Contracting Out Municipal Accounting: The Role of Institutional Entrepreneurship

Abstract

Purpose: This paper explores the emergence of accounting shared service centers (SSCs) in the municipal sector.

Design/methodology/approach: The theoretical framework of this interpretative study draws on institutional entrepreneurship that highlights the importance of actors and agency for institutions and institutional change.

Findings: Institutional entrepreneurs operate on many institutional levels simultaneously. On the organizational field level they must find groups of actors with whom they share interests. At the organizational level the institutional entrepreneurs must find and recognize critical audiences that are receptive to their agenda.

Research limitations/implications: Our data comprises interviews and archival data; we were not present to observe the institutional entrepreneurs in action.

Originality/value: The paper contributes to the accounting literature by investigating institutional entrepreneurship at the organizational field level, which has not been much empirically researched.

Classification: Research paper

Keywords: accounting shared service center, local government, institutional theory, active agency, institutional entrepreneurship

JEL Classification: M41