The effect of Knowledge, Perceived Usefulness and Social norms on Intention to Prepare Integrated Reporting in SMEs

Muslichah Muslichah, Wiyarni Wiyarni, Enggar Nursasi

Abstract


The objective of the paper is to explore the influence of knowledge on an intention to prepare Integrated Reporting (IR), with social norms as the moderating variable and perceived usefulness as the mediating variable. This study used a questionnaire survey to collect data from some SME owners. Before filling out the questionnaire, the SME owners were given training on Integrated Reporting. The sampling technique used is quota sampling. This study was conducted in four cities located in East Java Province. In each of these cities, thirty SME owners were chosen as respondents to be included in the IR training. In total, there were one-hundred, and twenty (120) SME owners participated in this study. Overall, the results indicated that (1) IR knowledge does not affect the intention to prepare IR; (2) IR knowledge significantly affects perceived usefulness; (3) Perceived usefulness significantly affects the intention to develop IR; (4) Perceived usefulness mediates the relationship between IR knowledge and intention to prepare IR; and (5) Social norms moderate relationship between IR knowledge and intention to prepare IR. This paper adds empirical research on the application of IR in SMEs, which is still rarely studied. The practical implication of this study emphasizes the importance of the government or professional institutions to develop an IR standard for SMEs.


Keywords


Integrated Reporting, SME, perceived usefulness, social norms, knowledge.

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DOI: http://dx.doi.org/10.18533/ijbsr.v9i4.1217

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