Normative Isomorphism Research Articles

Biodiversity accountability in water utilities: A case study

Caring for biodiversity is a significant challenge for companies worldwide. The role of water utilities in this context is pivotal: as key actors in providing core services while balancing the interests of the many stakeholders interested in their activity, water utilities are adopting different accounting tools to increase their accountability. To understand the motivations and to explore the mechanisms underlying water utilities' biodiversity accountability practices, a case study is developed. Findings reveal how normative isomorphism, and coercive requirements, is driving water utilities accountability. Also, the study reveals the centrality of integrated reporting and alternative accounting practices for disclosing on biodiversity.

Recoding Journalism: Establishing Normative Dimensions for a Twenty-First Century News Media

ABSTRACT This essay argues that there are overlooked yet important journalistic beliefs, norms, rules and practices regarding, aesthetics, automation, distribution, engagement, identity, and proximity that could be a part of formalized codes of ethics. There are four reasons why these should be formalized. First, making the implicit normative dimensions explicit allow for a shared understanding of journalism, cutting across institutional borders. Second, it promotes a more unified and homogenized understanding of journalism across the institution based on those shared explicit norms (normative isomorphism). Third, it reduces the fuzziness of these codes and sharpens their functions as boundary objects, simplifying the negotiation between journalists and audiences. Fourth, and finally, these implicit codes might be an untapped resource that could make journalism better connect with citizens and increase its legitimacy. The paper offers two main contributions to journalism studies. First, it shows that elements of journalistic practice and culture that seem disparate in fact play similar institutional roles, forming boundary objects as sites of tension where codes are negotiated by different actors. Second, systematizing these informal codes into the style of traditional codes of ethics renders them more visible and could help journalism scholars understand the uneven formation and evolution of journalistic norms.

Are we doing the same? A worldwide analysis of business commitment to the SDGs

<abstract> <p>The COVID-19 pandemic has set back progress toward the 2030 Agenda. This raises concerns about the ability to achieve the Sustainable Development Goals (SDGs) as outlined in this global action plan. The responsibility to act to protect the planet, eradicate poverty and improve the current and future situations of people around the world requires the commitment of all actors, especially the public and private sectors. The objective of this paper is twofold. First, it aims to demonstrate the level of business commitment to the 2030 Agenda at a global level in a post-COVID period (2020–2021). Second, it aims to analyse whether this commitment, in general, and for each of the SDGs, is determined by the institutional context in which companies operate, as associated with the regulatory frameworks and cultural values of the different continents and countries (coercive and normative isomorphism). Based on a sample of the world's leading listed companies, i.e. 8,201 observations for the period of 2020–2021, the multivariate statistical technique HJ-biplot was applied to analyse whether business commitment to the 2030 Agenda is determined by the institutional context of the companies. The results show significant differences in the level of business commitment to sustainable development across regions and countries, as well as in the prioritisation of the SDGs. Countries in Asia (the Philippines) and Europe (Spain and Portugal) stand out as leaders, with the highest levels of SDG commitment. The USA and Qatar show the lowest engagement in business contribution to the SDGs. SDG 8, SDG 13 and SDG 12 appear as the top three priorities for companies in all countries. The results show that, in countries characterised by collectivism and feminism and with strong legal systems (civil law countries), companies are under greater pressure to adopt sustainable practices, which enables countries to improve their commitment to the SDGs.</p> </abstract>

Institutional perspective of change in management accounting system: A case study approach

The objective of this study is to examine the drivers of change in the management accounting system in a large manufacturing Libyan-Italian joint-venture public company (LIJV). To achieve this objective, a qualitative case study research is adopted. The research data were gathered by conducting 17 semi-structured interviews with the managers and senior staff of the case company. The data collected from the interviews were supported by documentary reviews and observations. The findings of this study indicate that changes in management accounting systems in the company are attributable to institutional factors, competitive pressures, and market forces. Specifically, isomorphic institutional pressures (i.e., coercive, mimetic, and normative isomorphism forces) appeared to be the main drivers of management accounting system change. These findings are consistent with Zoubi’s (2011) findings. Additionally, our findings reveal that the primary sources of the barriers to management accounting change include: 1) the nation’s regulations and laws, 2) management misconduct and corruption in management and financial activities, and 3) company managers’ resistance. Drawing on the new institutional sociology (NIS) theory, our case findings provide a comprehensive understanding of the change process in management accounting systems by focusing on the role of market pressures, institutional pressures, and intra-organizational power. The contribution of this research is the improved utilization of NIS in explaining the change in management accounting.

The Influences of Institutional Theory in the Development and Operationalization of Small and Medium Enterprises in Bangladesh

The study aims to explore the influence of institutional theory in the development and operationalization of small and medium enterprises (SMEs) in Bangladesh. The study employed a qualitative case study method to attain the research objective. Data has been collected through semi-structured interviews from ten respondents. The study finds that various dimensions play a pivotal role in shaping the trajectory of these enterprises. Isomorphism, operating through coercive, memetic, and normative mechanisms, further underscores the complex interplay of institutional forces. Coercive isomorphism introduces challenges such as financial stringency, complex loan structures, non-banking support, and mandatory restrictions. Memetic isomorphism, rooted in community support, cultural development, and tradition, shapes the identity of SMEs, influencing their operational choices. Normative isomorphism drives struggle for industry recognition, financial independence from bank loans, and collaborative efforts within the SME ecosystem. Institutional norms, emanating from the broader institutional environment, intricately shape the behaviors and decisions of SMEs. This comprehensive analysis sheds light on the nuanced dynamics that SMEs encounter in their developmental journey in Bangladesh. Recognizing and adapting to these institutional nuances will empower SMEs to navigate challenges and leverage opportunities, fostering a more robust and sustainable entrepreneurial ecosystem in the country. The concept of legitimacy, spanning financial, loan, government support, operational, and certification aspects, emerges as a cornerstone for SMEs to establish credibility and acceptance. Understanding and navigating this multifaceted legitimacy landscape are critical for SMEs to secure the necessary resources for growth.

ADDRESSING ACCOUNTABILITY AND TRANSPARENCY CHALLENGES IN WAQF MANAGEMENT USING BLOCKCHAIN TECHNOLOGY

This study identifies how blockchain technology can address accountability and transparency challenges in waqf management system by using institutional theory and Islamic institutional logic. An interpretative qualitative research approach is employed, with case studies of Malaysian public university waqf administrators, and data analysis is performed using open, axial, and selective coding. The findings suggest that in terms of coercive isomorphism there are two transparency challenges related to blockchain solutions in the waqf management system: 1) errors in the issuance of receipts (process), which are expected to be overcome by blockchain solutions in the form of individual network technology and ID identifiers; and 2) difficulties in waqf distribution (process), which are predicted to be solved by blockchain solutions in the form of controlling tools, public ledgers, and obtaining waqf distribution data. In normative isomorphism, there are two accountability challenges with blockchain solutions in the waqf management system: 1) difficulties in controlling waqf activities (process), which are expected to be overcome by blockchain solutions which allow internal control; and 2) decisions on waqf distribution (output), which should be solved by blockchain solutions which allow awareness among stakeholders of waqf distribution. In mimetic isomorphism, there is one accountability challenge in the process which has blockchain solutions in the waqf management system, namely system integration, which is predicted to be overcome by a blockchain solution related to traceability. The contributions of the study include extending institutional theory and Islamic institutional logic, and providing blockchain best practices for waqf institutions in addressing accountability and transparency challenges.

Analysis of Pangandaran Regency Government’s Performance Accountability Strengthening

Research aims: This study aims to analyze the Pangandaran Regency Government’s performance accountability strengthening, which took place relatively quickly, and identify performance accountability strengthening plans for the coming period.Design/Methodology/Approach: This research used a qualitative and case study approach to achieve the research objectives. Data collection techniques employed were in-depth interviews and documentation.Research findings: The analysis results showcased that Pangandaran Regency Government’s performance accountability strengthening was dominated by coercive and mimetic isomorphism, but the phenomena move towards normative isomorphism. This study also uncovered that the plan to strengthen performance accountability for the next period formed a specific pattern over time.Theoretical contribution/Originality: This research also provides an academic contribution as a reference regarding performance measurement systems and the institutional isomorphism phenomenon.Practitioner/Policy implication: This research provides a practical contribution to the Pangandaran Regency Government and other local governments that still have professional problems in strengthening performance accountability. Research limitation/Implication: This study has limitations, i.e., in the discussion of the Pangandaran Regency Government’s performance accountability strengthening plan, in which this research had not been accompanied by a review of the Pangandaran Regency Government's Regional Medium Term Development Plan (RPJMD) for 2021-2026. It was because when researchers collected data, the RPJMD was still in preparation.

Understanding Agile Innovation Management Adoption for SMEs

Research interest in agile innovation management (AIM) has increased due to its growing popularity. However, little is known about adaptability by small and medium enterprises (SMEs). This study examines the factors affecting intention to adopt AIM in SMEs. A conceptual framework is developed by combining internal and external environmental factors that influence adoption intention. Responses were received from 276 SMEs and analyzed using covariance-based structural equation modeling (SEM). The results confirmed that external environmental factors of mimetic isomorphism and normative isomorphism have a positive association with the intention to adopt AIM. Moreover, the internal environmental factors of top management championship, adhocracy culture, clan culture, and organizational readiness were confirmed to be positively associated with AIM adoption. This study provides one of the first empirical evidence of AIM for SMEs. In doing so, the study contributes both theoretically and practically toward understanding strategies that would enhance adoption by SMEs.

Tomasz Kamusella. Words in Space and Time: Historical Atlas of Language Politics in Modern Central Europe

Tomasz Kamusella. <i>Words in Space and Time: Historical Atlas of Language Politics in Modern Central Europe</i>

Is Digital Visual Isomorphism Inevitable in Successful Companies? A Comparison of the Colours Used on Global Companies’ Websites

The aim of this study is to determine whether there is a corporate similarity between the colours used in the website design of global companies, which are at the top of the world arena, where technology carries businesses to a different dimension. In this context, the corporate websites of the companies in the Fortune Global 500 list were examined. According to the results of the study, there is no differentiation among the colour preferences reflected in the virtual environment of the companies examined within the scope of the sample. The colour preferences used by the world’s most valuable companies in the virtual environment are similar; the colours these companies use most intensely are blue, white, grey and black. It is possible to evaluate this similarity within the scope of normative isomorphism in terms of the reflections of globalization and universal culture.

Mediated by the giants: Tracing practices, discourses, and mediators of platform isomorphism in a media organization

News media are increasingly interwoven with social media platforms. Building on institutional theory, we trace the repercussions of the platform infrastructure inside a media organization by focusing on organizational discourses and practices in connection with the journalistic use of social media. The empirical material includes interviews, field notes, chat logs, and documents collected from a public service media organization during a 6-month on-site and virtual ethnography. The findings show how platform pressures intertwine with content production, audience representation, journalistic values, and organizational development, thus manifesting the infrastructuralization and institutionalization of platforms in the media industry. While the interviewees articulated tensions related to adopting social media, the fieldwork data revealed forms of mimetic and normative isomorphism, mediated by platform data and professional roles in the organization. Moreover, the platform infrastructure seems to cultivate both critical and aspirational talk in the organization, which implies a more complex relationship beyond coercive platform power.

Institutional antecedents of integrated reporting quality: The moderating role of board independence

AbstractThis study aims to examine a set of institutional isomorphic influences toward integrated reporting quality (IRQ) and the role of board independence in moderating such influences. The results from a cross‐sectional sample of 200 international companies indicated that both coercive (regulatory quality) and normative isomorphism (press freedom, CEO with accounting qualification, Dow Jones Sustainability Index listing, and winning an IR award) exert positive effects on IRQ. Moreover, board independence moderates positively for the effects of mimetic isomorphism (environmental sensitive industry) on IRQ. This study contributes to filling the gap in the literature by offering a multi‐theory approach to analyzing the antecedent of IRQ from the lenses of both institutional and agency theory. It also offers a practical contribution for corporate IR adopters, users, and regulatory authorities to improve corporate reporting. To the best of our knowledge, this is the first study that examines the moderating role of board independence on IRQ.

Mandatory Disclosure of SAK ETAP in Mimetic and Normative Isomorphism Perspective on Real Sector Cooperatives In Indonesia

This study aims to analyze the effect of Institutional Isomorphism on mandatory disclosure with Financial Accounting Standards for Entities Without Public Accountability (SAK ETAP). The level of mandatory disclosures, measured by an unweighted of 88 disclosure items. The results of the study on 195 real sector cooperatives showed that the level of mandatory disclosure is 31.4%, the highest is 59.4%, and the lowest is 7.5%. Multiple regression analysis shows that information technology, audit types, and entity size, have a significant effect on Mandatory Disclosure of SAK ETAP, while industry types have an moderat significant effect. The theoretical contribution is to provide insight into the use of mimetic and normative isomorphism in explaining mandatory disclosures, while stakeholders can provide input for considering policy and decision making regarding the implementation of financial reporting based on SAK ETAP

Mandatory Disclosure of SAK ETAP in Mimetic and Normative Isomorphism Perspective on Real Sector Cooperatives In Indonesia

This study aims to analyze the effect of Institutional Isomorphism on mandatory disclosure with Financial Accounting Standards for Entities Without Public Accountability (SAK ETAP). The level of mandatory disclosures, measured by an unweighted of 88 disclosure items. The results of the study on 195 real sector cooperatives showed that the level of mandatory disclosure is 31.4%, the highest is 59.4%, and the lowest is 7.5%. Multiple regression analysis shows that information technology, audit types, and entity size, have a significant effect on Mandatory Disclosure of SAK ETAP, while industry types have an moderat significant effect. The theoretical contribution is to provide insight into the use of mimetic and normative isomorphism in explaining mandatory disclosures, while stakeholders can provide input for considering policy and decision making regarding the implementation of financial reporting based on SAK ETAP

Institutionalization as an Innovation Process: Insight Into ICT Use in Agricultural Advisory System

This article critically examines the relationship between institutionalization and the innovation process, traditionally regarded distinctively, leading to theoretical and methodological biases. It is also difficult to find how empirical research implements institutional theories. Drawing on the innovation and institutional theories, and a systematic literature review on ICT usage in the agricultural advisory system (AAS), our study reveals that ICT is becoming established within AAS. Two dominant isomorphisms guided ICT usage in AAS: coercive and normative isomorphism. We argue that the institutionalization process is a continuum of the innovation process. From this perspective, technology is conceptualized as potentially useful knowledge that undergoes a series of changes during its institutionalization. We propose an analytical framework that could induce further theoretical refinement and progress.

The Tendency of Terrorist Organizations to Explosive Attacks: An Institutional Theory Perspective.

Focusing on the tendency of terrorist organizations to explosive attack, this article applied the institutional theory as the basis to explain the inherent logic of attack type similarity from the perspective of mimetic, coercive, and normative isomorphism. Subsequently, the study conducted an empirical analysis of the data onto 1825 terrorist organizations recorded in the Global Terrorism Database with the logistic regression method. The results show that: (1) Terrorist organizations will learn from pre-existing terrorist organizations' experiences, and mimetic isomorphism will promote explosive tendency; (2) Due to the normative isomorphism effect, terrorist groups' tendency to explosive attacks is weakened by their increased duration; (3) If terrorist organizations are hostile to a strong government, coercive isomorphism positively moderates the negative effects of increasing duration. The study suggests that counter-terrorism approaches such as destroying the learnable experience of attacks, addressing the root causes of terrorism, and maintaining a strong government may be helpful in stopping increasing terrorist activities, which is essential for reducing terrorist organizations' vivosphere, blocking the inter-flow and imitation between terrorist organizations, and ultimately interrupting the terrorist propagation chain.

Motivational Factors Underlying the Intention Of Herbal Soap Entrepreneurs To Obtain Halal Certificate In Malaysia

The goal of this study is to determine the motivation factors underlying Herbal soap entrepreneurs‘ intention to obtain Halal certificate in Malaysia. This is a quantitative study that employs questionnaires as a research tool and uses Dimaggio and Powell's (1983) model on institutional theory to study the intention of Herbal soap entrepreneur in getting Halal certificate. The study predicted that there are positive links between Malaysian Herbal soap entrepreneurs’ motivation factors (coercive isomorphism, normative isomorphism and mimetic isomorphism) and the intention to obtain a Halal certificate. This study will have significant implications for various Halal stakeholders. Furthermore, despite the fact that many studies have focused primarily on the Halal food sector, there is a need for more research into the Halal Herbal soap market. More empirical and non-empirical research is needed to reveal more concerns with Halal certification in the Herbal soap industry.

The Evaluation of Performance Indicators Development: A Study on Indonesian Financial Transaction Report and Analysis Center (PPATK)

Research aims: This research aims to evaluate the development of performance indicators using the performance blueprint analysis tools and know what factors are instrumental in the development of performance indicators for public organizations in Indonesia using Institutional Isomorphism point of view.Design/Methodology/Approach: The study comprised qualitative research undertaken at one public organization, the Indonesian Financial Transaction Reports and Analysis Center (PPATK) in Jakarta.Research findings: This study revealed that the PPATK business process was still not optimally aligned with the performance blueprint analysis tools. This study also uncovered eleven factors that play a role in the development of performance indicators: mindset, business process, comfort zone, technical competence, regulation, activity plan, process, drafting, management commitments, monitoring and evaluation, reward and punishment, and performance data management.Theoretical contribution/Originality: This study contributes to knowledge of the institutional isomorphism’s influence, primarily normative isomorphism at a public organization. Also, this research is the first research to use the performance blueprint more thoroughly, with six types of analysis.Practitioner/Policy implication: This study has implications for ministries/institutions and regulatory agencies to implement the performance blueprint in the development process of performance indicators.Research limitation/Implication: The limitations of this study are that the results of the performance blueprint analysis tools did not yet have the criteria as the basis for assessment of findings, and this research only employed a qualitative method; therefore, the resultant conclusions are still minimum.

Factors Affecting the Implementation of Environmental Management Accounting Practices through New Institutional Sociology Perspective: A case of an Apparel Manufacturer in Sri Lanka

The emergence of contemporary business environment and technologies, customer driven business perspective, and transparent and accountable business practices have led different stakeholders to demand information in relation to the management of the environment. Consequently, organizations tend to develop their strategies in line with achieving these financial and environmental performances. The apparel industry is one of the significant contributors in the Sri Lankan economy and it can be seen that Environmental Management Accounting (EMA) is often practiced in this industry. However, it is a matter of consideration for the real reason behind the adoption and implementation of Environmental Management Accounting Practices (EMAPs) in this industry. Accordingly, this study is focused on identifying the actual factors that have influenced a manufacturer in the apparel industry in Sri Lanka to adopt and implement EMAPs with the perspective of the New Institutional Sociology Theory. This study takes a case study approach. Therefore, one of the leading manufacturing companies in the apparel industry was selected as the case company. The primary data were collected through a semi-structured interview and questionnaire survey. The validity of findings was assessed through data triangulation. It was identified that the environmental cost accounting, environmentally induced capital expenditure and revenue are the mostly used EMAPs whereas the payback period method is often applied in the organization for investment appraisal activities. In terms of factors that have influenced to adopt and implement EMAPs through the Institutional Theoretical Perspective, it was found that coercive isomorphism was the most significant factor whereas the least influential factor was the normative isomorphism on the adoption and the implementation of the EMAPs in the organization. In terms of coercive isomorphism, the government regulations are the most influential force on this adoption and the implementation. Further, the study found some reasons behind the adoption of more Physical EMAPs (PEMAPs) than the Monetary EMAPs (MEMAPs) by the organization. The study contributes to minimize the gap by revealing the types of EMAPs that have been adopted and implemented and revealing the actual factors that have led to adopt and implement those practices in a manufacturer of the apparel industry.

Challenges of, and techniques for, materiality determination of non-financial information used by integrated report preparers

PurposeThe international integrated reporting framework encourages organisations to disclose material information that affects their ability to create value. This paper aims to investigate the challenges and techniques preparers of integrated reports use to determine the materiality of non-financial information.Design/methodology/approachThis paper uses an exploratory interpretive thematic analysis and an archival research approach. Qualitative semi-structured interviews were conducted with 55 integrated reporting (IR) preparers in 12 publicly listed companies, supported by the perusal of the companies’ integrated annual reports over a three-year period.FindingsIR preparers find materiality determination for non-financial information challenging. This study found that preparers convert challenges into opportunities by using materiality disclosures as image-enhancing marketing tools, which causes concerns regarding weak accountability and a deviation from the International Integrated Reporting Council’s objective of improving information quality. This study found that IR preparers use various techniques in conjunction to determine materiality levels, as well as whether to disclose non-financial information in their integrated reports. The institutional isomorphism lens used in the study highlighted the issues IR preparers faced in their determined efforts of IR materiality levels under mimetic and normative isomorphism pressures.Research limitations/implicationsThe challenges and techniques identified can contribute to the development of a framework for materiality level determination for non-financial information.Practical implicationsRegulators who are concerned with ensuring sufficient information to improve investor decision-making will be interested in the techniques IR preparers use to determine materiality levels for non-financial information, to improve their regulations and frameworks.Originality/valueThis study contributes to the literature regarding challenges with materiality level determination in integrated reports and techniques used by IR preparers. The application of an institutional isomorphism lens led to greater insight and understanding of IR preparers’ challenges and techniques in materiality determination. This paper makes a number of significant contributions to the IR literature. First, it identifies the usefulness of material information for decision-making and the influence stakeholders have on the materiality determination of non-financial information, which have not been mentioned in the prior literature. Second, the literature is silent on how organisations relate materiality to value creation for the purposes of determining the materiality content of an integrated report; this research provides empirical evidence of the use of value creation criteria in materiality determination. Third, the study highlights that materiality is a combination of efforts that involves everyone in an organisation. Further, the strategy should be linked to IR and preparers have indicated that integrated thinking is required for materiality determination.