The role of leadership in the adoption of online tax filing systems by micro, small, and medium enterprises in Ghana: An extension of the technology-organization-environment framework

Abstract The Government of Ghana has been enhancing its online services to improve efficiency, facilitate convenience for businesses, and boost revenue generation. One such service is the provision of online tax filing for enterprises. Micro, small and medium enterprises account for over ninety percent of all business in Ghana which is a potential area to target for revenue collection through digitalization. While researchers have highlighted the potential benefits of digitalizing tax collections, there remain concerns regarding the adoption of online tax filing systems. This underscores the necessity to examine factors that could facilitate their effective implementation. This study investigates the role of leadership on factors which influence the adoption of online tax filing system by micro, small and medium enterprises in Ghana. The study is based on an extension of Technology-Organization-Environment theory which provide a theoretical framework for understanding the factors which influence acceptance of technology. Data were collected from 121 micro, small, and medium sized businesses which utilize the online tax filing system. The result of the findings indicates that adoption of an online tax filing system is determined by relative advantage, infrastructure, trust, and the presence of a champion. Furthermore, the study revealed that leadership played a significant moderating effect on the relationship between relative advantage and the presence of a champion. Nevertheless, the impact of leadership on the infrastructure and trust required for the use of online tax filing systems was insignificant. The findings provide crucial insights for micro, small, and medium enterprises and policymakers seeking to promote greater utilization of the online tax submission system in Ghana. The findings contribute to the literature on technology adoption and provide insights into drivers of adopting new technologies in micro, small and medium sized enterprises.