Pub Date : 2021-12-13DOI: 10.1108/jaoc-11-2020-0189
Franziska Grieser, Burkhard Pedell
Purpose This study aims to explore the controllability of risk culture, identify and categorize risk culture controls used in firms and explore how industry and ownership structure affect the use of different risk culture controls. Design/methodology/approach This explorative study is based on 32 semi-structured interviews with 37 participants who are heads of risk management or top managers in German firms from different industries with different ownership structures. Findings Interviewees perceive risk culture to be largely controllable. The authors identify a wide spectrum of risk culture controls, ranging from leadership and motivational controls to risk competence controls; in each category, the authors find value-, symbol- and clan-based controls. Leadership controls were most extensively discussed by the interviewees. The use of risk culture controls varied based on industry and ownership structure. Research limitations/implications Due to the explorative character of the approach, the authors cannot claim representativeness for the results. The study is limited to one point in time and to a German sample. The findings imply that companies should select risk culture controls according to their own context and that implementation requires support by the top and middle management. Originality/value The authors respond to the call for more organizational studies on risk management that consider cultural paradigms (Arena et al., 2010; Mikes, 2011; Power, 2009). The study systematically identifies risk culture controls used in corporate practice and categorizes them. It provides tentative evidence of the relevance of context-specific factors for the use of risk culture controls.
{"title":"Exploring risk culture controls: to what extent can the development of organizational risk culture be controlled and how?","authors":"Franziska Grieser, Burkhard Pedell","doi":"10.1108/jaoc-11-2020-0189","DOIUrl":"https://doi.org/10.1108/jaoc-11-2020-0189","url":null,"abstract":"\u0000Purpose\u0000This study aims to explore the controllability of risk culture, identify and categorize risk culture controls used in firms and explore how industry and ownership structure affect the use of different risk culture controls.\u0000\u0000\u0000Design/methodology/approach\u0000This explorative study is based on 32 semi-structured interviews with 37 participants who are heads of risk management or top managers in German firms from different industries with different ownership structures.\u0000\u0000\u0000Findings\u0000Interviewees perceive risk culture to be largely controllable. The authors identify a wide spectrum of risk culture controls, ranging from leadership and motivational controls to risk competence controls; in each category, the authors find value-, symbol- and clan-based controls. Leadership controls were most extensively discussed by the interviewees. The use of risk culture controls varied based on industry and ownership structure.\u0000\u0000\u0000Research limitations/implications\u0000Due to the explorative character of the approach, the authors cannot claim representativeness for the results. The study is limited to one point in time and to a German sample. The findings imply that companies should select risk culture controls according to their own context and that implementation requires support by the top and middle management.\u0000\u0000\u0000Originality/value\u0000The authors respond to the call for more organizational studies on risk management that consider cultural paradigms (Arena et al., 2010; Mikes, 2011; Power, 2009). The study systematically identifies risk culture controls used in corporate practice and categorizes them. It provides tentative evidence of the relevance of context-specific factors for the use of risk culture controls.\u0000","PeriodicalId":46141,"journal":{"name":"Journal of Accounting and Organizational Change","volume":"23 1","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72749461","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-11-24DOI: 10.1108/jaoc-04-2021-0048
F. Mir, Davar Rezania
Purpose This paper aims to unpack the relationship between the interactive use of project control systems (PCS) and project performance by examining the role of stakeholder analysis effectiveness in enacting this relationship. A conceptual framework was developed based on the stakeholder theory and the levers of control framework. Design/methodology/approach Partial least square-structural equation modelling analysis was conducted on the cross-sectional questionnaire data collected from 109 information technology (IT) projects. Findings The interactive use of PCS enables project managers to effectively deal with the stakeholders-related uncertainty, and stakeholder analysis effectiveness partially mediates the positive relationship between the interactive use of PCS and IT project performance. Originality/value This study extends the project control literature by explaining the positive relationship between the interactive use of PCS and project performance. The findings contribute to the stakeholder analysis literature by operationalizing the stakeholder analysis effectiveness construct and identifying it as a new mediator between the interactive use of PCS and project performance.
{"title":"From interactive control to IT project performance: examining the mediating role of stakeholder analysis effectiveness","authors":"F. Mir, Davar Rezania","doi":"10.1108/jaoc-04-2021-0048","DOIUrl":"https://doi.org/10.1108/jaoc-04-2021-0048","url":null,"abstract":"\u0000Purpose\u0000This paper aims to unpack the relationship between the interactive use of project control systems (PCS) and project performance by examining the role of stakeholder analysis effectiveness in enacting this relationship. A conceptual framework was developed based on the stakeholder theory and the levers of control framework.\u0000\u0000\u0000Design/methodology/approach\u0000Partial least square-structural equation modelling analysis was conducted on the cross-sectional questionnaire data collected from 109 information technology (IT) projects.\u0000\u0000\u0000Findings\u0000The interactive use of PCS enables project managers to effectively deal with the stakeholders-related uncertainty, and stakeholder analysis effectiveness partially mediates the positive relationship between the interactive use of PCS and IT project performance.\u0000\u0000\u0000Originality/value\u0000This study extends the project control literature by explaining the positive relationship between the interactive use of PCS and project performance. The findings contribute to the stakeholder analysis literature by operationalizing the stakeholder analysis effectiveness construct and identifying it as a new mediator between the interactive use of PCS and project performance.\u0000","PeriodicalId":46141,"journal":{"name":"Journal of Accounting and Organizational Change","volume":"25 1","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-11-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79996213","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-11-17DOI: 10.1108/jaoc-05-2021-0063
Asogan Moodley, B. Ackers, E. Odendaal
Purpose The formal adoption of internal auditing within the South African public sector was made compulsory by the Public Finance Management Act, No. 1 of 1999. Despite internal auditing’s primary role of adding value and assisting organisations to accomplish pre-defined strategic objectives, the increasing frequency of service delivery protests in South Africa, suggests that mandatory internal auditing may not have contributed to improving public sector performance and enhancing service delivery, as envisaged. This paper aims to identify the factors preventing internal audits from effectively contributing to improved public sector performance and service delivery. Design/methodology/approach The study adopted a sequential mixed-methods research approach. Firstly, a survey instrument was used to collect empirical data from survey respondents at South African national government departments. Secondly, semi-structured interviews and focus group discussions were held with a purposively selected sample of participants to explore the observations from the first phase. The observations from the first two phases were validated through an analysis of pertinent documents and records. Findings Despite all departments adopting internal auditing, management’s expectations of internal auditing and the services provided by the internal audit function diverged. The results suggest that the emergence of a compliance approach to organisational governance together with poor performance management skills has impaired internal auditing’s ability to effectively contribute to strategic and performance management. Research limitations/implications Despite its South African orientation, as internal auditing is a global association and given that service delivery protests continue to occur in several countries around the world, increases the study’s international relevance. Moreover, the mandate of internal auditing requires it to add value to an organisation irrespective of its geographical location. Originality/value The study contributes to the existing body of knowledge on internal auditing, particularly its adoption and implementation in the South African public sector. In addition to identifying the factors inhibiting effective internal auditing, the study advances a suggested framework for the future of internal auditing.
{"title":"Internal audit’s evolving performance role: lessons from the South African public sector","authors":"Asogan Moodley, B. Ackers, E. Odendaal","doi":"10.1108/jaoc-05-2021-0063","DOIUrl":"https://doi.org/10.1108/jaoc-05-2021-0063","url":null,"abstract":"\u0000Purpose\u0000The formal adoption of internal auditing within the South African public sector was made compulsory by the Public Finance Management Act, No. 1 of 1999. Despite internal auditing’s primary role of adding value and assisting organisations to accomplish pre-defined strategic objectives, the increasing frequency of service delivery protests in South Africa, suggests that mandatory internal auditing may not have contributed to improving public sector performance and enhancing service delivery, as envisaged. This paper aims to identify the factors preventing internal audits from effectively contributing to improved public sector performance and service delivery.\u0000\u0000\u0000Design/methodology/approach\u0000The study adopted a sequential mixed-methods research approach. Firstly, a survey instrument was used to collect empirical data from survey respondents at South African national government departments. Secondly, semi-structured interviews and focus group discussions were held with a purposively selected sample of participants to explore the observations from the first phase. The observations from the first two phases were validated through an analysis of pertinent documents and records.\u0000\u0000\u0000Findings\u0000Despite all departments adopting internal auditing, management’s expectations of internal auditing and the services provided by the internal audit function diverged. The results suggest that the emergence of a compliance approach to organisational governance together with poor performance management skills has impaired internal auditing’s ability to effectively contribute to strategic and performance management.\u0000\u0000\u0000Research limitations/implications\u0000Despite its South African orientation, as internal auditing is a global association and given that service delivery protests continue to occur in several countries around the world, increases the study’s international relevance. Moreover, the mandate of internal auditing requires it to add value to an organisation irrespective of its geographical location.\u0000\u0000\u0000Originality/value\u0000The study contributes to the existing body of knowledge on internal auditing, particularly its adoption and implementation in the South African public sector. In addition to identifying the factors inhibiting effective internal auditing, the study advances a suggested framework for the future of internal auditing.\u0000","PeriodicalId":46141,"journal":{"name":"Journal of Accounting and Organizational Change","volume":"30 1","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78249565","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-11-16DOI: 10.1108/jaoc-11-2020-0196
Amra Tica, Barbara E. Weißenberger
Purpose This paper aims to contribute to the understanding of the mechanisms that evolve during reputational scandals and lead to changes in industry regulation. It explores the processes by which a demand for external industry regulation evolves, also addressing the consequences of firms’ competitive behaviors which lead to substantial misbehavior and the destruction of reputational capital. The authors are interested in whether and how regulatory activities – in the case analyzed here, changes in insurance regulation regarding sales commissions for insurance brokers – are used as a costly, external behavioral control mechanism (third-loop learning) to terminate a reputational scandal that cannot be stopped by internal controls at a firm level (first-loop and second-loop learning) anymore. Design/methodology/approach The paper explores a real-life case in the German insurance industry that peaked in 2012 and has been well documented by broad media coverage, complemented by interviews with leading industry representatives. Using causal process tracing as a methodology, the authors study the factors in the case that led to an industry scandal. The authors further analyze why the insurance firms involved were not able to limit the scandal’s impact by internally controlling their behaviors, but had to call for external regulation, thus imposing costly restrictions on sales and contract processes. To identify the mechanisms underlying this result, theories from the fields of economics (game theory) and sociology (vicious cycle of bureaucracies), as well as organizational learning theory, are used. Findings The authors find that individual rationality does not suffice to prevent insurance firms from scandalous business practices, e.g. via implementing appropriate internal behavioral control measures within their organizations. If, as a result, misbehavior leads to reputational scandals, and the destruction of reputational capital spills over to the whole industry, a vicious cycle is set in motion which can be terminated by regulation as an externally enforced control mechanism. Research limitations/implications This study is limited to the analysis of a single case study, combining published materials, e.g. broad media coverage, with interviews from representatives of the insurance industry. Nevertheless, the underlying mechanisms that have been identified can be used in other case studies as well. Practical implications The paper shows that if firms want to avoid increasing regulation, they must implement strong reputational risk management (RRM) to counteract short-term profit pressure and to avoid restrictive regulation imposed on the industry as a whole. Furthermore, it sheds light on the relevance of spillover effects for RRM, as not only employee behavior within an organization might lead to the destruction of reputational capital but also that from other firms, e.g. from elsewhere within an industry. Originality/value The paper contr
{"title":"How regulatory changes are driven by a need for control in reputational scandals: a case study in the German insurance industry","authors":"Amra Tica, Barbara E. Weißenberger","doi":"10.1108/jaoc-11-2020-0196","DOIUrl":"https://doi.org/10.1108/jaoc-11-2020-0196","url":null,"abstract":"\u0000Purpose\u0000This paper aims to contribute to the understanding of the mechanisms that evolve during reputational scandals and lead to changes in industry regulation. It explores the processes by which a demand for external industry regulation evolves, also addressing the consequences of firms’ competitive behaviors which lead to substantial misbehavior and the destruction of reputational capital. The authors are interested in whether and how regulatory activities – in the case analyzed here, changes in insurance regulation regarding sales commissions for insurance brokers – are used as a costly, external behavioral control mechanism (third-loop learning) to terminate a reputational scandal that cannot be stopped by internal controls at a firm level (first-loop and second-loop learning) anymore.\u0000\u0000\u0000Design/methodology/approach\u0000The paper explores a real-life case in the German insurance industry that peaked in 2012 and has been well documented by broad media coverage, complemented by interviews with leading industry representatives. Using causal process tracing as a methodology, the authors study the factors in the case that led to an industry scandal. The authors further analyze why the insurance firms involved were not able to limit the scandal’s impact by internally controlling their behaviors, but had to call for external regulation, thus imposing costly restrictions on sales and contract processes. To identify the mechanisms underlying this result, theories from the fields of economics (game theory) and sociology (vicious cycle of bureaucracies), as well as organizational learning theory, are used.\u0000\u0000\u0000Findings\u0000The authors find that individual rationality does not suffice to prevent insurance firms from scandalous business practices, e.g. via implementing appropriate internal behavioral control measures within their organizations. If, as a result, misbehavior leads to reputational scandals, and the destruction of reputational capital spills over to the whole industry, a vicious cycle is set in motion which can be terminated by regulation as an externally enforced control mechanism.\u0000\u0000\u0000Research limitations/implications\u0000This study is limited to the analysis of a single case study, combining published materials, e.g. broad media coverage, with interviews from representatives of the insurance industry. Nevertheless, the underlying mechanisms that have been identified can be used in other case studies as well.\u0000\u0000\u0000Practical implications\u0000The paper shows that if firms want to avoid increasing regulation, they must implement strong reputational risk management (RRM) to counteract short-term profit pressure and to avoid restrictive regulation imposed on the industry as a whole. Furthermore, it sheds light on the relevance of spillover effects for RRM, as not only employee behavior within an organization might lead to the destruction of reputational capital but also that from other firms, e.g. from elsewhere within an industry.\u0000\u0000\u0000Originality/value\u0000The paper contr","PeriodicalId":46141,"journal":{"name":"Journal of Accounting and Organizational Change","volume":"100 1","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86244107","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-11-05DOI: 10.1108/jaoc-11-2020-0197
Clemens Harten, M. Meyer, Lucia Bellora-Bienengräber
Purpose This paper aims to explore drivers of the effectiveness of risk assessments in risk workshops. Design/methodology/approach This study uses an agent-based model to simulate risk assessments in risk workshops. Combining the notions of transactive memory and the ideal speech situation, this study establishes a risk assessment benchmark and then investigates real-world deviations from this benchmark. Specifically, this study models limits to information transfer, incomplete discussions and potentially detrimental group characteristics, as well as interaction patterns. Findings First, limits to information transfer among workshop participants can prevent a correct consensus. Second, increasing the required number of stable discussion rounds before an assessment improves the correct assessment of high but not low likelihood risks. Third, while theoretically advantageous group characteristics are associated with the highest assessment correctness for all risks, theoretically detrimental group characteristics are associated with the highest assessment correctness for high likelihood risks. Fourth, prioritizing participants who are particularly concerned about the risk leads to the highest level of correctness. Originality/value This study shows that by increasing the duration of simulated risk workshops, the assessments change – as a rule – from underestimating to overestimating risks, unraveling a trade-off for risk workshop facilitators. Methodologically, this approach overcomes limitations of prior research, specifically the lack of an assessment and process benchmark, the inability to disentangle multiple effects and the difficulty of capturing individual cognitive processes.
{"title":"Talking about the likelihood of risks: an agent-based simulation of discussion processes in risk workshops","authors":"Clemens Harten, M. Meyer, Lucia Bellora-Bienengräber","doi":"10.1108/jaoc-11-2020-0197","DOIUrl":"https://doi.org/10.1108/jaoc-11-2020-0197","url":null,"abstract":"\u0000Purpose\u0000This paper aims to explore drivers of the effectiveness of risk assessments in risk workshops.\u0000\u0000\u0000Design/methodology/approach\u0000This study uses an agent-based model to simulate risk assessments in risk workshops. Combining the notions of transactive memory and the ideal speech situation, this study establishes a risk assessment benchmark and then investigates real-world deviations from this benchmark. Specifically, this study models limits to information transfer, incomplete discussions and potentially detrimental group characteristics, as well as interaction patterns.\u0000\u0000\u0000Findings\u0000First, limits to information transfer among workshop participants can prevent a correct consensus. Second, increasing the required number of stable discussion rounds before an assessment improves the correct assessment of high but not low likelihood risks. Third, while theoretically advantageous group characteristics are associated with the highest assessment correctness for all risks, theoretically detrimental group characteristics are associated with the highest assessment correctness for high likelihood risks. Fourth, prioritizing participants who are particularly concerned about the risk leads to the highest level of correctness.\u0000\u0000\u0000Originality/value\u0000This study shows that by increasing the duration of simulated risk workshops, the assessments change – as a rule – from underestimating to overestimating risks, unraveling a trade-off for risk workshop facilitators. Methodologically, this approach overcomes limitations of prior research, specifically the lack of an assessment and process benchmark, the inability to disentangle multiple effects and the difficulty of capturing individual cognitive processes.\u0000","PeriodicalId":46141,"journal":{"name":"Journal of Accounting and Organizational Change","volume":"27 1","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76750879","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-10-15DOI: 10.1108/jaoc-05-2020-0060
Kholod Alsahali, Ricardo Malagueño
Purpose This study aims to examine trends in the global assurance practices of sustainability reports, updating and broaden the extant literature and proving new insights that could guide future research. Design/methodology/approach The data were collected for 12,783 companies and exploratory descriptive analyses of sustainability reporting assurance practices were undertaken. Findings The study shows that assurance growth is lagging behind the growth in sustainability reporting. It reveals that assurer switching is a common practice amongst companies. There is an increasing trend towards the use of the International Standard for Assurance Engagements 3000 by non-accounting assurers. Additionally, in terms of assurance providers, the study finds that accounting firms are dominating the market, however, engineering firms are fast increasing their share of the sustainability assurance market, whilst consulting firms’ share is decreasing. However, the switch towards consulting firms is higher than the switch towards accounting firms in the last switch period. Practical implications Overall, the results of this study provide insights about companies’ assurance practices for regulators, assurance providers and companies interested in assuring their sustainability reports. Social implications This study is relevant for companies’ stakeholders, including investors, to enhance their understanding of companies’ current assurance practices. Originality/value Prior studies on the assurance practices of sustainability reports are limited in scope (concentrate on large companies) and depth (examine accounting vs non-accounting assures and consider the evolving patterns at the institutional rather than firm-level). This study presents developments and trajectories of assurance practices to inform researchers and practitioners on the global trends by bringing an updated and broader perspective on the topic.
{"title":"An empirical study of sustainability reporting assurance: current trends and new insights","authors":"Kholod Alsahali, Ricardo Malagueño","doi":"10.1108/jaoc-05-2020-0060","DOIUrl":"https://doi.org/10.1108/jaoc-05-2020-0060","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine trends in the global assurance practices of sustainability reports, updating and broaden the extant literature and proving new insights that could guide future research.\u0000\u0000\u0000Design/methodology/approach\u0000The data were collected for 12,783 companies and exploratory descriptive analyses of sustainability reporting assurance practices were undertaken.\u0000\u0000\u0000Findings\u0000The study shows that assurance growth is lagging behind the growth in sustainability reporting. It reveals that assurer switching is a common practice amongst companies. There is an increasing trend towards the use of the International Standard for Assurance Engagements 3000 by non-accounting assurers. Additionally, in terms of assurance providers, the study finds that accounting firms are dominating the market, however, engineering firms are fast increasing their share of the sustainability assurance market, whilst consulting firms’ share is decreasing. However, the switch towards consulting firms is higher than the switch towards accounting firms in the last switch period.\u0000\u0000\u0000Practical implications\u0000Overall, the results of this study provide insights about companies’ assurance practices for regulators, assurance providers and companies interested in assuring their sustainability reports.\u0000\u0000\u0000Social implications\u0000This study is relevant for companies’ stakeholders, including investors, to enhance their understanding of companies’ current assurance practices.\u0000\u0000\u0000Originality/value\u0000Prior studies on the assurance practices of sustainability reports are limited in scope (concentrate on large companies) and depth (examine accounting vs non-accounting assures and consider the evolving patterns at the institutional rather than firm-level). This study presents developments and trajectories of assurance practices to inform researchers and practitioners on the global trends by bringing an updated and broader perspective on the topic.\u0000","PeriodicalId":46141,"journal":{"name":"Journal of Accounting and Organizational Change","volume":"52 1","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90230373","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-10-11DOI: 10.1108/jaoc-04-2021-0052
A. Frare, A. M. D. Cruz, C. Lavarda, C. Akroyd
Purpose This study aims to understand the relationship between the elements of a startup firms’ management control system (MCS) package, its entrepreneurial orientation (EO) and firm performance. Design/methodology/approach The authors collected survey data from a sample of 100 Brazilian startups who had exited technology-based parks and incubators. The authors used two data analysis techniques, namely, partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA). Findings The findings show that cultural and planning controls were the only two MCS elements that were included in all high-performing startup firms’ MCS packages. The authors also found that EO has a positive influence on firm performance through the MCS package. Research limitations/implications The mixed-method approach allowed for a holistic view of the analyzed phenomenon. PLS-SEM analysis was applied to the symmetric relationships between the proposed relationships while fsQCA was used to analyze the asymmetric combinations between EO dimensions and MCS package elements, which promoted high firm performance. Practical implications The authors show how different combinations of MCS elements form a package, mediating EO, which can enable high performance. Originality/value Using fsQCA and PLS-SEM, the authors were able to better understand the important role that MCS package adoption has on a startups’ performance and provide new evidence regarding the interface between MCS and EO. This extends the understanding of the importance that cultural and planning controls have in an MCS package to support startup performance.
{"title":"Packages of management control systems, entrepreneurial orientation, and performance in Brazilian startups","authors":"A. Frare, A. M. D. Cruz, C. Lavarda, C. Akroyd","doi":"10.1108/jaoc-04-2021-0052","DOIUrl":"https://doi.org/10.1108/jaoc-04-2021-0052","url":null,"abstract":"\u0000Purpose\u0000This study aims to understand the relationship between the elements of a startup firms’ management control system (MCS) package, its entrepreneurial orientation (EO) and firm performance.\u0000\u0000\u0000Design/methodology/approach\u0000The authors collected survey data from a sample of 100 Brazilian startups who had exited technology-based parks and incubators. The authors used two data analysis techniques, namely, partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA).\u0000\u0000\u0000Findings\u0000The findings show that cultural and planning controls were the only two MCS elements that were included in all high-performing startup firms’ MCS packages. The authors also found that EO has a positive influence on firm performance through the MCS package.\u0000\u0000\u0000Research limitations/implications\u0000The mixed-method approach allowed for a holistic view of the analyzed phenomenon. PLS-SEM analysis was applied to the symmetric relationships between the proposed relationships while fsQCA was used to analyze the asymmetric combinations between EO dimensions and MCS package elements, which promoted high firm performance.\u0000\u0000\u0000Practical implications\u0000The authors show how different combinations of MCS elements form a package, mediating EO, which can enable high performance.\u0000\u0000\u0000Originality/value\u0000Using fsQCA and PLS-SEM, the authors were able to better understand the important role that MCS package adoption has on a startups’ performance and provide new evidence regarding the interface between MCS and EO. This extends the understanding of the importance that cultural and planning controls have in an MCS package to support startup performance.\u0000","PeriodicalId":46141,"journal":{"name":"Journal of Accounting and Organizational Change","volume":"60 1","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91237988","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-10-11DOI: 10.1108/jaoc-09-2020-0144
Patrizia Di Tullio, Matteo La Torre, J. Dumay, M. A. Rea
Purpose The debate about whether corporate reports should focus on numbers or narrative is long-standing. The recent push for business model information to be included in corporate reports has revitalised the debate. Many scholars suggest this constitutes a move towards narrative-based reporting. This study aims to investigate the debate and draws a comparison with the juxtaposition of the narrative and rational paradigms. This study also investigates how accountingisation influences the way business model information is presented in corporate reports. Design/methodology/approach This study analyses data from the financial and non-financial reports from 86 globally listed companies. This study first uses content analysis to code the data. This study then uses a partial least squares-structural equation model to test how accountingisation influences how firms report their business model information. Findings This study finds that accountingisation and a rational paradigm shape how companies present information about their business model in their financial and non-financial reports. This suggests that the dominance of quantitative measures in accounting affects even the presentation of narrative-based information. Despite the much-touted shift towards qualitative reporting, this study argues that companies find it difficult to cast off the yoke of a traditional numbers-based mindset. Research limitations/implications This paper contributes to the debate on numbers- versus narrative-based corporate reporting and the workings of narrative and rational paradigms. In it, this study lays out theoretical and empirical findings of accountingisation. This study also makes a case for freeing corporate reports from the shackles of an accountingisation mindset. Originality/value This study provides new insights into how companies report information about their business models and the influence of narrative and rational paradigms on financial and non-financial reporting.
{"title":"Accountingisation and the narrative (re)turn of business model information in corporate reporting","authors":"Patrizia Di Tullio, Matteo La Torre, J. Dumay, M. A. Rea","doi":"10.1108/jaoc-09-2020-0144","DOIUrl":"https://doi.org/10.1108/jaoc-09-2020-0144","url":null,"abstract":"\u0000Purpose\u0000The debate about whether corporate reports should focus on numbers or narrative is long-standing. The recent push for business model information to be included in corporate reports has revitalised the debate. Many scholars suggest this constitutes a move towards narrative-based reporting. This study aims to investigate the debate and draws a comparison with the juxtaposition of the narrative and rational paradigms. This study also investigates how accountingisation influences the way business model information is presented in corporate reports.\u0000\u0000\u0000Design/methodology/approach\u0000This study analyses data from the financial and non-financial reports from 86 globally listed companies. This study first uses content analysis to code the data. This study then uses a partial least squares-structural equation model to test how accountingisation influences how firms report their business model information.\u0000\u0000\u0000Findings\u0000This study finds that accountingisation and a rational paradigm shape how companies present information about their business model in their financial and non-financial reports. This suggests that the dominance of quantitative measures in accounting affects even the presentation of narrative-based information. Despite the much-touted shift towards qualitative reporting, this study argues that companies find it difficult to cast off the yoke of a traditional numbers-based mindset.\u0000\u0000\u0000Research limitations/implications\u0000This paper contributes to the debate on numbers- versus narrative-based corporate reporting and the workings of narrative and rational paradigms. In it, this study lays out theoretical and empirical findings of accountingisation. This study also makes a case for freeing corporate reports from the shackles of an accountingisation mindset.\u0000\u0000\u0000Originality/value\u0000This study provides new insights into how companies report information about their business models and the influence of narrative and rational paradigms on financial and non-financial reporting.\u0000","PeriodicalId":46141,"journal":{"name":"Journal of Accounting and Organizational Change","volume":"32 1","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84835914","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-29DOI: 10.1108/jaoc-12-2020-0211
Sari Mansour, Dima Mohanna, D. Tremblay
Purpose This paper aims to understand the antecedents and consequences of using the smartphone and/or tablet by professional accountants for business purposes outside of regular working hours. More specifically, this paper aims to test the direct relationships between, on the one hand, work intensification and the use of smartphone and/or tablet and work-family conflict (WFC) and on the other hand, the indirect effect of the use of smartphones and/or tablet between work intensification and WFC. Design/methodology/approach This research was based on a cross-sectional design and quantitative method. The structural equation method was used to test the direct effect of work intensification on smartphone and/or tablet use and WFC. As for the mediation effect of smartphone and/or tablet use between work intensification and WFC, it was tested by the method of indirect effects based on a bootstrap analysis. The statistical treatments were carried out with the AMOS software v.24. Findings The results of the study indicate that work intensification increases the use of smartphones and/or tablets outside of working hours and that this variable increases the intensification of WFC through a process of mediation. Research limitations/implications This research does not take into account the moderating variables that can intervene in the model. For example, the duration of use of the smartphone, the origin of emails or messages (supervisors, customers and colleagues), the types of tasks performed outside working hours and the period of use (evening, weekend and holidays) could have significant effects on the different relationships tested in the model. Furthermore, we had all the positions held by the respondents (for example, chief financial officer, director, vice-president, partners, senior managers, management accountant, auditor, agents, analysts, accountants) grouped into one category and this may have an impact on results. Practical implications The results could be quite interesting for governments and organizations interested in advantage of the technology while reducing its disadvantages. In particular, it is important for accounting firms, which are big users of new technologies (e.g. Smart software and analytics). Indeed, both companies and professional accountants must clearly communicate their expectations regarding the use of technology for business purposes outside normal working hours. Originality/value To the best of the authors’ knowledge, this study is the first to examine the effect of work intensification and the use of smartphones and/or tablets, on WFC.
{"title":"The dark side of hyperconnectivity in the accounting profession","authors":"Sari Mansour, Dima Mohanna, D. Tremblay","doi":"10.1108/jaoc-12-2020-0211","DOIUrl":"https://doi.org/10.1108/jaoc-12-2020-0211","url":null,"abstract":"\u0000Purpose\u0000This paper aims to understand the antecedents and consequences of using the smartphone and/or tablet by professional accountants for business purposes outside of regular working hours. More specifically, this paper aims to test the direct relationships between, on the one hand, work intensification and the use of smartphone and/or tablet and work-family conflict (WFC) and on the other hand, the indirect effect of the use of smartphones and/or tablet between work intensification and WFC.\u0000\u0000\u0000Design/methodology/approach\u0000This research was based on a cross-sectional design and quantitative method. The structural equation method was used to test the direct effect of work intensification on smartphone and/or tablet use and WFC. As for the mediation effect of smartphone and/or tablet use between work intensification and WFC, it was tested by the method of indirect effects based on a bootstrap analysis. The statistical treatments were carried out with the AMOS software v.24.\u0000\u0000\u0000Findings\u0000The results of the study indicate that work intensification increases the use of smartphones and/or tablets outside of working hours and that this variable increases the intensification of WFC through a process of mediation.\u0000\u0000\u0000Research limitations/implications\u0000This research does not take into account the moderating variables that can intervene in the model. For example, the duration of use of the smartphone, the origin of emails or messages (supervisors, customers and colleagues), the types of tasks performed outside working hours and the period of use (evening, weekend and holidays) could have significant effects on the different relationships tested in the model. Furthermore, we had all the positions held by the respondents (for example, chief financial officer, director, vice-president, partners, senior managers, management accountant, auditor, agents, analysts, accountants) grouped into one category and this may have an impact on results.\u0000\u0000\u0000Practical implications\u0000The results could be quite interesting for governments and organizations interested in advantage of the technology while reducing its disadvantages. In particular, it is important for accounting firms, which are big users of new technologies (e.g. Smart software and analytics). Indeed, both companies and professional accountants must clearly communicate their expectations regarding the use of technology for business purposes outside normal working hours.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this study is the first to examine the effect of work intensification and the use of smartphones and/or tablets, on WFC.\u0000","PeriodicalId":46141,"journal":{"name":"Journal of Accounting and Organizational Change","volume":"23 1","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83225485","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-09-24DOI: 10.1108/jaoc-11-2020-0188
Fabienne-Sophie Schäfer, Bernhard Hirsch, Christian Nitzl
Purpose Drawing upon new institutional theory and blame avoidance theory, this paper aims to examine how stakeholder pressure has an impact on the implementation and use of risk management practices in public administrations. Furthermore, this paper investigates whether top management support mediates this proposed relationship. Design/methodology/approach This paper is based on a survey among public financial managers of German municipalities and federal agencies. Data from 136 questionnaires were used to evaluate the model. Findings The results indicate that top management support fully mediates the relationship between stakeholder pressure and risk management practices. This finding suggests that top management support is crucial for the successful implementation of accounting techniques, such as risk management, in public administrations. Research limitations/implications This study is based on subjective answers by public financial managers. Moreover, this study is based solely on German data. Hence, future research could use a mixed-method approach and data from other countries. Originality/value This paper examines whether stakeholder pressure exerts an impact on the sophistication of public risk management practices.
{"title":"Stakeholder pressure as a driver of risk management practices in public administrations","authors":"Fabienne-Sophie Schäfer, Bernhard Hirsch, Christian Nitzl","doi":"10.1108/jaoc-11-2020-0188","DOIUrl":"https://doi.org/10.1108/jaoc-11-2020-0188","url":null,"abstract":"\u0000Purpose\u0000Drawing upon new institutional theory and blame avoidance theory, this paper aims to examine how stakeholder pressure has an impact on the implementation and use of risk management practices in public administrations. Furthermore, this paper investigates whether top management support mediates this proposed relationship.\u0000\u0000\u0000Design/methodology/approach\u0000This paper is based on a survey among public financial managers of German municipalities and federal agencies. Data from 136 questionnaires were used to evaluate the model.\u0000\u0000\u0000Findings\u0000The results indicate that top management support fully mediates the relationship between stakeholder pressure and risk management practices. This finding suggests that top management support is crucial for the successful implementation of accounting techniques, such as risk management, in public administrations.\u0000\u0000\u0000Research limitations/implications\u0000This study is based on subjective answers by public financial managers. Moreover, this study is based solely on German data. Hence, future research could use a mixed-method approach and data from other countries.\u0000\u0000\u0000Originality/value\u0000This paper examines whether stakeholder pressure exerts an impact on the sophistication of public risk management practices.\u0000","PeriodicalId":46141,"journal":{"name":"Journal of Accounting and Organizational Change","volume":"22 1","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-09-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90074187","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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