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Open Access
Article
Publication date: 22 June 2021

Joshua Maine, Emilia Florin Samuelsson and Timur Uman

Drawing on paradox theory, this study explores how ambidextrous sustainability relates to organisational performance in hybrid organisations represented by Swedish municipal

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Abstract

Purpose

Drawing on paradox theory, this study explores how ambidextrous sustainability relates to organisational performance in hybrid organisations represented by Swedish municipal housing corporations, and how this relationship is contingent on the organisational structure of these organisations.

Design/methodology/approach

The study relies on the data collected from Swedish municipal housing corporations. These data sources consist of a survey sent to the management team members in Swedish municipal housing corporations, financial and non-financial archival data on these corporations, interviews with the management team and board members, and observations of meetings involving the management team and board of directors at a Swedish municipal housing corporation. Quantitative data of the study were analysed using descriptive statistics, correlation analysis and linear multiple regression analysis. Qualitative data were analysed employing deductive thematic analysis and were used to illustrate and discuss the results of the quantitative analysis.

Findings

The quantitative findings show that ambidextrous sustainability, i.e. the alignment between an explorative orientation and an exploitative orientation towards sustainability, has a weakly positive relationship with financial performance and a positive relationship with social performance in hybrid organisations represented by Swedish municipal housing corporations. The study further shows that a high level of the structural element “connectedness” weakened the relationship between the ambidextrous sustainability and financial performance of the organisation in the study. In contrast, a lower level of connectedness reinforced and strengthened this relationship. Our qualitative material illustrates how the quantitative findings could be explained by the interaction between the board of directors and the management team of these hybrid organisations.

Originality/value

The study shows how ambidextrous sustainability, employed for conceptualisation of the sustainability strategy in hybrid organisations, represented by Swedish municipal housing corporations, can impact on facets of performance (i.e. financial, social and environmental) differently. The study further highlights the importance of organisational structures in these relationships in a hybrid context.

Details

Accounting, Auditing & Accountability Journal, vol. 35 no. 3
Type: Research Article
ISSN: 0951-3574

Keywords

Open Access
Article
Publication date: 16 August 2021

Mattias Haraldsson

The aim of this paper is to explore whether and how external, political, financial and governance factors influence capital expenditure deviations in the Swedish municipal water…

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Abstract

Purpose

The aim of this paper is to explore whether and how external, political, financial and governance factors influence capital expenditure deviations in the Swedish municipal water and sewerage sector and to capture the consequences of municipal organisational fragmentation.

Design/methodology/approach

Panel data analysis of 238 municipalities and 1,190 observations of capital expenditure deviations over five years (2013–2017).

Findings

Apart from a low overall on average execution rate of 69%, the Swedish municipal water and sewerage sector seems generally sensitive to external stakeholder pressure for budget compliance, but not to the political power situation. Further, political signalling incentives generally do not influence capital expenditure deviations in the contexts of municipal corporations and cooperations, which supports the idea that these governance forms insulate the organisation from general stakeholder pressure and political control.

Practical implications

The practical implication is that large and constant capital expenditure deviations call for change in regulation and governance of the municipal sector. However, in countries such as Sweden, where externalising services to municipal corporations and cooperations is significant, this discussion needs to address the consolidated level of the municipality. Otherwise, a large share of the investment budget will be unscrutinised. More closely related to the Swedish water and sewerage sector, the risks associated with a constantly low execution rate should be analysed and addressed.

Originality/value

First, this paper contributes to the knowledge of aggregated capital expenditure deviations in general and specifically within the municipal water and sewerage sector. Second, analysing the municipal governance landscape adds further insights and suggestions on why budget performance varies. The results especially highlight that the governance forms of corporations and cooperations change the relation to political signalling incentives.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 34 no. 6
Type: Research Article
ISSN: 1096-3367

Keywords

Article
Publication date: 1 January 2004

H.M. Coombs and J.R. Edwards

A study of the development of municipal corporations over the period 1835 to 1935 reveals a power struggle for supremacy over audit work between the then newly emerging accounting…

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Abstract

A study of the development of municipal corporations over the period 1835 to 1935 reveals a power struggle for supremacy over audit work between the then newly emerging accounting profession, the elected auditors and the government‐controlled district audit. Each of these groups had their “own drum to bang” as they made their case for performing the audit. This article examines their arguments by reviewing the findings of government inquiries, extensive archive material on the practice of audit and the accounting literature of the period. The article concludes with a summary of the position reached by the end of what is regarded as the formative period of continuous progress in developing the UK's system of local government.

Details

Managerial Auditing Journal, vol. 19 no. 1
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 5 September 2016

Mattias Haraldsson

The aim of this paper is to explore the causes of variations in financial accounting and disclosure practices in a municipal setting highly influenced by governance reforms – the…

1651

Abstract

Purpose

The aim of this paper is to explore the causes of variations in financial accounting and disclosure practices in a municipal setting highly influenced by governance reforms – the Swedish municipal waste management sector. This focus is motivated by the claim that recent governance reforms have made the organization of public services delivery more diversified and fragmented, which may have had a negative effect on transparency and accountability.

Design/methodology/approach

To document the accounting and disclosure practices of the Swedish solid waste management organizations, a questionnaire approach was selected. The study uses a conceptual theoretical framework that complements the basic variables considered to influence public sector financial accounting and disclosure practices with factors such as competition and municipal governance forms.

Findings

The results show that compliance accounting and disclosure transparency to some extent have different antecedents and that the external environment, including market competition, size and economic input, influences both. The governance forms, on the other hand, only influenced compliance accounting (negatively and positively) and not the willingness to disclose information in general. The overall conclusion is that changes to the economic and institutional context mixed with different municipal governance forms introduces a multiplicity of forces that makes the accounting practices themselves diversified and fragmented and not necessarily only in a “negative” direction.

Practical implications

From a policy perspective the results indicate that the changing institutional and organizational environment has not been matched by attention to, and regulation of, reporting structures that secure external vertical accountability processes. The general implication for future regulations should therefore be to recognize the influence of different economic and institutional forces and develop accountability models that enable and preserve the benefits of governance reform initiatives without losing accountability and transparency.

Originality/value

Few prior quantitative studies have theoretically related municipal accounting and disclosure practices to factors such as market competition and popular municipal governance forms (municipal corporation, regional cooperation, outsourcing, etc.). Knowledge of how reforms might influence municipal accounting practices might benefit future policy decisions on accountability models with aim of enable and preserve the benefits of governance reform initiatives without losing accountability and transparency.

Details

Journal of Accounting & Organizational Change, vol. 12 no. 3
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 26 August 2014

Mattias Haraldsson and Torbjörn Tagesson

The aim of this paper is to describe, analyze and explain the level of compliance of accounting practices with legislation and generally accepted accounting principles (GAAP…

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Abstract

Purpose

The aim of this paper is to describe, analyze and explain the level of compliance of accounting practices with legislation and generally accepted accounting principles (GAAP) within the Swedish water and sewerage sector.

Design/methodology/approach

The empirical data are based on a document study of the annual full cost accounting reports for the financial year 2010. We obtained complete data from 250 of Sweden's 290 municipalities. The data are analyzed by statistical methods. The explanations are based on an institutional theory.

Findings

Most of the organizations surveyed in this study had taken measures in line with the new regulations, but none of them had adapted fully to the new requirements. Thus, we suggest that the industry has responded to the new regulation by compromise and avoidance. The statistical analyses show that compliance with legislation and GAAP is associated with legal form, minority governance, fee, tax base, population growth and audit firm.

Research limitations/implications

This paper provides insight into the factors that explain compliance with accounting regulation. Future research would benefit from researching the decision process when organizations choose to comply or not to comply with specific accounting regulations in the public sector.

Originality/value

Few prior studies focus on the actual compliance of accounting practices at the municipal level in relation to accounting regulation and the factors that explain the level of compliance. Knowledge of the factors that explain compliance to accounting regulation will benefit from future policy decisions on regulation and auditing of public sector accounting.

Details

Journal of Accounting & Organizational Change, vol. 10 no. 3
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 1 April 2017

James Thurmond and Robert Yehl

For a good part of the U.S. system of federalism municipal incorporation has been the formal structure for local communities. Over the last 60 years there has been a shift in this…

Abstract

For a good part of the U.S. system of federalism municipal incorporation has been the formal structure for local communities. Over the last 60 years there has been a shift in this structure to special district government. The Woodlands, Texas presents an interesting case study on the incremental development of a former New Town community, the change in formal government organization and the potential for a different model of local governance structure in the 21st Century. The authors explore the four stages of development for The Woodlands over the past 40 years and assess this development through several model theories including institutional, urban regime, and urban governance. Contrary to some current literature on governance, The Woodlands appears to have transitioned from decentralization to more centralization while at the same time avoiding full incorporation as a municipality. It may be indicative of the new governance.

Details

International Journal of Organization Theory and Behavior, vol. 20 no. 03
Type: Research Article
ISSN: 1093-4537

Article
Publication date: 14 May 2018

Marco Salm

The BRICS states are based on multi-level government’s architecture whose megacities have an outstanding role in their respective states – not only in terms of population and in…

Abstract

Purpose

The BRICS states are based on multi-level government’s architecture whose megacities have an outstanding role in their respective states – not only in terms of population and in terms of economic power, but also in terms of local own-tax revenue collection, which, in turn, implies a very strong administration. At the same time, megacities are facing increasing public expenditures because of infrastructure needs, housing shortage, growth of social inequality, and environmental degradation. In order to outweigh the urban advantages associated with urbanization, reconsidering the fiscal framework is of urgent need. The paper aims to discuss these issues.

Design/methodology/approach

Most similar case design is applied.

Findings

Megacities are at the forefront of national economic growth, that they have an above average tax base, an excellent administration, and therefore, face above average yields of property tax revenues. Rethinking the fiscal framework could considerably improve local finances.

Research limitations/implications

Due to limitations on public finance statistics, the sample draws on four megacities in BRICS, in reference to all megacities, only.

Practical implications

In context of Habitat III, New Urban Agenda, the practical implications are manyfold: the paper focuses on megacities, its finances (financing for development), and social implications involved.

Social implications

Local public finance, especially property taxation, has many implications on social level.

Originality/value

The paper is one in a kind.

Details

International Journal of Public Sector Management, vol. 31 no. 4
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 25 July 2020

Kranti Kumar Maurya and Arindam Biswas

India is set to develop a hundred smart cities under Smart Cities Mission (SCM). New Special Purpose Vehicles (SPV) established at the city level are developing these cities…

Abstract

Purpose

India is set to develop a hundred smart cities under Smart Cities Mission (SCM). New Special Purpose Vehicles (SPV) established at the city level are developing these cities. Cities around the globe do not use this system for city development yet. SCM was launched in 2015, and these companies are working in some of these cities since 2016. This paper is an attempt to investigate the traditional system and SPV system with global best practices.

Design/methodology/approach

The method for investigation includes developing a framework with the governance principles (defined by the United Nations Development Programme) and measurement parameters. By this framework, the performance of these governance systems can be measured/ranked; analysing these results give the nodal points where one system is better than the other and highlighting features; those can be incorporated to develop an alternative comprehensive system.

Findings

The new service delivery mechanism (SPV) is still adapting and competing with the traditional system. There have been some positives as well as some criticism for SPVs in comparison to the traditional system.

Research limitations/implications

The data for analysis is mostly from secondary sources and structured official interviews. The cases selected for the analysis are cities from different states of India and some leading global cities.

Practical implications

Smart cities development is still going on. As the analysis findings suggest, it needs a more efficient and converged implementation mechanism.

Originality/value

The analysis framework is solely developed for this paper. The paper compares five of the Indian traditional city development process, SCM implementation strategy and leading city development processes around the world.

Details

Smart and Sustainable Built Environment, vol. 10 no. 4
Type: Research Article
ISSN: 2046-6099

Keywords

Article
Publication date: 3 September 2018

Stephan David Whitaker

The purpose of this paper is to measure how frequently innovative financial products appeared or became widely adopted in the municipal securities markets over the last two…

Abstract

Purpose

The purpose of this paper is to measure how frequently innovative financial products appeared or became widely adopted in the municipal securities markets over the last two decades; and also investigate what types of issuers adopted the innovations, the relationship between yields and innovation and the patterns of diffusion within states.

Design/methodology/approach

Using comprehensive data on municipal securities issued from 1992 to 2015, the author searches for financial innovations as defined in the literature. The author uses issuer fixed effects models to characterize the relationship between yields and use of innovative products. Other models provide estimates of the conditional correlations between issuer characteristics and innovation usage. Finally, the author fits trend models to identify significant differences in the pace of adoption between different types of issuers.

Findings

In total, 35 security features fit one or more definitions of innovation. Extensive analysis is presented for four innovations that represent significant transfers of risk: variable rates, put options, corporate backers and derivatives. Small issuers used these innovative products, but the largest issuers adopted them to a greater extent. Usage appears to diffuse within states. Issuance of innovative securities fell during the financial crisis and has not recovered. Novel securities since the financial crisis have been created by legislation rather than by market participants.

Research limitations/implications

The data appear to cover all or nearly all municipal securities, but they do not cover loans or other types of municipal borrowing.

Practical implications

This analysis reveals that financial innovations in municipal securities markets usually take the form of a rare practice becoming widespread rather than a never-before-seen feature appearing in the market. Changes in response to legislation are an exception.

Social implications

Regulators concerned about financial stability can monitor the expansion of formerly rare securities features. This will be informative about new risks or transfers of risk in the market. They can also anticipate that expanded use of an innovation by states and high-volume issuers will be followed by adoption of the innovations by smaller, less sophisticated issuers in subsequent years.

Originality/value

This paper is the first attempt to empirically analyze the extent of financial innovation in municipal securities. Existing public finance literature has proposed definitions of financial innovation, qualitatively documented some specific innovations and empirically analyzed others. However, no previous study has empirically analyzed the entire municipal securities market for all possible innovations.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 30 no. 3
Type: Research Article
ISSN: 1096-3367

Keywords

Article
Publication date: 8 January 2014

Beatriz Cuadrado-Ballesteros, José Frías-Aceituno and Jennifer Martínez-Ferrero

The aim of this study is to analyse the level of environmental, economic, and social engagement disclosed by local governments, taking into account factors such as political…

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Abstract

Purpose

The aim of this study is to analyse the level of environmental, economic, and social engagement disclosed by local governments, taking into account factors such as political ideology and media pressure.

Design/methodology/approach

The authors analysed 102 large Spanish municipalities, using data from 2011. An econometric model was used based on dependency techniques for cross-sectional data. The Tobit technique is suitable, since it enables the authors to address particular considerations of extreme scores on the dependent variable.

Findings

The results show that local governments report less strategic and socio-economic information when subjected to strong media pressure, because the press tends to focus on unusual, negative news, and ignores other issues such as the environment. However, in municipalities governed by left-wing parties, media pressure actually promotes disclosure of this type of information.

Research limitations/implications

It would be interesting to create an information index which includes local governments' disclosure, spanning a period of several years.

Practical implications

Particularly in municipalities governed by a left-wing party, media pressure favours the disclosure of sustainability information, including information about the municipal corporation and strategic and social issues.

Originality/value

This study analyses the impact of the press on the disclosure of sustainability information by local governments and also tests the moderating effect of the ruling party's political ideology. The authors did not find any paper that had analysed this impact before.

Details

Online Information Review, vol. 38 no. 1
Type: Research Article
ISSN: 1468-4527

Keywords

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