Different Approaches in Accounting Researches: Presentation
Different Approaches in Accounting Researches: Presentation
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Different Approaches and Theories in Accounting Research
Nasrin Azar
PhD Candidate
Faculty of Business & Accountancy
University of Malaya
Email: [email protected]
Positivistic Perspectives in Accounting Research
Positivism still seems largely underpin the dominant mode of accounting research.
In this regard, economic is currently the undisputable source of theories & methods for the
mainstream accounting studies. Moreover, accounting journals view the scientific approach is
appropriate to the discovery, explanation and prediction of accounting phenomena.
Research using positivistic perspectives or theories see “reality” as a concrete structure and
“people” as adopters, respondents and information processors to achieve efficiency and goals of
the organisation (Morgan and Smircich, 1980).
Advocators of positivistic approach seek primarily to discover law-like regularities, believe that
accounting is objective, and that accounting hypotheses can be statistically tested with empirical
data sets to produce generalizable findings. Finally, there is a tendency in positive research to
discount contrary research findings as anomalous.
Accounting research from this perspectives, views accounting control systems, such as budgeting
as a means to achieving low cost, efficient operations.
By using this approach the researchers normally rely on an arm-length research method-
statistically categories, key variables and then attempts to retrieve meaning by ex post facto
interpretations of tests of significance (Tomkins and Groves, 1983).
Table 2 describes common theories utilized in positivism perspectives of social science researches.
2 The human • Explain how human factors can influence any organization’s accounting
relation and control and governance systems.
theory
(Hopwood, • Emphasise the relation between individuals and other factors such as
1979) organisations, motivation, supervisory and management leadership, group
dynamic and organizational development.
7 Strategic • Centers around the actions that organizational members take to adapt to an
choice and environment as an explanation for any decisions made (Garriga & Mele,
management 2004).
control
8 Resource • Maintains that the key to a firm’s survival is through acquisition and
dependent maintenance of resources (Pfeffer & Salancik, 1978)
theory
• Organisations that are lacking in resources tend to establish relationship
with others to obtain the needed resources.
Shift from positivist to subjective thinking in accounting research became apparent in 1970s. There
is a growing of the literature utilise various constructivist approaches (Laughlin 1987). This
approach does not have concern with explanation, but rather with interpretation, and rest with the
notions that accounting information is subjective and socially or politically constructed (Chua,
1986; Bisman, 2010).
Hopper and Powell (1995) suggest by use of scientific or positivistic approaches, the researchers
know little about accounting in actual practices, how it interacts with other organizational
effectiveness and adoptability.
One of the earliest works to draw attention to the potential of improving accounting practice by
using interpretive theories in accounting is that by Tompkins and Groves (1983).They encourage
accounting researcher to explore other research approach beyond pure scientific approach towards
more non formal, naturalistic and interpretive research topic.
The terms ‘qualitative methods’ (Covaleski & Dirsmith, 1990), ‘naturalistic methods’ (Tomkins
and Groves, 1983), and ‘interpretive sociology’ (Chua, 1988) are naturalistic orientation.
However, in accounting literature, they commonly utilized the term interpretive approach (Hoque,
2006)
This paradigm assumes that there are multiple interpretations of reality and that the goal of
researchers working within this perspective is to understand how individuals construct their own
reality within their social context.
The key premise of interpretive approach is that the meaning of individual’s actions and those
around them is something the researcher develops. In other words, it is an interpretation and not
something given to the researcher (Boland, 1993) cited in Hoque (2006).
Naturalistic observation is, in contrast to analog observation, a research tool in which a subject is
observed in its natural habitat without any manipulation by the observer. During naturalistic
observation researchers take great care to avoid interfering with the behavior they are observing
by using unobtrusive methods.
The followers of this approach adopt a non-deterministic perspective. They believe that
interpretivist approach provide a better understanding of functioning accounting practices when
actions and events that do not fit the theories or models applied.
The purpose of grounded theory research in business and management is to develop new concepts
and theories of business-related phenomena, where these concepts and theories are firmly
grounded in qualitative data. The methodological thrust of grounded theory is toward the
development of theory, without any particular commitment to specific kinds of data, lines of
research, or theoretical interests. Rather it is a style of doing qualitative analysis that includes a
number of distinct features and the use of a coding paradigm to ensure conceptual development
and density (Strauss, 1987). It is also employed in situations where it is perceived as necessary to
go beyond description and generate theory.
Additionally, grounded theory can offer interpretive researchers a way of balancing the need to
develop theory, which is grounded in everyday practices, and the recognition that the research
process is inherently subjective. If followed rigorously, will result in a high‐quality research (i.e.
valid, reliable and unbiased). The guidelines provide a way for interpretive management
accounting research, who use GT to improve the quality of their research findings (Elharidy et al,
2008).
Accounting research also investigates accounting practice from social, cultural and political
standpoints within which it operates (Modell, 2010). This perspective employ qualitative methods
(interviews & case studies).
Research from this perspective explore the concept of organizational legitimacy and considers
organizational legitimacy as an important resource upon which many organizations rely for their
survival.
No Theory Definition
The blend of qualitative and quantitative research methods that can be applied in studying
accounting through the lens of critical realism also marries well with the mix of economic and
noneconomic theoretical foundations of many accounting research questions. This approach
regards populations and society as consisting of conflicting components that lead to disparity and
separation in all aspects of life of which people need to be aware, and from which they need to be
emancipated. Their concern is to construct understanding of the social and economic world while
criticising the status quo (Hopper and Powell, 1985). They also challenge the belief of this absolute
truth, especially in relation to studying human behaviour in social science. Followers of critical
realism believe in generalisation, but admit that knowledge is a result of social conditioning.
Moreover, they offer the potential to investigate not only the economic consequences of
accounting, but also the perceptions and perceptual biases of accountants, managers, decision-
makers and other stakeholders in their use of, and reactions to, accounting information.
According to Habermas, Laughlin (1987) identifies that human beings have developed a capacity
“for coping with the external world, the social world and the world of inner subjectivity”. Human
intention and rationality are accepted, but have to be critically analysed because human potential
is alienated through false consciousness and ideology.
As can be seen in table 4, this perspective consists of some theories are defined as below.
No Theory Definition
1 Critical Realism theory • Asserts that real structures and social mechanism
exist in the world and that observers act
independently of their existence (Bashkar, 1978).
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