Accounting and Organisational Change in Italian Local Governments: What's Beyond Managerial Fashion?

Abstract

During the last decade Italian local governments have undergone a reform process, involving deep changes in their accounting system. The purpose of our longitudinal study is to analyse the development path of accounting tools in an Italian LG body over a decade and to answer the following research questions: how does interaction between accounting system and contextual factors develop over time? Is it possible to identify typical patterns of accounting renewal related to contextual factors? What is the role played by accounting systems in shaping the cultural and organisational change process? Does a significant gap exist between the 'declared' purpose and the actual effects of the change in managerial accounting systems? The analysis of the case shows that changes in the accounting systems proceed in an incremental way but they are punctuated by radical and discontinuous events modifying their features. Radical changes are justified by external events, crisis and very often by law requirements. The latter, however, become an excuse to prompt a change that was already under preparation. The managerial approach to public sector, which has been fashionable over the last decade, is still strongly linked and influenced by the 'bureaucratic' one. Only when strongly supported by law and harsh contingencies, the managerial approach finds its actual application and its tools are actually used.