From seeds to standards: how IFRS cultivates ISSB adoption in emerging economies – an SEM-ANN analysis through an institutional perspective in Morocco

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:For researchers, this advances institutional theory in sustainability reporting adoption and introduces a novel SEM-ANN methodology.

🏢実務担当者:Corporate sustainability teams can learn that investing in IFRS alignment strategically positions their firms for upcoming ISSB disclosures.

🏛政策担当者:Policymakers in emerging economies should leverage existing IFRS infrastructure rather than solely pursuing coercive mandates for ISSB adoption.

Purpose The purpose of this study is to investigate the factors influencing the intention of Moroccan companies to adopt International Sustainability Standards Board (ISSB) standards, focusing on the roles of coercive, mimetic and normative pressures within the framework of institutional theory. Rather than treating institutional pressures as additive, this study examines how legitimacy-seeking mechanisms substitute for regulatory coercion under conditions of weak enforcement. This study also examines the mediating role of prior International Financial Reporting Standards (IFRS) adoption as an institutional filter through which these pressures are transmitted and amplified. Design/methodology/approach Data from 335 Moroccan accounting professionals were analyzed using a hybrid dual-step approach: Structural Equation Modeling to test theoretically specified causal relationships and Machine Learning – using Artificial Neural Networks – to capture non-linear effects and assess the relative predictive importance of institutional drivers, thereby enhancing methodological rigor and explanatory depth. Findings This study finds that mimetic and normative isomorphism significantly influence the intention to adopt ISSB standards, while coercive pressures are not statistically salient, reflecting conditions of weak enforcement and institutional voids. IFRS adoption acts as a strong and systematic mediator, with mimetic pressures exerting their influence on ISSB adoption primarily through prior IFRS alignment rather than direct imitation alone. Organizations with established IFRS practices are, therefore, institutionally and cognitively better positioned, as prior IFRS adoption embeds reporting logics and infrastructures that facilitate ISSB transition. Research limitations/implications This study’s reliance on data from Moroccan companies may limit statistical generalizability. However, the findings offer theoretically grounded insights into sustainability reporting diffusion in emerging economies characterized by limited regulatory enforcement. Future research should consider multi-country studies to test the robustness of the identified institutional mechanisms. Practical implications Recognizing the link between IFRS adoption and ISSB readiness, managers should treat IFRS adoption not as a compliance exercise, but as a strategic institutional foundation for future sustainability reporting. Additionally, policymakers are encouraged to leverage existing IFRS infrastructures and professional networks, rather than relying solely on coercive mandates, to facilitate ISSB diffusion and alignment. Originality/value This study advances institutional theory by demonstrating how mimetic and normative pressures substitute for regulatory coercion in shaping sustainability reporting adoption under weak enforcement conditions. This study further contributes by conceptualizing IFRS adoption as a mediating institutional mechanism linking financial and sustainability reporting regimes and by using a Structural Equation Modeling–Artificial Neural Network hybrid approach that combines causal explanation with predictive validation.

• crossref https://doi.org/10.1108/medar-10-2024-2694first seen 2026-05-22 05:00:22 · last seen 2026-05-27 05:11:01
• openalex https://doi.org/10.1108/medar-10-2024-2694first seen 2026-05-23 05:12:57 · last seen 2026-05-27 04:36:14