Network control and balanced scorecard as inscriptions in purchaser–provider arrangements: insights from a hybrid government agency

Abstract

PurposeThis article examines the power of management control mechanisms as “inscriptions” for bringing the interests of organisations within a purchaser–provider network into alignment.Design/methodology/approachThe study contributes to accounting and accountability literature in hybrid organisations by applying actor-network theory to a case study organisation. This enables an analysis of how a government agency, operating as a social service provider to the community, developed and used management control mechanisms in its intra-organisational units to ensure its operations were aligned with the expectations of inter-organisational networks in a purchaser–provider context. Data were collected using open-ended interviews and by examining internal accounting and management reports, government archival records and newspaper articles.FindingsAnalysis of the results demonstrates that inter-organisational network control was internalised within the provider organisation because of the ability of the controls to function as inscriptions that influenced organisational actions. The authors conclude that the network control travelled across boundaries over time and was assimilated by the provider organisation to become its internal management control mechanisms.Research limitations/implicationsA single case study of a government service provider agency may limit the generalisation of the findings to other hybrid entities or networks. The significant practical essence of this study lies in the diversity within the results that offer a rich representation of the impact of purchaser–provider arrangements on internal organisational systems within a hybrid public sector setting.Originality/valueThe outcomes enhance knowledge of how a hybrid government agency developed, mobilised and institutionalised its management control mechanisms to ensure the activities of one party are consistent with the other parties' expectations within a network.

Accounting, performance and accountability challenges in hybrid organisations: a value creation perspective

“…Other articles demonstrated the existence of and tensions between the multiplicity of institutional logics, such as economic and social logics (Ferry and Slack, 2022); the logics of calculating the long-term social and economic impacts of preventive social investments (Kastberg Weichselberger and Lagström, 2022); regulatory/bureaucratic, market and service logics in the case of information and communication technology (ICT) service providers (Maran and Lowe, 2022); community, public and market logics in the case of public and private partnership (PPP) policies (Stafford and Stapleton, 2022) and healthcare (medical), administrative and political-institutional logics (Rautiainen et al , 2022). Other studies provided evidence of a variegated mix of different institutions, such as alliances between public, private and third-sector actors (Rajala and Kokko, 2022); a network of public and private companies (Sargiacomo and Walker, 2022) and networks of multiple organisations (purchaser and providers) with different motivations (Zawawi and Hoque, 2022). Begkos and Antonopoulou's (2022) study focuses on the hybrid role of “medical managers”, who are clinicians with managerial responsibilities, thus carrying dual professional and hybrid identities.…”

“…Compromising on values is an instrument for reconciling competing value-creation logics and interests may be organised in several ways. Some studies related to hybridity on health and social care organisations recognise the role of performance measurement as a mediating and compromising one (Begkos and Antonopoulou, 2022; Maran and Lowe, 2022; Zawawi and Hoque, 2022; Kastberg Weichselberger and Lagström, 2022; Sargiacomo and Walker, 2022). Other studies show that performance measures may play an ambivalent role in mitigating the tensions, by enabling compromises between actors with divergent values, and enhancing tensions between actors with convergent values (Moriniére and Georgescu, 2022).…”

“…Finally, control mechanisms are also helpful in supporting the legitimacy of hybrid organisations. The case of purchaser–provider arrangements shows that different control mechanisms within a network should be scaled down to different subsets and establish icons without changing their meanings (Zawawi and Hoque, 2022).…”

Accounting in and for hybrids. Observations of the power of disentanglements

“…The theorization of hybridity and accounting is thus far much inspired by new institutionalism (De Waele et al , 2021) resulting in important contributions regarding the use and role of accounting, accountability and performance measurement “in hybrid organizations” (Ferry and Slack, 2021; Rajala and Kokko, 2021; Vakkuri et al , 2021; Zawawi and Hoque, 2020). However, we argued in the introduction that this mainstream literature only to a limited extent recognizes or discusses disentanglements.…”

Influência De Pressões Ambientais Na Formação De Redes Mediadas Pelos Sistemas De Controle Gerencial Em Incubadoras De Empresas

“…Depreende-se que a literatura contábil oferece oportunidades de investigações, visto que: (i) se identificam reflexões acerca dos efeitos da configuração, implementação e uso de SCG (Quattrone & Hopper, 2005;Hyvönen, Järvinen, & Pellinen;Pollack, Costello, & Sankaran;2013); (ii) as pesquisas emanam que o SCG se apresenta como um ator não humano, que contribui para o desenvolvimento de estratégias organizacionais, tornando-se um ponto de passagem obrigatório para tal ação (Whittle & Mueller;, como um atributo que contribui para a criação de uma rede de atores estável, em termos informacionais (Pak, Alwib, & Ismailb, 2020), e para as ações organizacionais (Zawawi & Hoque;; (iii) os SCG na tipologia de Simons (1995) mostram-se aptos para receber contribuições sociológicas advindas da ANT (Degenhart & Beuren, 2019); e (iv) as pesquisas centram-se em ambientes de elevado número de atores com necessidades e interesses informacionais distintos.…”