K.J. Euske

Rational, rationalizing, and reifying uses of accounting data in organizations

Abstract This paper reports the results of a longitudinal field study of information use in a public sector organization. The investigation focused on the extent to which the use of cost accounting data by military repair facilities in the U.S. fits one of three conceptual models of information use. The models reflected the technical-rational, socio-political and institutional perspectives on organisations. Data were obtained by visiting 14 military installations, interviewing 95 people in depth, examining archival data, and conducting in-depth studies of problem areas within the cost system. The study included data covering a period of 22 years. Results indicated little use of the cost data consistent with the technical-rational perspective. Most uses of the data were consistent with either the social-political or institutional perspectives. The study also revealed interesting dynamic properties of the system over time such as the change in the patterns of data use from socio-political and institutional to technical-rational, and the creation of new users for the system.

Stability to profitability: managing interdependencies to meet a new environment

Abstract Management control systems represent what is believed to be an important element in managing internal and external interdependencies. The case study we present in this paper is an attempt to provide additional information contributing to the understanding of the influences on and the roles of management control systems in managing interdependencies. The management control systems were used to deal with changes in the internal and external interdependencies in the domains of strategy and structure of the organization, the organizational field, and the state. The role of the Chief Executive Officer was a key element in both defining the internal and external interdependencies and the employment of the management control systems.

Public, private, not‐for‐profit: everybody is unique?

Although some individuals argue that the public, private, and not‐for‐profit sectors are fundamentally different in many ways, the three sectors have many similarities. The similarities present opportunities to interact and learn from each other. Focusing on the similarities in the organizations rather than the differences can facilitate the exchange of ideas and learning across the sectors.

Transfer of Performance Measurement System Innovations Across Economic Sectors

Abstract Purpose This chapter studies the transfer of performance measurement system (PMS) innovations across the three sectors of the economy: private, public, and nonprofit. Methodology/approach The spread of organizational innovations and learning from best practices is slow and complicated (Lillrank, 1995). Based on differences in languages used by writers and readers and differences in employee characteristics among the three sectors as well as cognitive biases, we expect the transfer of PMS innovations to be easier within sectors than across sectors. We use the frequency and timing of journal articles written about activity-based costing and the balanced scorecard as a proxy for the actual transfer of the innovations within and across economic sectors. Findings Our empirical results indicate that the transfer of the ideas across economic sectors does not happen as quickly as the transfer of the ideas within sectors. We provide evidence that it is the practitioners, not the academics, who lead the transfer of ideas in the open literature from one sector to another. Viewing a sector as unique limits the applicability of available solutions and applications, thereby inhibits useful change. Originality/value of paper By focusing on differences, the exchange of ideas and techniques among the three economic sectors can be hindered.

Debating Diversity in Management Accounting Research

Abstract Purpose This paper chronicles the evolution of the academic debate regarding diversity in management accounting research and discusses its impact on the current state of management accounting research. Methodology/approach We review the stream of literature over the last 40-plus years that discusses diversity in management accounting. Findings Anthony’s 1972 paper in Sloan Management Review makes a call to academics to adjust the trajectory of management accounting research. Our review of the literature reveals that early responses in the 1980s and 1990s to Anthony’s call primarily came from U.S. academics who suggest a broader theoretical approach and more work in the field. After 2000, non-U.S. authors and non-U.S. journals take up the call for diversity and shift the discussion to the more fundamental topic of validating and accepting various research paradigms. The U.S. academic environment fosters a narrow yet important view of management account research. To balance the U.S. view, non-U.S. academics have the liberty of using diverse theories, paradigms, and methods. Originality/value The results of the study indicate that the challenge to moving management accounting research forward is for diverse research approaches to be valued and published in top accounting journals that tend to be U.S. based.

The Pyramid of Organizational Development as a Performance Measurement Model

If a comprehensive performance model for business is to be useful in an analytic and predictive sense, the model must capture the interrelationships of factors that influence organizational performance such as organizational maturity, size, products and services, management systems, industry characteristics, and environmental influences. Flamholtz includes a number of key factors in his model. However, Flamholtzs explication of the factors does call into question some aspects of the model. For instance, Flamholtz explicitly equates level of sales revenue with specific growth stages of the organization and implicitly equates level of sales revenue with the maturity of the organization. Although these factors may be correlated in many organizations, care must be taken so that the comprehensive performance model does not confound key factors.