Strategic management accounting and the strategising mindset in an English higher education institutional context

Abstract

PurposeThe purpose of this paper is to explore the concept of strategic management accounting (SMA) in an English university. It is in search of and investigates SMA practices and processes, and their meaning to participants in an English university context. The higher education (HE) institution under research had gone through a major change a couple of years prior to this study, including implementation of new strategic management and management accounting practices.Design/methodology/approachThe approach taken is an interpretive one and the adopted methodology is grounded theory according to Glaser's evolved approach. Data collection took place largely through interviews and, where possible, participant observation.FindingsThe main findings of the research concern the core concept of the strategising mindset, which encapsulates the institutional, divisional and individual stance towards strategy and SMA. The strategising mindset is understood as the belief system that is adopted with regard to SMA, which is divided into a bureaucratic and an entrepreneurial mindset. According to the respective mindset, accounting for strategic management is dealt with and institutional members' perceptions of SMA are shaped. The particular mindset adopted depends on the context members were and are functioning, which reflects Bourdieu's theory of practice.Originality/valueThe main contributions are the emergent theoretical framework on SMA in HE, the concept of the strategising mindset and resulting views and conclusions on what SMA actually means in practice. To the authors' knowledge, no such theoretical framework has been published to date.

Accounting as an engine for the re‐creation of strategy at a university

“…(), Hutaibat et al . () and von Alberti‐Alhtaybat et al . (), the strategic redevelopments and reconsiderations at Delta University resulted mainly from the internal financial conditions and calculations of the university, which was further aggravated by the government's deregulation of the higher education sector.…”

“…In response to calls for the study of the role and impact of accounting and financial management in university strategic management (Hutaibat et al ., ; Parker, ), this paper contributes to the accounting and higher education literature on university strategising by providing empirical evidence of the intricate relationship between strategic and calculative practices at Delta University. We show how strategic change can occur because of the university's calculative practices facilitated by various accounting devices, as well as the internal financial conditions and constrains of the university.…”

“…A study of the engagement between strategic and accounting practices is imperative (Parker, ) because empirical knowledge about if and how universities consider accounting and financial management in a strategic context is currently lacking (Hutaibat et al ., ). Further, studies on university strategising remain underdeveloped, despite this being an important study area (Jarzabkowski and Fenton, ).…”

“…Prior accounting and higher education studies examining universities’ strategic and calculative practices have exemplified universities’ responses to external expectations and demands. In doing so, they have demonstrated how external and institutional pressures shape and change universities’ internal control and accounting systems (e.g., Covaleski and Dirsmith, , ; Lawrence and Sharma, ; Modell, ; Arnaboldi and Azzone, ; Moll and Hoque, ; Philbin, ; Martin‐Sardesai et al ., ; Ozdil and Hoque, ) and strategic management practices (Agasisti et al ., ; Hutaibat et al ., ; von Alberti‐Alhtaybat et al ., ). For example, Hutaibat et al .…”

“…For example, Hutaibat et al . () demonstrate how an English higher education institution (HEI) changed its management, structure and practices in response to changes in the institutional environment, which led to the formal introduction of strategic planning, budgetary processes and a new resource allocation model. Similarly, von Alberti‐Alhtaybat et al .…”