Sonia Quarchioni and Maria Serena Chiucchi
This paper explores face-to-face dialogues between practitioners and interventionist researchers in the management accounting (MA) field during real-time interactions for the…
Abstract
Purpose
This paper explores face-to-face dialogues between practitioners and interventionist researchers in the management accounting (MA) field during real-time interactions for the development of accounting devices. It aims to shed light on whether and how these dialogues can affect the construction of meanings around the devices, thereby influencing the course of interventionist research (IVR) projects.
Design/methodology/approach
This study presents a reflective analysis (both in itinere and ex-post) of an IVR project conducted by one of the authors within a healthcare organisation. It draws on a dialogical perspective to delve into the conversations between the author and the organisation's chief executive officer (CEO) during one-to-one meetings for developing a new strategic dashboard.
Findings
The findings show that a lack of alignment between the images invoked by verbal forms and the device representations can hinder accounting IVR projects. Obstacles can be overcome when the researcher, by acting upon verbal forms and device representations that mutually reinforce each other, shapes the practitioner's expectations creating shared meanings around the device. This occurs during face-to-face interactions in which the researcher recognises the trialogue with the practitioner and the device, thereby affecting the practitioner's mode of engagement.
Originality/value
This paper contributes to improving the understanding of how researchers can affect practitioners' conceptualisation of accounting devices through the real-time experience of face-to-face dialogues. In doing so, it sheds light on the potential for IVR in MA to embrace a dialogical perspective. The paper also contributes more broadly to studies on the relationship between verbal and written accounting forms.
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Marco Giuliani, Maria Serena Chiucchi and Stefano Marasca
This paper has the ambition to enrich the extant research about the interplay between measuring intellectual capital (IC) and managing IC or, more precisely, about the production…
Abstract
Purpose
This paper has the ambition to enrich the extant research about the interplay between measuring intellectual capital (IC) and managing IC or, more precisely, about the production and consumption of IC measurements in practice. Stemming from these considerations, the purpose of this paper is to disentangle the production and consumption processes of IC measurements in practice.
Design/methodology/approach
This study is based on a longitudinal case study is analysed adopting an interventionist approach.
Findings
This study shows the peculiarities regarding the production and consumption of IC measurements, from several perspectives. In particular, it emerges that the reporting of IC can, in some specific contexts, lead to the non-use of IC measurements and to the disappearance of the measured object, IC. What is questionable is whether it is the loss of interest in the IC object that has led to the non-use of the IC measurements or if it is the non-consumption of the measurements and their qualities that has implied the disappearance of the measurement object. In addition, this study sheds a light on the fact that in an IC project the consumption of the measurements can occur not only at the end of the production process, but also (and may be especially) during the production process itself. This consumption can generate different effects such as the identification of new managerial objects, the establishment of new initiatives, the development of a deeper knowledge about how IC works or a change of the sense of some of the existing measurements. In all, the paper underlines the fact that how IC measurements are produced (the process followed and the “actors” involved) affects their actual consumption (or non-consumption).
Research limitations/implications
This paper contributes to the extant literature regarding the production and consumption of IC measurements. Moreover, it contributes to the field of IC “in practice” as it highlights what happens when an IC measurement system is implemented. Finally, the research work can contribute both to the studies regarding IC as an accounting change and to the ones regarding IC as a tool that facilitates organizational change. From the first perspective, the paper highlights how the introduction of IC has fostered long-lasting changes in the management accounting system, albeit circumscribed to the local (departmental) level. From the second perspective, the paper shows how IC may allow the creation of new managerial objects, thus promoting possible new actions. The main limitations of this study are related to the methodology adopted and to its specific pros and cons.
Originality/value
In comparison to previous studies, this one does not focus only on the managerial and organizational aspects related to the design and implementation of IC measurements or on their actual use, but attempts to approach them simultaneously adopting a longitudinal view. Moreover, this study does not adopt a theoretical perspective on how the indicators are designed and consumed but is aimed at investigating how these indicators are produced and consumed “in practice”. Finally, this study focus on the interplay between production and consumption of indicators, i.e. on the use of IC measurements in relation to the peculiarities of their production process.
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Andrea Nespeca and Maria Serena Chiucchi
In order to shed light on the implications of the business intelligence (BI) for management accounting (MA) and decision making, this study investigates as to how the use of the…
Abstract
In order to shed light on the implications of the business intelligence (BI) for management accounting (MA) and decision making, this study investigates as to how the use of the BI affects the production, transmission, and reception of performance measures (PM).
To investigate the issue at hand, a case study of an Italian company is carried out. The case study method is deemed suitable to explore the complex, penetrating, and unpredictable relationship between BI and PM.
The case analysis shows that the use of the BI can affect the production of PM by leading the organization to frame PM into an indicator setting. Moreover, the BI can affect the transmission by introducing a new, “visual” approach for presenting PM to decision makers, which is also relevant in the reception as a mobilizing factor.
This study contributes to improving the understanding of BI implications for MA and decision making, which is still limited in the accounting academia. Additionally, this research adds to extant knowledge about the relationship between measurement and management; more specifically, it contributes to understanding the “fate” of PM.
Furthermore, the findings illustrated in this chapter can be relevant from a practical point of view: by showing the role that BI solutions can play in producing and transmitting PM, the study shows the potential contribution of the use of the BI in managing and overcoming problems arising in these phases, favoring the use of these measures.
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Despite the plethora of frameworks proposed, there is little evidence of organizations measuring and reporting their IC. This paper aims to shed light on the factors that can…
Abstract
Purpose
Despite the plethora of frameworks proposed, there is little evidence of organizations measuring and reporting their IC. This paper aims to shed light on the factors that can hinder or promote the utilization of IC accounting for managerial purposes, thus contributing to understanding why IC frameworks are not so widespread in practice.
Design/methodology/approach
To investigate the issue at hand, a multiple case study of three Italian companies, which have been measuring their IC for several years, will be used, adopting a critical perspective. The actual research project was conducted using an interventionist approach.
Findings
The paper shows how IC model utilization and IC mobilization are influenced by several factors such as: the project's connection to a specific strategic objective, the system's interactive design, its complexity, the predominant use of non‐financial indicators (which can be ambiguous and provocative), the backward‐ or forward‐looking nature of the resultant measurement tools and the osmosis between company‐wide and local control systems.
Research limitations/implications
Being referred to a multiple case study, results cannot be generalized to other organizations. The adoption of an interventionist approach and the IC model applied may have influenced the results obtained.
Practical implications
The findings can help companies to make the IC accounting implementation processes more effective and create the conditions that can help mobilize IC.
Originality/value
The paper investigates IC in action, thus contributing to narrowing the gap between theory and practice, and offers new insights on some hindering or enabling factors which may influence the diffusion of IC accounting.
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Maria Serena Chiucchi and Marco Montemari
Although several frameworks for measuring and reporting Intellectual Capital (IC) have been developed over the past two decades, their actual use in practice is still limited. The…
Abstract
Purpose
Although several frameworks for measuring and reporting Intellectual Capital (IC) have been developed over the past two decades, their actual use in practice is still limited. The purpose of this paper is to answer the call to analyze IC practices from a critical and performative perspective by investigating how and why IC indicators may end up not being used, thus shedding light on the barriers to their use.
Design/methodology/approach
The paper presents a single in-depth case study and focusses attention on the fragility of the IC indicators as well on the interactions that occur among subjects while transmitting IC indicators.
Findings
The case analysis shows how the different perspectives and expectations that are at stake when subjects engage with IC indicators can play a central role in hindering or enabling their use in practice. Expecting IC indicators to be able to accurately represent and to objectively signal the size and the growth/decline of IC, i.e. to be complete and isomorphic measures, can act as a barrier to their use. The case also shows that scores play a role in hindering the use of the IC indicators; the subjects disputed the scores when they did not confirm their perception of reality, and the lack of completeness and isomorphism of the IC indicators, i.e. their fragility, was the reason put forward to justify the subjects’ refusal to accept the scores and thus, to use these measures.
Research limitations/implications
Although the use of a single case study provides in-depth and rich data, it also limits the generalizability of the observations to other companies. Moreover, the findings obtained may be influenced by the specific IC framework and indicators adopted.
Originality/value
Differently from most previous IC research, this paper focusses attention on the transmission of indicators and ultimately, on their “fate,” and it contributes to the understanding of how and why IC indicators may be produced but not used, thus hindering the diffusion of IC frameworks in practice.
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The aim of this paper is to contribute to understanding how measuring intellectual capital (IC) can favor IC mobilization, examining the role of actors who design and implement…
Abstract
Purpose
The aim of this paper is to contribute to understanding how measuring intellectual capital (IC) can favor IC mobilization, examining the role of actors who design and implement the system in influencing managers’ IC learning processes and their take up of IC management practices.
Design/methodology/approach
A constructive case study, in which the researcher was directly involved in measuring IC, is presented. Kolb's experiential learning theory model examines if and how the actors mobilized IC and how the researcher and controller influenced their learning process.
Findings
The paper shows that actors must complete an experiential learning cycle to mobilize IC. The controller's role is pivotal in promoting IC mobilization, provided he/she experiences a deep learning process and he/she moves from “IC counting” to “IC accounting.” The paper also highlights how research intervention contributes to IC mobilization by influencing the actors’ learning process.
Research limitations/implications
The paper is limited to one Italian company, so the results cannot be generalized; they were influenced by the researcher's “strong” interventionist approach and by the model adopted.
Practical implications
Companies introducing IC will become aware of barriers and levers to measuring and mobilizing IC, thus enabling them to devise strategies to avoid the former and take advantage of the latter.
Originality/value
The experiential learning theory model offers an alternative way of understanding how IC measurement produces effects and how the controller and researcher can influence the managers’ IC learning journey thus contributing to mobilization of IC.
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Maria Serena Chiucchi and John Dumay
The intellectual capital (IC) literature argues that introducing the IC concept into a company focusing on measuring can be detrimental and lead to IC “accountingisation”. Using…
Abstract
Purpose
The intellectual capital (IC) literature argues that introducing the IC concept into a company focusing on measuring can be detrimental and lead to IC “accountingisation”. Using Chaminade and Roberts’ (2003, p. 747) concept of IC accounting “lock-in”, the paper asks “is it possible for an organisation initially to implement and “lock-in” IC accounting practices and subsequently “un-lock” IC through a more strategic managerial approach?” The authors also investigate if and how, after IC has been “un-locked”, can a new IC “locking-in” process occur? The paper aims to discuss these issues.
Design/methodology/approach
The authors present an interpretive case study of implementing a system for measuring and reporting IC in an Italian public sector utility company. The analysis uses Actor-Network Theory (ANT) to analyse data and discuss findings which is an appropriate theory for case studies using an interpretive approach.
Findings
The findings are contrary to Chaminade and Roberts (2003, p. 733) because the authors challenge the notion “that a dominant accounting perspective can lead to an excessive focus on measurement issues and little attention to management processes”. The evidence from the case study shows how at times a dominant focus on accounting for IC is necessary, especially to allow newcomers to take stock, and make sense, of IC. The analogy is much like comparing accounting vs managing IC to the concept of the chicken and the egg: what comes first?
Research limitations/implications
Because the study looks at IC over time, it allows the authors to develop different insights into IC “because IC is not an event, but a journey” (Dumay et al., 2015). Thus, the critique of Chaminade and Roberts (2003) and other IC research based on a short time period is that it does not allow researchers to fully follow the IC’s impact on an organisation. Additionally, the authors also highlight the role academic researchers can play in understanding how IC works inside organisations, especially when the authors examine how deeply (or not) a researcher intervenes in implementing solutions (see Dumay, 2010).
Practical implications
The research exemplifies how IC can make a difference for public sector organisations because there is a need for studies such as the authors which exemplify how to introduce the IC concept into public sector organisations and at what point should the IC concept “enter” the organisation (see also Secundo et al., 2015). Doing so re-emphasises that IC is not an ostensive concept. Rather, “IC is part of a configuration of knowledge management and actively mobilised to condition effects” (Mouritsen, 2006) and to make a difference (Tull and Dumay, 2007).
Originality/value
This paper is a must read for academics and practitioners seeking to understand how to introduce the IC concept into an organisation.
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Antonio Lerro and Giovanni Schiuma
Acknowledging the strategic relevance of assessing and managing intellectual capital (IC), this editorial first aims to discuss a classification of the IC assessment strategies…
Abstract
Purpose
Acknowledging the strategic relevance of assessing and managing intellectual capital (IC), this editorial first aims to discuss a classification of the IC assessment strategies and second seeks to introduce the main topics investigated by the papers collected in this special issue. The notion of IC assessment strategy is interpreted as the set of economic and managerial decisions and purposes characterising the assessment of an organisation's knowledge assets. It is argued that the definition of a knowledge asset assessment strategy has to take into account two dimensions: on the one hand, the nature of the managerial approach to be adopted for the assessment, distinguishing between “value management” and “value communication”; and on the other hand, the most appropriate “evaluation architecture” to be used in order to gather and report the assessment information for control and decision making.
Design/methodology/approach
The approaches, evidences and insights discussed in this introduction result from the integration of the theory analysis with the insights extracted from the discussions that took place at the conference “International Forum on Knowledge Assets Dynamics” organized in June 2012 in Matera, Italy. At this leading international conference, experts discussed the importance of intellectual capital for organizational business excellence in the 21st century business landscape, the new IC key‐value drivers to focus on in order to face emergent competitive challenges, and the research and management practices most appropriate to address complexity, uncertainty and changes of today's business landscape.
Findings
Four IC assessment strategies are proposed, addressing their relevance for management actions. This represents the background to introduce the main topics investigated by the papers that are collected in this special issue.
Originality/value
This editorial outlines the key IC assessment strategies that organisations and practitioners should take into account when designing measurement systems aimed at gathering information to inform IC management actions.