The Silicon Valley darling suits up; The role of anchoring control practices in an entrepreneurial Fintech company expanding in a regulated market

Abstract: This thesis aims to understand why challenges related to Management Accounting Systems arise for the accounting department when an entrepreneurial Fintech company expands in a regulated market. To address the issue, a single case study was conducted which builds on previous research within the field of management accounting (cf. Simons, 1995; Davila & Foster, 2005) and applies the Anchoring control practices theory (Ahrens, 2018) as a theoretical lens. The empirical findings reveal a tension between the case company's constitutive rule and the external requirements, which impact the use of Management Accounting Systems. The case company FinTechny has not succeeded in merging the dispersed priorities of the accounting department and the management team which explains why challenges arise for the accounting department. Through the analytical discussion, the utility of anchoring control practices is questioned and the researchers conclude that Anchoring control practices narrows and diminishes the efficiency of Management Control Systems. Furthermore, the study stresses that Anchoring control practices fail to facilitate prioritisation of conflicting interests when the constitutive rule dominates the external regulations.