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This paper analyses participatory budgeting (PB) in two Indonesian indigenous communities, illustrating how the World Bank sponsored neo-liberal model of “technical rational” PB is overshadowed by local values and wisdom, consisting of sophisticated, pre-existing rationalities for public participation.

Adopting a qualitative and interpretive case study approach, the study draws on data from semi-structured interviews with key stakeholders and periods of participant observation. The paper utilises Weber's characterisations of rationality to analyse the PB process in indigenous communities.

The co-existence of both formal (technical) and substantive rationalities leads two Indonesian indigenous communities to execute participatory budgeting pragmatically. The formal budgetary mechanisms (Musrenbang), cascaded down from central and local governments, are melded with, and co-exist alongside, a tradition of public participation deriving from local cultural values and wisdom (Rembug warga). Reciprocal relationships and trust based on a pre-existing substantive rationality result in community members adapting budget practices while also preserving their local culture and resisting the encroachment of neo-liberal initiatives. The paper offers deeper analysis of the unintended consequences of attempting to implement technical rational accounting reforms and practices in indigenous settings.

The paper provides important insights into the way the interplay between formal and substantive rationality impacts on accounting and budgeting practices in indigenous communities. Our study also presents a unique case in emerging economy contexts in which neoliberal initiatives have been outmanoeuvred in the process of preserving indigenous values and wisdom. The informal participatory mechanism (Rembug warga) retained the community trust that neoliberalism systematically erodes.

This paper aims to utilize a framework from classic sociology – Max Weber’s Typology of Rationality – to understand the motivations for social entrepreneurship in responsible tourism in India. The critical role of the social entrepreneur in effecting the phenomenon of social entrepreneurship has been largely under-recognized. The authors seek to explore, develop and enhance Weber’s theoretical arguments in the context of the tourism industry.

The authors used a constructivism paradigm and Seidman’s (2006) Three Interview Series technique to obtain the narratives of two social entrepreneurs in India. Data were analyzed using a hybrid thematic coding procedure.

Findings indicate that there exists a dynamic interplay between the formal and substantive rationalities that underlie the behavior of social entrepreneurs. The authors also discuss how entrepreneurs draw upon their formal and substantive repertoires to create their identities through the simultaneous processes of apposition (“Me”) and opposition (“Not Me”).

The findings provide an important recognition of the impact of formal and substantive rationalities on the conceptualization, implementation and manifestation of social enterprise for a variety of stakeholders.

This paper makes a significant contribution to understanding the why and the how of social entrepreneurship in responsible tourism. It provides a framework that can be widely applied to develop and enhance Weberian theory and further the understanding of the fundamental nature of human behavioral phenomena in tourism and beyond.

In this viewpoint, the authors argue that the predominant method of analyzing conflict management focuses too heavily on the managerial interests in administrative efficiency and productivity rather than on the needs of individuals and organizations. The aim of this paper is to employ Weber's analysis of conflict systems, specifically the distinction between formal and substantive rationality, to support the authors’ view.

This is a viewpoint, where content is dependent on the author's opinion and interpretation.

Conflict management based on Weber's theories of formal and substantive rationality will benefit organizations and society by promoting a more positive perception of corporate behavior.

Future research could examine the relationship between organizational justice and the more global concepts of formality and rationality. Similarly, future research on justice may be expanded by through the notion and perception of legitimacy by members of the organization. How employees accept a system as fair and just has potential import for future justice research.

The combination of formal and substantive rationality offers a practical, and meaningful, way of dealing with conflict from a personal orientation as well as an organizational one. It orients conflict resolution toward people rather than productivity concerns. It further safeguards organizational interests by minimizing litigation, negative publicity, and other adverse effects of conflict.

Weber theorized that formal rationality requires organizations to develop clear, objective, and universal procedures in order to carry out administrative routines. Substantive rationality, in contrast, acknowledges that specific cases may demand particularized decision‐making focusing on individual cases. The paper draws on the procedural justice literature to show how these procedures can be implemented in a fair manner.

This chapter examines how proponents of industrialization used multiple modes of communication to socially construct the rational myth of industrialization in the French construction sector after World War II. We illuminate the respective roles of visual and verbal communication in this process. Our findings suggest that actors construct rational myths according to the following step-by-step method: first, they use visuals to suggest associations between new practices and valuable purposes; then they use verbal text to establish the technical rationality of certain practices; and lastly, they employ both verbal and visual communications to convey their mythical features.

This paper examines how a “quasi-formal” organisation in a developing country engages in informal means of organising and decision-making through the use of calculative measures.

The paper presents a case study of a large-scale indigenous manufacturing company in Ghana. Data for the study were collected through the use of semi-structured interviews conducted both onsite and off-site, supplemented by informal conversations and documentary analysis. Weber's notions of rationalities and traditionalism informed the analysis.

The paper advances knowledge about the practical day-to-day organisation of resources and the associated substantive rational calculative measures used for decision-making in quasi-formal organisations operating in a traditional setting. Instead of formal rational organisational mechanisms such as hierarchical organisational structures, production planning, labour controls and budgetary practices, the organisational mechanisms are found to be shaped by institutional and structural conditions which result from historical, sociocultural and traditional practices of Ghanaian society. These contextual substantive rational calculative measures consist of the native lineage system of inheritance, chieftaincy, trust and the power concealed within historically established sociocultural practices.

This paper is one of a few studies providing evidence of how local and traditional social practices contribute to shaping organising and decision-making activities in indigenous “quasi-formal” organisations. The paper extends our understanding of the nexus between “technical rational” calculative measures and the traditional culture and social practices prevailing in sub-Saharan Africa in general, and Ghana in particular.

Purpose – The purpose of this chapter is to enhance understanding of misbehavior through an exploration of film and TV treatments of workplace relations.

Methodology/approach – Analysis of examples of misbehavior drawn from film and TV within a theoretical framework informed by formal and substantive rationality.

Findings – Workplace definitions of misbehavior are multi-faceted, contextually specific, and both perspective- and power-dependent. They are constructed within workplace settings, where expressions of formal and substantive rationality intersect with everyday working practices.

Research limitations/Implications – The discussion is limited by the mainly fictional character of the resources used.

Practical implications – The chapter illustrates how representations of organizations as “rational” are limited and how more complex understandings of rationality might contribute to a more nuanced view of the co-production of workplace misbehavior practices by managers, workers, and/or unions.

Social implications – The chapter illustrates how multiple rationalities may be expressed and socially embedded within specific workplace settings.

Originality/Value of chapter – The focus on mainly fictional examples drawn from popular culture to interpret workplace behavior is the chapter's most distinctive feature.

The authors examine how political players attempt to rationalise arguments for and against the expansion of auditing into governmental affairs, and how state audit authorities respond to politically motivated boundary work. This study is motivated by growing evidence of political involvement in attempts to both expand and undermine state audit oversight of government affairs.

The authors present an interpreted history (covering relevant events from 1995 to 2016) of political rationales and associated boundary work that led to the expansion of the Office of the Auditor General of Ontario's (OAGO) mandate to audit government advertising campaigns for partisanship as well as attempts to modify this new audit remit over time.

The authors reveal substantive, formal and practical ways in which political players sought to rationalise/counter-rationalise expanding the OAGO's authority to the unfamiliar territory of advertising probity. The authors show how such justification claims ebb and flow in accordance with changeable political interests, and how state auditors react to the fraught nature of politically motivated boundary work.

The authors conceptualise important forms of rationalising rhetoric (which cannot be reduced to expressions of neoliberal government) that can be mobilised to deem state auditor authority legitimate in overseeing otherwise novel, unfamiliar and controversial government affairs. The authors also reveal a hitherto unrecognised resolve in state auditor responses to political intervention and shed further light on generalised forms of rationale that can underpin boundary work at the margins of accounting.

This paper argues that the means by which the profession of medicine has to legitimise itself in the context of state‐provided health services is changing in a way that may be summarised in Weberian terms as a shift from substantive to formal rationality. The traditional model for such legitimations, evident in the UK over the last 50 years, relied heavily on professional interpretation of emergent patient needs, on professional pragmatism as a means of coping with resource limitations, on unsystematic empiricism and self‐critical reflections as sources of clinical knowledge, on professional self‐regulation, and on an empirical legal test of professional negligence. This seems to be in the process of being replaced by a neo‐bureaucratic model that relies on formalised assessments of patient need, explicit micro‐economic analysis, cumulative “scientific” evidence implemented through bureaucratic rules, increasingly external regulation, and possible shift to normative legal tests of professional negligence.

Entrepreneurs are increasingly relying on artificial intelligence (AI) to assist in creating and scaling new ventures. Research on entrepreneurs’ use of AI algorithms (machine learning, natural language processing, artificial neural networks) has focused on the intra-organizational implications of AI. The purpose of this paper is to explore how entrepreneurs’ adoption of AI influences their inter- and meta-organizational relationships.

To address the limited understanding of the consequences of AI for communities of entrepreneurs, this paper develops a theory to explain how AI algorithms influence the micro (entrepreneur) and macro (system) dynamics of entrepreneurial ecosystems.

The theory’s main insight is that substituting AI for entrepreneurial ecosystem interactions influences not only entrepreneurs’ pursuit of opportunities but also the coordination of their local entrepreneurial ecosystems.

The theory contributes by drawing attention to the inter-organizational implications of AI, explaining how the decision to substitute AI for human interactions is a micro-foundation of ecosystems, and motivating a research agenda at the intersection of AI and entrepreneurial ecosystems.

Institutional theory is becoming one of the dominant theoretical perspectives in organization theory and is increasingly being applied in accounting research to study the practice of accounting in organizations. However, most institutional theory research has adequately theorized neither the institutionalization process through which change takes place nor the socio‐political context of the institutional formations. We propose a social theory based framework for grounding and expanding institutional theory to more fully articulate institutionalization processes. Specifically, we incorporate institutional theory and structuration theory and draw on the work of Max Weber in developing a framework of the context and the processes associated with creating, adopting and discarding institutional practices. We propose that the expanded framework depicts the socio‐economic and political context better and more directly addresses the dynamics of enacting, embedding and changing organizational features and processes. Expanding the focus of the institutional theory based accounting research can facilitate a more comprehensive representation of accounting as the object of institutional practices as well as provide a better articulation of the role of accounting in the institutionalization process.