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Assimilating accounting innovations: lessons from Italian public universities

Assimilating accounting innovations: lessons from Italian public universities This paper aims to identify the possible sources of organizational decoupling and their effects in public universities, as they transition from cash to accrual accounting, by assessing the phases of the innovation assimilation process.Design/methodology/approachTo assess the transition, the authors develop a framework that integrates the possible sources of decoupling with the phases of the innovation process. This framework is then applied to the analysis of six Italian public universities moving from cash to accrual accounting.FindingsThe results point to regulation gaps and adverse organizational conditions as the main culprits of decoupling behaviours in the production and use of information. Delays in the characterization of the legal framework and ambiguities in the definition of accounting standards by the regulator are the first barriers to an effective transition. The organizational barriers, instead, depend on lack of adequate skills, over-bureaucratization, limitations of the IT systems and organizational complexity. Such limitations generate hybrid accounting systems that jeopardize the informative function of financial reporting.Originality/valueFrom a theoretical viewpoint, this paper contributes to a conceptualization of accounting innovations and reforms as processes whose impact depends on dynamics that arise and interact differently across phases. From a practitioner’s point of view, it highlights the factors that may produce adverse effects during the implementation process: these may be taken into account during planning, so as to develop the appropriate remedial actions. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Accounting & Organizational Change Emerald Publishing

Assimilating accounting innovations: lessons from Italian public universities

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References (75)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1832-5912
DOI
10.1108/jaoc-10-2017-0101
Publisher site
See Article on Publisher Site

Abstract

This paper aims to identify the possible sources of organizational decoupling and their effects in public universities, as they transition from cash to accrual accounting, by assessing the phases of the innovation assimilation process.Design/methodology/approachTo assess the transition, the authors develop a framework that integrates the possible sources of decoupling with the phases of the innovation process. This framework is then applied to the analysis of six Italian public universities moving from cash to accrual accounting.FindingsThe results point to regulation gaps and adverse organizational conditions as the main culprits of decoupling behaviours in the production and use of information. Delays in the characterization of the legal framework and ambiguities in the definition of accounting standards by the regulator are the first barriers to an effective transition. The organizational barriers, instead, depend on lack of adequate skills, over-bureaucratization, limitations of the IT systems and organizational complexity. Such limitations generate hybrid accounting systems that jeopardize the informative function of financial reporting.Originality/valueFrom a theoretical viewpoint, this paper contributes to a conceptualization of accounting innovations and reforms as processes whose impact depends on dynamics that arise and interact differently across phases. From a practitioner’s point of view, it highlights the factors that may produce adverse effects during the implementation process: these may be taken into account during planning, so as to develop the appropriate remedial actions.

Journal

Journal of Accounting & Organizational Change – Emerald Publishing

Published: Nov 20, 2018

Keywords: Public universities; Accrual accounting; Accounting innovation; Accounting innovation process; Cash accounting; Organizational decoupling

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