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Power, dependence and frustration: A study of power in Australian accountants’ advisory relationship with small business

Gerard Stone (Centre for Accounting, Governance and Sustainability, University of South Australia, Adelaide, Australia)

Meditari Accountancy Research

ISSN: 2049-372X

Article publication date: 5 October 2015

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Abstract

Purpose

This study aims to explore the existence and strength of power through focussing on the manner in which accountants exercise power in their advisory relationship with small business.

Design/methodology/approach

Interviews provided insights into accountants’ power-related perceptions, experiences and use of power in the advisory relationship. A questionnaire accessed evidence from small business owner-managers (SBOMs). Power theoretical perspectives informed the analysis of the findings.

Findings

Accountants’ expert and information power is a consequence of SBOMs’ dependence on their accountants’ expertise and knowledge. Accountants construct advisor roles and exercise power in a manner indicating that they attempt to manage rather than exploit power imbalances to the detriment of dependent SBOMs. However, outbreaks of frustration and conflict in the relationship illustrate the difficulties in managing the dysfunctional consequences of power imbalances.

Research limitations/implications

While the findings are restricted to the Australian accountant–small business advisory relationship, they offer a basis for research into the effect of power on the relationship in other national contexts. Research which includes the views of managers of failed small businesses would also extend this work.

Practical implications

The study’s focus on accountants’ experiences can assist practitioners endeavouring to develop advisory relationships with small business and designers of professional development programmes seeking to optimise the value of the advisory relationship.

Originality/value

The paper extends the study of power to the under-researched yet important accountant–small business advisory area. Its findings are of interest to accountants and accounting policymakers who envisage a broadening of accountants’ small business advisory role.

Keywords

Acknowledgements

The author gratefully acknowledges the advice of the reviewers, Professors Jane Broadbent, Garry Carnegie, Richard Laughlin, Lee Parker and Associate Professor Sumit Lodhia, which greatly improved this paper. This research received no specific grant from any funding agency in the public, commercial or not-for-profit sectors.

Citation

Stone, G. (2015), "Power, dependence and frustration: A study of power in Australian accountants’ advisory relationship with small business", Meditari Accountancy Research, Vol. 23 No. 3, pp. 250-275. https://doi.org/10.1108/MEDAR-05-2014-0042

Publisher

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Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited

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