Management accounting routines: a framework on their foundations

Abstract

Purpose Recent research provides useful insights on management accounting routines, yet little is written on their foundations. In particular, factors which may contribute to eventual management accounting routines have not been detailed in terms of the process of routinization. Thus, this paper aims to provide an initial theory-based understanding on the foundation of management accounting routines. In turn, it is hoped that this will raise further research interest on this topic. Design/methodology/approach Drawing on extant literature, a framework on foundations of management accounting routines is developed, and two empirical cases illustrate its operationalization. Findings The framework illustrates that a more complete understanding of change to management accounting routines can be gleaned when more is known about their foundations. The foundations are likely to be influenced by a combination and/or interaction of factors at the organizational level, the organizational field level and the economic and political level. Research limitations/implications Because of the so far limited understanding of the foundation of management accounting routines, more research is required. This framework may be useful to guide such research. Originality/value To the best of the authors’ knowledge, this is one of few papers to offer an initial theory-based understanding on the foundations of management accounting routines specifically. This understanding can be built on to improve our knowledge in the management accounting domain of the complex, but ubiquitous, concept of organizational routines.

Accounting for family and business overlaps

“…The data from Amarelli’s GC also reveals the interactions of change and stability over time, which has been highlighted in the contemporary accounting literature (Quinn and Hiebl, 2018; Quinn, 2014). The context of this study is relatively stable – the Commercial Code applied for the entire period of our study, and accounting at Amarelli (as conveyed through the GC) was similarly stable.…”

Situated rationalities and management control change – an empirical note on key actors, situated rationalities and generalised practices

“…Quinn (2014) offered historical data supporting the notion that routines are present before rules and noted how routines display remarkable stability. Quinn and Hiebl (2018), explored the potential origins of routines, something Burns and Scapens did not explore in detail. Quinn and Hiebl (2018) support the path dependent nature of routines put forward by Burns and Scapens, while also reflecting on factors which may influence the path taken.…”

“…Quinn and Hiebl (2018), explored the potential origins of routines, something Burns and Scapens did not explore in detail. Quinn and Hiebl (2018) support the path dependent nature of routines put forward by Burns and Scapens, while also reflecting on factors which may influence the path taken. On the nature of rules as per Burns and Scapens, Bertz and Quinn (2014) extended the Burns and Scapens conception of rules, introducing formal and informal rules.…”

“…The framework uses an institutional lens, drawing on the notions of rules and routines, and how they interact over time across the realms of actions and institutions to interpret management accounting change. Their work has been cited approximately 2,000 times, and several authors have offered developments and suggestions to Burns and Scapens (Dillard et al, 2004;Quinn and Hiebl, 2018;Bertz and Quinn, 2014;van der Steen, 2011) and combined it with other theoretical approaches (Nor-Aziah and Scapens, 2007) to explain the often-complex nature of management accounting change.…”

The Influence of the Organizational Structure, Environment, and Resource Provision on the Use of Accrual Accounting in Municipalities

“…In recent years, researchers have drawn on institutional theory to investigate both the accounting routines after certain routines have emerged and are embedded in an organization and the process of accounting routine changes (e.g., Scapens 2006;Burns and Scapens 2000;Quinn 2014;Ahrens 2018;Abernethy and Chua 1996;Quinn and Hiebl 2019). In the following discussion, we draw on different aspects of institutional theory to explain the sophistication of accrual accounting which has been implemented in municipal administrations.…”