Lehte Alver, Jaan Alver, Integration of accounting functions globally
Journal Title: Zeszyty Teoretyczne Rachunkowości - Year 2018, Vol 2018, Issue 99
Abstract
This paper examines how Danish Headquarters (HQ) use different global integration modes to integrate one business function, i.e., the accounting function, of their Estonian subsidiaries. The study analyses the use of four specific integration modes: people, information, formalization, and centralization. 14 HQs in Denmark with corresponding Estonian subsidiaries were addressed with questionnaires eliciting their integration mode strate- gies. Prior to the HQ survey, the accounting functions in the corresponding subsidiaries had been interviewed regarding integration modes with the Danish HQ. The structure of accounting activities calls for the use of the formalization-based mode and the information-based mode, and therefore these modes were expected to be prevailing. The findings were consistent with our expectations, but also the centralization-based mode was extensively used. The people-based integration mode was not used extensively, but more than expected. Finally, coordination of the accounting function is not an emphasis of the HQ’s. Control but not coordination is in con- trast to earlier theory and findings on the relationships between HQs and their subsidiaries.<br/><br/>
Authors and Affiliations
Jeanette Thomsen, Elin Sundgaard, Lehte Alver, Jaan Alver
Keywords
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- EP ID EP366751
- DOI 10.5604/01.3001.0012.2938
- Views 118
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