This paper aims to investigate how market and institutional pressures, mediated by organizational support, impact the adoption of management accounting innovations (MAIs) in Egypt, one of the emerging economies.
The authors collected data using a questionnaire sent to 93 joint venture manufacturing firms in Egypt’s public business sector. To test the theoretical model, partial least squares structural equation modeling (SEM) was performed using the SEMinR package in R.
The findings reveal that market pressures significantly drive the adoption of MAIs, whereas institutional pressures influence adoption indirectly by shaping organizational strategies and cultural frameworks. Organizational support plays a crucial role, both as a direct factor in adopting MAIs and as a transformative channel that aligns external pressures with organizational capabilities. The external pressures serve as triggers for change, whereas the successful adoption of MAIs depends on robust internal organizational support structures.
The focus on Egypt may limit the applicability of the findings to other emerging economies or developed markets. Future research should conduct comparative studies across different countries or regions to understand context-specific differences in MAI adoption. In addition, this study mainly considers market and institutional pressures along with organizational support, potentially overlooking other influential factors such as industry-specific dynamics, cultural dimensions and leadership styles. Exploring these factors could provide a more comprehensive understanding of the adoption of MAIs.
This study provides actionable insights for organizations aiming to improve their MAS. By aligning management accounting practices with external market dynamics and strong internal capabilities, organizations can better handle rapid market and regulatory changes. Policymakers can use these insights to create supportive frameworks that encourage innovation adoption and sustainable economic development.
This study makes a significant contribution by examining the various pressures and factors that influence the adoption of MAIs in emerging economies, particularly within contexts shaped by unique market-driven and regulatory forces, such as public–private ownership structures. It highlights the dual role of organizational support as both a direct enabler and mediator, transforming external pressures into practical procedures and improvements that drive the adoption of MAIs. Furthermore, it challenges the notion of pressures as mere constraints, illustrating how firms actively absorb and leverage them to drive the adoption of MAIs.
