The Influence of Regulatory Actions and Individual Factors on Effective Utilization of EFDs: A User-Centred Study in Tanzanian Oil and Gas Refuelling Centres

Abstract

Electronic Fiscal Devices (EFDs) play a pivotal role in facilitating tax
compliance in developing countries such as Tanzania. This study explored the
influence of regulatory actions namely Regulatory Supportive Services (RSS) and
Regulatory Coercive Measures (RCM) on the Effective Utilization of EFDs in
Tanzanian oil and gas refuelling centres taking into account the mediating role
of Individual Related Factors (IRF). Data from 101 participants were analysed
using Partial Least Squares Structural Equation Modelling (PLS-SEM).
Findings reveal that both RSS and RCM positively influence EFDU, with RCM’s
influence being statistically significant. IRF significantly affects EFDU and
mediates the relationship between RSS and EFDU strongly, and between RCM
and EFDU partially. Study suggests that the effects of RSS and RCM on EFDU
are amplified when IRF e.g., attitude, perceptions and behaviour towards EFD
usage are considered. It highlights the importance of focusing on IRF alongside
regulatory measures to enhance EFDs utilization. Moreover, study underscores
the relevance of integrating institutional theory with information system theories
(e.g., Theory of Planned Behaviour and Technology Acceptance Model) to
understand the interplay between regulatory actions and individual factors to
enhance EFD usage. Findings provide valuable insights to enhance EFD
implementation particularly in the oil and gas business sector.

Keywords: Electronic Fiscal Devices, Regulatory Authority Actions, Individual Related Factors,
Effective Utilization of EFDs, Oil and Gas businesses