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Accounting for quality and improved organizational performance has recently received attention in management control research. However, the extent to which process innovation changes have been integrated into management control research is limited. This paper contributes to that integration by drawing from institutional adaptive theory of organizational change and process innovation strategies. The paper utilizes a 2 by 2 contingency table that uses two factors: environmental conditions and organizational change/learning strategies, to build a process innovation framework. A combination of these two factors yields four process innovation strategies: mechanistic, organic, organizational development (OD) and organizational transformation (OT).

The four process innovation typologies are applied to characterize innovations in accounting such as activity based costing (ABC). ABC has been discussed as a multi-phased innovation process that provides an environment where both the initiation and the implementation of accounting change can occur. Technical innovation can be successfully initiated as organic innovation that unfolds in a decentralized organization and requires radical change and double loop learning. Implementation occurs best as a mechanistic innovation in a hierarchical organization and involving incremental change and single loop learning. The paper concludes that if ABC is integrated into an OD or OT intervention strategy, the technical and administrative innovation aspects of ABC can be utilized to manage the organization’s operating activities.

This chapter integrates organization design and sustainability concepts to describe an accelerated transformational change at the Fairview Medical Group (United States).

A case study of the transformation at Fairview Medical Group’s primary care clinics was developed from interviews and first-person accounts of the change. Objective data regarding outcomes was used to evaluate the effectiveness of the redesign process.

The Fairview Medical Group developed an innovation and change capability to transform 35 primary care clinics in six months. All of the clinics were certified by the state of Minnesota as complying with their healthcare standards. Clinical outcomes, costs, and employee and physician engagement also increased. All of the improved measures are sustained.

Healthcare reform in the United States struggles because the organization design challenges are great and the change difficulties even greater. Fairview’s experience provides important evidence and lessons that can help advance our understanding of effective healthcare and create more sustainable healthcare systems. This chapter provides healthcare system administrators evidence and alternatives in the pursuit of implementation.

This paper seeks to develop a mid-range theory of how change recipient sensemaking processes affect the realization of strategic flexibility during simultaneous change in professional service firms.

The research presented is based on an exploratory embedded case study adopting a qualitative interpretive methodology, conducted at a professional service organization. A sensemaking lens was adopted in order to study organizational change processes. Data was collected through semi-structured open-ended in-depth interviews, and analyzed using first and second order analysis, inspired by the methodology used by Corley and Gioia (2004).

We identified four determinants of change recipient sensemaking: professional identification, dominant organizational discourse, equivocality of expectations, and cross-understanding between thought worlds. Case findings indicate that cognitive and affective dimensions of change recipient sensemaking are strongly interwoven in their effect on realizing strategic flexibility.

We contribute to the competence-based strategic management literature by introducing the concept of change recipient sensemaking in understanding the realization of strategic flexibility; by identifying four major determinants in a context of simultaneous change in a professional service organization; and by highlighting the interwoven and mutually reinforcing cognitive and affective dimensions of professional’s process of constructing meaning.

A work system may be said to exhibit social sustainability if it utilizes its human, social, economic, and ecological resources with responsibility. This entails using these resources in a non-exploitive way, regenerating them, and paying due attention to the needs and ambitions of its stakeholders in the short- and long-term. For most presently existing organizations attaining and maintaining sustainability requires a midcourse correction, a transformation process. This chapter reviews the main concepts regarding sustainability and previous research of organizational development in this context. It presents a four-phase model for this transformation process and illustrates the model's application in four different contexts. The results are discussed and directions for further research are presented.

The paper extends the organizational learning framework: Structural-Functional (SF)-single-loop or Conflictual-Radical (CR)-double-loop learning to the management accounting literature. The sociological approach of organizational learning is utilized to understand those contingent factors that can explain why management accounting innovations succeed or fail in organizations.

We view learning as enhancing an organization’s strategic competitive advantage by making it better able to adopt and diffuse innovation in respond to changes in its environment in order to manage improved performance. The success of management accounting innovations is contingent upon whether its learning process involves SF-single-loop or CR-double-loop learning to adopt and diffuse process innovation.

The paper suggests that the learning strategy that the organization chooses is the reason why some management accounting innovations are more successfully adopted than others and why some innovations are easily diffused in some organizations but not in others. We propose that the sociological approaches to learning provide an alternative framework with which to better understand the adoption and diffusion of process innovations in management accounting systems.

It has become evident that management accounting researchers need to pay particular attention to an organization’s approach to adoption and diffusion of innovation strategies, particularly when they are designing and implementing process innovation programs for an organization. According to Schulz (2001), there are two interrelated stages of the learning that can shape the outcome of the innovation process in an organization. The first stage is related to the acquisition/production (adoption) of knowledge that results in gathering information, codification, and exploration. This is followed by the second stage which is the distribution or dissemination (diffusion) processes. When these two stages – adoption and diffusion – are applied within an accounting context, they address issues that are commonly associated with the successes and/or failures of management accounting innovations.

Although innovation involves learning, the nature of the learning process does not completely describe the manner in which an innovation affects the organization. Accordingly, we suggest that the two interrelated organizational sociological dimensions of innovations processes, namely, (1) the adoption and diffusion theories of Rogers (1971 and 1995), to approach organizational learning, and (2) the SF (single loop) and CR (double loop) approaches to learning be used simultaneously to describe management accounting innovations.

When an innovation is implemented, it initially can be introduced as an incremental change, one that can be limited in both in its scope and its breadth of administrative changes. This means that situations which are most likely to benefit from its initiation can serve as the prototype for its adoption by the organization. If successful, this can be followed by systemic accounting innovations to instituting broader administrative changes within the existing accounting reporting and control systems.

Complexity theorists propose that organizations are made up of complex responsive processes in which people create and recreate organizational forms through dynamic micro-level interactions. Social constructionists add that conversations are the means by which these interactions occur. Our analysis illustrates how the U.S. Nuclear Regulatory Commission (NRC) engaged a wide range of stakeholders in a successful dialogue process to recreate a new system for monitoring nuclear reactors. The success was due, in large part, to the conversational qualities tacitly and explicitly agreed to by those involved in the process which included a spirit of freedom, inclusion, inquiry, spontaneity, and possibility. Using a grounded theory building process, we show how these qualities produced transformative change by increasing levels of interconnectivity, shared identity, and collective capacity among participants. These findings provide the beginnings of a model for understanding continuous and transformative change and demonstrate the value of engaging the “whole system” in sustained dialogue, even in complex, highly regulated environments.

This article positions actor–-network theory (ANT) as a practice perspective and deploys it to explore the performative practices of internal consultancy teams as they implemented major programmatic change projects within a global telecommunication company. The change process required the creation of a “change network” that emerged as a boundary spanning and organising network as the consultants sought to implement and translate a highly structured change methodology and introduce new meta-routines within the organisation.

By combining the methodological datum of ANT to “follow the actors” (whatever form they take) with the guiding principle of practice theory to focus on practices rather than practitioners, the research explored the in-between temporal spaces of performative practices as they unfolded in relation to standardised routines, material artefacts and the tools and techniques of a systematic change methodology. By a method of “zooming out” and “zooming in” the research examined both the larger context of action and practice in which the change network emerged and the consultants' performative practices; but without falling into static macro–micro dualism, or a purely ethnographic “thick description” of practice. The research is based on interviews (25), participant observation and a review of the extensive documentation of the change methodology.

The findings indicate both how consultants' performative practices are embedded in the social and material arrangements of a change network, and why the intentional, expert or routine enactment of a highly standardised change methodology into practice is intrinsically problematic. Ultimately, the consultants could not rely on knowledge as a fixed, routine or pre-given empirical entity that predefined their actions. Instead, the consultants' performative practices unfolded in temporal spaces of in-betweenness as their actions and practices navigated shifting and multiple boundaries while confronting disparate and often irreconcilable ideas, choices and competing interests.

As an ANT practice perspective, the research blends mixed methods in an illustrative case study, so its findings are contextual, although the methodological rationale may be applicable to other contexts of practice.

The theoretical framing of the research contributes to repositioning ANT as practice theory perspective on change with a central focus on performative practice. The illustrative case demonstrates how a boundary spanning “change network” emerged and how it partly defined the temporal spaces of in-betweenness in which the consultants operated.

Several studies have recently documented projects of organizational transformation and modernization which, commonly clustered under the umbrella term “New Ways of Working” (NWoW), simultaneously entail material, technological, cultural and managerial dimensions. Academic contributions, however, have paid little attention to the mechanisms allowing such projects to progressively become legitimized in organizational discourses and practices. The purpose of this paper is to investigate the distinctive features of the legitimation process underlying the implementation of NWoW projects.

This paper relies on a longitudinal, three-year analysis of a large insurance company. Data were collected through qualitative methods including semi-structured interviews (48), periods of observation (3 months) and document analysis (78).

The paper develops a grounded and integrative framework of legitimation processes underlying “NWoW” change projects. The framework emphasizes four decisive operations of translation in “NWoW” design and implementation: translating material constraints into strategic opportunities; translating strategic opportunities into a quantitative business plan supported by the top management; translating compelling discourses around “NWoW” into an organizational machinery; and translating a transformation project into discourses of unequivocal success, conveyed by legitimate spokespeople within and beyond the organization.

Besides contributing to the understanding of a managerial fashion, which has received little academic attention so far, the paper also offers an original integrative framework to account for legitimation processes that combines two theoretical approaches – the sociology of translation and research on institutionalist work.

This paper aims to explore member readiness for change in manufacturing industry.

The authors interviewed 14 upper management professionals in Northeast US state companies. Inductive analysis and creative synthesis were used for identifying important patterns, themes and relationships pertaining to external and internal factors influencing employee attitudes related to change processes.

The findings suggest relationship between process change and member readiness for change. Leadership and communication channels play a significant role in determining how members adapt and respond to organizational process changes. Companies can achieve desirable outcomes when members trust organizational leadership and perceive management as fair and transparent.

Currently, there is little known about the relationship between process change and member readiness for change in manufacturing industry. The study advances the theoretical literature and provides practical information for manufacturing professionals.