Institutional entrepreneurship and change: A contemporary history of the Swedish banking industry and its performance management systems

Abstract

Purpose

Using Arroyo’s (2012) institutional entrepreneurship (IE) framework, the purpose of this paper is to enhance our understanding of how top managers interpret change in the macro-political and economic environment and integrate it into their performance management systems (PMSs).

Design/methodology/approach

The paper combines multiple data sources to study PMS change in the big four Swedish banks over the deregulations’ first quarter of a century.

Findings

The findings support previous research by identifying IE as a collective phenomenon. Moreover, it points to the importance of distinguishing between different types of field-level events, when investigating change initiated by such events. Finally, the findings also indicate that change at different levels of analysis have separate timings, advising future research on change to pay closer attention to the aspect of time.

Social implications

The paper tests Arroyo’s (2012) multi-level framework in an accounting setting and specifically focuses on top managers’ interpretation and integration of field-level events. It does so in the specific context of banks and thereby contributes to our understanding of how different field-level events affect banks’ PMS. In the post-financial crisis era, organizational and accounting scholars should engage time and effort to better understand this complex industry, not least to advice policymakers and regulators in the ongoing re-regulation of the financial markets.

Originality/value

Inspired by organizational studies of IE, this paper uses a longer time-frame and includes more organizations, than conventional management accounting case studies. By studying a field, rather than a single organization, the paper opens up to a “wider perspective” on PMS change.

Citation

Elliot, V.H. (2016), "Institutional entrepreneurship and change: A contemporary history of the Swedish banking industry and its performance management systems", Journal of Accounting & Organizational Change, Vol. 12 No. 2, pp. 223-251. https://doi.org/10.1108/JAOC-06-2013-0059