An institutional explanation of management accounting change in an emerging economy: evidence from Bangladesh

Purpose - This study aims to investigate the nature of management accounting (MA) change and the institutional pressures driving the change using the context of an emerging economy – Bangladesh. Design/methodology/approach - The study collected data from 20 listed companies in Bangladesh through in-depth interviews. It uses the typology of MA change proposed by Sulaiman and Mitchell (2005) in identifying the nature and extent of MA change executed during the preceding three years. A modified version of Granlund and Lukka’s (1998) model is used to identify and explain the impact of institutional and economic pressures on MA change. Findings - This study finds that MA changes have taken place in the Bangladeshi listed companies in the forms of modification, addition and replacement during the preceding three years. The findings also showed that mimetic and coercive pressures influence the adoption of new MA techniques or changes in the existing MAP. The impact of economic forces (specifically the advancement of operating technology and competition intensity) on MA change is also well evident. Originality/value - This study focuses on the typology of MA change and the institutional forces affecting the MA change, which have rarely been addressed in the context of an emerging and developing economy.