financial and business reports,
and most importantly enhancing the quality of data dissemination and dis-
closure. All these important features of XBRL have commended XBRL as
an imperative reporting technology that has transformed the e-government
process in regulatory authorities.
In this chapter, two leading government agencies exemplify this tech-
nological paradigm shift by adopting XBRL to be an integral part of their
existing electronic fi l
fi ing systems. These are the United Kingdom’s Compa-
nies House (CH) and the United States’ Securities and Exchange Commis-
sion (SEC). XBRL has been recognized as a strategic component of these
agencies’ e-fi
filing agenda. Facilitated by the growth of the Internet, XBRL
has had a prominent impact on the global regulatory adopters’ community,
which thrives on the processing of voluminous data and the efficient deliv-
ery of information services.
The XBRL adoption processes at CH and the SEC have been impacted
by certain Critical Success Factors (CSFs). These factors have been exam-
ined in this chapter through conducting a comparative assessment of XBRL
adoption process at CH and the SEC. Through this assessment, the CSFs
are identified to determine the potential similarities and differences in each
agency’s approach toward adopting XBRL, and the impact such factors
would have on XBRL adoption process. This comparative analysis will
demonstrate the transformative role of XBRL as a notable interactive data
reporting tool that has revitalized the e-government process in two leading
government agencies in the United Kingdom and the United States.
The rest of the chapter is organized as follows: Section 2 provides a review of the literature on e-government reporting and technologies with
focus on XBRL and the main CSFs that aff
ffect XBRL adoption; Section 3
provides a comparative analysis of each government agency’s CSFs based
on the empirical evidence. Section 4 provides the research fi nd
fi
ings. The
practical signifi
ficance and conclusions of the research are provided in the
fi na
fi
l section.
2 LITERATURE REVIEW
Electronic government initiatives have been considered one of the pow-
erful mechanisms to improve the performance of the administrative and
200 Rania Mousa and Yu-Che Chen
data processing tasks of government agencies (Kraemer & King, 2003).
E-government provides the best example of utilizing the Internet and infor-
mation and communication technologies (ICTs) such as databases, net-
working, multimedia, and reporting technologies. In the specific context
of online services delivery, Brown and Brudney (2001, p.1) defi ne
fi
e-gov-
ernment as the “use of technology, especially web-based applications to
enhance access to and to effi
fficiently deliver government information and
services.” Many innovative reporting technologies are instrumental to their
regulatory adopters as such technologies help in improving existing report-
ing processes and systems. The adoption of those reporting technologies
requires the collaboration of diff
fferent individuals and stakeholder groups
and the participation of diff
fferent players in an organizational context. In
a regulatory context, the adoption of e-government initiatives requires the
inclusion of people, technology, organizational resources as well as govern-
ment’s stakeholders in the adoption process (Dawes and Pardo, 2002). One
of these e-government initiatives that has played a crucial role in redefi nin
fi
g
the landscape of regulatory electronic reporting is the Extensible Business
Reporting Language, or XBRL.
The adoption of e-government initiatives in general and XBRL in par-
ticular, has unique characteristics, particularly with references to many
CSFs that impact the e-government adoption process. In the literature of
technology adoption, Tornatzky and Fleischer (1990) provide a compre-
hensive framework for understanding technology adoption in an organiza-
tional context. This framework has been recognized by Cahill, Stevens, and
Laplante (1990, p. 74) who indicate that the “confi
figuration of hardware,
software applications, individuals and procedures which together comprise
information system technology in any organization is a “complex package,”
which is highly unique and diff
fferentiated among and between public sector
organizations with varying purposes, charters, resource levels and access to
technology.” Cahill et al. (1990) emphasize that Tornatzky and Fleischer’s
Critical Success Factors provide great explanatory power for understating
technology adoption process in various government settings. These CSFs
have been closely re-examined in the context of XBRL regulatory adop-
tion to determine their applicability and transformative role in developing
e-government process (Mousa, 2010).
These CSFs include recognizing the importance of making the XBRL
business case for the adopting government agency. This entails the real-
ization of the benefi
fits pertinent to the adoption of XBRL with regard to
disseminating business and fi
financial information and minimizing regula-
tory ineffi
fficiencies (Hampton, 2005). XBRL is perceived as an important
reporting tool that would enhance data processing (Boyd, 2004) and facili-
tate the disclosure of publicly traded companies’ data (Rezaee & Turner,
2002; Willis, 2007). XBRL literature also emphasizes the espoused benefits
delivered by XBRL including data comparability, reliability and timeliness
(ICAEW, 2004; Kull et al., 2007; Kull & Abraham, 2008; Rogers, 2010).
E-Government Adoption of XBRL 201
XBRL business case for stakeholders has been also identifi
fied as another
Critical Success Factor. Identifying and meeting potential stakeholders’
needs—especially end users-—during the process of adopting technolo-
gies has been reported in e-government literature (Barret & Green, 2001;
West & Berman, 2001; Dawes & Pardo, 2002; GAO, 2001). In addi-
tion, Schwester argues that building a strong public support for adopted
technologies helps to reduce public resistance towards using government
information services (Schwester, 2009). The literature also indicates that
government agencies should provide technology demonstration and proto-
types to make the business case for potential users (Caff
ffrey, 1998; Dawes
& Pardo, 2002).
E-government literature indicates that the process of adopting e-gov-
ernment initiatives is not only a function of the adopted technology or the
processed data but also a function of the availability of technical expertise
needed to support such technology (Brudney & Selden, 1995; Heeks, 1999;
Lee et al., 2003). Technical expertise has been recognized as another Criti-
cal Success Factor that emphasizes
the importance of hiring and retaining
qualified technical professionals and experts who have the education back-
ground and/or professional experiences that will enhance the adoption of
e-government initiatives (Melitski, 2003).
The literature also recognizes the ability of government agencies to over-
come the inherent technical diffi
fficulties associated with technology adop-
tion as one of the Critical Success Factors. Ambite et al. (2002) and Dawes
(1996) identify potential difficulties associated with data structure that
cannot be easily processed by regulatory processing systems. Rogers (1983)
considers technological complexity as an inhibitory to the adoption and
DeLone and McLean (2003) make the argument by lining ease-of-use to
more adoption. The sophisticated structure and the continuous prolifera-
tion of XBRL taxonomy versions are among the barriers that have been
noted in XBRL literature that could decelerate XBRL adoption process
(Rezaee & Turner, 2002; Cushing, 2003; Vun Kannon & Hannon, 2004;
Dunne et al., 2009).
Heeks (1999), Norris (1999), and Lee et al. (2003) argue that external
support—represented by business partnerships—could also be provided
through software testing, product demonstration, and IT-tailored training
to enhance the existing organizational skills of the adopting organization’s
staff memb
ff
ers. The access to external technical and non-technical support
and information from stakeholders has been recognized as a Critical Suc-
cess Factor (Tornatzky & Fleischer, 1990). In addition, Irani (2002) and
Dembla et al. (2003) suggest that a supportive regulatory role by top gov-
ernment offi
fficials could facilitate the adoption of technologies by govern-
ment agencies.
The adoption of XBRL has been driven by regulatory authorities
which utilize the functionality of data standardization and processing
tools in their legacy reporting systems (Mousa, 2010). Mousa’s research
202 Rania Mousa and Yu-Che Chen
has assessed the impact of the previously discussed CSFs on the adoption
of XBRL in a British government agency, Companies House (Mousa,
2010). This chapter builds on Mousa’s fi
findings and provides a compara-
tive analysis of XBRL adoption processes at the United Kingdom’s CH
and the United States’ SEC. The SEC has been selected as an instruc-
tive example of a government agency that recognized the significance of
XBRL as a remarkable “interactive data” reporting technology that has
facilitated the reporting and processing of fi
financial and business infor-
mation fi
filed by publicly traded companies in the United States. CH has
been selected as a pioneer executive government agency that recognized
the capabilities of XBRL in processing the audit-exempt annual statutory
information fi
filed by small companies in the United Kingdom. The com-
parative analysis in the following section is based on examining XBRL
adoption processes at CH and the SEC. A detailed description can be
made available upon request.
3 COMPARATIVE ANALYSIS OF CRITICAL SUCCESS FACTORS
3.1 Making XBRL Business Case for the
Adopting Government Agency
The Securities and Exchange Commission and Companies House realized
the benefi
fits of XBRL with regard to disseminating business and fi
finan-
cial information and minimizing regulatory ineffi
ci
ffi encies (Hampton,
2005). The SEC sought the adoption of XBRL to facilitate the disclosure
of publicly traded companies’ data. The use of XBRL by the SEC was
also driven by XBRL’s capability to provide meaningful and timely com-
parison of corporate data. XBRL was perceived as a machine-readable
reporting medium that would enhance data capturing and manipulation
in the audit-exempt companies’ accounts at CH. This fi nd
fi
ing supports
the importance of XBRL in facilitating the processing of information
received from companies fi
filing their statutory information. CH was also
driven by the fi
financial outcome of selling XBRL data to Internet users
and data aggregators. Table 15.1 illustrates the profi
fits (losses) generated
by providing registration versus dissemination services during the period
2002–2010.
Both government agencies’ decisions to adopt XBRL were aligned with
their strategic vision to digitize the processing of regulatory fi
filings and pro-
vide timely and reliable fi
financial and business information to various XBRL
user groups, including investors and public users. CH’s and the SEC’s rec-
ognition of XBRL’s benefi
fits was an important catalyst and a Critical Suc-
cess Factor in the process of making XBRL business case for the agencies,
which paved the way for integrating XBRL into their existing electronic
reporting systems.
E-Government Adoption of XBRL 203
Table 15.1 Financial Results of CH’s Registration and Dissemination Services
(2002–2010)
Profi
fit (Loss) (£ million)
2002/ 2003/ 2004/ 2005/ 2006/ 2007/ 2008/ 2009/
Services
03
04
05
06
07
08
09
10
Registration Services—
3.0
3.4
(6.2)
2.0
0.1
2.0
(2.0)
(2.2)
include incorporation,
annual registration,
dissolutions and late
fi ling penalties.
fi
Dissemination Services
2.1
0.7
6.5
0.7
0.9
1.6
1.8
1.1
—include searches
delivered on paper,
electronically and
to bulk users
(data aggregators)
Source: CH Annual Reports
3.2 Making XBRL Business Case for Stakeholders
Addressing potential users’ concerns varied between the Securities and
Exchange Commission and Companies House. During the course of imple-
menting the voluntary fi
filing program, the SEC was keen to identify poten-
tial concerns of the impact of adopting XBRL on reporting businesses
by taking a phase-in schedule starting with large companies to minimize
the compliance cost for smaller companies. In the published fi
final rule on
XBRL reporting (Interactive Data to Improve Financial Reporting: Final
Rule, Feb.10, 2009), the SEC made XBRL business case for investors by
emphasizing the potential advantages of fi
filing corporate data in XBRL.
The SEC’s eff
fforts have been supported by e-government literature in terms
of the need to build a strong public support for the adopted technology to
reduc
e potential public resistance toward using government information
services. The published fi
final rule on XBRL was followed by the SEC’s
move to mandate the use of XBRL in June 2009. CH adopted a different
approach in making XBRL business case for the small companies by off
ffer-
ing reduced XBRL fi
filing fees and by raising users’ awareness through the
showcase and testing sessions, which supports the ICAEW report (2009)
on the importance of testing XBRL capabilities in coping with processing
large volumes of data. While the SEC took a voluntary then mandatory
phase-in approach, CH opted for introducing XBRL on a voluntary basis
to small companies. However, in its future plans to expand the use of
204 Rania Mousa and Yu-Che Chen
XBRL for the fi
filing of audited accounts presented by large companies,
CH would follow the UK government mandate to receive XBRL-based
audited accounts.
3.3 Availability of Technical Expertise
As an organization, CH did not have adequate in-house technical exper-
tise to build XBRL taxonomy structure that would support the fi lin
fi
g of
the audit-exempt accounts. CH did not have a full-fl
fledged IT department.
When CH’s XBRL team was formed, two members acquired practical IT
knowledge, specifi
fically in computer programming and XML languages.
Upon implementing XBRL, CH struggled with recruiting and retaining
additional IT professionals as they opted for better employment oppor-
tunities at private sector organizations. However, the SEC had a strong
IT department of approximately 120 full-time employees who were
responsible for the IT function of the agency direction and administrative
support (U.S. Securities and Exchange Commission, 2009). The SEC’s
signifi
ficant IT expertise was a Critical Success Factor in adopting XBRL,
as the IT department successfully collaborated with different stakehold-
ers during the implementation of the voluntary fi
filing program, which
eventually provided a stronger foundation for building XBRL taxonomy
for the companies’ data.
3.4 Overcoming XBRL Complexity
The sophisticated structure and the continuous proliferation of XBRL
taxonomy versions were among the barriers faced by CH and the SEC.
However, CH and the SEC managed to maneuver the data complexities
associated with XBRL taxonomy. Due to CH’s lack of technical expertise,
Public Sector Transformation Through E-Government Page 35