An institutional logics perspective on management accounting changes following acquisitions

Abstract: This thesis investigates the management accounting change (MAC) following a number of acquisitions of professional service firms made by the firm ProCorp. The MAC took place in an environment characterized by institutional complexity where the acquiring firm was guided by a 'business logic' whereas the acquired organisations were guided by a 'professional logic'. The MAC framework by Burns and Scapens (2000) was developed by incorporating the theories within institutional complexity and applied to analyse the institutionalisation process of the gradually implemented management accounting system. We contribute to the MAC literature, in a post-acquisition context in particular, by showing how the different logics contributed to the design and use of the management accounting system, but also how its use influenced the logics. With regards to the design of the new system, we suggest that new management accounting rules that adhere to the logic of the specific group upon which they are imposed are more easily translated into actions and new routines by these individuals. Early compromising on part of the acquirer, with regards to the order of implementation of changes, can thus be a way to achieve balance between stability and change and may pave the way for later changes in line with the logic of the acquirer. Furthermore, we show how structural differentiation was enabled by partly separating the groups of different logics, facilitated by a few key individuals acting as a mediating bridge between the two realms. Moreover, we show how interactive use of measurements may promote mutual learning and trust building, which in turn can support the institutionalisation of the formal system in the acquired organisations.