The disruptive and transformative potential of new technologies for accounting, accountants and accountability

Abstract

Purpose This paper aims to explore the extent to which technology and disruption has been considered within the accounting literature, to introduce the five papers which compose this special issue and to provide an agenda for future research on technology and disruption. Design/methodology/approach To explore previous works on the disruptive potential of technology in accounting, the study compares topics in accounting research articles that contain variations of the term “disrupt” with those articles containing variations of the term “technology”. Based on the method first proposed in Marrone and Hammerle (2016), an entity linker application was used to extract key topics from the top 50 accounting journals, and these topics were then compared to determine the extent of thematic intersection. Findings A key finding is that accounting academic articles featuring “disruption” are rarely linked with “technology”. The concept of “disruption” has been largely synonymous with crisis, and the crises endured to date have had predominantly social or environmental causes (e.g. the GFC and natural disasters). The literature on technology has coalesced around three broad themes – creation, deployment and protection – which have not been identified as crises triggers so far. This finding underscores the importance of the papers comprising this special issue, which explore enhanced data visualisation, blockchain and social media, as well as considering how such technologies might be managed and their potential for either emancipation or enslavement. Research limitations/implications In relation to the review of prior literature, the primary limitation is that a quantitative approach was taken. Whilst this allows for a greater sample size and replication, a qualitative thematic review may reveal additional findings. The primary implication of this research and this special issue collectively is that there is much more to be done in exploring both the potential benefits and limitations of new technologies for accounting. Originality/value In relation to the review of prior literature, no previous studies have undertaken a quantitative analysis of the intersection of technology disruption in accounting research. In relation to this special issue, these papers collectively provide a multi-faceted view of how technology can and will transform the practice and potential of accounting in the years ahead. Finally, the provision of a thematic framework and research agenda will assist future researchers in exploring this dynamic and important field.

Embedding smart technologies in accounting to meet global irrigation challenges

“…Whilst some such trends may go the way of fads and fashions, some are persisting, and accounting firms, amongst others, are urging agricultural businesses to persist with smart technology to identify and minimise any potential risk areas on their farms [PwC, 2011; UNEP, 2011; Ernst and Young (EY), 2012]. Indeed, there is an argument that it is an efficient choice for accountants and their clients to adopt solutions that increase data collected about productivity and profitability (Marrone and Hazelton, 2019). Agtech specifically has transformed the way farms approach their water and as such play a central role in any successful water accounting.…”

The digital transformation of corporate reporting – a systematic literature review and avenues for future research

“…For example, social and environmental reporting are experiments adopted by large companies (Farneti and Siboni, 2011; Martin-Sardesai and Guthrie, 2019), non-profit organisations (Nardo and Siboni, 2018) and small and medium enterprises (SMEs) (Massa et al , 2015) to disclose voluntary information to all stakeholders. The corporate reporting processes and practices have a wide range of purposes that need to be researched within digitalisation of organisations, understanding potentiality, changes and challenges (Cockcroft and Russell, 2018; Gepp et al , 2018; Marrone and Hazelton, 2019; Perdana et al , 2015; Ramassa and Di Fabio, 2016).…”

Accounting in a Social Context

“…Prior research has focused on accounting and the automation of data processing and transaction based activities [71][72][73]. However, the digitisation of the accounting function using AI and big data analytics appears only to increase the network of people and software, both within and outside the organization, creating more data pools and, dare we say, more decisions [74]. It is as though the accounting function will be responsible for handling and using even more data [75] and the real value of digital technology will be in enhanced planning, control and forecasting in this significantly broader information ecosystem [76,77].…”

“…AI and data analytics will increase the quantity and complexity of data and information flows increasing the demand for well qualified accounting professionals to use this information to good effect [79]. This suggests that the qualification level demanded of accounting professionals will continue to increase even when accounting systems increasingly incorporate AI technologies [74,75]. Accountants themselves can play a key role in the implementation and operation of digital technologies in increasingly complex organizational settings.…”