Distance and coupling: analyzing the pressures of accounting change in a city

摘要

Purpose – The purpose of this paper is to analyze the accounting performance measurement (PM) change process in a Finnish city. Design/methodology/approach – Interpretive case study. Data consisted of 16 semi-structured interviews. Analysis was based on institutional theory, particularly on “new institutional sociology” (NIS) studies. Findings – Budgeting and accounting PM became coupled into action when various intertwined (mostly institutional) pressures affecting change converged. Perceived crises were found to accelerate accounting change by deinstitutionalization, i.e. by breaking (drastically) existing routines and myths. Further, accounting rules and routines changed somewhat independently. Further, the notion of “distance” between rules and routines clarifies the dynamic nature of coupling of institutional rules and routines. Further, analysis of both internal and external institutional pressures facilitates understanding of the case events. Research limitations/implications – Case studies cannot be generalized and so further research on public sector PM change is encouraged. Practical implications – Understanding of the interplay of various organizational pressures, deinstitutionalization and institutionslization of routines may facilitate management of PM change processes. Originality/value – This analysis of the pressures and rationales of PM change in a Finnish city contributes to the accounting literature by noting the complexity of public sector change pressures. For example, some changes in accounting PM in the municipal field only occur when several non-dominant pressures align.