Understanding the adoption or rejection of management accounting innovations within an SME using Rogers’ conceptual frameworks

Abstract

Purpose The purpose of this paper is to understand the adoption or rejection of management accounting innovations (MAIs) in the specific context of small and medium entreprises (SMEs) through a constructivist approach of the theory of the diffusion of innovations. Design/methodology/approach The paper uses a case study approach during the rollout of two MAIs run by the company’s management controller. One of them was adopted, and the other was rejected. To understand the perception of different actors in the company, the authors carried out 28 semistructured interviews at different periods of time: when the management controller started his job, when he/she was introduced to the two MAIs and at the decision-making to adopt or reject the innovations. The approach of Rogers’ framework is here constructivist. The case study allows us to analyze qualitatively the intrinsic perceived attributes of the innovations as well as the organizational innovativeness and to put them into context. Findings MAIs are not merely technical innovations but social practices. The relative advantage is necessary but not sufficient for their adoption. This paper also demonstrates the importance of the champion in the specific context of SMEs. This key player in the promotion and adoption of MAIs in SMEs has to be endorsed by the leader of the organization to ensure the innovation’s adoption. In addition, Rogers’ framework underlines that the predominant factor is complexity as both an endogenous and a heterogeneous element, underscoring the information and training that the project’s promoter should organize for the staff. Research limitations/implications The main limit is due to the methodological approach (case study): Would these factors be as significant in a completely different sector to management accounting or in another type of enterprise? Practical implications The analytical grid combines different organizational and individual factors described by Rogers and provides us with a predictive approach to the innovation’s chances of adoption and the risk of rejection. Social implications Complexity, both as an innovation attribute perceived by individuals and as an internal characteristic of the organization, is a decisive factor in the rejection or adoption decision. Originality/value This paper answers to two main research gaps. Most of papers analyze the introduction of one unique innovation in different entities. Here, the authors focus on one entity with two different innovations. In addition, most of papers were retrospective. In this paper, thanks to the case study, the introduction and the process of adoption of two innovations were studied at the time it happened and not after the events had occurred. Moreover, while most papers using Roger’s framework are quantitative, the authors pay attention to the meaning of the different characteristics at different stages and in the specific context of one SME with a constructivist qualitative approach.