The human side of accounting : The bonds between human agency and management accounting practices’ changes in the transitional economy

PhD in Business // No. 68 - 2018

The human side of accounting:

The bonds between human agency and management

accounting practices’ changes in the transitional economy

Olga Iermolenko

ISBN: 978-82-92893-58-6 ISSN 2464-4331

Trykk: Trykkeriet, Nord universitet

Olga Iermolenko The human side of accountingPhD in Business // No. 68 - 2018

This thesis studies the human side of accounting, using the notion of human

embedded agency. It refers to the ability of human actors to create, maintain and disrupt management accounting practices (MAPs). This thesis extends the existing explanation boundaries of MAPs’ changes and (re)conceptualizes the role of human agency in shaping and interpenetrating diverse forms of MAPs, by exploring how human agency’s different dimensions are intertwined with MAPs during significant transformations.

By means of four different but theoretically interrelated studies, the thesis introduces readers to the practices of management control and accounting and the changes these practices have undergone in the context of post-socialist countries (PSCs). This research goes beyond the well-studied ‘naturally occurring’ management accounting changes observed in Western contexts.

Firstly, the literature review paper describes and compares the progress in MAPs’ reforms across different PSCs. The three basic dimensions of agency (practical-evaluative, projective and iterational (habitual)) are then examined in three empirical studies. Each study draws upon a particular agency’s dimension and examines its role and bonds with MAPs. By so doing, the three empirical papers add new perspectives to ‘classic’

accounting dilemmas – coercive vs. enabling, formal vs. informal control, stability vs.

changes.

The thesis reveals the role of human agency in making different levels of progress in terms of accounting reforms across PSCs. The study juxtaposes such parts of agency’s different dimensions as ‘situated awareness’, ‘care’ and ‘habit’ with the accounting dilemmas and explains the outcomes of MAPs’ changes, resulting in ‘enabling coercion’,

‘use of informal controls’ and ‘serial institutional entrepreneurship’. In sum, this study revives some classic accounting studies and proposes ways to add the ‘new’ perspective into analysis – the ‘human side’ of accounting.

BUSINESS SCHOOL

The human side of accounting:

The bonds between human agency and management accounting practices’ changes

in the transitional economy

Olga Iermolenko

PhD dissertation submitted to Nord University Business School

for the degree of PhD

Olga Iermolenko

The human side of accounting:

The bonds between human agency and management accounting practices’

changes in the transitional economy

1. edition 2018 PhD nr 68 – 2018

© Nord University Business School ISBN: 978-82-92893-58-6

ISSN 2464-4331

Print: Trykkeriet Nord University

Nord University 8049 Bodø www.nord.no

Alle rettigheter forbeholdes.

© Nord universitet – Handelshøgskolen

Acknowledgements

PursuingaPhDdegreewasoneofmypreciouslifegoalsanddesires.Now,asIam crossingthefinishingline,Icansaythatitwasanextremelytoughanddemanding period,butIwillneverregretit.Firstly,Iwasveryluckytogettoknowthose‘super wise’supervisors,whoguidedmeduringthisjourney.Imustsincerelythankmymain supervisor,ProfessorAnatoliBourmistrov(NordUniversityBusinessSchool,Norway), forhiscreativity,inexhaustibleenergyandpatienceinworkingwithmeandmy secondsupervisor,ProfessorAndersHersinger(LuleåTechnicalUniversity,Sweden), forpickingoutthegoodideasinthenumerouspagesoftextsandencouragingmeto usemyvisualizationskills.Itisdifficulttocountandevenimaginehowmucheffort andtimemysupervisorsspentonreadingandcommentingonthedifferentpiecesof thisdissertation.Icanhonestlysaythatitwouldhavebeenimpossibleformetofinish thePhDwithoutmysupervisors’supportandallthatknowledgetheygladlyshared withme.

IundoubtedlyowethankstoNordUniversityandBusinessSchoolforthefinancial, administrativeandpersonalsupport.IwanttoexpressmygratitudetoRectorBjørn OlsenandDeanErlendBullvågforgivingmetheopportunitytotakepartinthePhD programatNordUniversityBusinessSchool.Iamalsogratefulfortheassistancegiven by FacultyDirector, SteinarSteneͲSørensen, aswell as Ellen Abelgård, Grete IngemannKnudsen,TrulsDidriksen,andPernilleHøgsethHansenandtheother peopleintheadministrationteam.Yourprofessionalandtimelysupportmademy PhDjourneyeasierandnicer.ThankstothegrantsgivenbytheResearchFundofthe BusinessSchoolandthecentralfundsofNordUniversity,Ihadanopportunityto traveltovariousseminars,coursesandconferencesinNorwayandabroad.Allthis helpedmetobuildmyresearchnetworkandmademyPhDjourneyunforgettable.

Further,beingapartoftheBusinessSchool,Ihadachancetoparticipateinvarious activitiesorganizedbytheHighNorthCenterforBusinessandGovernance.Inthis respect,IwanttoexpressmygratitudetoDirectoroftheHighNorthCenter,Professor FrodeMellemvik,forthegreatenergyandpositivitysharedwithme.Here,Iwould alsoliketothankmycolleaguesfromtheHighNorthCenter,whocheeredmeupin difficultmoments,challengedmeintheoreticaldiscussionsandinspiredmetomove forward.Thankyou,EvgeniiAleksandrov,NataliaAndreassen,ElenaDybtsyna,Elena Zhurova,NadezdaNazarova,IgorKhodachek,AndreyKazakov,LineHaug,TorsteinVik

Århus,AndreyMineevandAntoninaTsvetkova.Averyspecialvoteofthanksalsogoes tomyfriendsandcolleagues,VeronikaVakulenko,SeidaliKurtmollaievandKarin Wigger,andtoothercolleaguesfromNordUniversityBusinessSchool,JuneBorge Doornich,IrinaRodvik,AnastasiyaHenk,KonstantinTimoshenko,YevheniiaAntoniuk, andKjerstiGranåsBardal.Iamtrulythankfulforallyoursupport!

Furthermore,throughouttheyearsofworkingonthisthesis,Ihadthechancetomeet manyinternationallyrecognizedresearchers,whofilledmyheadwithnewinspiring ideas.IwouldliketothankProfessorJanMouritsen(CopenhagenBusinessSchool, Denmark),forteachingmetoread‘betweenthelines’andforprovidinginsightful feedbackonmydissertationduringthemidͲtermevaluationseminarinOctober2016.

SpecialthanksalsogotoProfessorOlovOlson(UniversityofGothenburg,Sweden), forgivingmeconstructivecritiqueonmythesisduringthesameevent.

IappreciatetheacademicsupportofProfessorGiuseppeGrossi(NordUniversity BusinessSchool),ProfessorKatarinaKaarbøe(NorwegianSchoolofEconomics, Norway),ProfessorMattiSkoog(ÅboAkademi&StockholmUniversitySchoolof Business,Sweden),ProfessorMarkChristensen(ESSECBusinessSchool,Singapore), ProfessorToomasHaldma(UniversityofTartu,Estonia)andotherprofessorsfromthe Ukrainianpartnerinstitutions,especiallythosefromTarasShevchenkoNational UniversityofKyiv.IwouldliketogivespecialthankstoSeniorLecturer,Daniela Argento(KristianstadUniversity,Sweden),whonotonlybecamemycoͲauthorbut alsoencouragedmetobelieveinmyselfandmyideas.Additionally,Iamdeeply indebtedtomyinterviewees,whotookthetimetosharetheirideasandexperiences withme.Ifounditexcitingtodelveintotherealworldofmanagementaccounting practicesandtoobtainfirstͲhandinformation.

Finally,andmostimportantly,Iwouldliketothankmydearfamily–mydearparents, ElenaandNikolai,andsister,Ella,myhusband,Mohammed,andmylittleprincess, Jasmine!Theyhavealwaysbelievedinme,supportedmeandencouragedmenotto giveupindifficultmoments.Idedicatethisworktoyou,mybelovedfamily!

Meanwhile,Iamlookingforwardtostartingtowriteanewchapterofmylife–“life afterPhD”!

OlgaIermolenko 12.03.2018

Synopsis

Whenstudyingmanagementaccountingpractices’(MAPs)changes,researcherstend torefernotonlytothetechnicalcomponentsofchangesbutalsotothehumanside ofaccounting–thehumanactorsinvolvedandaffectedbychanges.Thisthesis studiesthehumansideofaccounting,usingthenotionofhumanembeddedagency.

Thethesisreferstotheabilityofhumanactorstoperformaccounting’sinstitutional workofcreating,maintaininganddisruptingMAPs.Thisconsistsofatemporally embeddedprocessofsocialengagementthatisinformedbythepastbutisalso orientedtowardsthefutureandtowardsthepresent,thusformingthethreebasic dimensions of human agency: practicalͲevaluative, projective and iterational (habitual). Nevertheless,thebondsbetweenMAPsinconditionsofsignificant transformationsandtheimpactofthehumanagency’sdimensionsonthesepractices remainvague.

ThisthesisaimstoextendtheexistingexplanationboundariesofMAPs’changesand to(re)conceptualizetheroleofhumanagencyinshapingandinterpenetratingdiverse forms of MAPs. More specifically, it explores how human agency’s different dimensionsareintertwinedwithmanagementaccountingpracticesduringsignificant transformations.Themotivationtostudythecontextcharacterizedbysignificant changesstemsfromthefactthattheextentofaccountingacademicliteraturelargely focusesontheissuesrelatedtoMAPs’changesinwellͲestablishedWesterncontexts.

Thus,itdescribessoͲcalled‘naturallyoccurring’changes,withlittleattentionbeing paidtomoredifficultcontexts,characterizedbysignificantchangesinMAPs,suchas thoseobservedintransitionaleconomies,wheremanagementaccountingaspractice anddisciplinehasbeenestablishedquiterecently.

Bymeansoffourdifferentbuttheoreticallyinterrelatedstudies,thethesisintroduces readerstothepracticesofmanagementcontrolandaccountingandthechanges thesepracticeshaveundergoneinthecontextofthetransitionaleconomy.Firstly, theliteraturereviewpaperdescribesandcomparestheprogressinMAPs’reforms acrossdifferentpostͲsocialistcountries(PSCs)ofCentralandEasternEuropeand formerSovietrepublics.Thethreebasicdimensionsofagencyarethenexaminedin threeempiricalstudies.Eachstudydrawsuponaparticularagency’sdimension (practicalͲevaluative,projectiveandhabitual)andexaminesitsroleandbondswith MAPs.Bysodoing,thethreeempiricalpapersaddnewperspectivestosome‘classic’

accountingdilemmas–coercivevs.enabling,formalvs.informalcontrol,stabilityvs.

changes.

Thethesismakesseveralcontributions.ItprovidesnewperspectivesonMAPsand theirchangeprocesses,byappreciatingtheaffectional,psychologicalandemotional componentsofMAPs.Thisstudyalsocontributestomanagementaccountingand controlliteratureonaccountingintransition,byrevealingtheroleofhumanagency inmakingdifferentlevelsofprogress,intermsofaccountingreformsacrossPSCs.The threeempiricalstudiesjuxtaposesuchcategoriesas‘situatedawareness’,‘care’and

‘habit’,aspartsofagency’sdifferentdimensions,withtheaccountingdilemmasand explaintheoutcomesofMAPs’changes,resultingin‘enablingcoercion’,‘useof informalcontrols’and‘serialinstitutionalentrepreneurship’.Finally,thisstudy revives someclassic accountingstudiesandproposesways toadd the ‘new’

perspectiveintoanalysis–the‘humanside’ofaccounting.

Key words: human agency, management accounting practices (MAPs), transformation,postͲsocialistcountries(PSCs),Ukraine

Content

Chapter1.“Thehumansideofaccounting.Thebondsbetweenhumanagencyand managementaccountingpractices’changesinthetransitionaleconomy”ͲͲͲͲͲͲͲͲͲͲͲ1

1. INTRODUCTIONͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ1

BackgroundanddefinitionofkeyconceptsͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ1

‘WhydidIchoosetofocusonthecontextofthetransitionaleconomy?’–Some argumentsinsupportoftheresearchsettingͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ2

‘Howhasthehumanagencyconceptcomeintoplay?’–Insightsfrominstitutional theoryͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ4

MainresearchquestionandaimsofthedissertationͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ5

2. THEORETICALFRAMEWORKͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ7

ManagementaccountingandcontroldilemmasexaminedinthisdissertationͲͲͲ7

TheparadoxofhumanembeddedagencyanditsdimensionsͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ9

3. PECULIARITIESOFTHESTUDIEDCONTEXTͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ12

Accountingintransition–transitionof/towhat?ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ12

4. RESEARCHPROCESSANDMETHODOLOGYͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ15

ResearchtopicandresearchquestionsͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ16

EpistemologicalassumptionsͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ21

MethodologicalassumptionsͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ22

DomainͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ23

ReasoningandlogicalinferenceͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ24

MethodsͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ25

Validity,trustworthinessandcredibilityͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ27

5. EMPIRICALFINDINGSͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ29

Paper1:Iermolenko,O.,“MappingtheMAPs:studiesofmanagementaccounting practicesinthepostͲsocialistcountries”ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ29

Paper2:Iermolenko,O., Hersinger,A., “Accounting for enablingcoercion:

Constructinga‘NewEmpire’inthetransitionaleconomy”ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ31

Paper3:Iermolenko,O.,“Beyondthe‘IronTriangle’controlregime:Safeguarding bigprojects’goodfatebycontrollingwithcare”ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ34

Paper4:Iermolenko,O.,Argento,D.,Bourmistrov,A.,“Theroleofanindividual inaccountingandorganizationalchanges:Personalaspectsofserialinstitutional entrepreneurship”ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ36

6. DISCUSSIONANDCONCLUSIONͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ38

Combiningtheresults:searchingforthebondsbetweenhumanagencyandMAPs ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ38

ResearchimplicationsͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ43

LimitationsandsuggestionsforfurtherresearchͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ44

7. REFERENCESͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ46

8. APPENDIXESͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ58

AppendixA.Decisionmaking,uncertaintyandtherolesofaccountingpractice58

AppendixB.“TakeͲaways”FromtheFieldͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ58

Chapter2.Paper1.“MappingtheMAPs:Studiesofmanagementaccounting practicesinthepostͲsocialistcountries”ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ60

AbtractͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ60

1. INTRODUCTIONͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ62

2. RESEARCHMOTIVATIONANDDEFINITIONOFKEYCONCEPTSͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ64

3. REVIEWMETHODͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ66

3.1.DatacollectionmethodͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ66

3.2.LiteraturereviewframeworkͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ69

4. STATISTICALANALYSISANDFINDINGSͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ70

4.1.Distributionofarticlesovertheyears,methodsandtheoriesusedͲͲͲͲͲͲͲͲͲͲ70

4.2.GapsemphasizedandavenuesforfutureresearchprovidedͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ74

4.3.MAPs’developmentinthePSCsinrecentdecades–insightsfromthe literatureͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ76

4.4.Actors’engagementinMAPs’changes–insightsfromtheliteratureͲͲͲͲͲͲͲ82

5. DISCUSSIONͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ84

5.1.MAPs’developmentacrossPSCsinthelastfewdecadesͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ84

5.2.Addingagency’sperspectivetounderstandingMAPs’developmentacross PSCsͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ86

6. CONCLUDINGPOINTSANDSUGGESTIONSFORFURTHERRESEARCHͲͲͲͲͲͲͲͲͲͲͲͲͲ89

7. REFERENCESͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ91

8. APPENDIXESͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ97

AppendixA.Developedanddevelopingcountries,2008ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ97

AppendixB.SearchexampleandsearchreportinScopusͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ98

AppendixC.SearchexampleinGoogleScholarͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ98

AppendixD.SearchexampleinWebofScienceͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ102

AppendixE.Literaturereview:researchproblemstackled,findingsandfuture researchͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ103

Chapter3.Paper2.“AccountingforEnablingCoercion:Constructinga“New Empire”intheTransitionalEconomy”ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ120

AbstractͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ120

1. INTRODUCTIONͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ122

2. THEORETICALLENSESͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ124

2.1.Fearoftheformal–bureaucracyandaccountingmustdie?ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ124

2.2.Beyondcoercivecontrol–mobilizationofMASintermsofrepair,internaland externaltransparencyandflexibilityͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ126

2.3.Thenotionofanaccountingregimeanditsimplicationsforthestudyof perceptionsofcontrolinanorganizationͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ127

2.4.SummaryofthetheoreticalpartͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ129

3. METHODOLOGYͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ131

4. EMPIRICALMATERIALͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ136

4.1.Changesinprinciples,norms,rules,anddecisionͲmakingprocedurescaused bynewownershipͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ136

4.2.ThenewformalizedverticalorganizationalstructureanditsbyͲproducts139

4.3.BringingupthecultureofrationalizationͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ142

4.4.Budgeting,accountingandcapitalbudgetingͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ144

4.5.“Rulesaredesignedtobeavoided”–thecaseofefficientbureaucracyͲͲͲ146

4.6.Perceptionofcontrolandimplicationsforbusiness–asummaryͲͲͲͲͲͲͲͲͲͲͲ147

5. ANALYSISͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ151

5.1.Fromtheautocraticfeudalaccountingregimetowardsthenewempire accountingregime,enablingbureaucracyͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ151

5.2.Learning,knowledgesharingandexchangeofideas–oldisnewagain?ͲͲ153

6. DISCUSSIONANDCONCLUSIONͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ156

6.1.Whatmightbeperceivedcoerciveby“Westerners”isnotnecessarilycoercive for“Easterners”ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ156

6.2.Bureaucracyandrigidaccountingproceduresdonotpreventorganizations fromlearningbutdoprovideseveralopportunitiesͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ157

7. REFERENCESͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ158

8. APPENDIXESͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ163

AppendixA.TimeframeofdatacollectionandlistofinterviewsͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ163

Chapter4.Paper3.“Beyondthe‘IronTriangle’controlregime:Safeguardingbig projects’goodfatebycontrollingwithcare”ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ164

AbstractͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ164

1. INTRODUCTIONͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ165

2. THEORETICALLENSESͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ168

3. RESEARCHMETHODͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ172

DatacollectionandanalysisͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ172

AbouttheprojectsͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ175

4. EMPIRICALFINDINGSͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ177

Studiedprojects–mainpartiesandprojects’uncertaintiesandcomplexitiesͲ177

AddressingprojectuncertaintiesbycontrollingwithcareͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ182

5. ANALYSISANDDISCUSSIONͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ191

6. CONCLUSIONSͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ195

7. REFERENCESͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ197

Chapter5.Paper4.“Theroleofanindividualinaccountingandorganizational changes:Personalaspectsofserialinstitutionalentrepreneurship”ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ201

1. INTRODUCTIONͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ203

2. THEORETICALLENSESͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ206

3. RESEARCHMETHODͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ210

4. EMPIRICALFINDINGSͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ212

Phase1.GettingequippedwithknowledgeandskillsinAudCoͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ214

Phase2.RiseandfallofinstitutionalentrepreneurshipinEnCoͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ215

Phase3.(Re)gainingmomentum–newfieldandnewopportunitiesinLogCo222

5. ANALYSISͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ224

Mr.IE’sprofessionalandpersonaldivergenceintheUkrainiancontextͲͲͲͲͲͲͲͲ224

Perceivedworksituation–comfortanddiscomfortzonesinthreeorganizations ͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ226

6. DISCUSSIONANDCONCLUSIONSͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ230

7. REFERENCESͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ234

8. APPENDIXESͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ239

AppendixA.StructureofEnCoGroupͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ239

AppendixB.Episodesfromtheworkplaces:TalesofMr.IEͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ239

NOTESͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲͲ242

List of abbreviations

EU–EuropeanUnion

IE–InstitutionalEntrepreneur

IFRS–InternationalFinancialReportingStandards KPIs–Keyperformanceindicators

MA–Managementaccounting

MAP–Managementaccountingpractice MAS–Managementaccountingsystem MCS–Managementcontrolsystem MNC–Multinationalcompany PM–Performancemeasurement

PMS–Performancemeasurementsystem PSC–PostͲsocialistcountry

List of figures

Figure1.1.FormalandinformalforcesinfluencinghumanagencyinPSCs...14

Figure1.2.Aspiralingresearchapproach(Berg&Lune,2012,p.25)...15

Figure1.3.Basicconceptsoftheresearchprocess...16

Figure1.4.Currentresearch’sunderlyingontologicalassumptions...19

Figure1.5.Summaryofthethesis...40

Figure2.1.Searchalgorithmandarticleselection...68

Figure2.2.Literaturereviewframework...69

Figure2.3.Distributionofarticlesovertheyears...70

Figure2.4.ProgressinstructuralreformsacrossselectedPSCs(EUmembership)..72

Figure2.5.Methodologicalapproachesusedintheselectedarticles...72

Figure2.6.Theoreticalapproachesusedintheselectedarticles...74

Figure2.7.TheinstitutionalandagencyperspectivesonMAPs’changesinPSCs....86

Figure 3.1. Elements of accounting regimes and their influence on actors’ expectationsandbehavior...128

Figure3.2.Summaryoftheoryandmodelforempiricalinvestigation...130

Figure3.3.Elementsofthenewmanagementcontrolregime...139

Figure3.4.SchematicillustrationoftheknowledgeͲsharingmechanismbeforeand afterreorganization...154

Figure4.1.Project’scontrolandcare...170

Figure4.2.MainpartiesoftheHolmenkollenproject...177

Figure4.3.Holmenkollenproject–costs,timeandcomplexities...178

Figure4.4.MainpartiesofDonbassArenaproject...180

Figure4.5.TheDonbassArenaproject–costs,timeandcomplexities...181

Figure4.6.Thepeculiaritiesintermsofsourcesofuncertainties...192

Figure5.1.Institutionalentrepreneurs’comfortanddiscomfortzones...210

Figure5.2.Timeframeofthelongitudinalstudyanddatacollectiontechniques...212

Figure5.3.ComfortanddiscomfortzonesinEnCo...227

Figure5.4.Thewaveofinstitutionalentrepreneurship–searchofcomfortzones229

List of tables

Figure1.1.FormalandinformalforcesinfluencinghumanagencyinPSCs...14

Figure1.2.Aspiralingresearchapproach(Berg&Lune,2012,p.25)...15

Figure1.3.Basicconceptsoftheresearchprocess...16

Figure1.4.Currentresearch’sunderlyingontologicalassumptions...19

Figure1.5.Summaryofthethesis...40

Figure2.1.Searchalgorithmandarticleselection...68

Figure2.2.Literaturereviewframework...69

Figure2.3.Distributionofarticlesovertheyears...70

Figure2.4.ProgressinstructuralreformsacrossselectedPSCs(EUmembership)..72

Figure2.5.Methodologicalapproachesusedintheselectedarticles...72

Figure2.6.Theoreticalapproachesusedintheselectedarticles...74

Figure2.7.TheinstitutionalandagencyperspectivesonMAPs’changesinPSCs....86

Figure 3.1. Elements of accounting regimes and their influence on actors’ expectationsandbehavior...128

Figure3.2.Summaryoftheoryandmodelforempiricalinvestigation...130

Figure3.3.Elementsofthenewmanagementcontrolregime...139

Figure3.4.SchematicillustrationoftheknowledgeͲsharingmechanismbeforeand afterreorganization...154

Figure4.1.Project’scontrolandcare...170

Figure4.2.MainpartiesoftheHolmenkollenproject...177

Figure4.3.Holmenkollenproject–costs,timeandcomplexities...178

Figure4.4.MainpartiesofDonbassArenaproject...180

Figure4.5.TheDonbassArenaproject–costs,timeandcomplexities...181

Figure4.6.Thepeculiaritiesintermsofsourcesofuncertainties...192

Figure5.1.Institutionalentrepreneurs’comfortanddiscomfortzones...210

Figure5.2.Timeframeofthelongitudinalstudyanddatacollectiontechniques...212

Figure5.3.ComfortanddiscomfortzonesinEnCo...227

Figure5.4.Thewaveofinstitutionalentrepreneurship–searchofcomfortzones229

Chapter 1. “The human side of accounting. The bonds between human agency and management accounting practices’ changes in

the transitional economy”

1. INTRODUCTION

ĂĐŬŐƌŽƵŶĚĂŶĚĚĞĨŝŶŝƚŝŽŶŽĨŬĞLJĐŽŶĐĞƉƚƐ

Managementaccountingpractices(MAPs),beyondthenormativeliteraturewithits focus on objectified accounting, are widely considered to be socially and institutionallyconstructed(Ahrens&Chapman,2007;Burchelletal.,1980;Baxter&

Chua,2009;Chapmanetal.,2009;Hopwood&Miller,1994;Miller&Power,2013;

Gerdinetal.,2014).DifferentstudieshaveprovedthathumanͲrelatedaspectsoften causeamendmentsintheMAPs’developmentpath(Covaleskietal.,2013;Granlund, 2001;Kholeifetal.,2007;Yang&Modell,2015;SitiͲNabiha&Scapens,2005;vander Steen,2009).However,thebonds,whichindicatetherecursiverelationshipbetween theseaspectsandMAPs,remainunclear.

Ametaphor‘thehumansideofaccounting’¹ispickeduptoindicatemyresearch interestinthehuman’sinfluenceonthedevelopmentofMAPsⁱ.Itistobestudied throughthenotionofhuman(embedded)agency(Emirbayer&Mische,1998;

Battilana&D’Aunno,2009;Seo&Creed,2002).Thehuman(embedded)agency concept,asitisusedinthisstudy,describestheabilitiesofpeople‘ontheground’, withtheirdistinctivementalities,traditions,viewpointsandotherpsychological aspects(Hall,2016)thatmakethemengageinaccountinginstitutionalworkof creating,maintaininganddisruptingMAPs(Battilana&D’Aunno,2009).Agencyitself isalsoasociallyandinstitutionally^structuredphenomenon(Scott,2014).Itmaybe orientedtowardsthefuturebutalsoinformedbythepastandthepresent(Emirbayer

&Mische,1998;Battilana&D’Aunno,2009).

Insituationscharacterizedbysignificantchangesandtransformations,theroleofthe

‘humanside’isevenmoreevident(Widener,2014);therefore,Istudycasesof significanttransformations.Thisthesisaimstoextendtheexistingexplanation boundaries of management accounting practices’ (MAPs) changes, and to

1InspiredbyDouglasMcGregor’sfamousbookTheHumanSideofEnterprise(1960).Seenoteson p.242.

(re)conceptualizetheroleofhumanagencyinshapingandinterpenetratingdiverse formsofMAPs underconditionsofsignificant transformations.Thenotionof

‘transformation’isusedindifferentdimensionsthroughoutthisthesisbutlargelyto indicateasignificantchangeintheenvironment(generallyreferredtoasatransition fromplannedtomarketeconomy)andinMAPs.

Throughoutthisthesis,a broaddefinition ofMAPsisusedthatincludes the managementaccounting,informationandcontrolperspectives(Baxter&Chua, 2009).MAPsareanimportantpartoftheentirespectrumofcontrolmechanisms usedtomotivate,monitor,measureandsanctiontheactionsofmanagersand employeesinorganizationsandtocoordinatethesewiththeothercomponentsofan organization,suchasinformationandcommunicationtechnologies(Macintosh&

Quattrone,2010).MAPsareoftendescribedastoolsassistingmanagersindecisionͲ makingandincopingwithuncertainties(Simons,1987;1994).Thesetoolsare representedinpurenumericalormixedform(e.g.budgets,activityͲbasedcosting (ABC),keyperformanceindicators(KPIs),balancedscorecards(BSC),etc.).MAPsare proventohaveaninfluenceoverpeople’sbehaviorbutarealsoaffectedbyhuman activities(Horton&deAraujoWanderley,2018;Birnberg,2011;Hall,2016;Mai&

Hoque,2017).Thus,thedesignandmobilizationofMAPsislargelydependentupon humanintentions,abilities,interests,etc.(Horton&deAraujoWanderley,2018).

Inmanagementaccountingpractices,transformation²meansacompletechangein theformorcharacterofMAPs,especiallyfortheirimprovement.Thetransformations in management accounting or MAPs’ development paths are often rife with dilemmas,whichwillbeexaminedinthedissertation.

͚tŚLJ ĚŝĚ / ĐŚŽŽƐĞ ƚŽ ĨŽĐƵƐ ŽŶ ƚŚĞ ĐŽŶƚĞdžƚ ŽĨ ƚŚĞ ƚƌĂŶƐŝƚŝŽŶĂů ĞĐŽŶŽŵLJ͍͛ ʹ ^ŽŵĞ ĂƌŐƵŵĞŶƚƐŝŶƐƵƉƉŽƌƚŽĨƚŚĞƌĞƐĞĂƌĐŚƐĞƚƚŝŶŐ

One of themotivations for studying the context, characterized by significant transformations,isthatamajorityofresearchersinterestedinMAPs’changesfocus onrelativelystableenvironments, typicallyreferredtoas‘advancedcapitalist economies’(Ezzamel&Xiao,2011;Hopperetal.,2009).Instudyingthesecontexts,

2“Transformationisacompletechangeintheappearanceorcharacterofsomethingorsomeone, especiallysothatthatthingorpersonisimproved”(CambridgeOnlineEnglishDictionary, https://dictionary.cambridge.org/,accessedinNovember2017).

researchersobtaingoodunderstandingofthemechanismsofincrementalchanges (SitiͲNabiha&Scapens,2005)orthesoͲcalled‘naturallyoccurring’management accounting changes, which might not be considered imposed and difficult.

Meanwhile,studiesincontextscharacterizedbyradicalchanges(i.e.‘transitional economies’³),withtheirradicalimplicationsforthehumanactors,areleftlargely unexaminedintheaccountingacademicliterature(Ezzamel&Xiao,2011;Hopperet al.,2009;Yazdifar&Tsamenyi,2005;Peng&Heath,1996).

Takingintoaccountthatasignificantpartoftheworld’spopulationlivesincountries withatransitionaleconomyorindevelopingcountries,andthatWesternbusinesses areexpandingtheiractivitiesfasterthaneverbeforethere,thesparseliterature attendingto‘nonͲadvancedcapitalisteconomies’lookseventhinnerthanpreviously thought,giventhemuchgreaterbodyofliteraturedevotedtoaccountinginthefew advancedcapitalisteconomies(Ezzamel&Xiao,2011).Byattainingmoreknowledge intheareaofMAPsinPSCs,wecanbetterassistmanagerswhooperateandorganize internationalchannelsystemsinanincreasinglyuncertainandinterrelatedbusiness world(Manolisetal.,1997,p.514).

Further,accordingtoseveralstudies,changesinaccountingandotherreformstaking placeincountrieswithtransitionaleconomiespotentiallyrepresentarichseamfor theoreticaldiscoveriesandtherefinementofexistingtheories(seee.g.Hopperetal., 2009;Ezzamel&Xiao,2011;Moilanen,2007,2008,2012;Yang&Modell,2015;Paladi

&Fenies,2016).Forinstance,fromtheWesternviewpoint,thechangesand improvementsofMAPsindifferentorganizationsinPSCsareoftenassociatedwith adaptationsof/toWesternaccountingpractices,toachievebettercontroland improveperformance(Haldma&Laats,2002).

Thus,thetravelofaccountingideasfromadvancedcapitalisteconomiestoPSCsis thenafundamentalresearchissue.However,accordingtoEzzamel&Xiao(2011),the researchinthisfieldshouldseriouslyconsiderthepossibilitiesofaccountingideas travellingtheotherwayround,fromdevelopingandtransitionaleconomiesto advancedcapitalistcountries,becausemanyofthetransitionalcountriesmanagedto findtheirown‘novel’waysofsurvivalanddevelopmentundersignificantrecessions andeconomiccrises.Thus,relativelylittleattentionhasbeengiventostudyingmore

3Inthisthesis,‘countrieswithtransformationaleconomy’aretakentomeanpostͲsocialistcountries (PSCs)ofCentralandEasternEuropeandformerSovietrepublics.

disruptivecontextualtransformationsandtheirinfluenceonthe‘humanside’.In turn,alackofsuchstudiesopensopportunitiesforresearcherstostudythe implicationsofradicalchangesandthebondsbetweenMAPsandhumanagencyina

‘novel’context.

͚,Žǁ ŚĂƐ ƚŚĞ ŚƵŵĂŶ ĂŐĞŶĐLJ ĐŽŶĐĞƉƚ ĐŽŵĞ ŝŶƚŽ ƉůĂLJ͍͛ ʹ /ŶƐŝŐŚƚƐ ĨƌŽŵ ŝŶƐƚŝƚƵƚŝŽŶĂů ƚŚĞŽƌLJ

Fromtheinstitutionaltheoryperspective,MAPsareseenasinstitutionsthatmaybind andconstrictthebehavioroforganizationalinhabitants(Scott,2014).MAPs,then, becometakenͲforͲgrantedrulesinorganizations(Burns&Scapens,2000),providing

“stabilityandmeaningtosociallife”(Scott,2014,p.56).Therefore,MAPs,as institutions,arequiteresistanttochange(Bourmistrov,2017;Granlund,2001;

Jepperson,1991;SitiͲNabiha&Scapens,2005).Toexplainhowinstitutionsmay develop and change, that is, to explain institutional change, two theoretical perspectiveshavedominatedduringdifferentperiodsinorganizationandaccounting literature:oldinstitutionalismandneoͲinstitutionaltheory(Hiebl,2018;Arroyo, 2012).

Throughoutthehistoryofsocialscience,atensionhasexistedbetweenthosetheories thatemphasizestructuralandculturalconstraintsonactionandthosethatemphasize theabilityofindividualactorsto“makeadifference”intheflowofevents(Scott, 2014, p.92).Oldinstitutionalism focused on the roles ofdifferentactors as organizationsandindividualsandattributedtotheactors’freewillandtheabilityto actautonomouslyandproactively(Battilana&D’Aunno,2009).Actorswithahigh degreeofagencyattributedtothemwerethereforeviewedastheprimarysources ofchange(Green&Li,2011;Hiebl,2018).Thisperspective,however,iscriticizedfor adoptinganoverlyrational,selfͲconcernedandhighlyautonomousviewofindividual andorganizationalactors,thatareinfactembeddedinparticularinstitutionsthat constraintheirbehavior(atleast,tosomedegree).

StudiesreferredtoasneoͲinstitutionaltheorylargelyfocusedonthestructural aspectsofchangesandthereforetypicallyassumedthatstructuralconstraintsshaped actors’behaviorandthatactorsadaptedtoinstitutions(Battilana&D’Aunno,2009;

Greenwood&Hinings,1996;Suddaby,2010).Thus,thepremiseofthisstreamof literatureisthat(almostany)ideasspread,landandareeventuallyenactedin organizations.However,thisperspectivefailedtoexplainwhyidenticalaccounting

patternsorideasareenactedinsomeorganizations,andareevenperceivedas enabling,butfailandareperceivedascoerciveinothers,eventhoughtheyseemto havefollowedasimilarimplementationalgorithm.Further,somestudiesshowed howformalcontrolmechanismshadtobesubstitutedbyinformalcontrolsystems, becauseofthechoicesmadebymanagers‘ontheground’,despitethedirectives

‘fromthetop’(Preston,1986).

CombiningtheoldinstitutionalismwiththeneoͲinstitutionaltheory,Seo&Creed (2002)referredtoa“paradoxofhumanembeddedagency”,thatis,howactorswho areembeddedinandexperiencestructuralpressurescanbeafactorinchanging thoseinstitutions.Thisparadoxreferstotheactor’spurposefulbehaviortocreate, maintainortransformexistinginstitutions(Battilana&D’Aunno,2009;Garudetal., 2007;Greenwood&Suddaby,2006;Kilfoyle&Richardson,2011).Accordingtothis approach,beingembeddedinparticularinstitutions,actorsstillhaveacertaindegree ofreflexivity(Archer,2009,2010;Battilana&D’Aunno,2009)thatallowsthemto engage in accounting institutional work and, consequently, in MAPs’changes (Englundetal.,2013;vanderSteen,2006).Thus,thisapproachallowsresearchersto lookatMAPsnotonlyasexternal(given)constructsbutalsoastheproductsofhuman actions(Zilber,2013;Battilanaetal.,2009).Ichosethisapproach,becauseIam interestedindefiningbondsbetweenMAPsandhumanembeddedagencythat assumablyareinarecursiverelationship.

Thus,theinterplaybetweeninstitutionsandhumanagencyisaninterestingandfastͲ growingareaofacademicresearch(Hiebl,2018),andithasgreatpotentialforfinding newreasonsorexplanationsfor‘classical’accountingchangeliteraturedilemmas:(1) Whyandhowarechangesperceivedascoerciveorenablinginorganizations(coercive vs.enablingcontroldilemma)?(2)Whendoactorspreferusingformalormore informalcontrolmechanisms(formalvs.informalcontroldilemma)?and(3)Whyand whendosomeactorsengageinaccountinginstitutionalentrepreneurship,while othersdonot(stabilityvs.change)?

DĂŝŶƌĞƐĞĂƌĐŚƋƵĞƐƚŝŽŶĂŶĚĂŝŵƐŽĨƚŚĞĚŝƐƐĞƌƚĂƚŝŽŶ

Thisdissertationaddressesthemainresearchquestion ͲHowarehumanagency’s differentdimensionsintertwined⁴withMAPsduringsignificanttransformations?I

4Ichosetheword‘intertwined’,toshowarecursiverelationshipbetweenMAPsandhumanagency.

chosetofocusoncontextsofsignificanttransformations,becausetheyrepresent challengesforbusinessinformsofdiverseuncertainties(Otley&Soin,2014)andhave inevitableimplicationsforthehumanactorsinvolved(Widener,2014).Referringto accounting,theMAPs’changesareoftenundertakenintimesoftransformations,as itisinthecontextofPSCs(transformationsineconomicsystems,privatizations,new accountingregimes,etc.).Further,itisbelievedthat,intimesoftransformations, hiddenthingsbecomemorevisible(Foucault,2013).Therefore,itisbelievedthatthe casesreportedherewillprovidearichdescriptionoftheroleofhumanagency’s dimensionsinundertakingMAPs’changes.

Theaimsofthisdissertationare,then,threefold:(1)toexaminetheinfluenceof radicalchanges(significanttransformations)onthedevelopmentofMAPsandthe rolethathumanagencyplaysinthisdevelopment;(2)todemonstrateandanalyze thedifferentaspects(dimensions)ofhumanagencythatinterpenetratediverseforms ofmanagementaccounting(control)practices;and(3)topointouttheimplications ofsuchamultifacetedconceptionofhumanagencyformanagementaccounting academicresearch.

Inordertoachievetheseaimsandtoanswerthemainresearchquestion,thethesis consistsoffourpapersоoneliteraturereviewandthreeempiricalstudies–allbased onqualitativeresearchmethods(Scapens,2004).Thedevelopedpapersaddressfour differentbuttheoreticallyinterrelatedcasesofMAPs’developmentundersignificant transformations,inwhichembeddedhumanagencyplayedanevidentroleinthese processes.Thesecasesare(a)MAPstransformationscausedbytransitionfrom planned to market economy in postͲsocialist countries (Paper 1); (b) radical organizationalandcontrolregimechangesinformerstateͲownedenterprise(SOE)in Ukraine(Papers2and4);and(c)transformationsofabstractideasintorealobjects (bigconstructionprojectsinUkraineandNorway)andchangesindesignanduseof managementcontrolsystemsintheseprojects(Paper3).Whileitisacknowledged thatthesesettingsarelooselyconnected,itisstressedthateachhasuniqueinsight intothelargertheoreticaldiscourseaddressedinthisthesis,i.e.theroleofhuman agencyinMAPs’developmentandchanges.

Thispartofthedissertationisorganizedasfollows.Firstly,Iexplainthetheoretical conceptsandprovideaframeworkforunderstandingtheinfluenceoftheradical changesonthedevelopmentofMAPsandtheroleofhumanagencyinthiscontext.

Further,Ipresentmyreflectionsontheresearchmethodology,epistemologyand

ontology,aswellasbriefinformationaboutthestudiedcontext.Sectionfourcontains empiricalfindingsfromthefoursubͲstudies.Itendswithadiscussionandconclusion sectionthatdemonstratesandanalyzesdifferentaspects(dimensions)ofhuman agency thatinterpenetrate diverseformsofmanagementaccounting (control) practicesandpointsouttheimplicationsoftheconceptofhumanagencyfor managementaccountingacademicresearch.

2. THEORETICAL FRAMEWORK

DĂŶĂŐĞŵĞŶƚĂĐĐŽƵŶƚŝŶŐĂŶĚĐŽŶƚƌŽůĚŝůĞŵŵĂƐĞdžĂŵŝŶĞĚŝŶƚŚŝƐĚŝƐƐĞƌƚĂƚŝŽŶ

Coercivevs.enablingperceptionofcontrol.Managementaccountingchangecanbe regardedasanattemptatconstructinga‘rationalorganization’(Brunsson&SahlinͲ Andersson,2000),inwhichtheroleofaccountingisassumedtobesufficiently powerfulforitsadoptiontomakemanagersrational,responsibleandaccountablefor theirfinancialresults.Thistypeofaccounting,then,ismainlyformal,hasadiagnostic character,is enacted through hierarchies, thus imposed,and is consequently perceivedas coercivebyorganizational participants (Adler & Borys, 1996). A considerableamountofliteraturepointsatthenegativeattitudesofpeopletowards thenewaccountingpracticesandregimesthatresultininertia(vanderSteen,2009), resistance(Covaleskietal.,2013;Granlund,2001;Kholeifetal.,2007;Yang&Modell, 2015),decouplingorlooseͲcouplingofaccountingsystems(SitiͲNabiha&Scapens, 2005).

Thereare,however,anumberofstudiesshowingtheenablingandlateralsidesof accounting(Burchelletal.,1980;Baxter&Chua,2009;Chapmanetal.,2009;

Hopwood&Miller,1994;Miller&Power,2013;Gerdinetal.,2014).Insuchcases, accountingcanalsoenhanceinteractivelearningprocessesandprovideother opportunitiesforindividualactorsandorganizations(Ahrens&Chapman,2004).

Despiteasubstantialinterestinthisissue,manyofthestudiesofMAPs’changesare likely to pay little attention to the individual actors’ perspectives or microͲ perspectives(vanderSteen,2006;2009,2011)andtheunderlyingprocessesof accountingpractices’developmentandchangesontheground,wheredivergent actorswiththeirdistinctivepsychologicalaspects(Hall,2016),mentalities,traditions, andapproachestowork(ratherthantheorganizationasoneunit)areinfocus.The

ideaoftracingtheroleoftheseaspectsintheimplementationofanewfinancial controlregimeinaformerSOEresultedinPaper2ofthisdissertation.

Formalvs.informalcontrol.Formalcontrolsystemsarereportedtobepreferredin relatively stable contexts and situations(Ouchi, 1977). In order todeal with environmentaluncertaintyandcomplexity,arisingduetovarioustransformations, organizationsoftenretainrelativelysimplemanagementaccountingsystems(MAS) andsupplementthiswithothersourcesofinformation,inparticular,nonͲfinancial information,frequentlyobtainedviainformalchannels(Yazdifar&Tsamenyi,2005;

Preston,1986;Ouchi,1977;Moilanen,2007).Theseassumptionsquestionthe‘real’

valueofformaldiagnosticcontrolsinsituationsoforganizationalcomplexitiesand transformationsthatwillbecloselyexaminedinPaper3ofthisdissertation.

Therearedifferencesintheclaimedrolesofaccountingandthewaysaccounting functionsinpractice(Burchelletal.,1980;Hopwood&Miller,1994;Miller&Power, 2013;Chapmanetal.,2009;Gerdinetal.,2014),especiallyinsituationsthatare characterizedby significant uncertainties. According to Burchell et al. (1980), dependingonthecontext,therolesandformsofaccountingvarybetween“answer machines”and“rationalizationmachines”(AppendixA).“Ineithercase,accounting systemscanserveas‘answermachines’,providingthesimpleinvestmentappraisal methods,stockcontrolsystemsandcreditcontrolroutineswhichgracemany managementaccountingtexts”(Burchelletal.,1980,p.14).

Withclearobjectivesbutuncertaincausation,thesituationismorecomplex.“One mightexpectthatthisiswhereorganizationalparticipantswouldneedtoexplore problems,askquestions,explicatepresumptions,analyzetheanalyzableandfinally resorttojudgement”(Burchelletal.,1980,pp.14Ͳ15).Thus,accountingmaytakethe formofa“learningmachine”(providingassistance,decisionsupportinadhoc analyses),an“ammunitionmachine”(bywhichandthroughwhichinterestedparties seektopromotetheirownparticularposition)and“rationalizationmachines”(used forlegitimizationandjustificationofactionsthathavealreadybeendecidedupon).

Interestingly,thesuggestedtypologyoftherolesofaccountingdoesnotconsider accounting’s‘humanside’aspectsthatwillbeexaminedinPaper3,withtheintention ofextending(however,simplifying)theproposedframework.

Stabilityvs.change.Theterm“institutionalentrepreneurs”isoftenusedtodescribe thoseactors,whoactivelyengageinembeddedagencyandseektochangeexisting beliefs and practices (DiMaggio, 1988). However, while seeking changes and

opportunities,institutionalentrepreneursarelikelytofacesomeresistancefrom otherhumanactors(“institutionaldefenders”)thatprefertoretainthestatusquo andinhibitinstitutionalchange(DiMaggio,1988;Battilanaetal.,2009;Garudetal., 2007).Differentaspectsthatenablehumanactorstoengageininstitutionalchanges (andthus,MAPs’developmentandchanges)are,then,ofinteresttoacademicsand practitioners.Somestudiesrefertoexternalenvironmentalfactors(Hardy&Maguire, 2008;Battilanaetal.,2009).Morerecentstudiesdraw(andareinvitedtodrawmore) attentiontotheresultsofinternalintentionsasalsoimportantaspectsofMAPs’

changes(Ahrens&Ferry,2018;Covaleskietal.,2013;vanderSteen,2006;2009, 2011),thatis,differentpsychologicalaspects(Hall,2016)ofhumanembeddedagency that are somehow takenͲforͲgranted in most studies of accounting changes.

Particularly, the nature of institutional entrepreneurship in the management accountingareaisthemainconcernofPaper4.

dŚĞƉĂƌĂĚŽdžŽĨŚƵŵĂŶĞŵďĞĚĚĞĚĂŐĞŶĐLJĂŶĚŝƚƐĚŝŵĞŶƐŝŽŶƐ

Theconceptofhumanembeddedagencyisassociatedwithsuchtermsasmotivation, will,intentionality,interest,choice,autonomyandfreedom(Emirbayer&Mische, 1998;Battilana&D’Aunno,2009).Agencyresidesintheinterpretativeprocesses, wherebychoicesareimagined,evaluated,andcontingentlyreconstructedbyactors inongoingdialoguewithunfurlingsituations(Emirbayer&Mische,1998).Allactors, bothindividualandcollective,possesssomedegreeofagency,buttheamountvaries greatlyamongactors,aswellasamongtypesofsocialstructures.Thus,anindividual’s levelofagencyisnotaconstantattribute;itmayvary,dependingonthecontext,and evolveovertime,accordingly(Battilana&D’Aunno,2009).

Emirbayer&Mische’s(1998)definitionofagencyisadoptedinthisresearch.Itrefers toatemporallyembeddedprocessofsocialengagement,informedbythepastbut alsoorientedtowardsthefutureandthepresent.Thus,therearethreebasic dimensions of agency: iterationality (habituality), projectivity and practicalͲ evaluativity(Emirbayer&Mische,1998),seeTable1.1.

ThepracticalͲevaluativedimensionofagencyisorientedtowardsthepresentand thusrespondstothedemandsandcontingenciesofthepresent.Itentailsthecapacity ofactorstomakepracticalandnormativejudgmentsamongalternativepossible trajectories of action, in response to the emerging demands, dilemmas, and ambiguitiesof present evolvingsituations(Emirbayer & Mische, 1998). “Even

relativelyunreflectiveroutinedispositionsmustbeadjustedtotheexigenciesof changingsituations;andnewlyimaginedprojectsmustbebroughtdowntoearth withinrealͲworldcircumstances”(Emirbayer&Mische,1998,p.994).Judgmentsand choicesmustoftenbemadeinthefaceofconsiderableambiguity,uncertaintyand conflict; means and ends sometimes contradict each other, and unintended consequencesrequirechangesinstrategyanddirection.Theproblematizationof experienceinresponsetoemergentsituationsthuscallsforincreasinglyreflective andinterpretativeworkonthepartofsocialactors.Thisexerciseofsituationally basedjudgmenthasbeenvariouslytermed“practicalwisdom”,“prudence”,“art”,

“tact”,“discretion”,“application”,“improvisation”,and“intelligence”(Emirbayer&

Mische,1998,p.994).

Thus,theprimarylocusofagencyinthepracticalͲevaluativedimensionliesinthe contextualizationofsocialexperience.Byincreasingtheircapacityforpractical evaluation,actorsstrengthentheirabilitytoexerciseagencyinamediatingfashion, enablingthem(atleastpotentially)topursuetheirprojectsinwaysthatmay challengeandtransformthesituationalcontextsofactionthemselves(although, giventhecontingencyanduncertaintyofinteractions,theconsequencesoftheir actionscannotbecontrolledandwilloften‘feedback’inwaysnecessitatingnew agenticinterventions)(Emirbayer&Mische,1998).Thechangesinthisdimensionare theresultsofdialogues,discoursesanddebatesbetweendifferenthumanactors.

Theprojectivedimensionofagencyencompassesthe“imaginativegenerationby actorsofpossiblefuturetrajectoriesofaction,inwhichreceivedstructuresofthought andactionmaybecriticallyreconfiguredinrelationtoactors’hopes,fears,and desiresforthefuture”(Emirbayer&Mische,1998,p.971).AccordingtoEmirbayer&

Mische(1998),suchaformofagencyneedstobe“neitherradicallyvoluntaristnot narrowlyinstrumentalist;theformationofprojectsisalwaysaninteractive,culturally embeddedprocess,bywhichsocialactorsnegotiatetheirpathtowardsthefuture”

(p.984).

Faced with problems that takenͲforͲgranted approaches cannot solve, actors

“project”themselvesintothefuture(Battilana&D’Aunno,2009).Reflectionsabout thefuturearecharacterizedbyemotionalengagementandpassion(Kierkegaard, 1944),whichHeidegger(1962)termedcare(“Sorge”).Caremeansthepreconscious affectiveengagementoftheworldthatconstitutestheforestructureofaction;actors investeffortsintheformulationofprojectsbecauseinsomewayorothertheycare

about(notjusthaveaninterestin)whatwillhappentotheminthefuture(Emirbayer

&Mische,1998;Bernstein,1971).

Theiterational(orhabitual)dimensionofagencyisorientedtowardsthepastand describesthe“selectivereactivationsbyactorsofpastpatternsofthoughtand action…>Ithelps@tosustainidentities,interactions,andinstitutionsovertime”

(Emirbayer&Mische,1998,p.971).Theprimarylocusofagencyfortheiterational dimensionliesinactors’abilitiestorecall,selectandtoappropriatelyapplythemore orlesstacitschemesofactionthattheyhavedevelopedduringpastinteractions.

Further,eventhoughthistakesplaceatalowlevelofconsciousreflection,itstill

“requiresattentionandengagementonthepartofactors”(Emirbayer&Mische, 1998,p.975).

Table1.1.Theagency’sdimensionsandaccountingdilemmas,addressedinthe dissertation

Agency’s dimension

PracticalͲevaluative Projective Iterational/Habitual

Basic assumptions

Respondsto demandsand contingenciesof thepresent Situationallybased

judgments

Changesareresults ofdialogues, discoursesand debatesbetween differenthuman actors

Animaginative engagementwith thefuture Emotional engagementand passion

Reconfigurationof actors’hopes, fears,anddesires forthefuture

Selectivereactivation byactorsofpast patternsofthoughtand action

Sustainingidentities Deeplyrelatedtothe notionof‘habit’,which entailsasettled dispositiontoward appropriateactionin accordancewith wisdom Keyaspects

examined Situatedawareness Care Habit

Accounting

dilemmas Coercivevs.enabling Formalvs.informal Stabilityvs.change

AccordingtoEmirbayer&Mische(1998),thisdimensionofhumanagencyisdeeply relatedtothenotionof‘habit’as“thebasisfor‘virtues’or‘excellences’ofcharacter, whichentailasettleddispositiontowardappropriateactioninaccordancewith wisdom”(Aristotle,1985,p.44)and‘habitus’asbeing“disposedtosomeactivityor other–notbecauseonetendstothatactivityoneverypossibleoccasion,butbecause onefindsitnatural,readilycopedwith,anobviousactivitytoengagein…”(Davies, 1992,pp.225Ͳ226).

AccordingtoBattilana&D’Aunno(2009),thetemporalconceptionofhumanagency developedbyEmirbayer&Mische(1998)challengesthenotionofinstitutionsas cognitivelytotalizingstructures.Further,thoughactorsmaybesubjecttoinstitutional influences,theycandevelopa‘practicalconsciousness’withforinstancesituated awareness,habit,andcare,whichwillbeexaminedbasedontheempiricalpapersof thisdissertation.

3. PECULIARITIES OF THE STUDIED CONTEXT

ĐĐŽƵŶƚŝŶŐŝŶƚƌĂŶƐŝƚŝŽŶʹƚƌĂŶƐŝƚŝŽŶŽĨͬƚŽǁŚĂƚ͍

ThedissolutionoftheSovietUnionandthecollapseofthecommunistsystemin CentralandEasternEuropewasoneofthemostsignificanteventsinthelastcentury aftertheSecondWorldWar. Sincethen,mostofthecountriesaffectedbythis development,generallyreferredtoaspostͲsocialistcountries(PSCs),havebeen engagedintransformationprocessesfromplannedeconomiestomarketeconomies (Paladi&Fenies,2016;Peng&Heath,1996;Sucheretal.,2005).Thisradical transformationandalonglistofintroducedreformsentailedmanydilemmasandhad astrongimpactoncompanies’activities(Paladi&Fenies,2016).Marketeconomy principleshavetotallytransformedtheenterprises’philosophyandmanagementand causedradicalchangesintheaccountingregimes⁵(includingtheintroductionanduse of financial accounting and control, capital budgeting, project management, performancemeasurementand management)ofmany previouslystateͲowned enterprises(SOEs).Althoughthefieldofmanagementaccountingisarelativelynew disciplineforPSCs(Golyagina,2016),transformationstonewaccountingregimesand newbusinessphilosophiesassociatedwith‘performance’,‘efficiency’,and‘resilience’

seemtobequicklydevelopinginthePSCs,inpractice.

Accordingtopreviousstudies,MAPsandtheroleofaccountinginPSCsdiffered substantiallyfromthoseoftheWesternmodel(Bailey,1995;Enthoven,1998;

Moilanen, 2007;Southworth,1994). Accounting wasdistantly separated from decisionͲmakingandplanning,fromactualoperations,asitwasameansforcentral governmenttocontrolanddominate(Bailey,1995;Enthoven,1998).However,after thecollapseofcommunism,organizationshadtosurviveunderthenewconditions

5Regime,ingeneral,isasystemororderedwayofdoingthings(OxfordDictionary).Anaccounting regimemaytypicallyincludeasetofimplicitorexplicitprinciples,norms,rules,anddecisionͲmaking procedures,aroundwhichactors’expectationsconvergeinagivenissueͲarea(Krasner,1982).

andgraduallyrespondtodramaticchangesinoperatingconditions(Southworth, 1994).InUkraineforinstance,transformationsintheeconomywerefollowedby mass privatizations and “accountingization” in previously SOEs (Petrovych &

Borbulevych,2016;Solodchenko&Sucher,2005).

The impact of these developments has been enhanced by the demands of globalization,evidencedinparticularinthepressuresexertedontransitionaland emergingmarketeconomiesbytheWorldBank(WB),theInternationalMonetary Fund(IMF),biginternationalauditfirmsandtheInternationalAccountingStandards Board(IASB),aswellasthedemandsofforeignventurecapitalistsandmultinational corporations(MNCs)todevelopaccountingandfinancialsystems,similartothose usedinadvancedcapitalisteconomies(Ezzamel&Xiao,2011).Nevertheless,studies ofthe2000sshowedthatsomecompanies,despitetheorientationtoWestern markets,stillwidelyused“outdated”accountingmodelsandcalculationpractices (Vámosi,2000).Thesituationmighthavechanged,and,therefore,thisresearcharea providesplentyofopportunitiesforinvestigationandsystematization.Itmaybe assumedthattransformationsintheformalandinformalinstitutionalforceshavean influenceonhumanagency(seeFigure1.1).

Particularly,previouslySOEsweretraditionallyengagedinlongͲtermplanningand bureaucraticcontrols;anabsolutemajorityofSOEswereoverstaffed,inorderto contributetofullemployment.Limitedfinancialandmanagementresourceswerea problemformanyenterprisesinthePSCs(Peng&Heath,1996).Further,thesystem ofinformal contacts andpersonal networks(e.g.blatinformer Soviet Union countries,suchasRussia,seeLedeneva,1998),hastraditionallyaffectedmany aspectsofbusinessandaccounting(Sucheretal.,2005)andthereforehadanimpact onhumanagency(Battilana&D’Aunno,2009),whichwasconditionedbythe hierarchies,formalities,andotherconstraints.

Thus,withsignificantchangesatthelevelofformalandinformalinstitutions, significanttransformationsmighthaveoccurredatthelevelofhumanagency.

Organizationalactors,beingpreviouslyembeddedinformalandinformalinstitutional forces,suchascentralplanning,bureaucraticcontrol,andresidualsocialistvalues, suchascollectivism,informalnetworksandpersonalexchanges(seeMoilanen,2007;

Peng&Heath,1996;Sucheretal.,2005;Ledeneva,1998),seemtohavean opportunitytoactdifferentlyinthenewenvironment(e.g.freelyadapt‘Western’

managementandaccountingideas,bemoreinitiating,improvisingandselfͲaspiring).

However,thesechangesareundertakenwithdifferenttemposacrossPSCsin transitionandpostͲtransition.ThesechangeswillbedescribedindetailinPaper1.

Humanagency

Embeddednessinformalandinformal institutionalforces

Informalinstitutionalforces

Residualsocialistvalues,collectivism Informalnetworksandpersonalexchanges Formerformalinstitutionalforces

Centralplanning Bureaucraticcontrol TypicalstateͲownedenterprise

Excessphysicalresources

Limited financial and managerial resources

Engineeringethos

Currentformalinstitutionalforces

LackofpropertyrightsͲbasedlegal systemandstrategicfactormarkets Unstablepoliticalstructures Newformsofenterprises

Limitedfinancialresources Professionalmanagement Financialaccountingandcontrols Plannedeconomies&bureaucratic

accounting(control)regimes

Transitiontomarketeconomies&new financialaccounting(control)regimes

Figure1.1.FormalandinformalforcesinfluencinghumanagencyinPSCs

4. RESEARCH PROCESS AND METHODOLOGY

Inthissection,IwillpresenttheresearchapproachthatIhavefollowedfromthe researchidea,throughrelatingtheideatoexistingtheory,designingaresearchplan, identifyingmeansbywhichtocollectdata,analyzingthedataandreportingthe findings(Berg&Lune,2012).Inthefinalpartofthissection,theissueofvalidityis addressed,withtheintentionofpresentingthebasisforjudgingthetrustworthiness andcredibilityoftheconductedresearch.

Generally,theresearchprocessIwassteeringwasnotalinearactivitybut,rather,

‘spiraling’.Aspiralingapproachmeansgoingbackandforthbetweendifferentstages oftheresearchprocess(Berg&Lune,2012,p.25).Theoverallresearchapproachfor thisdissertationstartedfromanidea,followedbyaliteraturereviewofprevious studiesonMAPs’changesandhumanagency,beforeIwentbacktorefinetheideain lightofexistingtheory.Aresearchdesignwasdeveloped,andinitialdatacollected, beforereturningtoreͲexamineandrefinetheoreticalassumptionsandpossible theoreticalexplanations.Ateachsuccessivestepoftheresearch,previousstepswere reconsidered,leavingallthestepsintheresearchprocessopenforreͲexamination andrefinementduringtheresearchprocess.Aconceptualillustrationofthespiraling researchapproachispresentedinFigure1.2.

Figure1.2.Aspiralingresearchapproach(Berg&Lune,2012,p.25)

Duringtheresearchprocess,severalchoicesweremade:fromthemorephilosophical assumptionsonwhichthedissertationisconstructedtothemoretechnicalmethods usedtoconducttheresearch.Beinginspiredbyearliermethodstudiesinaccounting literature (Ahrens & Chapman, 2006; Chua, 1986), I developed a structured presentationoftheresearchchoicesthatweremadeintheresearchprocess(see Figure1.3).