On the virtues and vices of combining theories: The case of institutional and actor-network theories in accounting research

Abstract

This paper examines the possibilities and challenges of combining method theories in accounting research through an analysis of studies which combine insights from institutional theory (IT) and actor-network theory (ANT). We investigate the paradigmatic challenges associated with combining these method theories and whether and how scholars have dealt with such challenges. We demonstrate how the combination of these method theories in a single study gives rise to considerable paradigmatic tensions. The most significant tensions relate to the two method theories' diverging ontological conceptions of the nature of social structures and agency and their very different epistemological views of the role of theory. Moreover, our review of extant accounting research combining IT and ANT indicates that a large number of studies simply ignore such tensions and do not provide deeper reflections on the paradigmatic implications of combining these method theories. Whilst recognizing the substantive contributions emerging from this body of research, we question whether continued rapprochement between IT and ANT is the most appropriate way forward and suggest alternative theoretical paths for examining the institutionalization of accounting. We also call on accounting researchers to exercise much greater reflexivity regarding the paradigmatic implications of combining method theories as well as the more general justifiability of such practices as a vehicle for advancing our understanding of accounting as a social and organizational practice.

Institutional theory and IFRS: an agenda for future research

“…Accordingly, in this stream of IT, agency is a distributed phenomenon, accomplished through combining the efforts and contributions of individual actors. This view envisages an ontological conception of collective agency -contrary to the view of institutional entrepreneurship research that conceives actors as individual change agents (Modell et al, 2017). Thus, adoption of IFRS would be expected to be more likely to occur in countries where multiple actors engage in institutional work and operate consciously and strategically at different levels of society to favour this adoption.…”

“…Instrumental rationality conceives agency in a way that contends individuals have greater autonomy to make self-serving decisions (Lounsbury, 2008;Modell et al, 2017). Three important streams of instrumental rationality are institutional entrepreneurship (DiMaggio, 1988), strategic responses to institutional pressures (Oliver, 1991) and "institutional work" (Lawrence & Suddaby, 2006) -all have been applied in accounting harmonization studies.…”

“…He argued that institutional entrepreneurs regard institutions as an opportunity to realize interests that they valued highly. However, this view has been criticized for portraying institutional entrepreneurs as under-socialized, rational and disembedded actors (Modell et al, 2017). This criticism has been addressed in studies that highlight the embeddedness of actors in their institutional environment (Battilana, Leca, & Boxenbaum, 2009;Greenwood & Suddaby, 2006;Hardy & Maguire, 2008).…”

“…Gradually, IT has evolved to consider the effects of complexity, fragmentation, and the ambiguity of institutional requirements on organizational forms (Scott, 2008). Because of this evolution, IT now places greater emphasis on the concept of agency and the influence of significant pre-existing structures on agency (Modell, Vinnari, & Lukka, 2017). These developments in IT have encouraged accounting scholars to consider the use of agency and the influence of institutional logics when analysing the adoption of IFRS (or IFRSbased standards) 2 by organizations and nation States (Aburous, 2019;Albu, Albu, & Alexander, 2014;Alon & Dywer, 2014;Carneiro, Rodrigues, & Craig, 2017;Guerreiro, Rodrigues, & Craig, 2012a, 2012bIrvine, 2008;Maroun & van Zijl, 2016).…”

A study on the criteria of internal transparency, efficiency and effectiveness in measuring local government performance

“…In discussing the appropriate development of a theoretical frame capable of helping us address our research objective, it is helpful to consider two variants of theory, namely, domain theory and method theory (Lukka & Vinnari, 2014;Modell, Vinnari, & Lukka, 2017). Domain theory involves the 'particular set of knowledge on a substantive topic area situated in a field or domain such as accounting' (Lukka & Vinnari, 2014, p. 1309.…”