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1 – 10 of over 10000This study aims to explore how small and medium-sized accounting practices (SMPs) make sense of and position themselves against the changing demand for services. It is argued that…
Abstract
Purpose
This study aims to explore how small and medium-sized accounting practices (SMPs) make sense of and position themselves against the changing demand for services. It is argued that changing demand for services from pure compliance to advisory acts as a trigger for sensemaking among SMP owners.
Design/methodology/approach
A qualitative multiple case study research approach is adopted, including semistructured interviews with key informants from seven Norwegian SMPs as well as document analysis.
Findings
The findings suggest that there is heterogeneity in the small practitioner segment of the accounting profession in making sense of changing demand for the nature of services. Three different situations emerged due to sensemaking, thus, the three distinct positions. Metaphors, namely, chameleons, turtles and bulls, are used to represent the positioning of SMPs. The sensemaking of actors as an adaptation led them to act as chameleons while distancing and resistance resulted in their positioning as turtles, and bulls, respectively.
Research limitations/implications
Despite the richness of data indicating a clear variation in interpretation among actors, the study is case based, with a limited number of SMPs, and caution should be exercised when generalising its conclusions.
Practical implications
The centrality of people as a driving force for positioning among SMPs and diversity among SMPs in value creation provide insights for both SMPs and their customers.
Originality/value
This study highlights the meaning and patterns of value creation and the positioning of accounting firms according to their sensemaking within an under-studied segment of the accounting profession.
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Antti Ylä-Kujala, Kati Kouhia-Kuusisto, Tuuli Ikäheimonen, Teemu Laine and Timo Kärri
While companies worldwide are largely comprised of small and medium-sized enterprises (SMEs), a significant amount of management accounting (MA) research focuses on larger…
Abstract
Purpose
While companies worldwide are largely comprised of small and medium-sized enterprises (SMEs), a significant amount of management accounting (MA) research focuses on larger organisations, thus leaving MA practice in SMEs relatively under-researched. This paper aims to examine MA adoption (MAA) and its interfaces with MA challenges and business performance from a small business perspective.
Design/methodology/approach
A sample of 502 small businesses is investigated with an embedded mixed methods research design comprised of qualitative content analysis, factor analysis and analysis of variance.
Findings
Up to 78% of small businesses are facing MA challenges that stem from organisation, systems, personnel and/or resources. Based on the present findings, MA challenges do motivate small businesses to at least consider investing in MAA as small businesses facing challenges are more likely to acquire systems and services than those reporting no issues at all. Hence, small business managers seem to not only recognise where their challenges lie, but also seek ways to improve the situation through MAA. The analysis also reveals that companies with the highest MA know-how have the best average solvency, suggesting that small businesses indeed benefit from MAA. Interestingly, the performance at medium levels of know-how declines while investments increase, revealing a “decreasing solvency phenomenon”. Potential explanations are, e.g. the MA not fitting the company’s exact needs, or information usability and use being limited by poor MA understanding.
Originality/value
The originality of the research lies in exploring the interfaces between MA challenges, MAA and small business performance using distinctive embedded mixed methods research design.
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Grégory Jemine, François-Régis Puyou and Florence Bouvet
Increasingly, emerging information technologies such as shared software and continuous accounting are offering alternative ways to perform accounting tasks in a supposedly more…
Abstract
Purpose
Increasingly, emerging information technologies such as shared software and continuous accounting are offering alternative ways to perform accounting tasks in a supposedly more efficient fashion. Yet, few studies have investigated how they affect the provision of accounting services, especially in the context of small accounting firms, which provide legal and tax services to entrepreneurs and businesses. Drawing on the service perspective, the paper critically examines how technological innovation challenges and reconfigures the co-production of accounting services in these firms.
Design/methodology/approach
The paper answers calls issued in prior studies to conduct empirical research on emerging information technologies for accountants. It focuses on the specific context of small accounting firms and draws on interviews with small accounting firms' managers (n = 20).
Findings
The study emphasizes five significant challenges that accounting firm managers face when using information technologies to support the provision of their services (ensuring reliability, factoring in their heterogeneous client base, repricing, training clients to use new technologies and promoting advisory services). Information technologies are shown to have a structuring role in the co-production of accounting services, as they lead to reconfigurations of the relationships between accountants and their clients. A range of four configurations is developed to highlight accountants' strategies to maintain collaborative relationships with their clients while integrating new technologies into their work practices.
Originality/value
By conceptualizing accounting services as a co-production process, the paper offers new insights into the implications of emerging information technologies for small accounting firms.
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Vitor Azzari, Emerson Wagner Mainardes and Aziz Xavier Beiruth
This study aims to develop and validate a scale for measuring accounting service quality (ASQ), which is named ACCOUNTQUAL.
Abstract
Purpose
This study aims to develop and validate a scale for measuring accounting service quality (ASQ), which is named ACCOUNTQUAL.
Design/methodology/approach
The authors initially investigated the service quality literature in the context of accounting. To develop the scale, the authors carried out three studies. First, the authors conducted 20 in-depth interviews to generate the ASQ items. Then, they undertook a survey with 174 accounting services clients to group these items into factors through exploratory factor analysis (EFA). Finally, the authors carried out another survey with 330 clients to purify and validate the scale through a confirmatory composite analysis (CCA) and structural equation modeling (SEM).
Findings
The authors were able to validate the ACCOUNTQUAL scale, which is composed of the following dimensions: efficiency, trust, technological innovation and accountant knowledge, the latter being composed of three aspects: consultative view, technical capacitation and knowledge about clients.
Originality/value
The authors concluded that ASQ is a multidimensional construct that covers the assessment of technical, tooling, relationship and qualification aspects of the accounting service. To the best of the authors’ knowledge, this is the first study that developed and validated a scale for measuring ASQ. If accounting service providers meets the elements presented in the scale, they will potentially deliver a high-quality service.
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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.
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Naruanard Sarapaivanich, Erboon Ekasingh, Jomjai Sampet and Paul Patterson
This study examines how professional service firms' communication effectiveness (affiliative communications style, social dialogue and information provision), social cognitive…
Abstract
Purpose
This study examines how professional service firms' communication effectiveness (affiliative communications style, social dialogue and information provision), social cognitive capital and rapport established between an auditor and SME client are instrumental in influencing the latter's evaluation of the technical quality of an audit.
Design/methodology/approach
The study combines qualitative and quantitative methodologies to create a cross-sectional survey covering four geographic regions in an emerging economy – Thailand. The authors examine the hypotheses by employing social interaction theory.
Findings
A study of 744 SME executives plus post-survey interviews with three audit partners revealed that an affiliative communications style and information provision are positively associated with the rapport developed between financial auditor and client, and that rapport, in turn, had a strong association with client perceptions of audit quality. In addition, affiliative communication style, information provision and social cognitive capital had a direct (positive) association with perceptions of audit quality. The effects of communication effectiveness and social cognitive capital varied, depending on whether or not the SME client possessed formal accounting qualifications.
Originality/value
The study contributes to the literature on the business-to-business professional services, and accounting in particular, by explicating the important roles of communication effectiveness, rapport, and social cognitive capital in the relationship between an auditor and a client. Moreover, the paper reveals that the differences in educational background of clients result in differential impacts of communication effectiveness and social cognitive capital on rapport and perceptions of audit quality.
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Christine Weigel and Martin R.W. Hiebl
Small- and medium-sized enterprises (SMEs) carry huge economic importance worldwide. At the same time, SMEs face specific challenges, some of which may be alleviated by employing…
Abstract
Purpose
Small- and medium-sized enterprises (SMEs) carry huge economic importance worldwide. At the same time, SMEs face specific challenges, some of which may be alleviated by employing accountants. However, research on the role and impact of accountants in SMEs has long remained fragmented and scarce. This paper aims to encourage more research on accountants in SMEs by providing the first comprehensive and systematic review of relevant research.
Design/methodology/approach
Based on systematic review methods, the authors critically examine 68 research articles dealing with accountants in SMEs.
Findings
The review identifies three dominant roles for accountants in SMEs: providers of reporting services, sources of SME owners’ self-validation and translators between capital providers and SMEs and advisors. Implicitly, many studies assume a value-enhancing effect of employing accountants in SMEs regardless of these specific roles. At the same time, available studies seldom make use of existing theoretical frameworks to more closely analyze the value-enhancing potential of human resources such as accountants. The authors, thus, propose the resource-based view as a robust theoretical framework to improve theory building in research on accountants in SMEs.
Originality/value
To the best of the authors’ knowledge, this paper is the first systematic review of accountants in SMEs. In addition, the authors develop a resource-based model on accountants in SMEs to guide future research on this topic.
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Elodie Allain, Samuel Sponem and Frederic Munck
For many years, universities have been confronted with the rise of a managerial logic, in line with the new public management movement. They have been encouraged to implement new…
Abstract
Purpose
For many years, universities have been confronted with the rise of a managerial logic, in line with the new public management movement. They have been encouraged to implement new accounting tools such as cost calculations. Literature shows mixed results regarding the institutionalization of such tools, and the logic they try to support. In most studies, the agency of actors is examined to explain the institutionalization of accounting tools and only few studies consider the specific characteristics of these accounting tools to understand this process. To enrich the literature on institutionalization, this article examines how the affordances of costing tools affect the institutionalization of these tools and the institutionalization of new logics in pluralistic organizations such as universities.
Design/methodology/approach
The data were collected at a French university which is considered as an example of successful institutionalization of the tool and is cited as a model to follow. The data include a four-month participant observation and 18 interviews. Access to internal and external documents was also available. The analysis of the data is based on a framework proposed by Jarzabkowski and Kaplan (2015), which draws on the concept of affordance of tools, to investigate how the possibilities and constraints of costing tools shape the selection, application and outcomes of cost calculations.
Findings
The results show that the affordances of cost calculations facilitate the institutionalization of a new logic and its coexistence with previous logics. Technical affordances are mobilized by actors aiming to bring in a new logic without directly confronting the old ones. Role affordances also play a major role in the institutionalization by facilitating the adhesion of the actors through multiple applications of the tool. Finally, value-based affordances reinforce the institutionalization of a managerial logic by emphasizing the values shared with the other logics and thus facilitating the coexistence of the three logics at stake in the university.
Originality/value
This research provides three main contributions. First, it contributes to the literature on the institutionalization of accounting tools. It shows the relevance of the concept of affordance (Leonardi and Vaast, 2017) to unpack the characteristics of accounting tools (including the constraints and the possibilities they offer) and to achieve a better understanding of the institutionalization of accounting tools. Second, this paper contributes to the literature dealing with the role of accounting tools in the institutionalization of logics. The results suggest that the institutionalization of tools and the institutionalization of logics are two different phenomena that move at different speeds. However, these phenomena interact: the institutionalization of accounting tools can facilitate the coexistence of different logics in pluralistic organizations. Third, this paper contributes to the literature on affordances. The data reveal several types of affordances for accounting tools: technical affordances that refer to the technical possibilities to shape and tweak the tool; role affordances that refer to the various roles and purposes that the tool can fulfill and value-based affordances that refer to the plasticity of the values and beliefs that the tool can convey. The study shows that each type of affordance is prevalent at a different time of the process of institutionalization and that the combination of these affordances contributes to the institutionalization of the tool and of new logics.
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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.
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This research endeavors to assess the influence of financial shared service centers (FSSCs) on the quality of accounting information within China’s A-share listed companies. Using…
Abstract
Purpose
This research endeavors to assess the influence of financial shared service centers (FSSCs) on the quality of accounting information within China’s A-share listed companies. Using a multi-period difference-in-differences (DID) model, the study aims to empirically examine the correlation between the adoption of FSSCs and the quality of accounting information.
Design/methodology/approach
The study uses a robust methodology to evaluate the relationship between FSSCs and accounting information quality (AIQ). Leveraging the established FSSCs within China’s A-share listed companies as the treatment group, this research adopts a multi-period DID model. This approach enables a rigorous empirical examination of the influence exerted by FSSCs on the overall quality of accounting information.
Findings
The present study delves into the impact of FSSCs on AIQ and conducts empirical analysis using data from Chinese A-share listed companies between 2004 and 2021. The findings substantiate that: FSSCs significantly bolster the quality of accounting information, a conclusion retained even after robustness tests. Specifically, FSSCs exhibit a positive correlation with the comparability, timeliness and disclosure quality of accounting information while demonstrating no significant influence on relevance, robustness and reliability factors.
Research limitations/implications
First, the analysis primarily rests upon data from Chinese A-share listed companies between 2004 and 2021, potentially constraining the generalizability of findings across diverse contexts. Second, despite controlling for various factors, unobserved variables or external factors not encompassed in the model might influence the relationship between FSSCs and AIQ. Additionally, the study’s reliance solely on quantitative data confines exploration into qualitative aspects that might offer a more comprehensive understanding of FSSCs’ impact on AIQ.
Practical implications
This paper establishes a nuanced connection between FSSC operations and AIQ, furnishing direct empirical evidence for their economic implications and propounding a novel avenue for augmenting AIQ. And, it furnishes guidance for forthcoming FSSC development, accentuating the necessity of harnessing information technology to enhance the relevance, reliability and robustness of accounting information.
Originality/value
Majority of prior empirical studies assessing AIQ have focused on singular indicators, lacking a comprehensive depiction of its overall level. To address this gap, this paper pioneers the construction of a comprehensive index for AIQ, providing a holistic representation of its level. Furthermore, this study stands as the inaugural investigation into the relationship between China’s A-share listed firms’ FSSCs and the quality of accounting information.
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