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1 – 10 of over 2000
Article
Publication date: 2 February 2022

Elina Haapamäki

Neo-institutional theory (NIT) has strengthened its position as one of the theories and frameworks used to investigate accounting as organizational, legislative, social and…

Abstract

Purpose

Neo-institutional theory (NIT) has strengthened its position as one of the theories and frameworks used to investigate accounting as organizational, legislative, social and policymaking phenomena. This study aims to review how aspects of NIT are used and understood by accounting researchers. As a growing body of accounting and auditing articles in recent years has used NIT as a theoretical framework, this paper reviews and analyzes articles using NIT.

Design/methodology/approach

This study develops a comprehensive synthesis of current academic knowledge about NIT in accounting and auditing regulation literature. Further, it reveals areas requiring further examination.

Findings

The findings of this study indicate that prior studies have found evidence that accounting and auditing regulation is associated with all forms of isomorphism (coercive, mimetic and normative). For instance, institutional pressures influence the accounting and auditing standards adoption in different environments. Therefore, the synthesis of the literature suggests that coercive, mimetic and normative pressures have played a significant role in the harmonization of accounting and auditing practices worldwide. To conclude, NIT has become one of the relevant alternative approaches used to explore accounting and auditing regulation as a complex phenomenon.

Research limitations/implications

Accounting has often been referred to as a “narrow” and “technical” topic. In a way, NIT broadens the research field by extending, for instance, the approach of which external and internal pressures are associated with accounting standards adoption and why different accounting practices are adopted.

Originality/value

This study informs accounting scholars as to how NIT has been applied, and can be applied, in the accounting and auditing regulation literature. This benefits accounting researchers if they are considering whether to use NIT in their research. This study evaluates the contribution of NIT within this research field. It can be suggested that accounting researchers need to become more aware of the debates within the NIT literature, particularly as the theory is seen as conceptually ambiguous. To conclude, the synthesis highlights that NIT has offered a range of important contributions and has drawn attention to the link between accounting and auditing regulation research and the institutional environment.

Details

Managerial Auditing Journal, vol. 37 no. 3
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 5 June 2017

Hui Zhang and Baoliang Hu

This paper aims to identify the relationships of both organizational isomorphism and knowledge search with the innovation performance of cluster enterprises. It also specifies the…

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Abstract

Purpose

This paper aims to identify the relationships of both organizational isomorphism and knowledge search with the innovation performance of cluster enterprises. It also specifies the mechanism by which organizational isomorphism affects innovation performance, through knowledge search.

Design/methodology/approach

Firm-level data were collected with questionnaires distributed to cluster enterprises in Zhejiang Province, China, which produced 165 usable responses for the analysis. Both multiple regression analyses and structural equation modelling were used to test the hypotheses.

Findings

Normative isomorphism and mimetic isomorphism have inverse U-shaped effects on the innovation performance of cluster enterprises, as does exploratory knowledge search. Exploitative knowledge search and the balance between two types of knowledge search have positive effects on the innovation performance of cluster enterprises; exploratory and exploitative knowledge searches exert partial mediation effects between the organizational isomorphism and innovation performance of cluster enterprises. The mediating effect of knowledge search transforms the inverse U-shaped effect of normative isomorphism and mimetic isomorphism on innovation performance into a positive effect.

Originality/value

This study provides new insights into the effects of organizational isomorphism on innovation performance by showing the indirect influence of organizational isomorphism in clusters. The study proposes a strategic logic of moderate isomorphism, clarifies the innovative effect of different knowledge search modes and reveals the construction and management mechanisms of organizational isomorphism and knowledge search strategy of firms in clusters.

Details

Chinese Management Studies, vol. 11 no. 2
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 28 December 2021

Moritz Ansmann and Markus Seyfried

Quality management has become an integral part of management reforms in public sector organizations. Drawing on a new institutionalist perspective, this study aims to investigate…

Abstract

Purpose

Quality management has become an integral part of management reforms in public sector organizations. Drawing on a new institutionalist perspective, this study aims to investigate the relation of management reforms and organizational performance in the context of higher education.

Design/methodology/approach

The authors analyse the interaction between isomorphic conformity in quality management adoption, organizational learning and quality improvement and, in so doing, address the central theoretical question of what effects isomorphic conformity has on organizational performance. Empirically, the study draws on survey data from quality managers at public higher education institutions in Germany. Methodically, it applies confirmatory factor analysis and structural equation modelling.

Findings

The results suggest that mimetic isomorphism is surprisingly compatible with processes of organizational learning, and thus, does not inevitably compromise organizational development.

Originality/value

By presenting these findings, the authors contribute to the controversial theoretical debate concerning the effects of isomorphism and to the ongoing discussion regarding the organizational impact of quality management in higher education.

Details

Quality Assurance in Education, vol. 30 no. 1
Type: Research Article
ISSN: 0968-4883

Keywords

Article
Publication date: 20 April 2015

Rusdi Akbar, Robyn Ann Pilcher and Brian Perrin

This paper aims to explore the perceived drivers behind the implementation of performance measurement systems (PMSs) in Indonesian local government (ILG). It analytically assesses…

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Abstract

Purpose

This paper aims to explore the perceived drivers behind the implementation of performance measurement systems (PMSs) in Indonesian local government (ILG). It analytically assesses Indonesia’s attempt to introduce PMSs by addressing three research questions: Do organisations in developing countries actually use PMSs to aid decision-making and help plan for future performance improvement? (RQ1) Do the three isomorphic pressures exist in the development and use of PMSs? (RQ2) and If institutional isomorphism is evident, can accountability exist within the development and use of PMSs given these pressures? (RQ3).

Design/methodology/approach

This research explores the perceived drivers behind the implementation of performance measurement systems (PMSs) in Indonesian local government (ILG). It analytically assesses Indonesia’s attempt to introduce a PMS by addressing three research questions: RQ1 Do organisations in developing countries actually use PMSs to aid decision-making and help plan for future performance improvement? RQ2 Do the three isomorphic pressures exist in the development and use of PMSs? and RQ3 If institutional isomorphism is evident, can accountability exist within the development and use of PMSs given these pressures.

Findings

Results determined that although employees perceived coercive isomorphism as being a driver of ILG compliance with President B.J. Habibie’s presidential instruction (Inpres No. 7/1999), the Laporan Akuntabilitas Kinerja Institusi Pemerintah/Performance Accountability Report of State Apparatus (known as LAKIP), many councils were still not reporting and those who were, were not doing it well. Many councils lacked management motivation, with some choosing to merely mimic (mimetic isomorphism) what others were doing. Better-resourced councils made use of external consultants or local universities where knowledge was shared (normative isomorphism).

Practical implications

An understanding of factors influencing the development and use of performance measures, in turn, can be used not only to improve PMSs in the future but to improve the quantity and quality of LAKIP reporting.

Originality/value

The theoretical development and interpretation of this research is drawn from institutional theory with a major contribution being that it provides an in-depth conceptual overview and understanding of factors influencing the development and use of performance measures. Further, it fills a gap in the literature exploring PMSs and accountability in a developing country – in this case, Indonesia.

Details

Qualitative Research in Accounting & Management, vol. 12 no. 1
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 23 September 2019

Olfa Riahi and Walid Khoufi

The purpose of this paper is to discern the impact of main behavioral factors that could affect the decision of adopting IFRS in developing countries (DCs). In other words, this…

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Abstract

Purpose

The purpose of this paper is to discern the impact of main behavioral factors that could affect the decision of adopting IFRS in developing countries (DCs). In other words, this work looks to identify the different variables that are likely to influence the adoption of IFRS in these countries.

Design/methodology/approach

The methodological orientation of this research is to highlight and analyze the correlation between the cited factors and the IFRS adoption in DCs. Tested models are functions of logistic regression. To assess the parameters of these functions, the commonly used method is not that of ordinary least square but the maximum likelihood technique. In short, this study followed a hypothetical-deductive methodology by referring to the application of a logistic regression for each of the variables presumed to be analyzed. The authors implement this empirical model by using the neo-institutional approach and basing on a sample of 108 DCs.

Findings

The empirical results show that there exists a bidirectional causal relationship between the majority of the developed behavioral variables and the decision of whether adopting or unadopting IFRS by DCs. They also indicate through multivariate analysis that the selection of IFRS by DCs is primarily legitimized by institutional and social pressures (institutional isomorphism).

Research limitations/implications

It is essential to indicate that some limits might be assigned to the study. They are attached principally to the use of a dichotomous dependent variable which presents a restriction in a sense where the robust inequality at the level of the numbers of the countries of sub-samples can relatively weaken the findings. There are also few studies that jointly analyze the behavioral dimensions within a country and the adoption of IFRS. Institutional theory emanated from the research has proved useful in escaping this limit.

Practical implications

These empirical insights are of particular interest to local accounting standard setters of the selected countries since they can provide a better discernment of factors that can encourage the adoption of IFRS. Indeed, the research can be a reference for governments to better identify the economic, political and institutional obstacles that have an impact on behaviors which could compel countries to flee the adoption of IFRS. This paper will also be helpful for future research studying the links between human behavior and accounting in a general way. It should be noted that the results will be significant for future studies looking for real behavioral factors that drive a country to adopt an accounting framework. The studies will be able to use the empirical variables as a starting point and then they can extract new measures to identify the impact of behavior on decisions to adopt any standards.

Originality/value

At the present study, the authors strive to provide input to the literature by focusing on the determinants of the choice of an accounting practice in a DC reverberating to a new dimension which is the behavioral attribute.

Details

Journal of Applied Accounting Research, vol. 20 no. 4
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 14 December 2022

Ahsan Nawaz and Francis Lanme Guribie

Social procurement (SP) is a complicated and risky innovation, the adoption of which needs to be accompanied by complementary process and organizational change. To date, however…

Abstract

Purpose

Social procurement (SP) is a complicated and risky innovation, the adoption of which needs to be accompanied by complementary process and organizational change. To date, however, there has been little empirical evidence explaining whether and how different sorts of external pressures affect the level of SP adoption in the construction sector. Drawing on institutional theory, this study aims to analyze how three types of isomorphic pressures (i.e. coercive, mimetic and normative pressures) influence the adoption of SP in the construction sector.

Design/methodology/approach

The impacts of these pressures are empirically tested with survey data collected from 134 construction firms in the Chinese construction industry.

Findings

The findings show that both coercive and mimetic pressures have a considerable impact on the adoption of SP. However, there is little evidence in this study that normative demands had a major impact on SP.

Practical implications

This research is a useful instrument for promoting a favorable social attitude regarding construction procurement. Through socioeconomic regeneration and development, procurement can be considered as a significant route for social transformation, economic development and poverty reduction.

Originality/value

This study addresses the paucity of research into SP in the construction industry by establishing the institutional drivers to procuring services and products from a social enterprise perspective. Findings from this study extend the frontiers of existing knowledge on SP in the construction industry.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

Keywords

Book part
Publication date: 1 March 2021

Henny Murtini, Djoko Suhardjanto, Djuminah Djuminah and Agung Nur Probohudono

The objective of the study is to prove the suitability between the implementation of human capital disclosures on the financial statements of local governments in Indonesia and…

Abstract

The objective of the study is to prove the suitability between the implementation of human capital disclosures on the financial statements of local governments in Indonesia and the political system, economic system, legal system, social and cultural system, and accounting infrastructure system based on institutional theory. The study is carried out by conducting a meta-analysis on human capital disclosure fit to institutional theory. The study finds that it is more appropriate using accounting infrastructure system for human capital disclosures on the financial statements of local governments in Indonesia. Based on a meta-analysis, it is found that the normative isomorphism is widely used in Indonesia. It should be implemented on human capital disclosures on the financial statements of local governments in Indonesia. Then, it is also found that there are many regulations on human capital but there are only a few human capital disclosures on the financial statements of local governments in Indonesia.

Details

Recent Developments in Asian Economics International Symposia in Economic Theory and Econometrics
Type: Book
ISBN: 978-1-83867-359-8

Keywords

Article
Publication date: 28 September 2012

Corina Joseph and Ross Taplin

The purpose of this paper is to investigate the influence of the international initiative (Agenda 21) on the level of sustainability disclosures by Malaysian local authority…

Abstract

Purpose

The purpose of this paper is to investigate the influence of the international initiative (Agenda 21) on the level of sustainability disclosures by Malaysian local authority websites.

Design/methodology/approach

The influence of the LA 21 program is considered using the institutional isomorphism and a mixed method research design.

Findings

Content analysis of website disclosures by 139 local authorities shows that it is the council's commitment to the LA 21 program by explicitly stating this commitment on their website that is linked to higher sustainability disclosures and not the council's actual involvement in the program. Interview findings provided evidence of both normative and mimetic isomorphism in relation to the LA 21 program. The paper identifies the multiple effect of isomorphism for the LA 21 program using both quantitative and qualitative research designs.

Practical implications

The LA 21 program is an example of an international commitment by many countries towards improving sustainability reporting. This paper shows how the decision by Malaysia to agree to this program has improved website sustainability reporting by Malaysian local authorities, starting from the LA 21 pilot project involving only a few authorities to involvement by all 145 authorities.

Originality/value

This adds to a growing body of literature in public sector disclosure and sustainable development by showcasing how an international initiative can impact sustainability reporting at the local level.

Details

Social Responsibility Journal, vol. 8 no. 4
Type: Research Article
ISSN: 1747-1117

Keywords

Book part
Publication date: 8 June 2012

Ru-Shiun Liou, Alex S. Rose and Alan E. Ellstrand

We view emerging-market multinational corporations (EMNCs) as agents for global isomorphism. EMNCs seek to enter developed markets not only to expand their business operations but…

Abstract

We view emerging-market multinational corporations (EMNCs) as agents for global isomorphism. EMNCs seek to enter developed markets not only to expand their business operations but also to acquire advanced knowledge to enhance their core competencies. In entering these markets, EMNCs are subject to coercive, normative and cognitive pressures as they seek legitimacy. Once these firms gain legitimacy in advanced markets through the adoption of local business practices, they transfer these approaches to their headquarters in developing markets, establishing best practices in their home markets. Further, EMNCs may engage in efforts aimed at changing the institutional environment in the developing market to facilitate the transfer of learned practices from the developed market. Thus, we propose that these best practices lead to global isomorphism, but also note instances where symbolic adoption of developed market practices may slow the isomorphic process.

Details

Institutional Theory in International Business and Management
Type: Book
ISBN: 978-1-78052-909-7

Open Access
Article
Publication date: 5 January 2023

Stefanía Carolina Posadas, Silvia Ruiz-Blanco, Belen Fernandez-Feijoo and Lara Tarquinio

This paper aims to analyse the impact of the European Union (EU) Directive on the quality of sustainability reporting under the institutional theory lens. Specifically, the…

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Abstract

Purpose

This paper aims to analyse the impact of the European Union (EU) Directive on the quality of sustainability reporting under the institutional theory lens. Specifically, the authors evaluate what kind of institutional pressure has the highest impact on the quality of corporate disclosure on sustainability issues.

Design/methodology/approach

The authors build a quality index based on the content analysis of sustainability information disclosed, before and after the transposition of the Directive, by Italian and Spanish companies belonging to different industries. The authors use an OLS regression model to analyse the effect of coercive, normative and mimetic forces on the quality of the sustainability reports.

Findings

The results highlight that normative and mimetic mechanisms positively affect the quality of sustainability reporting, whereas there is no evidence regarding coercive mechanisms, indicating that the new requirements do not provide a significant contribution to the development of better reporting practices, at least in the two analysed countries.

Originality/value

To the best of the authors’ knowledge, this is one of the few studies assessing the quality of sustainability reporting through an analysis involving the period before and after the implementation of the EU Directive. It enriches the literature on institutional theory by analysing how the different dimensions of isomorphism affect the quality of information disclosed by companies according to the EU requirements. It contributes to a better understanding of the impact of the non-financial information Directive, and the results of this paper can be relevant for regulators, practitioners and academia, especially in view of the adoption of the new Corporate Sustainability Reporting Directive proposal.

Details

Meditari Accountancy Research, vol. 31 no. 7
Type: Research Article
ISSN: 2049-372X

Keywords

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