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Article
Publication date: 25 August 2023

Fabiano Siqueira de Oliveira, Octávio Ribeiro de Mendonça Neto, Jose Carlos Tiomatsu Oyadomari and Claudio de Araújo Wanderley

This study aims to explore how management accounting practices act as drivers of organizational change in situations of institutional complexity.

Abstract

Purpose

This study aims to explore how management accounting practices act as drivers of organizational change in situations of institutional complexity.

Design/methodology/approach

A case study was carried out in a small company with a strongly rooted social culture, which was acquired by a large conglomerate and underwent a process of strategic change as part of a new control logic. Based on this, the study analyzes the evolution of this change, with a particular focus on the efforts to construct the meaning of the performance through the inscription of objects from the cultural system to which it is attached and the “situated rationality” of the managers who are involved in its production.

Findings

The authors show how managers link their own concepts of performance to accounting practices. At the same time, the authors show how accounting practices unfold through representational gaps that their production generates.

Research limitations/implications

This study acknowledges that bias may arise from reliance on retrospective views of past processes and events, gathered primarily through interviews, documentation and observations.

Practical implications

This study highlights that the way in which the performance concept is presented by accounting practices can have a constructive effect on the organization through the aspirations that its representations entail, thus having the potential to stimulate change in organizations.

Originality/value

This study contributes to the organizational literature by clarifying that accounting practices drive change by providing spaces for debates and questions that affect the way organizations understand and report their performance.

Details

Journal of Accounting & Organizational Change, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 8 March 2024

Jennifer Kunz, Johanna Oltmann and Felix Weinhart

The present paper aims to focus on the role which German controllers play so far in the process of sustainable transformation in for-profit organizations, the current obstacles to…

Abstract

Purpose

The present paper aims to focus on the role which German controllers play so far in the process of sustainable transformation in for-profit organizations, the current obstacles to a wider engagement here and ways to overcome these obstacles.

Design/methodology/approach

The analysis combines two qualitative study designs. Empirical data is generated via a job advertisement analysis and an explorative survey with 107 subjects from management accounting/controlling and sustainability management. The generated data is interpreted against the background of the theory of institutional logics and Abbott’s (1988) theory of professional jurisdiction.

Findings

We find that controllers are in a state of tension. On the one hand, the pressure to integrate sustainability into companies is increasing. On the other hand, they seem to be rather reluctant to get involved. The institutional logics that shape their profession play an important role here, as does an unclear relationship with the sustainability department, which has its own claims here. Based on these observations, we identify the core obstacles to the transformation of the controllers’ profession and discuss solutions which can guide the transformation of this profession.

Originality/value

The present paper provides insights from a unique combination of different quantitative study designs and different perspectives on the possible role that controllers can play in advancing sustainable transformation in companies.

Details

Accounting, Auditing & Accountability Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0951-3574

Keywords

Open Access
Article
Publication date: 30 November 2023

Hany Elbardan, Donald Nordberg and Vikash Kumar Sinha

This study aims to examine how the legitimacy of internal auditing is reconstructed during enterprise resource planning (ERP)-driven technological change.

Abstract

Purpose

This study aims to examine how the legitimacy of internal auditing is reconstructed during enterprise resource planning (ERP)-driven technological change.

Design/methodology/approach

The study is based on the comparative analysis of internal auditing and its transformation due to ERP implementations at two case firms operating in the food sector in Egypt – one a major Egyptian multinational corporation (MNC) and the other a major domestic company (DC).

Findings

Internal auditors (IAs) at MNC saw ERP implementation as an opportunity to reconstruct the legitimacy of internal auditing work by engaging and partnering with actors involved with the ERP change. In doing so, the IAs acquired system certifications and provided line functions and external auditors with data-driven business insights. The “practical coping mechanism” adopted by the IAs led to the acceptance (and legitimacy) of their work. In contrast, IAs at DC adopted a purposeful strategy of disengaging, blaming and rejecting since they were skeptical of the top management team's (TMT's) sincerity. The “disinterestedness” led to the loss of legitimacy in the eyes of the stakeholders.

Originality/value

The article offers two contributions. First, it extends the literature by highlighting a spectrum of behavior displayed by IAs (coping with impending issues vs strategic purposefulness) during ERP-driven technological change. Second, the article contributes to the literature on legitimacy by highlighting four intertwined micro-processes – participating, socializing, learning and role-forging – that contribute to reconstructing the legitimacy of internal auditing.

Details

Journal of Accounting Literature, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0737-4607

Keywords

Article
Publication date: 25 March 2024

Morten Jakobsen

The purpose of this paper is to gain insight into how management accountants can become relevant business partners out of respect for existing locally developed accounts of…

Abstract

Purpose

The purpose of this paper is to gain insight into how management accountants can become relevant business partners out of respect for existing locally developed accounts of economic performance for decision-making.

Design/methodology/approach

The paper is based on qualitative semi-structured interviews with local business actors, in this case, families from seven financially successful Danish dairy farms. The casework and the analysis have been informed by pragmatic constructivism.

Findings

The local business actors do not use the official accounting system for ongoing cost-management-related decision-making. Instead, they use several epistemic methods that include locally developed decision models, experiences, rules of thumb and intuition. The farmers use these vernacular accountings to compensate for the cost management illusion that the formal accounting system tends to create. What the study suggests is that when management accountants engage as business partners, they are likely to enter a space where accounting is already present.

Originality/value

This paper argues that local business actors practice epistemic methods where they develop and use vernacular accountings to support their managerial practice, also in the absence of a professional management accountant. These vernacular accountings may lead the local actors into an illusion because the vernacular accountings do not necessarily have an inherent economic logic and theoretical reliability. The role of the management accountant in such a setting is hence to understand, support and advance local epistemic methods. Becoming a business partner requires a combination of management accounting analytical skills and a sense of empathy and sensitivity regarding what is already at play and how this can become an object of discussion without violating the values of the other.

Details

Qualitative Research in Accounting & Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1176-6093

Keywords

Open Access
Article
Publication date: 14 December 2023

Marta Tkaczyk, Anna Salina, Jouni Lyly-Yrjänäinen and Teemu Laine

New service businesses carry opportunities for industrial companies. The different cost management and management control implications of those service businesses deserve…

Abstract

Purpose

New service businesses carry opportunities for industrial companies. The different cost management and management control implications of those service businesses deserve attention, which is a widely under-researched area in management accounting and control literature. Digital twins could hold potential in unveiling and supporting those new service business opportunities, as a unique approach of this paper. Thus, the purpose of this paper is to examine the possibility and potential for creating a digital twin of a service, especially to unveil the management accounting and control implications of the digital twin in developing new service businesses.

Design/methodology/approach

This paper investigates the potential of a digital twin in unveiling cost and control implications of new service businesses by examining the characteristics of a digital twin in the service business development context. The paper use an in-depth interventionist case study, where the designed animations illustrate the possibilities of a digital twin of a service. The animations showing the service process characteristics were first used as a communication tool and eventually those animations were actively used in customer cases for different purposes. This motivated the idea for examining the implications of such animations representing a digital twin of a service.

Findings

The paper provides empirical insights regarding the potential for developing and using a digital twin of a service for different cost management and management control purposes. The digital twin of a service may include all main details of a new service offering, simulating the functionality of a service, hence making the performance and the implications of the new service concept clear for all the stakeholders. The digital twin of the service enables defining the processes, setting targets and helps communication about the value generation. Thus, they represent a significant toolkit for the management accounting and control function of the manufacturers.

Originality/value

This paper is among the first attempts to understand the digital twin of the service. The paper is unique in providing financial and control implications of digital twins also in the context of service business development. The in-depth interventionist approach enabled an exceptional exploration process on the subject. The article paves the way toward further research on managing the digital twins of services in the future.

Details

Qualitative Research in Accounting & Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1176-6093

Keywords

Open Access
Article
Publication date: 25 March 2024

Paolo Biancone, Valerio Brescia, Federico Chmet and Federico Lanzalonga

The research aims to provide a longitudinal case study to understand how digital transformation can be embedded in municipal reporting frameworks. The central role of such…

Abstract

Purpose

The research aims to provide a longitudinal case study to understand how digital transformation can be embedded in municipal reporting frameworks. The central role of such technology becomes increasingly evident as citizens demand greater transparency and engagement between them and governing institutions.

Design/methodology/approach

Utilising a longitudinal case study methodology, the research focusses on Turin’s Integrated Popular Financial Report (IPFR) as a lens through which to evaluate the broader implications of digital transformation on governmental transparency and operational efficiency.

Findings

Digital tools, notably sentiment analysis, offer promising avenues for enhancing governmental efficacy and citizenry participation. However, persistent challenges highlight the inadequacy of traditional, inflexible reporting structures to cater to dynamic informational demands.

Practical implications

Embracing digital tools is an imperative for contemporary public administrators, promoting streamlined communication and dismantling bureaucratic obstructions, all while catering to the evolving demands of an informed citizenry.

Originality/value

Different from previous studies that primarily emphasised technology’s role within budgeting, this research uniquely positions itself by spotlighting the transformative implications of digital tools during the reporting phase. It champions the profound value of fostering bottom-up dialogues, heralding a paradigmatic shift towards co-creative public management dynamics.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

Keywords

Open Access
Article
Publication date: 19 December 2023

Selena Aureli, Eleonora Foschi and Angelo Paletta

This study investigates the implementation of a sustainable circular business model from an accounting perspective. Its goal is to understand if and how decision- makers use…

1043

Abstract

Purpose

This study investigates the implementation of a sustainable circular business model from an accounting perspective. Its goal is to understand if and how decision- makers use management accounting systems, and what changes are needed if these systems are to support the transition toward a circular economy.

Design/methodology/approach

Dialogic accounting theory frames the case study of six companies that built a value network to develop and implement an innovative packaging solution consistent with circular economy principles. Content analysis was utilised to investigate the accounting tools used.

Findings

The findings indicate that circular solutions generate new organisational configurations based on value networks. Interestingly, managers’ decision-making process largely bypassed the accounting function; they relied on informal accounting and life cycle analysis, which stimulated a multi-stakeholder dialogue in a life cycle perspective.

Research limitations/implications

The research provides theoretical and practical insights into the capability of management accounting systems to support companies seeking circular solutions.

Practical implications

The authors offer implications for accounting practice, chief financial officers (CFOs) and accounting educators, suggesting that a dialogic approach may support value retention of resources, materials and products, as required by the circular economy.

Social implications

The research contributes to the debate about the role of accounting in sustainability, specifically the need for connecting for resource efficiency at the corporate level with the rationalisation of resource use within planetary boundaries.

Originality/value

The study contributes to the limited research into the role of management accounting in a company’s transition to circular business models. Dialogic accounting theory frames exploration of how accounting may evolve to help businesses become accountable to all stakeholders, including the environment.

Details

Accounting, Auditing & Accountability Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 7 June 2023

Kevin L. Papiorek and Martin R.W. Hiebl

Several conceptual works suggest that more digitalized information systems in management accounting have the potential to make this corporate function more effective. Against this…

1061

Abstract

Purpose

Several conceptual works suggest that more digitalized information systems in management accounting have the potential to make this corporate function more effective. Against this backdrop, this study aims to investigate the impact of information systems quality in management accounting on the effectiveness of management control systems. Additionally, this study examines the moderating effect of process automation.

Design/methodology/approach

A cross-sectional survey of 125 German Mittelstand firms and hierarchical regression analyses were used for data collection and analysis.

Findings

The findings confirm the assumed positive effect of information systems quality in management accounting on management control effectiveness. They also confirm the assumed moderating effect of process automation. The authors find that the relationship between information systems quality in management accounting and management control effectiveness is more pronounced if the firm features a higher degree of process automation.

Originality/value

Several earlier case studies and a few quantitative studies indicated the potentially positive effect of high-quality information systems in management accounting on management control effectiveness. To the best of the authors‘ knowledge, this study is among the first to deliver quantitative proof of this relationship in the context of German Mittelstand firms. Moreover, the authors add to this literature the moderating effect of process automation in the relationship between information systems quality in management accounting and management control effectiveness.

Details

Journal of Accounting & Organizational Change, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 2 January 2024

Kun You, Zubir Azhar and Qingyu Wang

This paper aims to explore how a shared service centre (SSC) is mobilised in a power-dominant context of a Chinese state-owned enterprise (SOE). Specifically, it examines the…

Abstract

Purpose

This paper aims to explore how a shared service centre (SSC) is mobilised in a power-dominant context of a Chinese state-owned enterprise (SOE). Specifically, it examines the mobilisation of SSC within this multi-divisional SOE, the role and dynamics of actors involved and the influence of changes in the integrated information system (IIS) during the mobilisation process.

Design/methodology/approach

The study follows a qualitative case study methodology. The authors draw on actor-network theory to examine the network and translation processes constructed in mobilising SSC in the chosen SOE. The data sources of this study were collected through semi-structured interviews, observations and documentary reviews.

Findings

The mobilisation of SSC is not a linear process but rather a “spiral” interplay through continuous interactions and compromises between human and non-human actors. Power gave the core actor as an orchestrator legitimacy and formality to reduce resistance and obstruction in translation for the mobilisation of SSC. The changes in IIS appear to facilitate the interaction between the heterogeneous actors.

Practical implications

This case study contributes towards understanding the mobilisation of SSC in a power-dominant context by highlighting the impact of changes in IIS and the details of the mobilisation of SSC in terms of the role played by both the individual actors and the technology.

Originality/value

This study provides a broader understanding of the interactions of the heterogeneous actors for mobilising SSC in a power-dominant context. More importantly, the study inspires future research into examining how SSC practices unfold and how the changes in IIS influence the mobilisation of SSC.

Details

Journal of Accounting & Organizational Change, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 16 January 2024

Arief Rijanto

Know your customer (KYC), accounting standards, issuance, clearing, and trade settlement became the major barrier to implement accounting, accountability and assurance process in…

Abstract

Purpose

Know your customer (KYC), accounting standards, issuance, clearing, and trade settlement became the major barrier to implement accounting, accountability and assurance process in supply chain finance (SCF). Blockchain technology features have the potential to solve accounting problems. This research focuses on exploring how blockchain technology provides solutions to overcome the barriers of accounting process in SCF. The benefits, opportunities, costs and risks related to blockchain adoption are also explored.

Design/methodology/approach

Multi-case study and qualitative methods are used with a framework based on blockchain role to overcome the accounting process barriers. Ten blockchain projects in SCF and 29 interviews of participants as a unit of analysis are considered.

Findings

The findings indicate that blockchain technology offers solutions to solve accounting, accountability and assurance problems in SCF. Validity, verification, smart contracts, automation and enduring data on trade transactions potentially solve those barriers. However, it is also necessary to consider costs such as implementation, technology, education and integration costs. Then there are possible risks such as regulatory compliance, operational, code development and scalability risk. This finding reflects the current status of blockchain technology roles in SCF.

Research limitations/implications

This study unveils blockchain's SCF accounting potential, emphasizing multi-case method limitations and future research prospects. Diverse contexts challenge findings' applicability, warranting cross-industry studies for deeper insights. Addressing selection bias and integrating quantitative measures can enhance understanding of blockchain's accounting impact.

Practical implications

Accounting professionals can get an idea of the future direction and impact of blockchain technology on accounting, accountability and assurance processes.

Originality/value

This study provides initial findings on the potential, costs and risks of blockchain that is beneficial for parties involved in SCF, especially for banks and insurance underwriters. In addition, the findings also provide direction for the contribution of blockchain technology to accounting theory in the future.

Details

Asian Review of Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1321-7348

Keywords

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