Public Sector Accounting Reform through Lüder’s Contingency Model: A Literature Analysis

Abstract

Public sector accounting reform continues to evolve in response to the increasing demands for transparency, accountability, and effectiveness of public financial management. This article analyzes the literature of the last five years to evaluate the factors influencing the successful implementation of accrual-based accounting through the framework of Lüder’s Contingency Model. The results of the synthesis indicate that changes in public accounting are influenced by the complex interplay between reform stimuli, information user capacity, the political-administrative context, and technical and institutional implementation barriers. Accrual benefits, including improved reporting quality, asset management, and fiscal accountability, can only be achieved if supported by human resource readiness, integrated information systems, and sustained political commitment. In contrast, without such support, accruals tend to generate administrative burdens without substantive impact. In addition, the development of digital governance strengthens the need for technology integration in accounting reform to ensure the openness and accessibility of public data. These findings confirm that public sector accounting reform is a long-term process that requires a holistic approach to realize good governance and effective public financial management.