Business Process Automation: Compliance Management

Abstract

Purpose: The purpose of this research is to study the indirect relationship between Application Capability and Technology Adoption. This study aims to explore how application capability in the technological aspect fosters the adoption of the technology. Specifically, to investigate the mediating roles of the regulation compliance and relative advantage to prove the above linkage. Compliance knowledge, flexibility orientation, and managerial acquiescence are used as the moderators.

Design/Methodology/approach: We are using a causal-predictive research design. Causal refers to a cause-and-effect relationship, whereas predictive denotes the ability of the research to be able to derive similar results both within the same sample and out of the sample. The method we have used is the deduction method for our quantitative research. The survey data were collected from 270 employees in the market of Pakistan. The data was analyzed using the PLS-SEM algorithm.

Originality/ Value: This study enriches previous technology adoption and regulatory compliance research and adds to current literature focused specifically on the scope of automating processes and regulatory technology. In this paper, three new moderators are Compliance knowledge, Organizational Culture: Flexibility Orientation, and Managerial Acquiescence. We have studied the relationship and indirect effect of application capability on the adoption of new technologies and specific regulatory technology. Three of our hypotheses are that the positive effect of Application Capability on Regulation Compliance, the positive effect of Regulation Compliance on Relative Advantage, and the positive effect of Relative Advantage on Technology Adoption have been accepted/supported as mentioned in the results while the three moderating effects that are The moderating role of Compliance knowledge, The moderating role of Organizational Culture: flexibility orientation and The moderating role of Managerial Acquiescence have been rejected/not supported.

Implications: This study will prove useful for managers to see the technological readiness of organizations for a possible integration of regulatory technologies. To the society at large, they can use this research to understand the market demands and usages of technologies within the corporate sector, especially in compliance with understanding if their competencies are aligned with working in the compliance departments.

Keywords: Technology adoption, application capability, relative advantage, regulation compliance, compliance knowledge, flexibility orientation, managerial acquiescence.