This study aims to investigate the sociological forces driving the adoption of digital tax stamps (DTS) by examining how institutional pressures shape adoption decisions. While past work has highlighted technological and individual determinants of e-tax initiatives, this research draws on institutional theory to understand why firms implement digital tax administration.
The authors conducted a cross-sectional survey of managers across a representative sample of manufacturing firms in Uganda. Hypotheses were evaluated using structural equation modeling (SEM) to assess whether there exists a relationship between institutional isomorphism and DTS adoption.
This study’s findings demonstrate that isomorphic pressures exert a strong, positive influence on DTS adoption. These results suggest that in regulatory contexts where compliance is mandatory, external imperatives compel firms to adopt DTS.
By providing empirical evidence of the importance of institutional isomorphism in driving DTS adoption, this work advances our understanding of digital tax administration and underscores the importance of the need to firms to comply with regulatory requirements to foster meaningful compliance.
