Socio-Technical System Theory Modeling in Financial Reporting Environment Dynamics

Articles in Press

Document Type : Original Article

Authors
Marziyeh Arvaneh 1
Shiva Hassanpour 2
Mohammad Firozian Nezhad 3
Mehdi Basirat 4
1 Phd Candidate, Department of Accounting, Ahv.C., Islamic Azad University, Ahvaz, Iran,
2 Assistant Professor, Department of Accounting, Ahv.C., Islamic Azad University, Ahvaz, Iran,
3 Assistant Professor, Department of Accounting, Ramh.C., Islamic Azad University, Ramhormoz, Iran,
4 Assistant Professor, Department of Economic, Ahv.C., Islamic Azad University, Ahvaz, Iran,
10.22034/jmaak.2025.78894.4641
Abstract
This research modeled the role of socio-technical system theory in the dynamics of the financial reporting environment (FRE). A qualitative-quantitative research approach based on the fuzzy Delphi method (FDM) and structural equations was employed for model estimation. For qualitative assessments, the opinions of 21 auditing, accounting, and social system experts were collected. Likewise, the opinions of 231 accountants and auditors working for the Iranian Association of Certified Accountants were gathered for quantitative model estimation. The research model extracted based on the grounded theory identified 36 categories: 13 causal conditions, 13 intervening conditions (drivers: 5 categories; inhibitors: 8 categories), 4 strategies, and 6 consequences, all ultimately confirmed by the FDM. The FDM results were based on the Drop-Wave Type 3 logistic approach. For quantitative structural equations, the correlations between all the variables were significant. The overall fit of the FDM was confirmed with the data fit criterion of 0.501. Inhibitory factors outweigh driving factors in influencing FRE dynamics. As such, this finding needs to be reflected in FRE dynamics policies and investments.
Keywords
Auditing
Scio-technical system theory
Data-driven approach
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