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The corporate governance inertia: the role of management accounting and costing systems in a transitional public health organization

Corporate Governance in Less Developed and Emerging Economies

ISBN: 978-1-84855-252-4, eISBN: 978-1-84855-253-1

Publication date: 1 January 2008

Abstract

Purpose – The paper explains how internal reporting systems, as embedded practices informing organizational actions and “know-how”, contributed to the inertia in implementing a corporate form of governance in a transitional public organization in a developing country – Egypt.

Design/methodology/approach – The paper synthesizes an institutional theory framework in order to capture the case study mixed results. Drawing on DiMaggio and Powell's (1983) notions of isomorphic mechanisms, Ocasio (1999) and Burns and Scapens’ (2000) notions of organizations’ memory, history, cumulative actions and routines, Brunsson's (1994) notion of organizational institutional confusion as well as Carruthers's (1995) notion of “symbolic window-dressing” adoption of new practices, the paper explores the dynamic of a public hospital corporatization processes. Data collection methods include semi-structured interviews, documentary evidence and direct observation.

Findings – The case study evidence shows that the interplay between the new form of “corporate” governance and the intra-organizational power, routines and “know-how” created internal organizational confusion and changed organizational members’ narrative of risk and uncertainties.

Research limitations/implications – The paper does not reveal the role of reformers involved in the public sector “governance” reform in developing countries. Exploring such a role goes beyond the scope of this paper and represents an area of future research.

Originality/value – The paper provides a comprehensive account of public sector “governance” reform in a developing nation, while exploring the role of management accounting and costing systems in facilitating or otherwise that reform processes.

Citation

Kamal Hassan, M. (2008), "The corporate governance inertia: the role of management accounting and costing systems in a transitional public health organization", Tsamenyi, M. and Uddin, S. (Ed.) Corporate Governance in Less Developed and Emerging Economies (Research in Accounting in Emerging Economies, Vol. 8), Emerald Group Publishing Limited, Leeds, pp. 409-454. https://doi.org/10.1016/S1479-3563(08)08014-6

Publisher

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited