Jan van Helden

The practical relevance of management accounting research and the role of qualitative methods therein: The debate continues

Purpose - The purpose of this paper is to present and analyze the opinions of a number of editors of accounting journals on the value they attach to the practical relevance of management accounting research and the potential role of qualitative methods in conducting this type of research. Design/methodology/approach - This paper collects together commentaries from these journal editors about the theme indicated above, together with an overview and reflections by the editors of this special issue. Findings - The journal editors do not regard a lack of practical relevance in management accounting research as a key concern. Most of them see practice-relevance and theoretical advancement as complementary, while the latter is given by far the most weight as the core of academic work. Furthermore, most journal editors have no clear preference for either qualitative or quantitative research in relation to the practical relevance issue. Neither do they seem to have strong opinions about the specific benefits of qualitative methods in practice-relevant studies. In their commentaries, the editors of this special issue advocate a stronger connection between the needs of practitioners and the content of the research, more interventionist research in which practitioners and researchers work together, and a greater focus on communication between academics and practitioners about the practical implications of management accounting research. The special issue editors specifically emphasize the importance of this communication in relation to safeguarding the “support” of various groups in society for academic research. Practical implications - The paper contributes to the ongoing debate about the practical relevance of management accounting research, and particularly to the role of qualitative methods in practice-relevant studies. Originality/value - By collecting and analyzing the opinions of editors of several prominent accounting journals on the practice-relevance of the research in this field, a contribution is made to the ongoing debate about this issue.

Commonalities and Differences in Public and Private Sector Performance Management Practices: A Literature Review

Abstract Purpose An examination of the commonalities and differences between performance management practices in the public and private sector. Methodology/approach A literature review of 100 publications in international academic journals over the last 20 years. Findings The chapter develops a framework which links the dimensions of the public/private-distinction (ownership, funding, control and type of goals) to the design and use of performance management systems (PMS). This framework subsequently informs a literature review, which can be summarised as follows: Multi-dimensionality of the PMS is core in both public and private sector organisations, but quite many private sector papers point to a financial focus at the top of the PMS, while public sector organisations show a broad variety of performance indicators, including those on societally relevant goals. In addition, a link between the PMS and strategies can be found in the public and the private sector, but the match between different strategies and PMS design is more elaborated in the private sector. These findings are largely in accordance with our expectations. The review also finds support for the assumption that performance information in public sector organisations is primarily used for external accountability reasons, while internal managerial control is the main purpose in private firms. The use of performance information is quite intensive and mostly functional in both sectors, which does not meet our expectations. Overall, the differences between performance management practices in the public and private sector are less stringent than expected. Research limitations Due to limited evidence about the importance of performance-related pay systems and no evidence about targeting in both sectors, a more focused literature review on these issues would be desirable. Practical implications Mutual learning between both sectors, for example the public sector can learn from the private sector on how to link strategy to the PMS and the private sector can learn from the public sector about serving a multitude of stakeholders in the PMS. Originality/value A comprehensive review of performance management practices in the public and private sector.

Literature review and challenging research agenda on politicians’ use of accounting information

Recent research on politicians’ use of financial and performance information is reviewed. Survey-based studies overestimate the frequency of this use; observational studies present a more accurate picture. A new and challenging research agenda is presented that will improve our understanding of the use and usefulness of accounting information. Implications for the real world of practice are discussed.Recent research on politicians’ use of financial and performance information is reviewed. Survey-based studies overestimate the frequency of this use; observational studies present a more accurate picture. A new and challenging research agenda is presented that will improve our understanding of the use and usefulness of accounting information. Implications for the real world of practice are discussed.

Water sector reform in Italy and in the Netherlands: ambitious change with an uncertain outcome versus consensus-seeking moderate change

This article aims at analysing the commonalities and differences in recent water sector reforms in Italy and in the Netherlands. The reforms in both countries are characterized by similar goals of achieving greater transparency and efficiency, and comparable governance ideas regarding the establishment of integrated water companies. However, there appears to be a gap between the reforms as initially intended and the way in which they were realized. Although the reform idea of forming integrated water companies has been maintained in Italy, its realization has been postponed, whereas in the Netherlands this reform idea has been replaced by a bottom-up implementation approach, stimulating cooperation rather than integration projects within the water sector. An assessment of the accomplishment of the reform goals conducted in the Netherlands shows that greater transparency and efficiency have been realized to some extent, whereas in Italy any systematic information on this issue has been unavailable. Our analysis of the reasons for the gaps between the reforms as originally intended and the way in which they have been realized shows some similarities between the two countries in the sense of highly institutionalized practices. There are, however, also substantial differences between these two countries. In Italy, there are no networks of water organizations, which explains the lack of local and regional commitment to the centrally desired changes, resulting in their slow execution. In the Netherlands, these networks are powerful enablers with strong coalitions, which have resisted the compulsory implementation of radical changes. Points for practitioners The success of a radical water sector reform, which proposes that the current types of organizations be replaced by new types of organizations, is dependent upon the approval of all powerful stakeholders. However, if radical reform is only supported by some of these powerful stakeholders, it is wise to focus mainly on the relevant goals, and have the stakeholders achieve these goals at their own discretion. The reform implementation will benefit from the involvement of stakeholders at the executive level in both the discussions about the reform content and the processes through which this content can be realized.

Managing overhead in public sector organizations through benchmarking

Many public sector organizations struggle with the size of their overhead. The current crisis has forced them to cut costs, but how drastic can these cuts be without losing too much value? In 2001, we started an overhead benchmarking project in the Netherlands and by 2012, 1,500 public sector organizations had participated in the study. This paper shows how benchmarking of overhead costs helps organizations to understand and properly balance the costs and benefits of their overhead functions.

Reforming the Dutch water chain : how radical ambitions turned into a moderate pace of change

Purpose – The purpose of this paper is to explain how and why the initially ambitious reform of the Dutch water sector turned into a moderate pace of change. The explanations are based on instituti ...

Exploring public sector managers' preferences for attracting consultants or academics as external experts

Purpose - The purpose of this paper is to examine the reasons why public sector managers approach either consultants or academics for their help in solving problems related to public sector accounting and management reforms. Design/methodology/approach - A field study based on reactions to real-life constructs and answers to questions about the experiences of public sector managers in Italian, Dutch and Swedish central government agencies. Findings - Public sector managers approach consultants, due to their experience-based knowledge, for solving well-defined practical and technical problems. In the case of tacit knowledge, a strong interaction between the public sector manager and the consultant, denoted as socialization, is the typical way of knowledge transfer. In accordance with expectations, public sector managers approach academics for advice regarding value-laden problems in their organization. However, academics also give advice about practical and technical issues, usually being the primary domain of consultants, but often when impartial advice is required. Although the authors expected academics to transfer knowledge rather detached from their clients (interiorization), this was not corroborated, because often academics work closely with their counterparts in the client organization. Research limitations/implications - The theoretical framework was helpful in explaining the role of consultants, but it required refinement in explaining the role of academics as external experts. Practical implications - The paper contributes to a better articulated set of preferences of public sector managers in asking advice from either a consultant or an academic. Originality/value - The paper offers a simultaneous and systematic empirical examination of the roles that consultants and academics play in public sector management and accounting reforms.

Toen het erom spande bij Groninger Forum

Dit artikel gaat over de politieke besluitvorming, inclusief financiele argumentatie, over Groninger Forum. Dat is een omstreden project voor cultuur en debat in de Groningse binnenstad, waarvan de investering wordt gesubsidieerd door gemeente en provincie Groningen. Het gebruik van financiele informatie in de Gemeenteraad en Provinciale Staten is minder dan men zou denken bij een omstreden project als Forum. Dit komt omdat de provincie de financiele exploitatie van het project ziet als een gemeentelijke aangelegenheid en de gemeente weinig ruimte laat voor discussie en standpuntverandering vanwege het sterke commitment van een raadsmeerderheid aan het project. Tegenstanders en voorstanders van Forum gebruiken financiele overwegingen op een politieke manier, om hun voor- of afkeur kracht bij te zetten, terwijl neutraal oordelende partijen een rationeel gebruik van financiele informatie laten zien. Sterk zijn deze indicaties echter niet. Vaak bewijzen politieke partijen slechts lippendienst aan financiele argumenten.