Bridging Competing Logics: Re-Reading the History of Transnational Standardization in Accounting

Abstract

This study seeks to contribute to the understanding of changes in institutional logics by re-reading the history of transnational standardization in accounting. It builds on a comprehensive review of official documents of the International Accounting Standards Committee, now restructured as the International Accounting Standards Board (IASB). The findings indicate that, in the 40-year history of transnational accounting standards-setting, there have been several changes in institutional logics, which, in turn, have encouraged revisions in organizational structure, inter-organizational relationships, standards-setting approach, and sources of legitimacy. These changes have encouraged further revisions in institutional logics (representation and expertise), and vice versa. Especially after the global financial crisis of 2007-2008, the IASB accomplished several institutional changes as a response to internal and external pressures. At the same time, a new organization-level institutional logic has emerged from the process of institutional bricolage, wherein institutional actors (trustees) have picked the best elements of competing logics, thereby bridging the two