Straddling between paradigms: A naturalistic philosophical case study on interpretive research in management accounting

This paper analyses interpretive research in management accounting from the perspective of naturalistic philosophy of science. We focus on the relation of interpretive research to the subjective/objective dichotomy appearing in the methodological literature of the social sciences. In management accounting research, it is often routinely assumed that interpretive studies, following the reasoning by Burrell and Morgan [Burrell, G., & Morgan. G. (1979). Sociological paradigms and organisational analysis. London: Heinemann], are based on subjectivism only. The major purpose of this paper is to give flesh to the existing debates around the nature of interpretive research with the help of in depth analysis of one example of such research in management accounting. Since abstract and general philosophical arguments are often used merely to cloud more relevant case specific issues concerning the focus of explanation and the nature of empirical evidence offered, our analysis aims at providing conceptual tools for articulating with greater precision what is being asserted in a given study. The specific target of the examination is the interpretive study by Dent [Dent, J. F. (1991). Accounting and organisational cultures: A field study of the emergence of a new organisational reality. Accounting, Organisations and Society, 16, 693–703], which is one of the highly appreciated and extensively quoted pieces of research picked from the interpretive management accounting literature. Our analysis indicates that though there certainly are, and needs to be, unique subjectivist features in interpretive studies as compared to more ‘objectivist’ approaches, there are also important similarities, and that the view of sociological paradigms as necessarily mutually exclusive does not hold water. Hence interpretive research straddles between paradigms. As we argue that interpretive studies, in addition to including subjectivist elements, also encompass objectivist features, we invert the typical social theory critique of ‘scientific’ (management) accounting research that it cannot be an objective ‘mirror of reality’ by claiming that interpretive studies cannot be exclusively subjectivist and still they remain theoretically relevant. Our philosophically tuned analysis explicates how concepts from different paradigms, such as interpretations, understanding meanings, and causality, can successfully co-exist and co-operate within a single study.     

Revisiting the paradox of whether retail buyers behave more like consumers or industrial purchasers: the case of price discounts

Marketing Letters - A long-lasting debate in marketing literature is whether retail buyers who purchase consumer products behave like consumers or like industrial purchasing managers. We address...     

Struggles in organizational attempts to adopt new branding logics: the case of a marketizing university

Recent research underlines that strong branded identities are created through co-creational processes in which multiple stakeholders are actively involved and brand identities are matched with cultural, political, and economic forces in society. However, there is a lack of in-depth research into how organizations attempt to adopt new branding logics. To address this research gap, we conduct a study of a university that is rebranding itself in accordance with a new market-oriented, service-dominant logic. While harmonic value co-creation between the brand and stakeholders is emphasized in an earlier literature, our study shows that attempts to adopt these logics trigger contradictory and adversarial interpretations among stakeholders about the role and identity of the focal actor vis-à-vis their own. We conclude that adopting new branding logics involves struggles and dynamics of power and resistance, which have passed unnoticed in earlier research. Resistance is not only targeted toward the brand's symbolic meanings and conducted by marginal consumer groups to enhance their own identities. Rather, it can also be targeted toward the tangible resource roles that stakeholders are expected to assume vis-à-vis the brand, and conducted by various stakeholder resistors – with the outcome of undermining and shifting the essence of the brand itself.     

Single‐Party Rule,Public Spending,and Political Rents: Evidence from Finnish Municipalities*

In this paper, I investigate the differences in public spending and extraction of political rents between single‐party and coalition governments. Common pool theories predict that coalitions tend to spend more and extract more rents than single‐party governments. Using data from Finnish municipalities for the years 1997–2012 and a regression discontinuity design approach tailored for proportional elections, I provide causal evidence consistent with the theoretical predictions.     

Determinants of audit report modifications in Finnish municipalities

Although municipalities are major economic and social actors in most countries, remarkably little is known about their audits, particularly the determinants of their audit report modifications. The existing evidence is ambiguous at best and scarce, which provides opportunities for further accounting studies in this area. Therefore, based on an agency theory framework, we fill this important research gap by exploring three determinants of audit report modifications in municipalities: (1) economic performance, (2) decentralization of decision-making across different decision-making bodies, and (3) political competition between political parties in local councils. These determinants are examined based on a large panel of data on Finnish municipalities for the period from 2009 to 2013, covering virtually all of the country’s municipalities. We find that a striking 33 percent of audit reports had modifications during this period, which raises serious concerns about the state of municipal management, accounting, and auditing in Finland. Regarding the above determinants, the following conclusions can be made based on our analyses. First, we find partial evidence that weak economic performance increases the likelihood of audit report modifications. Second, the lower the competition among political parties in a local council, the lower the likelihood of audit report modifications. Finally, the more decentralized decision making is across the different decision-making bodies under the local council, the higher the probability of audit report modifications. These results are consistent with agency theory’s explanations regarding the value of auditing.     

Model selection in macroeconomics: DSGE and ad hocness

ABSTRACT

We investigate the applicability of Rodrik’s accounts of model selection and horizontal progress to macroeconomic DSGE modelling in both academic and policy-oriented modelling contexts. We argue that the key step of identifying critical assumptions is complicated by the interconnectedness of the common structural core of DSGE models and by the ad hoc modifications introduced to model various rigidities and other market imperfections. We then outline alternative ways in which macroeconomic modelling could become more horizontally progressive.     

Integration of planning and execution in service innovation

The purpose of this article is to elaborate two activities included in innovation: planning and execution. We use four dimensions – decision making, organization, process, and external interaction – as the analytical framework. Building on five empirical case studies in the Finnish residential sector, the article identifies various approaches to integrating planning and execution during the development process. Furthermore, the article identifies four integrative mechanisms that relate to each of the four analytical dimensions. The key proposition is that the integration between planning and execution is the driving force for innovation, and that the locus of this integration is the practical engagement of actors with specific aims, problems, and means at hand related to the emerging solution. Finally, the article identifies the availability of, or access to, service-provision resources and the customer interface as a key enabler of this integration.     

Deadlock in corporate governance: Finding a common strategy for private telephone companies, 1978–1998

This paper looks at how a group of small, incumbent private telephone companies complied with the international convergence of market structures. The existing research has mainly focused on large national incumbents, assuming a transition to multinational enterprise. This development process is often associated with privatisation policies and various institutional factors. The article tests these assumptions using a case study of the network of Finnish local telephone companies. It looks at the development of an interfirm network, its perspectives on the different phases of the deregulation process, and how the network tried to regenerate itself but failed to form a unified corporate structure capable of mounting a common business strategy. The reason for this failure resembles the idea of governance inseparability: private telecom companies were committed to the objectives and form of a tried and trusted cooperation model, which no longer met the requirements of the competitive and increasingly liberalised business environment of the 1990s. This case demonstrates that the significance of both corporate governance and organisational development are, above all, related to the firm’s ability to regenerate itself.     

Inter‐Team Coordination Patterns and Outcomes in Multi‐Team Projects

We examine what kinds of patterns of mechanisms can be applied in the coordination of several inter‐related project teams. We identify three distinct coordination schemes; namely: centralized coordination, decentralized coordination, and balanced coordination. In addition, we compare individuals' perceptions on communication, coordination effectiveness, project efficiency, learning, task analyzability, and task uncertainty between the three identified coordination schemes. The results of our study extend to both theoretical and practical understanding of coordination in multi‐team projects and its relation to communication, coordination effectiveness, project performance, and learning.