E.G.J. Vosselman

The ‘performativity thesis’ and its critics: Towards a relational ontology of management accounting

This paper explores accountings mediating role in bringing theoretical statements from economics into life. It addresses the so-called performativity thesis that claims that economic theory does not just observe and explain a reality, but rather shapes, formats and performs reality. Accounting mediates in that process by creating cognitive boundaries that embed societal practices in economic theory. However, the performativity thesis is not without criticisms. Its main criticisms concern a lack of proof of the thesis; an overestimation of the power of economics to extend beyond the virtual; and a lack of a critical stance. In order to bring more nuance in the discussion on the performativity thesis the paper reflects on evidence from the field of accounting. The review of accounting studies reveals how accounting, to different degrees, is implicated in strategic and operational activities in markets and organisations and how it is a performative mechanism of economisation. Moreover, in order to accentuate the ‘good’ in society and to challenge the ‘bad’, the paper suggests a further development of (critical) management accounting research into the performativity of both economics and other social theories. A relational ontology of management accounting that is in politics and that is sensitive to ‘unlocalisable’ virtual powers of social-historical formations of management accounting may be developed.

Efficiency seeking behaviour in changing management control in interfirm transactional relationships: An extended transaction cost economics perspective

Purpose – This paper specifically seeks to explore the contribution of extended TCE‐reasoning to our understanding of intended change in management control in interfirm transactional relationships.Design/methodology/approach – The approach is theoretical of nature. After having outlined the essentials of TCE‐reasoning and having critically reviewed the extant TCE‐contribution to research in management control, this paper extends TCE‐reasoning by incorporating the notion of trust into the analysis. Different sources of trust as well as the management control related impacts of trust are explored.Findings – The paper develops propositions that, in the context of an interfirm transactional relationship, confront choices for alternative management control patterns with situational and institutional features.Research limitations/implications – The paper particularly covers the overt instrumental level of management control in interfirm transactional relationships. Although the paper covers relational aspects, ...

Research paradigms, theoretical pluralism and the practical relevance of management accounting knowledge

Purpose - The purpose of this paper is to discuss how practical relevance of management accounting knowledge relates to research paradigms and theoretical pluralism. Design/methodology/approach - The paper is conceptual in nature. Findings - As the management accounting discipline is considered to be an applied discipline, a number of authors claim that management accounting research should develop relevant theory that can be used in practice. This call for increased practical relevance of management accounting knowledge interrelates with a debate on the desirability of theoretical pluralism and paradigm diversity in management accounting research. Drawing on the work of Nicolai and Seidl, the paper distinguishes different forms of practical relevance, and analyses the effects of theoretical pluralism on these different forms. The paper argues how theoretical pluralism particularly enhances relevance in a conceptual sense rather than an instrumental sense. The conceptual relevance of research may further be enhanced by interpretive research that acknowledges complexity and that has the potential to challenge the performativity of mainstream management accounting knowledge, without challenging the pursuit of efficiency as such. This is different from critical research. The instrumental relevance stemming from mainstream management accounting research entails de-contextualization and simplification, and might create unintended self-fulfilling prophecies. Research limitations/implications - The paper broadens the concept of relevance so that it includes conceptual relevance and legitimative relevance. It links these concepts of relevance to three research paradigms: a mainstream paradigm, an interpretive paradigm and a critical paradigm. For each paradigm, relevance is related to the use of theory. Originality/value - The paper broadens the concept of relevance and advocates the pursuit of conceptual relevance, particularly through interpretive research.

Shared service centres and management control structure change: exploring the scope and limitations of a transaction cost economics approach

Purpose – This paper aims to explore management control structure change related to the development of a shared service centre (SSC).Design/methodology/approach – The paper explores a transaction costs economics perspective (TCE‐perspective) on management control structure change related to the development of an SSC. Particularly, it explores and challenges the scope of such a perspective both in terms of contents (i.e. the nature of management control related to the dimensions of transactions) and process (i.e. the way change is effectuated). It does so by theorizing as well as empirically investigating management control structure change through a case study at PCM (a Dutch newspaper publisher).Findings – The theoretical analysis broadens existing frameworks of management control structures by particularly pointing to the possibility of including governance structures for internal transactions and exit threats (connected to a market mechanism) in the management control structure of an organization. Howe...

The balanced scorecard: adoption and application

Technological advances and increasing competition are forcing organisations to monitor their performance ever more closely. The concept of the balanced scorecard offers a systematic and coherent method of performance measurement that in particular concentrates on assessing present performance in the light of an organisation’s strategy and takes into account the importance of the various policy aspects. In this paper we study the extent to which the concept contributes to the desired improvement of performance. To this end, we examine the motives for adopting the concept and the decision-making process around this adoption. We study the functioning of the balanced scorecard as a means to control performance, assuming that its functioning is linked to an organisation’s problems and is influenced by other control instruments used. This is why we have done case research.

Approaching control in interfirm transactional relationships: Contrasting and connecting a transaction cost economics perspective with an actor-network theory perspective

Purpose - The purpose of this paper is to contrast and to connect a transaction cost economics (TCE) perspective and an actor-network theory (ANT) perspective on control of interfirm transactional relationships. Design/methodology/approach - The paper outlines two theoretical perspectives on interfirm control: an ostensive TCE perspective and a performative ANT perspective. By contrasting these perspectives the different assumptions of each perspective are highlighted. By connecting them, potentially interacting research approaches become visible. Findings - Ostensive research and performative research may be two sides of the same coin. Ostensive TCE-based research produces intentional explanations for the choice of certain control structures, while performative research exposes the mobilization of control structures in specific episodes from practice. Interaction between the two potentially accelerates and enhances knowledge production on control in interfirm relationships. TCE-based ostensive research produces conceptualizations that can be followed as actors, thus enabling a demonstration of their enactment. Conversely, ANT-based research may challenge the stability of (con)text as it is perceived in TCE-based research. Originality/value - The paper offers a base for multi-paradigm research into control of interfirm transactional relationships. Specifically, the paper offers a base for connecting TCE-informed research and ANT-informed research into interfirm control.

Governance and control as mediating instruments in an inter-firm relationship: towards collaboration or transactions?

This paper explores the mediation of governance and control structures in an inter-firm relationship between a semiconductor producer and its contractor. As mediating instruments the contract and the control structures are not just pre-given results of distanced managerial decision-making, but are generated in and constitutive of the relationship. They offer the possibility to interpret and to interact and they contribute to more or less unexpected transformations in the relationship. In particular, the study explores how the mediation of the governance and control structures has socialising and/or individualising consequences. The paper particularly offers insights into how the mediation of the governance and control structures is impacted by changes in boundary spanners (i.e. managers who represent their organisations in an inter-firm relationship). The paper draws on Roberts 2001. Trust and control in Anglo-American systems of corporate governance: the individualizing and socializing effects of processes of accountability. Human Relations, 54 (12), 1547–1572. and distinguishes four patterns of governance that may be consequential of mediation by governance and control structures: immobilised governance, individualised governance, socialised governance and complementary governance. The study illustrates that accounting is not so much a force that creates transparency for distanced others, but a constitutive mechanism that produces a collaborative inter-firm relationship with socialised governance. It provides a basis for discussion and debate in the relationship.

Dynamic Links between Three Realms of Transactional Relationships

In this paper, an attempt is made to enhance understanding of interfirm transactional relationships. The assumption is made that the development of an interfirm transactional relationship can only be understood thoroughly by studying the various aspects of such a relationship in mutual dependency. Three realms will be introduced, namely the contractual, the relational and the operational realm. These realms are assumed to be closely interconnected and the connections are assumed to be of a dynamic nature. In order to substantiate this multidimensional viewpoint, a case study will be presented and analyzed using a natural experiment methodology.

Management control of inter-firm transactional relationship

In practice ever more companies develop specific transactional relationships with other independent companies. These relationships can have various forms; for example, strategic alliances, networks, joint ventures and consortia. In inter-firm transactional relationships the activities span the traditional and legal boundaries of the firm, which implies that there is no superordinate authority to exercise control over the joint activities as is the case with activities performed within the company. Therefore, controlling the activities of these relationships needs a broader concept of control, which some scholars refer to as the concept of governance. The broader concept of control could include a variety of mechanisms which are used within both the market, the hierarchy and the community. The instrumental design of mechanisms at certain points in time could be complemented by processes of trust building in the course of the relationship. Their aim is to support the co-ordination of the activities, and to further the trustworthiness of the relationship and to diminish the risk of opportunism. Companies can have various reasons for developing such transactional relationships. For example, gaining access to new markets, sharing complementary knowledge, realising benefits of scale or scope, decreasing labour costs, etc. These examples show that co-operating with other companies gives access to additional resources. Parties are prepared to co-operate if they expect the relationship to create value to them. The value of a relationship includes not only expectations in the present, but also expectations in the future, including expectations about additional relationships with the same partner or with members of the broader network. The value is also determined by the costs of governing the joint activities. These costs comprise not only the costs of monitoring and evaluating the partner’s performance, but also the costs of opportunistic behaviour of the partner. The value concept as described above reflects two different perspectives on inter-firm transactional relationships: the transaction cost and the resource-based perspective. Where the transaction cost perspective focuses on the costs of governing the hybrid structure of these relationships, the resource-based approach looks at the possibilities of exploiting and developing the resources (physical, human, and organisational resources) of the co-operating partners. Studying inter-firm transactional relationships from different perspectives could shed new light on governing these relationships. This Special Issue of Management Accounting Research aims to include emerging debates surrounding the control of inter-firm transactional relationships and to identify issues to be addressed both from a theoretical and a practical point of view. Areas of interest include, but are not limited to: