Factors affecting the adoption of innovative service system in public sectors: A case study on implementing double entry bookkeeping with accrual basis in government accounting system

Korean government is planning to adopt double entry bookkeeping with accrual basis in the government accounting system. This paper attempts to identify influencing attitudes of information producers toward the acceptance of the new service system. Several models are introduced, including Luder's Contingency Model, Cheng's Politico-Economic Model of Accounting Policy Choice, Roger's Diffusion of Innovation, and Davis's Technology Acceptance Model (TAM). A set of constructs are developed as follows: information producers' knowledges, experiences, attitudes toward the reform, characteristics of cash based accounting system and new accrual based system, a chief executive officer's willingness to support, availability of supporting systems, and social influences from external environment. This study also includes key factors used in TAM, such as perceived usefulness and ease of use. Survey responses are gathered from accounting officers in government ministries and agencies as well as from local governments. Regression analysis shows that, for information producers, both ‘perceived ease of use’ and ‘perceived usefulness’ of the new system are the best explanatory variable for the dependent variable. It has also found that ‘perceived usefulness’ is explained best by individual characteristics such as knowledge and experiences, quality of current cash based single entry bookkeeping system, chief executive's support, positive supporting systems and social influences. The useful guidelines for implementing double-entry bookkeeping system with accrual basis are also provided.