The use of accrual accounting information in Indonesian public sector: managers’ intention and action

Abstract

Purpose This paper aims to examine factors influencing managers’ intention and their use of accrual accounting information (AAI) to inform decisions in Indonesian public sector. Design/methodology/approach A questionnaire survey of 507 Indonesian public sector managers is undertaken, using the theoretical lens of the theory of planned behaviour and relevant public sector accounting and administration literature. Findings The paper finds that managers’ attitude, their perception of stakeholders’ pressure and perception of their ability to control the use of AAI influence managers’ intention and behavioural action to use AAI for decision-making, with managers’ sense of control has the strongest effect. Organisational characteristics, particularly culture, serve to facilitate the translation of intention to actual use of AAI. Originality/value Extant literature largely focuses on institutional forces in explaining public sector accounting changes. This paper takes a different angle and contributes to better understanding of the importance of behavioural aspects in driving public sector managers’ use of AAI from a developing country’s perspective. It provides insights into the value of AAI in supporting decisions that shape government financial accountability.