Discussion form of accounting, or the reverse: emphasizing manage-

5. Discussion form of accounting, or the reverse: emphasizing manage-

ment accounting’s impact on IT development/modification.

Our case first demonstrates, through a longitudinal field The sociomaterial perspective demonstrates how an ERP

study, the process of implementing so-called “best prac- can be enacted in different ways as it connects with prac-

tice” ERP systems and their influence on management

tices of different communities of users ( Law and Singleton,

accounting practices while at the same time illustrating 2005 ). Nevertheless, this differential enactment has lim- how existing management accounting practices can influ- its created by the material configuration. In Ivy, the ‘best

ence the ERP system. This empirical study when viewed practice’ was defined by professional accountants from the

through the key construct of sociomaterial practice pro- central administration who encoded accounting logics that

vides rich insight into existing literature that has reported suited their particular interests related to institutional risk.

on standardized information architectures and inflexible In doing this, the needs of the distributed faculty who had

accounting logics of enterprise software. Our theoreti-

not been professionally trained to manage their project

cal explanation moves beyond the simple attribution of budgets and moreover, had different interests compared

change to either human or technical agency (i.e., under- to the central accountants (i.e., to spend all their budget in

or over-socialized accounts) to produce a more compelling the interests of their research projects vs. to reduce institu-

theoretical explanation of the way in which a working tional risk) were ignored. This led to post-implementation

information system emerges through negotiations around negotiations, and our analysis shows how an accounting

processes of use. system can be made functional as different communities

Second, we provide a theoretical explanation for what resist and accommodate the ‘best practices’ ( Pickering, happens between people and their technology tools when 1993 ) until eventually a reconfigured system is created that

the ERP is in production and users are working in the new includes valued functionality that allows different commu-

environment. Through the key construct of reconfiguration nities to accommodate their needs.

we were able to focus on how persons and things might Demonstrating this recursive relationship between

be figured together differently when resistance is encoun- accounting practices, technologies and its users contributes

tered to a new sociomaterial arrangement following ERP to the recent call in the management accounting literature

implementation. We found that supplementing, and so for further longitudinal studies of accounting that exam-

changing, the best practice design is a viable and valuable ine in-depth the bidirectional nature of the relationship tool for creating a working information system and that between management accounting and ERP technologies

indeed sociomaterial assemblages evolve over time, always (see Rom and Rohde, 2007; Luft and Shields, 2003 ). The

subject to redefinition. detailed Ivy case contributes to our understanding of Third, we contribute to accounting literature by extend- how working accounting information systems are created

ing knowledge on how software-based accounting tools around an ERP. We have shown that accounting is not an

might work effectively within an organization. The con-

object in its own right but is better seen as a set of practices

struct of relationality helped explain why multiple

that are scaffolded by material objects (e.g., ERP) that are

practice communities that exist across the field of account- used by diverse communities to perform different tasks.

ing within an organization will likely be at odds. These Quattrone and Hopper (2006) thus describe ERP as being

different communities will have more or less power to ‘heteromogeneous’ in the sense that they appear to be

influence the sociomaterial practices surrounding an ERP homogeneous precisely because they are actually hetero-

configuration/reconfiguration and this can change over

geneous, providing a space whereby users can experiment

time. For instance, it was the Economics Professor’s posi- with them and create different sociomaterial assemblages.

tion of Provost and his prior held position as VP Finance and However, given the integrated nature of an ERP, the Administration that enabled him to have some influence freedom to experiment through practice may be more lim-

over the negotiations regarding the reinstatement of com- ited than is suggested by this concept. Performability is mitment accounting. In a similar vein, the wealthy status restricted by the ‘best practice’ logic that has been initially

of professional schools such as Medicine had enabled them configured in the ERP. In Ivy this set the stage for negoti-

to design their own support mechanisms for commitment ations which lead to reconfigurations that accommodated

accounting. In sum, this study helps develop our under-

diverse practices, with these diverse practices and interests

standing of the linkages between accounting, information exposed rather than concealed by the ERP. In accommo-

technology and integrated administrative systems like ERP dating these diverse interests the ERP was reconfigured that are widely used in contemporary organizations. We in such a way that the legacy management accounting

discuss each of these issues next. practice was reinstated. At face value this seems to rein-

force the findings by Granlund and Malmi (2002) that ERPs

5.1. Sociomaterial practice have little impact on management accounting practice and

answer their question as to whether this minimal impact

Normative accounting literature has treated technology was because practice change lags implementation (they as an ‘absent presence’, neglecting to consider the material- looked only at companies who had very recently intro-

ity that these types of architectures provide in the practice duced an ERP) in the negative. However, this obscures the

E.L. Wagner et al. / Management Accounting Research 22 (2011) 181– 197

point that how the management accounting practice was popular ERP software. Having the opportunity for the local

performed was changed and, as we show next, exploring business units to customize the ERP in their multi-national

how this change came about sheds light on questions about case, led to the ERP being used. In their words: “SAP in

stability and change and human and non-human agency. its standard format . . . had been absent as an IT system but

once managers realized it could be house-trained [through

5.2. Reconfiguration customizing using ABAP] to reproduce locally acceptable

controls they perceived it as less of a ‘monster”’ (p. 232).

Our study challenges the notion of accounting as

However, to program customizations using the ABAP code

a largely predictable/routine practice that operates as

requires a high level of knowledge and expertise. In many

designed across time and locations. Instead we demon- implementations, those involved will not have this knowl-

strate accounting as lived and enacted experience where edge and expertise so that such reconfigurations may

the performative nature is foregrounded. However, while be much more restricted ( Dechow and Mouritsen, 2005 ). we need to recognize the performability of an ERP we also Moreover, in other cases, it may be a strategic decision to

need to recognize that its integrated nature depends on ‘go vanilla’ ( Robey et al., 2002 ) so that again in these situa-

achieving some sort of stability and order across diverse tions, reconfiguration may be restricted. This reinforces the

communities of users; in this sense it is different to the importance of seeing an ERP as a sociomaterial assemblage

implementation of a balanced scorecard which can still

– in a context where the package cannot be configured,

be effective even if its use is very divergent across com- either because of lack of expertise or strategic intransigence

munities. A working ERP needs to become stable across – the ERP will be a quite different sociomaterial assem-

communities and this requires the realization of one set blage as compared to the Ivy case (and the Quattrone and

of relations over others for a period of time. Thus, the Hopper case). In other words, an ERP system will look and

sociomaterial practice perspective steers us to explore the function quite differently in each context, sometimes the

technology–human interactions and how they are influ- assemblage will enable reconfiguration while in other sit-

enced by ongoing power dynamics and political behaviours uations it will not so that other forms of work-around may

to understand how past accounting systems can continue be more evident.

to operate at the margins of ERP implementation until they

become part of the agreed ongoing practices ( Miller, 1998 ).

5.3. Relationality

In a university environment where faculty are powerful,

their reconfiguration demands were added to the best-

Given that IT-based accounting practices have histori-

practice design rather quickly. In other situations, where cally been packaged within discrete products that enable

users are less powerful, reconfigurations may exist as add- preferred ways of working for a specialized group of pro-

ons at the margin for a considerable time ( Ciborra, 2002 ).

fessionals, it is not surprising that the accounting literature

This finding extends the analysis of Dechow and

emphasizes the technology as an ‘absent presence’. ERP Mouritsen (2005) who identify how the configuration of an systems, however, are different because independent evo-

ERP conditions the various actors across an organization to lution becomes more difficult as the multiple sociomaterial

use the ERP in different ways, leading some groups to sup- assemblages become more interdependent. Our analysis,

plement the ERP, others to use the ERP as a lever to align thus, enables us to provide some insights to the question

other functions, and still others to use it as part of a brico- posed by Hyvönen et al. (2008) who asked: ‘how ‘ready-

lage of technologies. These kinds of adaptations around and to-use’ and ‘packaged’ are these [ERP] software packages?’

with the ERP were evident in the Ivy case as well, for exam- Our discussion demonstrating why and how reconfigura-

ple in the creation of the new transaction centres. The Ivy tion occurs, leads us to conclude that they are typically not

case also highlights in-use customizations that enabled dif- ready-to-use and will inevitably change as users interpret

ferent user groups to have their accounting demands met and enact the system differently. This directly addresses once the ERP “went live”. In our case then, it is not that our two research questions. Thus, our case first shows how

‘the accounting structure is only plastic in the pre-practice the accounting logics encoded into the ERP system pur-

project mode’ ( Dechow and Mouritsen, 2005 , p. 729) but posefully ignored the less professionalized management

that emergent requirements can be accommodated in pro- accounting practices of non-accountants and prioritized

duction mode. Reconfiguration through customizing the the financial accounting interests of central administra-

ERP may be more likely in situations where users are

tors. That this was the case even in a situation where the

powerful, as in a university, but the effectiveness of these adopting organization was actually involved in designing

customizations (i.e., reconfigurations) for accommodating the industry standard suggests that such prioritization is

the different needs of the multiple groups of users, attests likely to be the norm. However, and in answer to our second

to the potential effectiveness of this strategy more gener- question, the upshot of this financial accounting domi- ally. Theoretically, the concept of reconfiguration reminds nance during configuration, led to an extensive period of

us that design and use should not be viewed as two inde- praxis, during which time different groups vie over the pendent states, a point we return to below. sociomaterial practice logic that will be adopted. The result

It is also important to note that technologies-in-practice of this contestation is the creation of a reconfigured system

will be more or less reconfigurable. For example, Quattrone that better accommodates the practice logics of the central

and Hopper (2006) also found considerable reconfigura-

administrators and the distributed grant managers.

tion in their ERP implementation case, and discuss this in In one sense this analysis concurs with that of Andon

relation to the ABAP code that underpins SAP, the most et al. (2007) who emphasize how accounting change is

E.L. Wagner et al. / Management Accounting Research 22 (2011) 181– 197 195

not a linear process that involves simple, planned move- In other cases, where they are adopting a standard pack-

ment between two states – the old and the new. However, age, not trying to design an industry-specific package, this

while they present their accounting change as occurring post-roll-out design modification may be even more likely

through ‘relational drifting’, characterized as experimen- in relation to the management accounting functionality.

tation that is informed and bounded by existing ties to

That being said, an important contribution of this study

human and non-human actors, we argue that ‘drift’ is not is to show that such post-roll-out design modification is

necessarily a good metaphor to describe the non-linear neither as difficult as Dechow and Mouritsen (2005) indi-

process that occurred at Ivy. The instances of resistance cate when they state that the accounting structure is ‘only

and accommodation described in this paper were much plastic in the pre-practice project mode’ (i.e., before imple-

more purposeful than drift implies, with users taking action mentation), nor as easy as Quattrone and Hopper (2006)

in order to find ways to continue with what they viewed indicate with their concept of ‘heteromogeneous’. Rather,

as effective practice. In this sense, there was actually little our analysis demonstrates that the scope of post-roll- experimentation at Ivy, since faculty and their administra- out modification (the practices which get accommodated

tors quickly decided that the new method of accounting and those which do not) and the type of such modifica-

– time-phased budgeting – did not suit their needs and tion (reconfigurations versus supplements) depends not on

then worked to reinstate their old method of commit-

either the people involved (as social constructionists would

ment accounting. Again, in our case, power dynamics may emphasize) or features of the technology (as realists would

explain the lack of relational drifting. More specifically, emphasize) but rather on the sociomaterial assemblage. the non-participation of faculty in the design of a manage- Thus, the technology may be customable but if there are

ment accounting approach that they would have to use, led no experts to undertake customizations, the package may

to their reconfiguration demands to reinstate legacy prac- as well be non-plastic so that only supplements (adapta-

tices post-roll-out and it was hard to ignore these demands, tions around) can be made. And, even if the package is

given faculty power. customable and experts are on-hand, not all practice com-

This discussion also suggests that separating the users munities will be able to get the design changes that they

and the system designers may be an unhelpful conceptual- request. Only selective accommodations were made at Ivy

ization of management accounting systems development. and these were made where the resistance was coming

The case of Ivy demonstrates how users as designers can from powerful sources that ‘had to be listened to’. The social

workaround the limits inscribed in ERPs in circumstances and material actors that make up a particular assemblage,

where durability is problematic. This study thus high-

in other words, are not all equal, something that is often

lights the interactivity between the designer/users in the ignored in the literature. Moreover, our findings also indi-

development of accounting based information architec- cate that the process of accounting change may not always

tures ( Chapman and Chua, 2003; Dechow and Mouritsen, be best characterized as ‘relational drifting’ as emphasized

2005 ). by Andon et al. (2007) . In a situation where the practices

of a powerful community are ignored in the ERP config-