IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i21p9322-d1507512.html
   My bibliography  Save this article

Determinants of Tax Avoidance Intentions in Tourism SMEs: The Mediating Role of Coercive Power, Digital Transformation, and the Moderating Effect of CSR

Author

Listed:
  • Stefanos Balaskas

    (Department of Management Science and Technology, University of Patras, 26334 Patras, Greece)

  • Theofanis Nikolopoulos

    (School of Social Sciences, Hellenic Open University, 18 Parodos Aristotelous St., 26335 Patras, Greece)

  • Maria Koutroumani

    (Department of Management Science and Technology, University of Patras, 26334 Patras, Greece)

  • Maria Rigou

    (Department of Management Science and Technology, University of Patras, 26334 Patras, Greece)

Abstract

Tax compliance and avoidance are critical issues for governments and businesses worldwide, especially as businesses often use legal methods to minimize taxes, which can impact public revenue and equity within the tax system. This study focuses on understanding the factors influencing tax avoidance behaviors among SMEs in Greece’s tourism sector, a sector that has received limited research attention. To this end, a quantitative cross-sectional design was employed, using a structured questionnaire to explore potential factors influencing tax avoidance behavior. Data were collected from 534 SME managers and analyzed using Structural Equation Modeling (SEM) to assess the impact of key factors and their interrelationships, including coercive power, digital transformation, tax knowledge, firm performance, and perceived fairness, on tax avoidance. In addition, corporate social responsibility (CSR) was included as a moderator variable, while coercive power and digital transformation were assessed as mediators. Furthermore, Multi-Group Analysis (MGA) was conducted to explore the differences between small and medium enterprises, as well as different ownership structures. The results indicate that all key determinants, except perceived fairness, are significantly and positively related to tax avoidance intention. Additionally, it was revealed that coercive power increases tax avoidance through firm performance and tax knowledge, while digital transformation mediates the influence of firm performance on tax avoidance by curtailing avoidance intentions. While CSR mitigates the negative influence of coercive power, digital transformation has a dual role: that of promoting transparency and strategic efforts to reduce the tax burden. These findings have important policy implications, as policymakers seek to promote digital adoption and enhance CSR engagement while formulating specific regulatory strategies to reduce tax avoidance among SMEs.

Suggested Citation

  • Stefanos Balaskas & Theofanis Nikolopoulos & Maria Koutroumani & Maria Rigou, 2024. "Determinants of Tax Avoidance Intentions in Tourism SMEs: The Mediating Role of Coercive Power, Digital Transformation, and the Moderating Effect of CSR," Sustainability, MDPI, vol. 16(21), pages 1-30, October.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:21:p:9322-:d:1507512
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/21/9322/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/21/9322/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marko Slavković & Jasmina Ognjanović & Marijana Bugarčić, 2023. "Sustainability of Human Capital Efficiency in the Hotel Industry: Panel Data Evidence," Sustainability, MDPI, vol. 15(3), pages 1-16, January.
    2. Athanasios Tagkalakis, 2015. "Fiscal policy, net exports, and the sectoral composition of output in Greece," International Economics and Economic Policy, Springer, vol. 12(4), pages 521-539, October.
    3. Vasilios Patsouratis & Zoe Frangouli & George Anastasopoulos, 2005. "Competition in tourism among the Mediterranean countries," Applied Economics, Taylor & Francis Journals, vol. 37(16), pages 1865-1870.
    4. Amrizah Kamaluddin & Nero Madi, 2005. "Tax Literacy and Tax Awareness of Salaried Individuals in Sabah and Sarawak," Journal of Financial Reporting and Accounting, Emerald Group Publishing Limited, vol. 3(1), pages 71-89, January.
    5. Abdalwali Lutfi & Adi Alsyouf & Mohammed Amin Almaiah & Mahmaod Alrawad & Ahmed Abdullah Khalil Abdo & Akif Lutfi Al-Khasawneh & Nahla Ibrahim & Mohamed Saad, 2022. "Factors Influencing the Adoption of Big Data Analytics in the Digital Transformation Era: Case Study of Jordanian SMEs," Sustainability, MDPI, vol. 14(3), pages 1-17, February.
    6. Thomas Appiah & Daniel Domeher & Joseph Akadeagre Agana, 2024. "Tax Knowledge, Trust in Government, and Voluntary Tax Compliance: Insights From an Emerging Economy," SAGE Open, , vol. 14(2), pages 21582440241, April.
    7. Vanina Adoriana Trifan & Silviu Gabriel Szentesi & Lavinia Denisia Cuc & Mioara Florina Pantea, 2023. "Assessing Tax Compliance Behavior Among Romanian Taxpayers: An Empirical Case Study," SAGE Open, , vol. 13(3), pages 21582440231, September.
    8. Rosalita Rachma Agusti & Aulia Fuad Rahman, 2023. "Determinants of tax attitude in small and medium enterprises: Evidence from Indonesia," Cogent Business & Management, Taylor & Francis Journals, vol. 10(1), pages 2160585-216, December.
    9. Lidija Hauptman & Berislav Žmuk & Ivana Pavić, 2024. "Tax Compliance in Slovenia: An Empirical Assessment of Tax Knowledge and Fairness Perception," JRFM, MDPI, vol. 17(3), pages 1-32, February.
    10. Cheah, Jun-Hwa & Amaro, Suzanne & Roldán, José L., 2023. "Multigroup analysis of more than two groups in PLS-SEM: A review, illustration, and recommendations," Journal of Business Research, Elsevier, vol. 156(C).
    11. Streukens, Sandra & Leroi-Werelds, Sara, 2016. "Bootstrapping and PLS-SEM: A step-by-step guide to get more out of your bootstrap results," European Management Journal, Elsevier, vol. 34(6), pages 618-632.
    12. Madeleine Stiglingh & Anna-Retha Smit & Anri Smit, 2022. "The relationship between tax transparency and tax avoidance," South African Journal of Accounting Research, Taylor & Francis Journals, vol. 36(1), pages 1-21, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yong, Shih Ween & Cheah, Jun-Hwa & Lim, Xin-Jean & Ng, Siew Imm & Leong, Yee Choy, 2023. "How to make you spend more in the airport? An investigation towards ECSI model on willingness to spend more in airport," Journal of Air Transport Management, Elsevier, vol. 112(C).
    2. Morais, Ana Catarina & Ishida, Akira & Matsuda, Ruriko, 2024. "Ethical food consumption drivers in Japan. A S–O-R framework application using PLS-SEM with a MGA assessment based on clustering," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    3. Kautish, Pradeep & Paço, Arminda & Thaichon, Park, 2022. "Sustainable consumption and plastic packaging: Relationships among product involvement, perceived marketplace influence and choice behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    4. Galina S. Arzamasova & Irena A. Esaulova, 2022. "Effects of HR management on employee environmental behaviour: The role of green organizational culture," Upravlenets, Ural State University of Economics, vol. 13(3), pages 46-56, July.
    5. Ketenci, Natalya, 2009. "The ARDL Approach to Cointegration Analysis of Tourism Demand in Turkey: with Greece as the substitution destination," MPRA Paper 86602, University Library of Munich, Germany.
    6. Diego Norena-Chavez, 2022. "Influence of SARS-CoV-2 on the Mediating Effect of Entrepreneurial Passion in the Relationship between Entrepreneurial Self-Efficacy and Innovative Behavior," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 125-139.
    7. Carlos Devece & Daniel Palacios-Marqués & D. Enrique Ribeiro-Soriano, 2021. "IT-based strategy, capabilities, and practices: crowdsourcing implementation in market-oriented firms," Review of Managerial Science, Springer, vol. 15(1), pages 15-32, January.
    8. Wang, Siqi & Cheah, Jun-Hwa & Lim, Xin-Jean & Leong, Yee Choy & Choo, Wei Chong, 2022. "Thanks COVID-19, I'll reconsider my purchase: Can fear appeal reduce online shopping cart abandonment?," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    9. Lutfi, Abdalwali & Alrawad, Mahmaod & Alsyouf, Adi & Almaiah, Mohammed Amin & Al-Khasawneh, Ahmad & Al-Khasawneh, Akif Lutfi & Alshira'h, Ahmad Farhan & Alshirah, Malek Hamed & Saad, Mohamed & Ibrahim, 2023. "Drivers and impact of big data analytic adoption in the retail industry: A quantitative investigation applying structural equation modeling," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    10. Agiomirgianakis, George & Serenis, Dimitrios & Tsounis, Nicholas, 2017. "Effective timing of tourism policy: The case of Singapore," Economic Modelling, Elsevier, vol. 60(C), pages 29-38.
    11. Ana León-Gómez & José Manuel Santos-Jaén & Daniel Ruiz-Palomo & Mercedes Palacios-Manzano, 2022. "Disentangling the impact of ICT adoption on SMEs performance: the mediating roles of corporate social responsibility and innovation," Oeconomia Copernicana, Institute of Economic Research, vol. 13(3), pages 831-866, September.
    12. Manuel Alonso-Dos-Santos & Carmen Zarco & Sardar Mohammadi & Daniela Niño-Amézquita, 2024. "Sponsorship effectiveness on betting intention-unobserved segmentation," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    13. Alma Sheko & Alma Braimllari (Spaho), 2018. "Information Technology Inhibitors and Information Quality in Supply Chain Management: A PLS-SEM Analysis," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 7, November.
    14. Ngassam, Sylvain B. & Asongu, Simplice A. & Ngueuleweu, Gildas Tiwang, 2024. "A revisit of the natural resource curse in the tourism industry," Resources Policy, Elsevier, vol. 88(C).
    15. Hong, Law Chee, 2016. "Sectoral Impact of Fiscal Policy in Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 50(1), pages 81-98.
    16. Dybro Liengaard, Benjamin, 2024. "Measurement invariance testing in partial least squares structural equation modeling," Journal of Business Research, Elsevier, vol. 177(C).
    17. Eduardo Terán-Yépez & David Jiménez-Castillo & Manuel Sánchez-Pérez, 2023. "The role of affect in international opportunity recognition and the formation of international opportunity beliefs," Review of Managerial Science, Springer, vol. 17(3), pages 941-983, April.
    18. Majid Ghasemy & Isabel Maria Rosa-Díaz & James Eric Gaskin, 2021. "The Roles of Supervisory Support and Involvement in Influencing Scientists’ Job Satisfaction to Ensure the Achievement of SDGs in Academic Organizations," SAGE Open, , vol. 11(3), pages 21582440211, July.
    19. Cheah, Jun-Hwa & Lim, Xin-Jean & Ting, Hiram & Liu, Yide & Quach, Sara, 2022. "Are privacy concerns still relevant? Revisiting consumer behaviour in omnichannel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    20. Khaled Naser Yousef Magableh & Selvi Kannan & Aladeen Yousef Rashid Hmoud, 2024. "Innovation Business Model: Adoption of Blockchain Technology and Big Data Analytics," Sustainability, MDPI, vol. 16(14), pages 1-25, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:21:p:9322-:d:1507512. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.