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Management accounting change in a subsidiary organisation

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  • Yazdifar, Hassan
  • Zaman, Mahbub
  • Tsamenyi, Mathew
  • Askarany, Davood

Abstract

Parent–subsidiary relationships are commonplace nowadays, yet surprisingly there is a paucity of research analysing their dynamics over time. This paper presents a (longitudinal) case study, illuminating the dynamics implicated when a UK chemicals company imposed its systems and rules on a new subsidiary. Drawing on observations from a longitudinal case study (from 1993 to 2001), the study considers: (1) the extent to which a parent imposes its (management accounting) systems, rules and procedures on a subsidiary; (2) the role which (local) political, cultural and institutional factors in a subsidiary play in shaping the dynamics of such change implementation; (3) how new systems and practices become accepted and take root as values and beliefs and how they supplement earlier norms? The study provides insight for the questions above, and draws on institutional theories and a power mobilisation framework to assist in the interpretation of observations. We find that the operations of the subsidiary company are influenced by inter-related forces, both inside and outside the organisation encompassing issues of power, politics and culture. As such, existing institutions in a subsidiary organisation are influenced, sustained, and changed by the socio-economic context in which the subsidiary is located. Organisational practices designed to secure external legitimacy are not however always symbolic and decoupled from internal operations.

Suggested Citation

  • Yazdifar, Hassan & Zaman, Mahbub & Tsamenyi, Mathew & Askarany, Davood, 2008. "Management accounting change in a subsidiary organisation," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 19(3), pages 404-430.
    • Handle: RePEc:eee:crpeac:v:19:y:2008:i:3:p:404-430
    DOI: 10.1016/j.cpa.2006.08.004
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    1. Guerreiro, Marta Silva & Rodrigues, Lúcia Lima & Craig, Russell, 2012. "Factors influencing the preparedness of large unlisted companies to implement adapted International Financial Reporting Standards in Portugal," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 21(2), pages 169-184.
    2. Robalo, Rui, 2014. "Explanations for the gap between management accounting rules and routines: An institutional approach," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 17(1), pages 88-97.
    3. Anna Stronczek, 2023. "Barriers of Lean Accounting Implementation in Polish Enterprises: DEMATEL Approach," Sustainability, MDPI, vol. 15(15), pages 1-19, August.
    4. Jean-Paul Mereaux, 2013. "Integration Des Systemes Comptables Dans Les Fusions-Acquisitions : Une Approche Typologique Acculturative," Post-Print hal-00996776, HAL.
    5. Yazdifar, Hassan & Askarany, Davood, 2012. "A comparative study of the adoption and implementation of target costing in the UK, Australia and New Zealand," International Journal of Production Economics, Elsevier, vol. 135(1), pages 382-392.
    6. A. Zarifah & A.K. Siti-Nabiha, 2012. "Analysing accounting and organisational change: the theoretical development," International Journal of Managerial and Financial Accounting, Inderscience Enterprises Ltd, vol. 4(1), pages 29-46.
    7. Robalo, Rui C. & Moreira, José António, 2020. "The influence of power strategies in AIS implementation processes," International Journal of Accounting Information Systems, Elsevier, vol. 39(C).
    8. Nazila Razi & Elizabeth More & Gensheng Shen, 2021. "Risk Implications for the Role of Budgets in Implementing Post-Acquisition Systems Integration Strategies," JRFM, MDPI, vol. 14(7), pages 1-24, July.
    9. Guerreiro, Marta Silva & Rodrigues, Lúcia Lima & Craig, Russell, 2012. "Voluntary adoption of International Financial Reporting Standards by large unlisted companies in Portugal – Institutional logics and strategic responses," Accounting, Organizations and Society, Elsevier, vol. 37(7), pages 482-499.
    10. Szukits, Ágnes, 2019. "Controllers’ profession in contemporary organisations – Evidence from Hungary," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 24(1), pages 8-31.
    11. Englund, Hans & Gerdin, Jonas, 2008. "Structuration theory and mediating concepts: Pitfalls and implications for management accounting research," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 19(8), pages 1122-1134.
    12. Nurunnabi, Mohammad, 2015. "The impact of cultural factors on the implementation of global accounting standards (IFRS) in a developing country," Advances in accounting, Elsevier, vol. 31(1), pages 136-149.
    13. Sinikka Moilanen, 2008. "The role of accounting in the management control system: a case study of a family‐led firm," Qualitative Research in Accounting & Management, Emerald Group Publishing Limited, vol. 5(3), pages 165-183, October.
    14. Robert Rieg, 2018. "Tasks, interaction and role perception of management accountants: evidence from Germany," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(2), pages 183-220, August.
    15. David Procházka, 2017. "The Unintended Consequences of Accounting Harmonization in a Transition Country: A Case Study of Management Accounting of Private Czech Companies," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 11(4), December.
    16. Askarany, Davood & Yazdifar, Hassan, 2012. "An investigation into the mixed reported adoption rates for ABC: Evidence from Australia, New Zealand and the UK," International Journal of Production Economics, Elsevier, vol. 135(1), pages 430-439.

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