Institutional theories in management accounting change : Contributions, issues and paths for development

Purpose – To explore the contributions made by two strands of institutional research that have been applied to the study of management accounting change: “old institutional economics” and “new institutional sociology”. To propose ways of developing these theories, and in general to develop an institutional understanding of management accounting change. Design/methodology/approach – Analysis of the literature on management accounting change, with a special emphasis on the literature drawing on institutional theory. Theoretical discussion based on the concept of the “circuits of power”. Illustration with observations made during a case study of an organisation in which attempts to promote change in management accounting were conducted in recent years. Findings – Identification of some complementarities between these two strands of institutional theorising, and suggestions of how they can be developed by drawing on insights from the “circuits of power” framework. Research limitations/implications – The case study analysis is limited to an illustration of the theoretical discussion. A building of bridges between the various developments in institutional approaches to management accounting change is necessary. Originality/value – The paper is of value to researchers studying management accounting change. It clarifies the theoretical underpinnings of the institutional frameworks and suggests areas for institutional research into management accounting change.