Struggling for a New Role for the Business Controller
Hyvönen, Timo; Järvinen, Janne; Pellinen, Jukka (2008)
2008
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Julkaisun pysyvä osoite on
http://urn.fi/urn:isbn:978-951-44-7428-6
http://urn.fi/urn:isbn:978-951-44-7428-6
Tiivistelmä
Purpose
The recent discussion on changes in the controller’s role has mainly focused on the national and organizational level culture aspects of that professional role. While earlier studies have demonstrated how the role changes have been stimulated by corporate culture, IT systems, new accounting technologies and inter-professional competition, we contend that such changes cannot be achieved without active individuals in organizations.
Methodology/Approach
Our study is informed by the concept of institutional entrepreneurship, concentrating on changes in institutions, such as professional roles, which are achieved by an active agency. Thus we concentrate on the individual level by tracing how the role of a single controller was changed from that of a ‘bean counter’ towards that of a business partner.
Findings
We illustrate how new cost accounting techniques (ABC) and modern information technology (ERP) serve as critical momentum for this role change, and how the aspiring controller must creatively combine multiple competencies in order to change the institutionalized professional role.
Research Implications
Organizational roles and other social institutions defining accounting practices may change and are changed only as a result of active agencies. Therefore, in order to understand the conditions for these changes, we need to pay more attention to what active individuals are doing when bringing about these changes. More attention should be paid to the political and discursive action of accountants.
Originality of the Paper
This paper focuses on an active agency in the process of changing social institutions. The research task is organized as a longitudinal study concentrating on the critical phase of a single individual’s work career.
Classifications: Research paper
The recent discussion on changes in the controller’s role has mainly focused on the national and organizational level culture aspects of that professional role. While earlier studies have demonstrated how the role changes have been stimulated by corporate culture, IT systems, new accounting technologies and inter-professional competition, we contend that such changes cannot be achieved without active individuals in organizations.
Methodology/Approach
Our study is informed by the concept of institutional entrepreneurship, concentrating on changes in institutions, such as professional roles, which are achieved by an active agency. Thus we concentrate on the individual level by tracing how the role of a single controller was changed from that of a ‘bean counter’ towards that of a business partner.
Findings
We illustrate how new cost accounting techniques (ABC) and modern information technology (ERP) serve as critical momentum for this role change, and how the aspiring controller must creatively combine multiple competencies in order to change the institutionalized professional role.
Research Implications
Organizational roles and other social institutions defining accounting practices may change and are changed only as a result of active agencies. Therefore, in order to understand the conditions for these changes, we need to pay more attention to what active individuals are doing when bringing about these changes. More attention should be paid to the political and discursive action of accountants.
Originality of the Paper
This paper focuses on an active agency in the process of changing social institutions. The research task is organized as a longitudinal study concentrating on the critical phase of a single individual’s work career.
Classifications: Research paper