Christopher Lorin Akroyd
@waikato.ac.nz
Professor of Accounting in the Waikato Management School
University of Waikato
EDUCATION
PhD - University of Auckland
MBA - Kobe University
MCom - University of New South Wales
BCom - Southern Cross University
RESEARCH, TEACHING, or OTHER INTERESTS
Business, Management and Accounting, General Business, Management and Accounting, Accounting, Strategy and Management
Scopus Publications
Scopus Publications
Volume 38 of Advances in Management Accounting uses a variety of methods, from experiments and case studies to surveys, to build upon existing knowledge within the management accounting discipline. Containing a diverse range of authors from around the world, this publication focuses on theoretically sound and practical research which has a cutting-edge and wide-reaching appeal to academics and practitioners. Showcasing methods of and analysis on varied statistical testing and performance measurement models, this edited collection will appeal to both management accounting academics and professionals. Topics analysed include the effects and significance of statistical testing, the limits and goals of such testing and modelling, compensation moderation, and how to handle ethical issues affecting management accounting. Advances in Management Accounting (AIMA) publishes thought-provoking volumes that advance knowledge in the management accounting discipline and are of interest to both academics and practitioners. The series seeks thoughtful, well-developed articles on a variety of current topics in management accounting, broadly defined. AIMA seeks to publish commentaries on research methodology and new management accounting areas of interest as well as papers using research methods including survey research, field tests, case studies, experiments, meta-analyses, and modelling.
Chris Akroyd, Satoko Matsugi, and Yoshinobu Shima
Emerald
Purpose This paper aims to understand the role that the “cultural capital” of managers has on the stability and change of management control systems (MCS) in the subsidiary of a global corporation. Design/methodology/approach A seven-year longitudinal case study was conducted at the US subsidiary of a Japanese-based global corporation. The theoretical concepts of cultural capital and MCS package typology are used to examine how management controls were understood by locally hired employees and expatriate Japanese managers at the case study site. Findings The findings show that the managers at the Japanese headquarters transferred an MCS package that had a high level of interdependence between cultural control and results control to their US subsidiary in the 1960s. This MCS package did not influence the behavior of locally hired employees in ways that the Japanese expatriate managers expected; instead, it led to the cultural exclusion of local employees. Even when the Japanese managers were faced with a changing environment, the MCS package did not change. When Japanese managers realized they could not achieve their goals in the USA without local managers, they slowly started to hire mid-career local managers. As the number of local managers increased, the expatriate Japanese managers started to become more aware of the impact of their cultural capital. This has resulted in changes in the MCS package for local managers in the US subsidiary. Originality/value This study revealed that even when the strategy of a company and the environment in which it operates changes, an MCS package may not change quickly. The authors show that the cultural capital of managers plays a role in MCS stability and change.
Jesse Jingyuan Yang, Chris Akroyd, and Yuqian Zhang
Emerald
Purpose Successful for-profit companies often share a key trait: a benevolent purpose toward stakeholders, which helps them grow faster and outperform the market. Yet, how companies achieve this purpose remains poorly understood. This paper aims to explore traditional Chinese philosophies to uncover how Chinese companies integrate benevolent stakeholder purpose into their management control systems (MCS). Design/methodology/approach The authors conducted an exploratory qualitative study of three Chinese companies, analyzing how senior managers connect traditional Chinese philosophies – Buddhism, Confucianism and Taoism – to their company’s purpose. Using Simons’ “levers of control” framework, the study reveals how these philosophies influenced managers’ application of MCS to guide and motivate employees toward fulfilling that purpose. Findings The authors found that Confucianism motivated managers to build a people-oriented atmosphere within the companies the authors studied. This shaped corporate culture and values, achieved through belief and boundary systems. Buddhism fostered a managerial mindset of ethical behavior, which shaped long-term company values, which was also accomplished through belief and boundary systems. The Taoist principle of Wu Wei encouraged a noncoercive management style, which shaped a balance between short-term and long-term goals, accomplished through diagnostic and interactive systems. Originality/value This study demonstrates how traditional Chinese philosophies shape senior managers’ understanding of purpose and the ways in which this is accomplish through the use of MCS in their companies. It provides novel insights into the connections between Chinese philosophies and corporate purpose and presents avenues for further qualitative research into the ways MCS are used in Chinese companies.
Julia Yonghua Wu, Chris Akroyd, and Frederick Ng
Emerald
Purpose This paper aims to examine the management controls that support (and fail to support) a craft brewery’s servitization journey from start-up, through growth, to maturity. It enriches our understanding of how management controls can facilitate the discovery of a service-identity that provides the foundation for servitization. Design/methodology/approach Drawing on in-depth interviews, fieldwork and secondary data analyses, this paper reports on a longitudinal case study of a craft brewery. The authors trace the case company’s servitization journey using a service-dominant logic theoretical perspective. This perspective focuses us on how the value of a product is cocreated with customers, rather than being created by the firm and then distributed. Findings The study found that many management controls emerged at the craft brewery from start-up to maturity. Some management controls supported a goods logic, while others supported a service logic. The findings highlight how people and cultural controls in particular enabled the company to move toward a service logic focused on servitization. These management controls informed the evolution of offerings, structure reconfiguration and resources at the craft brewery necessary to support servitization. Originality/value Studying a craft brewery contributes an alternative type of manufacturing context and shows how service-identity features such as craftiness, collectiveness, neolocalism and innovation affect a company’s servitization journey.
Iwan Suhardjo, Chris Akroyd, and Meiliana Suparman
Emerald
Purpose This study aims to understand sustainability performance in Indonesia, which is a populous nation with abundant natural resources and mandatory sustainability reporting for listed companies, and a high level of corruption. By investigating the motivations and practices of Indonesian companies, they provide insights into how sustainability is interpreted and implemented. Design/methodology/approach A qualitative research approach, informed by stakeholder theory and legitimacy theory, was used. Semi-structured interviews with 27 managers from eight Indonesian listed companies and three managers from two large Indonesian institutional investors were carried out. Content analysis of company sustainability and annual reports was also conducted to triangulate the interview data. Findings This study shows that mandatory reporting in Indonesia does not automatically impact how companies address material issues due to a lack of regulatory detail. The study reveals that there is a hierarchy of relevant stakeholders with both institutional investors and lenders prioritizing financial materiality over impact materiality with institutional stakeholders driving sustainability in environmentally-sensitive industries. The findings also show that companies report on sustainability mainly for legitimacy purposes, which is driven by regulatory and institutional pressures. Environmentally-sensitive industries prioritize impact materiality due to heightened legitimacy risks. The institutional investors focus on “Ultimate Beneficial Ownership (UBO)” as a key governance mechanism while treating environment social and governance risk ratings mainly as supplementary information. Practical implications This study offers practical implications for institutional investors and regulators in developing economies. It highlights the need for clearer materiality guidance and stronger governance mechanisms, such as UBO transparency, to enhance sustainability performance in high-corruption environments like Indonesia. Originality/value This study reveals the influence that mandatory sustainability reporting has in Indonesia, showing that regulatory compliance does not necessarily lead to sustainability impact. The authors also show how institutional factors in developing economies shape double materiality implementation. The research exposes critical gaps in reporting practices, emphasizing the need for a context-specific approach to sustainability performance and reporting.
Iwan Suhardjo, Chris Akroyd, and Meiliana Suparman
Emerald
Purpose Banks are key to sustainable development, influencing corporate behavior by allocating capital towards sustainable initiatives. Because of this, they can drive the transition to a more sustainable future through financing, technical assistance and risk management. This study aims to identify the key drivers of sustainability performance in Indonesian banks by analyzing their sustainability reports. Design/methodology/approach Grounded in stakeholder theory, we conducted a qualitative content analysis of the sustainability reports of two Indonesian banks (PT Bank CIMB Niaga Tbk [BNGA] and PT Bank Mandiri (Persero) [BMRI] from 2022 to 2023. The authors examined the alignment between materiality, strategy and stakeholder engagement, the presence of external assurance and the implementation of Green Taxonomy. The authors also analyzed the relationship between reported sustainability performance, firm valuation and environmental, social, and governance (ESG) risk ratings. Findings The four key drivers that influence the sustainability performance of banks are the alignment of materiality, strategy and stakeholder engagement; implementation of Green Taxonomy; strong sustainability governance; and effective risk management. By incorporating environmental and social performance alongside governance and economic performance, these banks have demonstrated a comprehensive approach to sustainability that can positively impact their firm valuation and ESG risk ratings. This analysis showed that BNGA prioritizes customer data security, privacy and governance. BMRI highlights its own unique strengths in sustainability reporting with different priorities and commitments. Originality/value This study contributes to the literature by providing insights into the specific drivers of bank sustainability performance in Indonesian. It offers practical recommendations for banks seeking to improve their sustainability practices and contribute to positive social and environmental impacts.
Iwan Suhardjo, Christopher Akroyd, and Meiliana Suparman
Emerald
Purpose This study examines the challenges of mandatory sustainability reporting and the perceptions that managers have of integrated reporting (IR) in Indonesia. Design/methodology/approach Grounded in stakeholder and institutional theories, this interpretivist study uses a qualitative methodology employing semi-structured interviews with managers from Indonesian listed companies. This study explores the experiences of managers with mandatory sustainability reporting and analyzes their views using thematic analysis. Findings Our findings extend prior research by identifying four interrelated sustainability reporting challenges: framework proliferation, materiality determination, assurance inadequacies, and resource constraints, forming a self-reinforcing cycle that perpetuates symbolic reporting despite mandatory requirements. Managers expressed a split view on IR, some saw it as a tool to improve communication, while others preferred separation to meet diverse audience needs. The study shows how organizations navigate institutional pressures and stakeholder expectations. These findings have timely implications for regulators, underscoring the need for standardized frameworks, sector guidance, and capacity building for meaningful adoption. Research limitations/implications While this study offers new insights, its focus on managerial perspectives is a limitation. Incorporating views from other stakeholders such as investors and regulators could provide other understandings of sustainability reporting challenges and IR adoption. Originality/value Our contribution lies in explaining how Indonesian listed companies navigate systemic sustainability reporting challenges under POJK51, conceptualizing these challenges as interlinked rather than discrete issues. By focusing on stakeholder and institutional tensions, we offer a grounded theoretical lens that can inform the design of future IR practices in developing countries.
Iwan Suhardjo, Chris Akroyd, Astrid Rudyanto, and Meiliana Suparman
Emerald
Purpose Double materiality is crucial for assessing a company’s sustainability performance. This study aims to explore how Indonesian companies are addressing double materiality communicated in their sustainability reports. The authors do this by focusing on the internal interactions between accounting and sustainability teams, and external interactions with environmental, social and governance (ESG) rating agencies. Design/methodology/approach Using stakeholder theory, this study reports on a qualitative study based on semistructured interviews with middle managers and executive-level managers as well as content analysis of company sustainability reports, annual reports and the company websites of eight listed Indonesian companies. Findings The findings indicate that Indonesian companies generally prioritize financial materiality. However, banking and environmentally sensitive industries show a balanced approach where powerful stakeholders exert stronger regulatory pressure. Through a stakeholder theory lens, the authors found that collaboration between accounting and sustainability functions remains limited to compliance activities, demonstrating companies’ tendency to prioritize salient financial stakeholders while marginalizing broader stakeholder concerns. A notable misalignment exists between companies’ materiality assessments and ESG ratings, reflecting divergent stakeholder prioritization approaches. This stakeholder power imbalance creates challenges to addressing double materiality as companies respond primarily to dominant stakeholders rather than addressing the broader stakeholder interests. Originality/value This study explores how double materiality is addressed in Indonesia, a developing country with mandatory sustainability reporting regulations. The authors analyze both internal organizational dynamics and external influences to provide insights into how double materiality issues are identified and prioritized across different stakeholder groups.
Syrus M. Islam and Chris Akroyd
Wiley
AbstractTraditional private equity firms aim to maximise their financial returns when exiting an investment. In contrast, a major consideration for impact private equity firms is to ensure an impactful exit from their investments – increasing the chance of impact continuity in portfolio companies post exit. However, impactful exits may not be realised due to ownership‐, management‐, and operations‐related threats. Drawing on data from 45 impact private equity firms, we identify the control strategies that impact investors use throughout the investment lifecycle to manage impactful exits from investment. We also highlight how control‐related issues differ between traditional and impact private equity firms.
H. David Akroyd
Routledge
Iwan Suhardjo, Chris Akroyd, and Meiliana Suparman
MDPI AG
This study investigates the inconsistencies in ESG scores assigned by different rating agencies. Focusing on two Indonesian palm oil companies, this paper examines the link between their reported sustainability performance and the resulting ESG scores. This study employs content analysis to assess how the companies disclose information around double materiality, stakeholder engagement, and certifications. Additionally, the methodologies used by two rating agencies are reviewed to identify potential misalignments. The analysis reveals discrepancies in the ratings, suggesting factors like differences in the level of engagement with each company and scoring methodologies might be at play. This highlights the need for standardized sustainability reporting and more transparent rating methodologies within the palm oil industry. While limited to two companies and two agencies, the findings can inform efforts to improve transparency both in sustainability practices and scoring methodologies. This would ultimately lead to more reliable ESG scores, benefiting all related stakeholders. To goal of this study is to promote responsible practices in the palm oil industry by emphasizing the impact of reporting practices.
Iwan Suhardjo, Chris Akroyd, and Meiliana Suparman
Virtus Interpress
Current sustainability efforts, often focused solely on reporting, have not had the expected impact. This conceptual paper proposes a framework based on ethical sustainability governance and incorporates a theory of change (ToC) (Organizational Research Services [ORS], 2004), that seeks to show how organizations can move beyond reporting and embrace ethical governance to achieve sustainable outcomes for people and the planet. Unlike frameworks like ESG (environmental, social, and governance), which emphasize external metrics, our framework prioritizes ethical governance and internal drivers for measurable outcomes. The framework also integrates a ToC which informs the framework’s design by outlining the desired long-term outcomes, necessary preconditions for implementation, specific interventions, and methods for measuring progress. Drawing inspiration from diverse theories such as the triple bottom line (TBL), corporate governance, purpose-led organizations, the theory of planned behavior (TPB), dynamic capabilities theory (DCT), and stakeholder theory, our framework establishes four interconnected pillars: environmental, social, cultural, and technological. It emphasizes that ethical governance needs to be the cornerstone of good sustainability-focused action (Ehrenfeld, 2005). Finally, it emphasizes actionable implementation to increase the likelihood of tangible progress toward sustainability goals. By guiding organizations in implementing ethical governance there is a higher chance that sustainability-focused action plans can enable positive outcomes
Ramona Zharfpeykan and Chris Akroyd
Emerald
Purpose This paper aims to evaluate the outcome effectiveness of the global reporting initiatives (GRI) transitions by understanding how companies have responded to the changes from G3.1 to G4 and finally to the GRI Standards. Design/methodology/approach A quality disclosure score is developed that incorporates assessments of both the quality of disclosures and the materiality of Australian companies. To analyse materiality, survey data were collected from 187 companies. Disclosure scores are based on a content analysis of the sustainability reports of 12 mining and metals companies and 12 financial services companies that used the GRI Standards from 2011 to 2019 (a total of 213 reports). Findings The study found that the GRI transitions have not led to companies improving the quality of their disclosures on areas considered important for them to achieve their social and environmental goals. Instead, the companies tended to use a greenwashing strategy, where the quality of disclosure of material issues declined or fluctuated over time. Practical implications From a practical perspective, the disclosure score developed in this paper enables managers of companies to recognize a threshold of completeness and to summarize the areas that are not materially relevant to their business. Social implications The results are potentially helpful for investors, shareholders and other stakeholders, enabling them to better understand sustainability reports. Originality/value This study contributes to the body of research in sustainability reporting by providing evidence on the outcome effectiveness of the latest updates in the GRI framework.
Chris Akroyd, Kevin E. Dow, Andrea Drake, and Jeffrey Wong
Emerald Publishing Limited
Sharlene Sheetal Narayan Biswas, Chris Akroyd, and Norio Sawabe
Emerald
Purpose Using institutional theory, this study aims to understand how the management control systems (MCSs) designed by top managers influence the micro-level process practices of organization members during product innovation. Design/methodology/approach This paper reports on a case study carried out at NZMed to examine the design and use of MCSs and their product innovation practices. Simons’ levers of control was used to understand the ways in which MCSs were designed and used in a product innovation setting. Findings The findings indicate that the everyday micro-level processes of organization members encoded MCS when their espoused values aligned with those of top managers. However, when the perspectives within the organization differed, variations to the micro-level processes of organization members emerged. The authors show how this resulted in an increase in innovation capabilities necessary to meet organizational goals. Practical implications The misalignment between espoused values and enacted values had a positive effect as it helped the organization maintain their innovation culture, and build long-term trusting relationships with suppliers which enabled the achievement of organizational goals. Originality/value By focusing on the relationship between MCS and the micro-level processes of organization members in product innovation, the paper shows how the lack of alignment between the espoused values of top management and the enacted values of project managers explained the variations between the MCS used by top managers and the practices of project teams at our case study company.
Nirupika Liyanapathirana and Chris Akroyd
Emerald
Purpose This paper aims to understand how accountants in Sri Lanka perceive the effect of religiosity on ethical decision-making. Sri Lanka is a highly religious country, but it also has a high level of corruption, so understanding ethical decision-making in this context is important for the accounting profession. Design/methodology/approach Data were collected using semi-structured interviews with 40 accountants in Sri Lanka with decision-making roles. Virtue ethics theory and content analysis were used to analyse the interview data and categorise accountants' responses into themes using an interpretive methodology. Findings This paper identifies three ways in which religiosity can influence accountants’ ethical decision-making. Firstly, through a faith in the beliefs of their religion; secondly, through awareness of religious prescriptions and virtues; and thirdly, through a commitment towards religious practices and rituals. However, the findings show that religiosity does not always influence the ethical decision-making of accountants because of pervasive corruption, which is a cultural norm in contemporary Sri Lanka. Thus, it is evident that there is an interrelationship between religious and cultural environments which can influence ethical decision-making. Originality/value While the religiosity of accountants can support ethical decision-making, the findings of this paper show that the cultural norm of corruption can mediate this connection as the evidence shows that accountants with a strong religious background, irrespective of their religion, may still act unethically when corruption is a cultural norm.
Anderson Betti Frare and Chris Akroyd
Emerald
PurposeThe purpose of this paper is to examine the effects of performance management (PM) practices on in-bound open innovation (OI) and out-bound OI. To do this, the authors examine the organizational effectiveness as well as the non-financial and financial performance of Brazilian startups that have had recent OI relationships with larger companies.Design/methodology/approachUsing data collected from 103 Brazilian startups, the hypotheses were tested via partial least squares–structural equation modeling (PLS-SEM). An additional analysis was performed using fuzzy-set qualitative comparative analysis (fsQCA).FindingsThe findings show that PM practices orchestrate in-bound OI and out-bound OI; however, only in-bound OI promotes organizational effectiveness in Brazilian startups. Organizational effectiveness results in good non-financial performance, which in turn improves financial performance. PM practices have an indirect effect on financial performance from the serial mediation of in-bound OI, organizational effectiveness and non-financial performance. Moreover, several combinations of conditions lead to high levels of organizational effectiveness, non-financial performance and financial performance.Originality/valueThis study provides new evidence and insights from an emerging market on the antecedents and consequences of startups' OI adoption.
Sharlene Biswas and Chris Akroyd
Wiley
AbstractThis study examines the changing use of controls to manage an ongoing inter‐organisational collaborative relationship. We do this by studying the development of an open innovation relationship using a case study informed by concepts from neo‐old institutional economics and Simons’ levers of control. Data was collected via semi‐structured interviews and an analysis of documents. Our findings suggest that initially, governance structures and formal safeguards were applied diagnostically, which resulted in low levels of trust. Over time, the development of a collaborative relationship through investments in relational specificity has resulted in a more interactive style of control, which has increased trust.
Sharlene Sheetal Narayan Biswas and Chris Akroyd
Emerald
PurposeThis paper aims to understand the strategic management of innovation by examining the effect that management control systems (MCS) have on innovation activities during the strategic change process.Design/methodology/approachA case study was carried out at an innovative company as they undertook a strategic change from closed innovation to open innovation. Simons’ levers of control was used to frame the ways in which MCS were designed and used by managers and the effect MCS have on the innovation activities of organization members.FindingsThe findings indicate that while managers designed and used MCS to support a drive toward open innovation, organization members did not change their innovation activities. Instead, the findings show that new MCS enabled improvements to their closed innovation strategy. This led to a decrease in the time taken to develop new products, which resulted in increased customer satisfaction, which contributed to the achievement of organizational goals.Originality/valueBy focusing on the relationship between MCS and innovation activities in the strategic change process, the paper sheds new light on the ability of MCS to change the innovation activities of organization members. Even though the innovation activities at our case company did not change the interactions between the MCS enabled organizational goals to be achieved as they provided the necessary information infrastructure and motivated goal congruence.
Anderson Betti Frare, Ana Paula Capuano da Cruz, Carlos Eduardo Facin Lavarda, and Chris Akroyd
Emerald
Purpose This study aims to understand the relationship between the elements of a startup firms’ management control system (MCS) package, its entrepreneurial orientation (EO) and firm performance. Design/methodology/approach The authors collected survey data from a sample of 100 Brazilian startups who had exited technology-based parks and incubators. The authors used two data analysis techniques, namely, partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA). Findings The findings show that cultural and planning controls were the only two MCS elements that were included in all high-performing startup firms’ MCS packages. The authors also found that EO has a positive influence on firm performance through the MCS package. Research limitations/implications The mixed-method approach allowed for a holistic view of the analyzed phenomenon. PLS-SEM analysis was applied to the symmetric relationships between the proposed relationships while fsQCA was used to analyze the asymmetric combinations between EO dimensions and MCS package elements, which promoted high firm performance. Practical implications The authors show how different combinations of MCS elements form a package, mediating EO, which can enable high performance. Originality/value Using fsQCA and PLS-SEM, the authors were able to better understand the important role that MCS package adoption has on a startups’ performance and provide new evidence regarding the interface between MCS and EO. This extends the understanding of the importance that cultural and planning controls have in an MCS package to support startup performance.
Ramona Zharfpeykan and Chris Akroyd
Elsevier BV
Chris Akroyd and Ralph Kober
Elsevier BV
Chris Akroyd, Ralph Kober, and Danni Li
Wiley
AbstractThe dilemma faced by founders of entrepreneurial companies is how to scale their business while staying in control. While the accounting literature has found that financial controls are important to rapidly scale a business, we do not know how these controls emerge in entrepreneurial companies in relation to other management controls. Using a case study of an entrepreneurial company that rapidly scaled its business, this study examines the management controls that emerged to become a package of controls. We highlight the importance of the management control package remaining in balance, with controls working together interdependently in a complementary fashion.