A., & Bashiri, N. (2011). Internet corporate reporting among public listed companies in Malaysia: An exploratory study. African Journal of Business Management, 5(30), 11863-11873. https://doi.org/10.5897/AJBM10.1406 DOI: https://doi.org/10.5897/AJBM10.1406
Ilias, A., & Ghani, E. K. (2015). Examining the adoption of extensible business reporting language among public listed companies in Malaysia. Procedia Economics and Finance, 28, 32-38. https://doi.org/10.1016/S2212-5671(15)01078-3 DOI: https://doi.org/10.1016/S2212-5671(15)01078-3
Ilias, A., Ghani, E. K., Azhar, Z. & Said, J. (2016). Governance Issues On Non-Adoption Of Xbrl In Malaysia. International Conference On Accounting Research And Education (Icare 2016) (1-9). ISSN :978-967-5741-45-6.
Jeyaraj, A., Rottman, J. W., & Lacity, M. C. (2006). A review of the predictors, linkages, and biases in IT innovation adoption research. Journal of Information Technology, 21, 1-23. https://doi.org/10.1057/palgrave.jit.2000056 DOI: https://doi.org/10.1057/palgrave.jit.2000056
Kim, J. B., Kim, J. W., & Lim, J. H. (2019). Does XBRL Adoption Constrain Earnings Management? Early Evidence from Mandated US Filers. Contemporary Accounting Research, 1-40. https://doi.org/10.1111/1911-3846.12493 DOI: https://doi.org/10.1111/1911-3846.12493
Liu, D., Jun Tang, X. U. Yanlong, & Bang, J. U. (2019). XBRL-based global data standardization platform system and construction method thereof. U.S. Patent Application 16/320,692, filed May 30, 2019.
Lymer, A., Debreceny, R., Gray, G. L., & Rahman, A. (1999). Business Reporting on the Internet. A Report for the International Accounting Standard Committee. ISBN 0905625773.
Miles, M. B., Huberman, A. M., & Saldana, J. (2014). Qualitative data analysis. Sage Publication.
Mousa, R. (2010). E-Government Adoption Process: XBRL Adoption in HM Revenue and Customs and Companies House. (PhD), University of Birmingham. Retrieved from: https://etheses.bham.ac.uk/id/eprint/1752/
Mousa, R. (2013). E-Government Adoption in the U.K.: XBRL Project. International Journal of Electronic Government Research, 9(2), 101-119. https://doi.org/10.4018/jegr.2013040106 DOI: https://doi.org/10.4018/jegr.2013040106
Oliveira, T., & Martins, M. F. (2011). Literature Review of Information Technology Adoption Models at Firm Level. The Electronic Journal Information Systems Evaluation, 14(1), 110-121.
Perdana, A., Robb, A., Rohde, F., & Birt, J. (2018). Standard Business Reporting (SBR) Adoption in Australia, Critically Acclaimed, Box Office Flop: Constructivist and Ecological Rationalities in Information Systems (IS) Adoption. Australasian Journal of Information Systems, 22. https://doi.org/10.3127/ajis.v22i0.1680 DOI: https://doi.org/10.3127/ajis.v22i0.1680
Pinsker, R., & Li, S. (2008). Costs and Benefits of XBRL Adoption: Early Evidence. Communication of the ACM, 51(3), 47-50. https://doi.org/10.1145/1325555.1325565 DOI: https://doi.org/10.1145/1325555.1325565
Pollock, K. S., & Papiernik, J. C. (2001). XBRL: A New Common Language for Business Information Reporting. The Ohio CPA Journal, 60(1), 38-41.
Rogers, E. M. (1983). Diffusion of Innovations (3rd ed.). New York: Free Press.
Rogers, E. M. (2003). Diffusion of Innovations (5th ed.). New York: Free Press.
Steenkamp, L., & Nel, G. (2012). The Adoption of XBRL in South Africa: an empirical study. The Electronic Library, 30(3), 409-425. https://doi.org/10.1108/02640471211241672 DOI: https://doi.org/10.1108/02640471211241672
Troshani, I., & Doolin, B. (2007). Innovation diffusion: a stakeholder and social network view. Europian Journal of Innovation Management, 10(2), 176-200. https://doi.org/10.1108/14601060710745242 DOI: https://doi.org/10.1108/14601060710745242
Troshani, I., & Rao, S. (2007). Drivers and Inhibitors to XBRL Adoption: A Qualitative Approach to Build a Theory in Under-Researched Areas. International Journal of E-Business Research, 3(4), 98-111. https://doi.org/10.4018/jebr.2007100106 DOI: https://doi.org/10.4018/jebr.2007100106
Troshani, I., & Doolin, B. (2005). Drivers and Inhibitors Impacting Technology Adoption: A qualitative investigation into the Australian Experience with XBRL. Proceedings of 18th Bled eConference integration in Action, (1-16). Bled, Slovenia.
XBRL International (2018). An Introduction to XBRL. Retrieved from: https://www.xbrl.org/