Design and Validation of an Implementation Model for Modern Public Sector Accounting

Sirvan  Sharifi; Omid Mahmoudi Khoshroo; Farshid  Kheirollahi; Adel  Fatemi

Authors

Sirvan Sharifi Ph.D. Student, Department of Accounting, Sa.C., Azad University, Sanandaj, Iran Author https://orcid.org/0009-0003-7902-5760
Omid Mahmoudi Khoshroo Assistant Professor, Department of Accounting, Sa.C., Islamic Azad University, Sanandaj, Iran https://orcid.org/0000-0002-1168-4749
Farshid Kheirollahi Assistant Professor, Department of Accounting, Faculty of Economics and Accounting, Razi University, Kermanshah, Iran Author https://orcid.org/0000-0002-3812-9868
Adel Fatemi Department of Statistics, Sa.C., Islamic Azad University, Sanandaj, Iran Author https://orcid.org/0000-0002-0319-1872

Keywords:

Modern Public Sector Accounting, Accounting Reform, Public Sector, PLS-SEM, Fuzzy Delphi, Interpretive Structural Modeling, SWARA, Accountability

Abstract

This study aimed to design, structurally organize, prioritize, and empirically validate an implementation model for modern public sector accounting. This applied study employed an exploratory sequential mixed-methods design. In the qualitative phase, semi-structured interviews were conducted with 14 experts in governmental and public sector accounting selected through purposive and snowball sampling until theoretical saturation was reached. Interview data were analyzed using thematic analysis with open, axial, and selective coding in MAXQDA 2018. The extracted indicators were screened through the fuzzy Delphi method, and the confirmed components were structured using Interpretive Structural Modeling and MICMAC analysis. SWARA was subsequently used to prioritize the factors. In the quantitative phase, a researcher-developed questionnaire based on the qualitative findings was administered to 291 respondents. The measurement and structural models were evaluated using PLS-SEM in SmartPLS 4 through factor loadings, Cronbach’s alpha, composite reliability, average variance extracted, discriminant validity, coefficients of determination, predictive relevance, model-fit indices, and bootstrapped path coefficients. The final model consisted of two overarching factors, four dimensions, 15 components, and 46 validated indicators. All structural paths were statistically significant at p<.001. Modern public sector accounting showed strong associations with internal factors (β=.968, t=149.489) and external factors (β=.884, t=51.568). External factors strongly predicted economic-social factors (β=.971) and legal-regulatory factors (β=.865), while internal factors strongly predicted organizational factors (β=.950) and managerial factors (β=.913). The model showed substantial explanatory power for most endogenous constructs, including economic-social factors (R²=.942), societal expectations (R²=.938), internal factors (R²=.937), and organizational factors (R²=.902). Predictive relevance was positive for all modeled endogenous constructs. Overall fit was acceptable, with SRMR=.063 and NFI=.919. SWARA ranked internal factors above external factors, with organizational structure receiving the highest final priority. Modern public sector accounting should be implemented as an integrated organizational and governance reform in which structural, cultural, managerial, technological, legal, and socioeconomic components are coordinated to strengthen transparency, accountability, efficiency, and decision-making.

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