Understanding accrual accounting transitions from the perspective of Saudi public universities

Purpose This paper aims to identify the possible causes of organizational decoupling and challenges during the transition from cash to accrual accounting and their influences in Saudi public universities by assessing the phased process of innovation assimilation. Design/methodology/approach This study involved a qualitative analysis of five universities, with data collection in 2024, which is middle of the transition period from 2021 to 2026 as the trial application years announced by the Finance Ministry of Saudi Arabia. To assess the transition processes, the authors validated a preexisting framework in the Saudi context that integrates the possible causes of decoupling with the process of innovation assimilation phases. This framework was then used in the analysis of five Saudi public universities transitioning from cash to accrual accounting. Findings The findings of the analysis showed that Saudi public universities failed to fully depend on their own human resources in the transition to accrual-based accounting while also facing several difficulties, such as external technical issues and regulation issues. Lacking experts and accountants was the main barrier to the translation to accrual-based accounting, as they were still dependent on contracts with outsourced consultancy firms to perform accrual accounting work. Technical issues in the accrual accounting platform, associated with weak linkages with other internal systems, represented another major barrier to the transition to accrual-based accounting. Research limitations/implications The exploratory nature of this research was limited to qualitative methods only. Practical implications In terms of practical contribution, this study has explored the decoupling behavior of Saudi public universities that practiced during the transition to accrual accounting stages and the barriers associated with it. Social implications The study indicated that Saudi public universities failed to fully self-depend on their human resources in the transition to accrual-based accounting while also facing several difficulties, such as external technical issues and regulatory issues. Lacking experts and accountants is main barrier to the translation to accrual-based accounting, as they are still fully dependent on contracts with outsourced consultancy firms to the perform the accrual accounting work. Also, technical issues in the Tahwel platform associated with weak linkages with other internal systems represent another major barrier to the transition to accrual-based accounting. Originality/value In terms of practical contribution, this study explores the decoupling behavior of Saudi public universities during the transition to accrual accounting and the barriers associated with this. In terms of contribution to the literature, this study adds knowledge to a limited research field in the context of Saudi Arabia. This research represents a pioneer study in the context of Saudi public universities in particular and other Saudi public organizations in general, due to use of similar implementation processes during the transition to accrual-based accounting. The study retested and validated a four-phase framework for the analysis of accounting innovation.