Smart city dynamics and multi-level management accounting: unfolding a case of sustainable enterprise resource planning
Sustainability Accounting, Management and Policy Journal
ISSN: 2040-8021
Article publication date: 28 May 2021
Issue publication date: 3 January 2022
Abstract
Purpose
This study aims to explore the complex, multi-level institutional dynamics of smart city reforms and projects and their potential sustainability pressures on the implementation of a management accounting system in an Egyptian state-owned enterprise (SOE), which has a politically sensitive institutional character.
Design/methodology/approach
This study adds to institutional management accounting research using a multi-level perspective of institutional dynamics in the smart city context. Data were collected from an interpretive case study of an Egyptian SOE that was under socio-political sustainability pressures to implement a smart electricity network project in New Minya city.
Findings
Smart city projects have formed social and political sustainability pressures, which introduced the enterprise resource planning (ERP) network as a new management accounting system. A new (complex and multi-level) management accounting system was invented to reinvent the sustainable city as an “accounting city” (which appeared rhetorically as a “smart city”). “Smart” being the visibility and measurability of the sustainability performance of the collective body, which calls the city and its connectivity to different institutional levels brought out in a city network project for the ERP-enabled electricity distribution.
Research limitations/implications
This study examines a single case study from a single smart city and identifies the accounting community’s need for multiple and comparative case studies to further analyse the potential impact of smart city reforms and projects on the sustainable implementation of management accounting systems.
Practical implications
City policymakers and managers may benefit from the practical findings of this interpretive field-based case study in planning, implementing and monitoring smart city projects and objectives.
Social implications
Individual and collective well-being may be enhanced through new management accounting forms of multi-level local governance and increased political, field and organisational sustainability.
Originality/value
This study provides important insights into the sustainability dynamics of management accounting in achieving smart city reforms. The achievement of sustainability management accounting systems has connected to multiple ERP roles at different institutional levels, which resulted in accommodating the socio-political objectives of smart city projects.
Keywords
Acknowledgements
The author would like to thank the editor-in-chief, associate editor and four anonymous reviewers for their constructive comments and suggestions during the review process. Special thanks should go to The UK’s Open University for its financial support during the data collection process in Egypt (FBL seed-corn funding, budget code LR201601QRQ08). This paper is the second part of the author’s research project entitled “Accounting and Smart Cities in Developing Countries”. The first part has been published in the 2021 Journal of Accounting in Emerging Economies. The author’s thanks should also go to the participants of the 2018 Annual Conference for Management Accounting Research (ACMAR) at the WHU-Otto Beisheim School of Management, Vallendar, Germany and the 2018 British Accounting and Finance Association (BAFA) Annual Conference, London, UK, for their helpful comments on the early versions and their encouragement to continue work on this project.
Citation
Alsaid, L.A.Z.A. (2022), "Smart city dynamics and multi-level management accounting: unfolding a case of sustainable enterprise resource planning", Sustainability Accounting, Management and Policy Journal, Vol. 13 No. 1, pp. 30-54. https://doi.org/10.1108/SAMPJ-08-2020-0283
Publisher
:Emerald Publishing Limited
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