Emerald | Qualitative Research in Accounting & Management | Table of Contents

Path-dependencies, constrained transformations and dynamic agency: An accounting case study informed by both ANT and NIS

literatinetwork@emeraldinsight.com (Antti Rautiainen, Robert W. Scapens) — Fri, 14 Jun 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to discuss the compatibility of actor network theory (ANT) and new institutional sociology (NIS) in analysing a case study of accounting change. Design/methodology/approach – This is an interpretive case study. Findings – The Finnish case city experienced several path-dependent changes concerning performance measurement (PM), financial reporting and the adoption of enterprise resource planning system (ERP). New tools such as the ERP have a potential to transform the actors and to change the agency of the actors. Furthermore, the concepts drawing on both ANT and NIS can together enrich analyses of accounting changes. Research limitations/implications – The case analysis suggests guidelines for using ANT and/or NIS in accounting studies. Practical implications – Understanding accounting developments as an intentional and path-dependent process affected and constrained by complex networks, pressures and actors should contribute to better management of accounting changes. Originality/value – Being informed by both ANT and NIS improves our understanding of accounting change and stability, serendipity, practice variations, changes beyond the minimum required to satisfy external requirements, and of the continued use of some accounting tools despite their limited functionality. Furthermore, we introduce the concepts dynamic agency and constrained transformation for studies of accounting change.

How do small business owners manage working capital in an emerging economy?: A qualitative inquiry

Fri, 14 Jun 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this study was to examine the actions owner-managers of small businesses undertake in managing working capital. Design/methodology/approach – The study adopted an exploratory research design. The point of saturation was achieved after ten owner-managers were interviewed. Data were analyzed using content analysis technique with the aid of NVivo software. Verbatim texts were used to explain the emergent themes. Findings – The findings indicate that in the absence of systems, structures and procedures, small business owner-managers intuitively plan, monitor and control their working capital. The activities undertaken include; reliance on memory and oral agreements, informal planning, assuming inventory limits, unconventional record keeping, cash flow based information management and giving credit to close associates. Research limitations/implications – A more detailed investigation of the steps in the action sequence ma y advance our understanding of the process. Future studies need to test the effect of personal characteristics on working capital management process. Practical implications – Owner-managers of small businesses do not require the same degree of sophistication employed in planning, monitoring and controlling working capital. They require soft skills. Therefore, academicians, practitioners and policy makers need to emphasize knowledge management and cash accounting. Originality/value – This study examines the process perspective of working capital management, an aspect that has not been adequately highlighted in previous studies.

Management control research in the banking sector: A critical review and directions for future research

literatinetwork@emeraldinsight.com (Tharusha N. Gooneratne, Zahirul Hoque) — Fri, 14 Jun 2013 00:00:00 +0100

Abstract

Purpose – This paper aim to review existing research in the management control systems field in the banking industry. It identifies gaps in the existing literature and suggests some directions for future research. Design/methodology/approach – The review was carried out principally by consulting leading accounting journals, followed by other relevant journals covering all publications from the inception of the particular journal to 2010. The published articles are categorized by their research topics, theories, methodologies and settings. Findings – The review reveals a dearth of detailed studies on management controls in the banking sector. As evident from the sizeable number of descriptive studies, most prior studies do not engage in an in-depth inquiry into control issues of banks, and most lack clear articulation either theoretically or methodologically. It finds that currently little is known on the concerns encountered by banks and the nature of management control practices deployed. Research limitations/implications – This review is selective and, while illustrative of the state of management control research in the banking sector, does not attempt a comprehensive coverage of all research. However, it identifies gaps in the current literature and makes calls for further research on a number of management control issues in the banking industry. Further, in light of the review findings, the paper offers some lessons and insights for practicing managers. Originality/value – Although some general reviews on various facets of management accounting across time have been undertaken by past researchers, industry-based reviews have not been their focus. Through a systematic review of management control research in the banking arena, this paper shows that despite both the significant position occupied by the banking industry in nations' economies and the importance of management controls for banks, there remains a need for researchers to pay adequate attention to exploring control issues in this sector.

Private equity coming out of the dark: The motivations behind private equity activity in Australia

literatinetwork@emeraldinsight.com (Michael Kend, Dean Katselas) — Fri, 14 Jun 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this exploratory study is to gain a better understanding of the motivations behind private equity (PE) activities in Australia. Design/methodology/approach – This paper reports findings arising from face-to-face semi-structured interviews with individuals representing stakeholders in the market for private equity; namely, PE partners and finance professionals. Interviews were conducted in two stages, during the pre-Global Financial Crisis (GFC) period (2007-2008) and the post-GFC period (2012). Findings – In general, the stakeholders interviewed perceive that the motivations behind PE bids are not well understood, and they highlight the need for more education. They state that PE enables a company's management to make decisions more promptly; capture opportunities more effectively; reduce paperwork for executives; provide no accountability to a broad investor base; and most importantly create value for a business, as the ownership is more closely involved with the management in the day-to-day operations of the business. According to the interviewees, since the GFC, PE firm reputation and track record are considered to be even more crucial than before the GFC, as debt providers in particular have become more wary when lending. Originality/value – The findings have implications for the agency relationship model. The principals' role might appear to be more tightly aligned with that of the agent, and so are their motivations, thus reducing monitoring costs, but post-GFC interview responses indicate that this might not necessarily be the case. Concerns over empire building and gains through transaction costs were raised. The paper concludes by drawing from the insights gained by the authors from the interview data. Although it is only a small part of the economy's Gross Domestic Product, PE activity has helped Australia become a more competitive business economy.