Strategic management accounting in close inter-organisational relationships

This paper provides a conceptual comparison between the ‘mainstream strategic management accounting’ literature, the ‘accounting and strategising’ literature and ‘strategic management accounting (SMA) in close inter-organisational relationships’. It concludes that ‘SMA in close inter-organisational relationships’ shares some important characteristics with the ‘accounting and strategising’ literature. Important differences were found, too, though. These mainly concerned the need to understand individuals working for close partners as preparers of strategic information; the need for disaggregated accounting information about unique connections to close partners and about the role of indirect benefits that follow from close connections and the need for the company to not only collect information but also disperse diverse information within close inter-organisational relationships. Through an intensive case study of a global robot manufacturer, Robotics, this paper also provides novel empirical evidence on ‘SMA in close inter-organisational relationships’. For instance, SMA practices included indirect benefits, something mainly neglected in the existing literature on SMA. These indirect benefits involved a close customer's willingness to invest time and effort in Robotics’ technological development, thereby contributing to Robotics’ ability to attain revenue gains in its interactions with other customers. Our findings also have important implications for the ‘inter-organisational accounting’ literature, for instance, by highlighting the need to link more explicitly strategic decision-making with the current interest in the role of accounting in inter-organisational dynamics.     

Crafting Compromises in a Strategising Process: A Case Study of an International Development Organisation

This paper focuses on how organisational members in non‐governmental organisations (NGO) can develop credible and legitimate strategic plans and positions out of diverse and conflicting perspectives. Using empirical data drawn from a strategic planning episode in an international development NGO, the study examines the process of ‘crafting compromises’ whereby organisational members make mutual adjustments and concessions to reach consensus on new strategic plans and positions. The analysis shows that two processes facilitate crafting compromises in strategising; being adaptive and responsive to critique as strategic positions are developed, and an ability to forge relevant connections between new strategic proposals and past strategic positions.