Institutional support factors and intention to adopt innovative financing instruments: does financial advice moderate?

Abstract

This study examines the influence of institutional support factors on Tanzanian local government authorities’ intention to adopt innovative financing instruments and examines whether financial advice moderates these relationships. Grounded in institutional theory, institutional support factors including facilitating conditions, the regulatory framework and complementary knowledge were examined as predicting variables. Data were collected using a structured questionnaire from 255 financial decision-makers in 6 city and 20 municipal councils in Tanzania. Partial least squares structural equation modelling (PLS-SEM) was used to test the model in SmartPLS 4. The results show that facilitating conditions, the regulatory framework and complementary knowledge positively influence intention to adopt innovative financing instruments. Financial advice strengthens the effects of the regulatory framework and complementary knowledge but does not significantly moderate the relationship between facilitating conditions and intention to adopt innovative financing instruments. These findings suggest that clearer regulations, stronger organisational conditions and relevant complementary knowledge are important for innovative financing instruments adoption in Tanzanian local government authorities. The study highlights the value of embedding financial advisory support in public-sector financing programmes to help decision-makers translate institutional requirements into workable adoption decisions.

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Keywords

Financing instruments
,
Local government
,
Financial advice
,
Institutional support
,
PLS-SEM

References

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DOI: https://doi.org/10.58548/2026abmj41.6683
Submitted:
Published: June 30, 2026