Conflicting legitimations and pressures in performance measurement adoption, use and change in Finnish municipalities

Article Type: Doctoral research abstracts From: Journal of Accounting & Organizational Change, Volume 9, Issue 3

Purpose – This accounting dissertation contributes to accounting knowledge about factors and pressures (and their interrelations) affecting performance measurement (PM) adoption, use and change in Finnish municipal context.

Design/methodology/approach – Both quantitative (survey) and qualitative (case study) methods are used. General aspects of adoption and use are revealed for example with factor analyses of an internet survey (199 responses, 48 per cent response rate). This view is, however, enriched with two accounting change case studies, including a comparative case study of two Finnish cities. The qualitative data included 36 interviews, archival reports and observation notes. Institutional theory (new institutional sociology) is used in interpretation of results.

Findings – PM system adoption, use and change are interrelated processes affected, not only by rational choice, but by several legitimations,normative, political and financial pressures as well as individual aspirations and the will to experiment new systems. Further, the pressures – such as financial pressures and pressures for better professional services –conflict, and the conflicting pressures complicate PM practices in municipalities. Yet the pressures can align in suitable circumstances, such as during crises. Alignment of the pressures facilitates major changes in PM practices.

Research limitations/implications – In factor analyses the data could have been bigger. Further research is encouraged on the various intertwined pressures in public sector PM.

Practical implications – Understanding the complexities of municipal accounting and PM may facilitate better management of accounting and PM change processes.

Originality/value – Both quantitative and qualitative methods are used in finding out the nuances and conflicts in PM system adoption, use and change in municipalities.

Keywords: Performance measurement, Accounting change,Institutional theory, Public sector accounting

Research type – Mixed methods research

Degree – Doctorate of Philosophy (PhD in economic sciences)

Institution – University of Jyväskylä

Supervisors – Professor Marko Järvenpää, Professor Jukka Pellinen

(Pre examiners – Juhani Vaivio and Salme Näsi)

Contact e-mail – antti.i.rautiainen@jyu.fi

Antti Ilmari RautiainenSchool of Business and Economics,University of Jyväskylä, Jyväskylä, Finland