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Eastern Academy of Management 2018 Annual Meeting

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HOW TECHNOLOGY IS CHANGING ACCOUNTING PROCESSES: INSTITUTIONAL THEORY AND LEGITIMACY THEORY PERSPECTIVES

Given the ubiquitous use of accounting systems in organizations and the rapid advancement of technology, this paper considers how technology impacts accounting functions in the organization. Specifically, the paper considers whether organizations that change their accounting practices and systems are considered as legitimate in the society? The paper suggests that accounting systems provide a mechanism for the institutionalization of the organization and legitimacy in the sight of the society. Moreover, the paper indicates that technology has enhanced the effectiveness and efficiency of accounting systems in the organization. Through this, technology does not offer an alternative to accounting systems, rather, it gets institutionalized in the accounting field. Further, this paper concludes that changes in accounting systems in response to technology result in an increase in the role of accounting in providing legitimacy to the organization and as a mechanism of institutionalization. These increased roles lead to increased firm performance.

Afua Agyekum
Morgan State University
United States

Robert Singh
Morgan State University
United States

 

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