IPOs, Institutional Complexity, and Management Accounting in Hybrid Organisations: A Field Study in a State-Owned Enterprise in China

50 Pages Posted: 27 Jul 2016

See all articles by Narisa Tianjing Dai

Narisa Tianjing Dai

University of International Business and Economics - Business School

Zhiyuan Simon Tan

The University of Sydney Business School

Guliang Tang

University of International Business and Economics

Jason Zezhong Xiao

Cardiff Business School, Cardiff University

Date Written: July 25, 2016

Abstract

An initial public offering (IPO) is an important milestone for an organisation. In addition to pressures from capital markets unavoidably imposed onto newly listed firms, other beliefs, rationales, and prescriptions deriving from the institutional environment where they operate may prevail and guide organisational practices. Drawing on the perspective of institutional logics, this paper investigates the implementation of management accounting (MA) within firms that face multiple institutional demands following an IPO. By studying a Chinese state-owned enterprise (SOE) that was recently listed, this paper demonstrates that the interplay of multiple logics, including State, corporate, and capital market logics, shapes the manner in which MA operates. This study also reveals that different MA practices tend to encompass institutional demands in diverse ways and to varying degrees. However, regardless of whether MA practices are implemented to simply respond to plural institutional expectations, connect different organising principles, or balance elements of multiple logics, they function as hybrid practices, helping to maintain the hybrid nature of the firm as a ‘listed SOE’. This study makes two main contributions. First, it extends the literature on IPOs by providing an in-depth analysis of how MA is implemented and why it functions in particular ways in firms following an IPO, and by exploring the influences of a wider set of beliefs, rationales, and expectations on the MA practices of newly listed companies. Second, by drawing on the perspective of institutional logics, this paper extends prior research addressing the dynamics between institutional complexity and MA adoption by individual organisations and enriches our understanding of how hybrid organisations may maintain their hybridity through the deployment of MA practices.

Keywords: IPOs, management accounting, Chinese state-owned enterprises, institutional logics

JEL Classification: M4

Suggested Citation

Dai, Narisa Tianjing and Tan, Simon and Tang, Guliang and Xiao, Jason Zezhong, IPOs, Institutional Complexity, and Management Accounting in Hybrid Organisations: A Field Study in a State-Owned Enterprise in China (July 25, 2016). Management Accounting Research, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2814332

Narisa Tianjing Dai

University of International Business and Economics - Business School ( email )

10, Huixin Dongjie
Changyang District
Beijing, Beijing 100029
China
0086-1064493525 (Phone)

Simon Tan (Contact Author)

The University of Sydney Business School ( email )

Room 436, Codrington Building (H69)
21-23 Codrington Street, The University of Sydney
Darlington, NSW 2006
Australia
+61412053612 (Phone)

Guliang Tang

University of International Business and Economics ( email )

No. 10, Huixin Dongjie, Chaoyang District
Beijing, 100029
China

Jason Zezhong Xiao

Cardiff Business School, Cardiff University ( email )

Aberconway building
Colum Drive
Cardiff, CF10 3EU
United Kingdom

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