Operationalizing a Market in Transit: How Multiple Accounting Calculations Mediate Multiple Rationales of the Market

Abstract: This thesis aims to understand how accounting calculations are used to operationalize the market in an intra-organizational value chain. Building on a case study, TransportCo is followed in its efforts to go from a stable market towards meeting a new uncertain market. By using the concept of mediating instruments (Miller & O'Leary, 2007), we focus on the accounting calculations used by the respective functions in the value chain and, specifically, their ability to mediate a market rationale of the uncertain future for the dispersed actors. The study finds that various accounting calculations were used by the different functions in TransportCo and analyzes how these mediate different rationales of the market. The different rationales create tensions not only between the different functions but also within due to the use of multiple calculations in some. In efforts to reduce the tensions, interactive forums are used to increase alignment in the value chain. The study contributes to the literature on mediating instruments by showing that multiple calculations can simultaneously mediate different rationales of the market within an organization's value chain. Additionally, it contributes to the literature on the interface between accounting and marketing by showing how accounting calculations can be used to mediate rationales of the market and guide functions towards practices on how they can create value for their customers and hence the market.