Journal of Accounting & Organizational Change

Looknauth, Tamaishwar; Bélanger, Charles H.

doi: 10.1108/jaoc-07-2017-0066pmid: N/A

This paper aims to assess the levels of satisfaction of legacy designation accountants, namely, Chartered Accountants (CAs), Certified General Accountants (CGAs) and Certified Management Accountants, under the new Chartered Professional Accountants (CPA) banner; to measure differences in satisfaction among the three designations; and to identify the factors associated with the levels of satisfaction.Design/methodology/approachA 30-item questionnaire was designed, pilot tested for face validity and further tested for reliability using a Cronbach’s alpha. The questionnaire consisted of three parts: sociodemographic questions, bipolar questions to fit the SERVQUAL model of satisfaction and questions about professional identity and general perceptions of the new CPA organization.FindingsLegacy accountants in Ontario had a lower level of satisfaction than they expected before unification. A pre- and post-unification comparison found statistically significant differences on all five dimensions of the SERVQUAL model and on overall service. Responses to questions about professional identity and general perceptions of the new organization were mixed. An analysis of variance test revealed a statistically significant difference in satisfaction between CAs and the two other designations – CAs were the least satisfied. A varimax rotated factor analysis indicated that the SERVQUAL’s five dimensions appear to be good predictors of service quality.Research limitations/implicationsMerging professional cultures can be as challenging as merging companies. Increased membership volume needs to translate into additional benefits and services. As indicated by the respondents, the new CPA entity has much work to do, particularly with the former CAs.Originality/valueThis is the first study to examine satisfaction, specifically following the merger of the three accounting designations.

Boylan, Daniel H.; Nesson, Diane; Philipps, Jamie

doi: 10.1108/jaoc-10-2017-0098pmid: N/A

Significant research works explore the broadly used and successful rewards-based crowdfunding (CF) platforms, including the key motives for both creators and funders. This paper aims to examine whether the motives identified by previous researchers for rewards-based CF also apply to peer-to-peer (P2P) CF.Design/methodology/approachThis research includes a review of current laws, as well as a focus on participant motives to participate in P2P CF. It also looks at how these motives differ between P2P CF and rewards-based CF. The CF platforms were then analyzed by characteristic to identify the current qualities of P2P platforms.FindingsThis research shows that though there are some common underlying motives, the differences will demand a new participant approach and a P2P CF platform that are notably different from those that support rewards-based CF.Research limitations/implicationsThis research is limited by the relative newness of both the Jumpstart our Business Startups Act and the P2P CF sites.Practical implicationsAs more P2P CF platforms are created, additional research on the ability to manage investors, create effective project plans and identify keys to successful projects will further the understanding.Originality/valueThere is little research today, however, that connects the qualities of successful rewards-based CF to successful P2P CF platforms. In addition, regulations connected with P2P CF are not clearly defined and enforcement is not well understood.

Will, Matthias Georg; Pies, Ingo

doi: 10.1108/jaoc-11-2016-0075pmid: N/A

Change management projects typically fail because they meet employee resistance created by emotional sensemaking processes. This paper aims to present an in-depth explanation for these failures and how change managers could avoid them.Design/methodology/approachThis study presents an argument in the following three steps: it begins with an empirically well-established fact that attempts at change management often trigger negative emotional responses; the moral foundations theory is then used to identify the typical categories of emotional responses that may result in resistance to organizational change; and the ordonomic approach to business ethics is built upon to substantiate the diagnosis that, in many cases, emotional responses cause employees to behave in a way that is collectively self-damaging.FindingsThe core idea of the current study’s contribution is that emotionally driven processes of sensemaking can easily become dysfunctional, especially in situations that require extensive change. Consequently, it should be top priority for managers to engage in sensegiving, which comprises: narratives that explain what is going on against the background of relevant alternatives and appropriate discourses that guide how employees form their expectations. In a nutshell, sensegiving attempts to reframe sensemaking processes.Practical implicationsEven if a win–win potential already exists, it can still be misperceived. If employees are used to thinking within a trade-off framework, this might trigger trade-off intuitions and negative emotions, in effect leading to a situation that makes everyone worse off. Such mental models might become a self-fulfilling prophecy. To counter such a tendency, sensegiving aims at a professional management of sensemaking processes. The task of successful change management, properly understood, is to create and communicate win–win potentials, ensuring that all parties involved understand that they are not asked to sacrifice their self-interest, instead they are invited to participate in a process of mutual betterment.Originality/valueThe literature on sensemaking draws attention to the empirical fact that resistance to change is typically driven by emotions. The moral foundations theory helps in exactly identifying which emotional dimensions are relevant in times of organizational change. The ordonomic approach to business ethics points out that – owing to their emotional nature – processes of sensemaking might fail, that they may mislead employees into behavioral patterns that are collectively self-damaging. Therefore, a top priority for management is to engage in sensegiving, that is, in (re-)framing sensemaking processes.

Nguyen, Dai Huu; Weigel, Christine; Hiebl, Martin R.W.

doi: 10.1108/jaoc-03-2017-0028pmid: N/A

Beyond budgeting has received an increased amount of scholarly attention in recent years. However, because most of the published research is discrete and unconnected, an overall picture of what is known about beyond budgeting has not evolved. Therefore, the purpose of this paper is to provide an overview of the available research on beyond budgeting. In particular, the authors compare conceptual papers that mostly stress the benefits of beyond budgeting with empirical evidence on beyond budgeting implementation and offer ideas for future research on beyond budgeting.Design/methodology/approachThis paper uses systematic literature review methods. After an extensive database search and examination of references/citations, 32 papers were analysed with regard to bibliographical information, research design and findings.FindingsAlthough proponents of beyond budgeting have put substantial effort into developing and promoting this concept, numerous empirical studies demonstrate that many organizations being investigated would still rather improve traditional budgeting than abandon it completely. This review also highlights the main criticisms of traditional budgeting, development of management control systems under beyond budgeting and factors hindering the implementation of beyond budgeting.Research limitations/implicationThis paper suggests that further research is needed on the scaling of beyond budgeting, organizational changes under beyond budgeting and challenges resulting from the implementation of beyond budgeting.Originality/valueThe paper is the first comprehensive literature review on beyond budgeting.

Hegazy, Karim; Hegazy, Mohamed

doi: 10.1108/jaoc-03-2017-0024pmid: N/A

This study aims to investigate the implications of audit industry specialization on auditor’s retention and growth within an emerging economy. Factors such as whether the firm is a Big 4, a firm with international affiliation, a local firm and the type of industry were studied to analyse the reasons behind audit firm retention and growth.Design/methodology/approachThis research is based on a field study related to audit firms providing services to listed companies in an emerging economy. The sample includes the top 100 publicly held companies’ in the Egyptian stock market during 2006-2011 for which their annual reports are analysed to determine the audit firms’ retention and growth. An assessment of the continuity of the auditors and the increase in the number of audit clients were also measured.FindingsThe results confirm that industry specialization has an important effect on the auditor’s retention, especially for industries where capital investment is significant such as buildings, construction, financial services, housing and real estate. Big 4 audit firms retained their clients because of their industry specialization and brand name. Evidence was found that good knowledge of accounting and auditing standards resulted in audit firms with international affiliation competing with the Big 4 for clients’ retention and growth.Originality/valueThis study contributes to the existing literature, as it is among the first to provide empirical evidence on auditor retention, growth and auditor’s dominance in an emerging economy such as Egypt.