Published April 30, 2023 | Version v1
Journal article Open

Continuous accounting implementation for a new future opening the black box through green transformational leadership by surveying Indonesia banking employees

Creators

  • 1. Universitas Trisakti, Indonesia

Description

This study intents to examine and analyze the continuous accounting implementation with green transformational leadership as moderation variable by conducting a survey. Accounting produce services that impacted by the industrial revolution, so that they need to prepare for the challenges of an industry that clings to inflexible rituals and indecision in adopting complex designs, technologies and processes. This study uses primary data through questionnaires survey. The sample was 614 employees of the finance and information technology division at banks registered with the Bank Based on Core Capital Group. The result present that digital capability has positive influence on continuous accounting implementation as well as green human capital and green transformational leadership. While, cybersecurity awareness has no influence on continuous accounting implementation. Green transformational leadership is strengthening influence cybersecurity awareness to continuous accounting implementation while the rest have no moderation effect. The implications of this study are theoretically the development of new measurements for digital capability. The practical implication is by increasing digital capability, companies can have special programs that focus on self-development in terms of technology. Accounting as one of the branches of science affected by technology needs to update the method of storing accounting data securely. The Indonesian Institute of Accountants can make regulations regarding continuous accounting. Finally, the implication for the banking is to be able to pay more attention to cybersecurity by creating specific cybersecurity programs

Files

Continuous accounting implementation for a new future opening the black box through green transformational leadership by surveying Indonesia banking employees.pdf

Files (903.9 kB)

Additional details

References

  • Binkhuysen, A. B. (2020). The fourth industrial revolution: At the intersection of readiness and responsibility. Deloitte Insights. https://www2.deloitte.com/ch/en/pages/risk/articles/industry-4-0-intersection-of-readiness-and-responsibility.html
  • Zengin, Y., Naktiyok, S., Kaygın, E., Kavak, O., & Topçuoğlu, E. (2021). An investigation upon industry 4.0 and society 5.0 within the context of sustainable development goals. Sustainability (Switzerland), 13(5), 1–16. https://doi.org/10.3390/su13052682
  • De Pascale, A., Arbolino, R., Szopik-Depczyńska, K., Limosani, M., & Ioppolo, G. (2021). A systematic review for measuring circular economy: The 61 indicators. Journal of Cleaner Production, 281, 124942. https://doi.org/10.1016/j.jclepro.2020.124942
  • Teslia, I., & Latysheva, T. (2022). Development Of The Concept Of Building Project Management Systems In The Context Of Project-Oriented Companies. 3, 14–25. https://doi.org/10.15587/1729-4061.2022.268139
  • Tiwari, K., & Khan, M. S. (2020). Sustainability accounting and reporting in the industry 4.0. Journal of Cleaner Production, 258. https://doi.org/10.1016/j.jclepro.2020.120783
  • Gupta, S., Tuunanen, T., Kar, A. K., & Modgil, S. (2022). Managing Digital Knowledge for Ensuring Business Efficiency and Continuity. Journal of Knowledge Management. https://doi.org/10.1108/JKM-09-2021-0703
  • Yulianti, M., Asniati, A., & Juita, V. (2021). Pengaruh Keahlian Akuntansi, Literasi Digital dan Literasi Manusia Terhadap Kesiapan Kerja Calon Akuntan di Era Disrupsi Teknologi Digital. Ekonomis: Journal of Economics and Business, 5(2), 449. https://doi.org/10.33087/ekonomis.v5i2.389
  • Khin, S., & Ho, T. C. F. (2018). Digital Technology, Digital Capability and Organizational Performance: A Mediating Role of Digital Innovation. International Journal of Innovation Science. https://doi.org/10.1108/IJIS-08-2018-0083
  • Saputra, N., Sasanti, N., Alamsjah, F., & Sadeli, F. (2022). Strategic role of digital capability on business agility during Strategic role of digital capability on business agility during COVID-19 era COVID-19 era. Procedia Computer Science, 197(2021), 326–335. https://doi.org/10.1016/j.procs.2021.12.147
  • Yasa, N. N. K., Ekawati, N. W., & Rahmayanti, P. L. D. (2019). The Role of Digital Innovation in Mediating Digital Capability on Business Performance. European Journal of Management and Marketing Studies, 4(2), 111–128. https://doi.org/10.5281/zenodo.3483780
  • Haapamäki, E., & Sihvonen, J. (2019). Cybersecurity in accounting research. Managerial Auditing Journal, 34(7), 808–834. https://doi.org/10.1108/MAJ-09-2018-2004
  • Havakhor, T., Rahman, M. S., & Zhang, T. (2020). Cybersecurity Investments and the Cost of Capital. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3553470
  • Li, Y., & Xu, L. (2021). Cybersecurity investments in a two-echelon supply chain with third-party risk propagation. International Journal of Production Research, 59(4), 1216–1238. https://doi.org/10.1080/00207543.2020.1721591
  • Zhang, Z., He, W., Li, W., & Abdous, M. (2021). Cybersecurity awareness training programs: a cost–benefit analysis framework. Industrial Management and Data Systems, 121(3), 613–636. https://doi.org/10.1108/IMDS-08-2020-0462
  • Vasylyshyna, L., Popova, O., Hoholieva, N., Lyzunova, O., Medvedieva, M., Laskavets, K., Mykytenko, T., Diachenko, V., Yemets, A., & Shevchenko, S. (2022). Assessment of the Impact of Digitalized Management on the Financial Risks of Industrial Enterprises. Eastern-European Journal of Enterprise Technologies, 6(13–120), 87–95. https://doi.org/10.15587/1729-4061.2022.268024
  • Gulin, D., Hladika, M., & Valenta, I. (2019). Digitalization and the Challenges for the Accounting Profession. ENTRENOVA, 428–437. https://doi.org/10.2139/ssrn.3492237
  • Muravskyi, V., Pochynok, N., & Farion, V. (2021). Classification of cyber risks in accounting. Visnyk ekonomiky – Herald of Economics, 2, 129–144. https://doi.org/10.35774/visnyk2021.02.129
  • Yang, X. (2019). The Impact of Responsible Leadership on Employee Green Behavior: Mediating Effect of Moral Reflectiveness and Moderating Effect of Empathy. IOP Conference Series: Materials Science and Engineering, 677(5). https://doi.org/10.1088/1757-899X/677/5/052054
  • Hameed, Z., Khan, I. U., Islam, T., Sheikh, Z., & Naeem, R. M. (2020). Do green HRM practices influence employees' environmental performance? International Journal of Manpower, 41(7), 1061–1079. https://doi.org/10.1108/IJM-08-2019-0407
  • Zhang, Y., Luo, Y., Zhang, X., & Zhao, J. (2019). How green human resource management can promote green employee behavior in China: A technology acceptance model perspective. Sustainability (Switzerland), 11(19). https://doi.org/10.3390/su11195408
  • Al Ahmad, S., Easa, N. F., & Mostapha, N. (2019). The Effect of Transformational Leadership on Innovation: Evidence from Lebanese Banks. European Research Studies Journal, XXII(Issue 4), 215–240. https://doi.org/10.35808/ersj/1507
  • Saputra, I. (2020). the Influence of Environmental Performance, Organizational Reputation, Environmental Disclosure and Environmental Strategy on Bussiness Performance. International Journal of Contemporary Accounting, 2(2), 173. https://doi.org/10.25105/ijca.v2i2.8273
  • Tingey-Holyoak, J. L., Pisaniello, J. D., & Buss, P. (2021). Embedding smart technologies in accounting to meet global irrigation challenges. Meditari Accountancy Research, 2018. https://doi.org/10.1108/MEDAR-03-2020-0835
  • Jasim, Y. A., & Raewf, M. B. (2020). Impact of the Information Technology on the Accounting System. Cihan University-Erbil Journal of Humanities and Social Sciences, VI(1), 50–57. https://doi.org/10.24086/cuejhss.v4n1y2020.pp
  • Pavlykivska, O., & Marushchak, L. (n.d.). Functional Imperatives and Dominant Ideas of Digital Accounting System Development. Business Risk in Changing Dynamics of Global Village 2: Monograph. http://elartu.tntu.edu.ua/handle/lib/32271
  • Smith, S. S. (2018). Digitization and Financial Reporting – How Technology Innovation May Drive the Shift toward Continuous Accounting. Accounting and Finance Reserach, 7(3), 240–250. https://doi.org/10.5430/afr.v7n3p240
  • Li, Y., & Alexander, Y. (2021). The process of strategy change in a state-owned Enterprise operating under crisis : A case study on China Eastern Airlines during Covid-19 pandemic (Dissertation). Retrieved from http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-52648
  • Zhan, J., & Zhu, J. (2021). The effects of state ownership on innovation: evidence from the state-owned enterprises reform in China. Applied Economics, 53(1), 145–163. https://doi.org/10.1080/00036846.2020.1796918
  • Lawrence, P. R., & Lorsch, J. W. (1967). Differentiation and Integration in Complex Organizations. Administrative Science Quarterly, 12(1), 1. https://doi.org/10.2307/2391211
  • Christ, K. L., Burritt, R. L., Guthrie, J., & Evans, E. (2018). The potential for 'boundary-spanning organisations' in addressing the research-practice gap in sustainability accounting. Sustainability Accounting, Management and Policy Journal, 9(4), 552–568. https://doi.org/10.1108/SAMPJ-06-2017-0059
  • Kurniawan, P. S. (2019). Akuntansi Keberlanjutan Dan Pengukuran Kinerja Keberlanjutan Universitas: Mungkinkah Mengaplikasikan Akuntansi Keberlanjutan Pada Institusi Pendidikan Tinggi? 1–17. https://doi.org/10.31227/osf.io/b7juy
  • Tucker, I. (2017). The Blueprint for Continuous Accounting. Strategic Finance, 41–49. https://sfmagazine.com/articles/2017/may/the-blueprint-for-continuous-accounting/
  • Akinbowale, O. E., Klingelhöfer, H. E., & Zerihun, M. F. (2020). An innovative approach in combating economic crime using forensic accounting techniques. Journal of Financial Crime, 27(4), 1253–1271. https://doi.org/10.1108/JFC-04-2020-0053
  • Brands, K. (2020). Creating cybersecurity awareness. Strategic Finance, 101(7), 60–61. https://sfmagazine.com/articles/2020/january/creating-cybersecurity-awareness/
  • Chen, Y. S., Chang, C. H., & Lin, Y. H. (2014). Green transformational leadership and green performance: The mediation effects of green mindfulness and green self-efficacy. Sustainability (Switzerland), 6(10), 6604–6621. https://doi.org/10.3390/su6106604
  • Rizvi, Y. S., & Garg, R. (2020). The simultaneous effect of green ability-motivation-opportunity and transformational leadership in environment management: the mediating role of green culture. Benchmarking, 28(3), 830–856. https://doi.org/10.1108/BIJ-08-2020-0400
  • Zhang, Sun, B., & Xu, F. (2020). Promoting green product development performance via leader green transformationality and employee green self-efficacy: The moderating role of environmental regulation. International Journal of Environmental Research and Public Health, 17(18), 1–17. https://doi.org/10.3390/ijerph17186678
  • Zhou, S., Zhang, D., Lyu, C., & Zhang, H. (2018). Does seeing "mind acts upon mind" affect green psychological climate and green product development performance? The role of matching between green transformational leadership and individual green values. Sustainability (Switzerland), 10(9). https://doi.org/10.3390/su10093206
  • Sudibyo, Y. A. (2002). The Relationship of Business Process Capabilities and Internal Service Quality to Healthcare Service Quality, Patient Satisfaction, and Behavioral Intentions, and Its Relationship to Business Performance. Dissertation, 274.https://www.proquest.com/openview/3680ff58253d05422679794fd8389c4f/1?pq-origsite=gscholar&cbl=18750&diss=y
  • Salameh, R. S. (2022). The Effectiveness of Disclosing Sustainability Accounting-Related Information in Small and Medium-Sized Enterprises ( Smes ) in Raising the Reliability of Financial Reports. Academy of Strategic Management Journal, 21(1), 1–14. https://www.researchgate.net/profile/Khalid-Lutfi/publication/357677310
  • Modiba, M. M., Kekwaletswe, R. M., & Komati, M. D. (2020). IT Capability Framework for Digital Transformation in South African Financial Service Providers. International Journal of Computer Organization Trends, 10(2), 24–39. https://doi.org/10.14445/22492593/ijcot-v10i2p305
  • Schoenfeld, J. (2021). Big Tech , Cloud Computing , and Accounting ∗ Big Tech , Cloud Computing , and Accounting. Tuck School of Business Working Paper No. 3596065, January. https://dx.doi.org/10.2139/ssrn.3596065
  • Al-Htaybat, K., Hutaibat, K., & von Alberti-Alhtaybat, L. (2019). Global brain-reflective accounting practices: Forms of intellectual capital contributing to value creation and sustainable development. Journal of Intellectual Capital, 20(6), 733–762. https://doi.org/10.1108/JIC-01-2019-0016
  • Demirkan, S., Demirkan, I., & McKee, A. (2020). Blockchain technology in the future of business cyber security and accounting. Journal of Management Analytics, 7(2), 189–208. https://doi.org/10.1080/23270012.2020.1731721
  • Li, L., He, W., Xu, L., Ash, I., Anwar, M., & Yuan, X. (2019). Investigating the impact of cybersecurity policy awareness on employees' cybersecurity behavior. International Journal of Information Management, 45(February 2018), 13–24. https://doi.org/10.1016/j.ijinfomgt.2018.10.017
  • Yang, L., Lau, L., & Gan, H. (2020). Investors' perceptions of the cybersecurity risk management reporting framework. International Journal of Accounting and Information Management, 28(1), 167–183. https://doi.org/10.1108/IJAIM-02-2019-0022
  • Garrigos-Simon, F. J., Botella-Carrubi, M. D., & Gonzalez-Cruz, T. F. (2018). Social capital, human capital, and sustainability: A Bibliometric and visualization analysis. Sustainability (Switzerland), 10(12). https://doi.org/10.3390/su10124751
  • Al-Abrrow, H., Ali, J., & Alnoor, A. (2022). Multilevel Influence of Routine Redesigning, Legitimacy and Functional Affordance on Sustainability Accounting: Mediating Role of Organizational Sense-making. Global Business Review, 23(2), 287–312. https://doi.org/10.1177/0972150919869726
  • Corporate Finance Institute. (2020). What is Continuous Accounting? https://corporatefinanceinstitute.com/resources/accounting/continuous-accounting/#:~:text=January%205%2C%202023-,What%20is%20Continuous%20Accounting%3F,finances%20in%20the%20corporate%20structure
  • Tian, H., Zhang, J., & Li, J. (2020). The relationship between pro-environmental attitude and employee green behavior: the role of motivational states and green work climate perceptions. Environmental Science and Pollution Research, 27(7), 7341–7352. https://doi.org/10.1007/s11356-019-07393-z
  • Singh, S. K., Giudice, M. Del, Chierici, R., & Graziano, D. (2020). Green innovation and environmental performance: The role of green transformational leadership and green human resource management. Technological Forecasting and Social Change, 150(May 2019), 119762. https://doi.org/10.1016/j.techfore.2019.119762
  • Wang, X., Zhou, K., & Liu, W. (2018). Value congruence: A study of green transformational leadership and employee green behavior. Frontiers in Psychology, 9(OCT), 1–8. https://doi.org/10.3389/fpsyg.2018.01946
  • Klymenko, O., Halse, L. L., & Jæger, B. (2021). The enabling role of digital technologies in sustainability accounting: Findings from norwegian manufacturing companies. Systems, 9(2). https://doi.org/10.3390/systems9020033
  • Delloite. (2015). An introduction. In Industri 4.0: An Introduction. https://doi.org/10.1016/j.jacc.2005.05.004
  • Lee, W. E., & Hageman, A. M. (2018). Talk the Talk or Walk the Walk? An Examination of Sustainability Accounting Implementation. Journal of Business Ethics, 152(3), 725–739. https://doi.org/10.1007/s10551-016-3282-8
  • Kwakye, T. O., Welbeck, E. E., Owusu, G. M. Y., & Anokye, F. K. (2018). Determinants of intention to engage in Sustainability Accounting & Reporting (SAR): the perspective of professional accountants. International Journal of Corporate Social Responsibility, 3(1). https://doi.org/10.1186/s40991-018-0035-2
  • Rigby, D. K., Sutherland, J., & Noble, A. (2018). Agile at Scale: How to go from a few teams to hundreds. Harvard Business Review, June, 1–10. https://hbr.org/2018/05/agile-at-scale
  • Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Thousand Oaks. Sage, 165.
  • Calam, M., Chinn, D., Porter, J. F., & Noble, J. (2019). Perspectives on transforming cybersecurity. McKinsey Global Institute, March. https://www.mckinsey.com/~/media/McKinsey/McKinsey Solutions/Cyber Solutions/Perspectives on transforming cybersecurity/Transforming cybersecurity_March2019.ashx
  • Mo, Z., Liu, M. T., & Wu, P. (2021). Shaping employee green behavior: a multilevel approach with Pygmalion effect. Asia Pacific Journal of Marketing and Logistics, ahead-of-p(ahead-of-print). https://doi.org/10.1108/apjml-07-2020-0473
  • Chen, Y. S., & Chang, C. H. (2013). The Determinants of Green Product Development Performance: Green Dynamic Capabilities, Green Transformational Leadership, and Green Creativity. Journal of Business Ethics, 116(1), 107–119. https://doi.org/10.1007/s10551-012-1452-x
  • Tahgrid, S., Abdallah, A. B., & Janini, M. Al. (2018). The Impact of Transformational Leadership on Employees' Creativity: The Mediating Role of Perceived Organizational Support. Management Research Review, 41(1), 113–132. https://doi.org/https://doi.org/10.1108/MRR-02-2017-0032
  • Dat, N. M., Dai, N. Q., & Ngoc, P. B. (2022). The Impact of Corporate Social Responsibilities (CSR), Entrepreneurship, and Financial Factors on the Financial Performance of the Banks in ASEAN Countries. Contemporary Economics, 16(2), 227–240. https://doi.org/10.5709/ce.1897-9254.479
  • Sulaeman, H. S. F., Moelyono, S. M., & Nawir, J. (2019). Determinants of banking efficiency for commercial banks in Indonesia. Contemporary Economics, 13(2), 205–218. https://doi.org/10.5709/ce.1897-9254.308
  • Mantikei, B., Christa, U. R., Sintani, L., Negara, D. J., & Meitiana. (2020). The Role of Responsible Leadership in Determining the Triple-Bottom-Line Performance of the Indonesian Tourist Industry. Contemporary Economics, 14(4), 477–489. https://doi.org/10.5709/ce.1897-9254.419
  • Yang, Z., Sun, J., Zhang, Y., & Wang, Y. (2017). Green, green, it's green: A triad model of technology, culture, and innovation for corporate sustainability. Sustainability (Switzerland), 9(8), 1369. https://doi.org/10.3390/su9081369