This paper explores whether and in what way “dual learning” can develop understanding of the relationship between structure/judgement and explores audit student’s perceptions of the audit profession. Work Integrated Learning (WIL) module, serving as a tool of enabling dual learning, represents the context for this exploration. The study is based on a focus group and individual interviews conducted with students performing their WIL. Our data and its analysis indicates that when in a WIL context, students develop awareness of the use of standards and checklists on the one hand and the importance of discretional judgement on the other. Based on these results, we theorise as to how dual learning manifests itself in students’ experiences and understanding of the relationship between structure and judgement.

The purpose of this study is to explore how external auditors experience their decision to rely on internal auditors’ work. This study employs both qualitative and quantitative methods consisting of semi-structured interviews and questionnaires administered to external auditors in Sweden. Semi-structured interviews were conducted with external auditors who are working in Big 4 audit firms in Sweden and have engagements with internal audit functions. A questionnaire was administered to authorized/approved auditors, members of the Swedish Association of Certified Public Accountants (FAR). Findings indicate that external auditors use the work of internal auditors as they gain efficiency in performing their work. Nevertheless, external auditors may compromise their independence and professionalism through closer involvement with internal auditors, which may lead to uncritical evaluation and use of the reports prepared by internal auditors. At the same time, while relying on the internal auditors’ reports, external auditors appear to be conscious of the consequences for the audit quality they deliver. The study highlights the dilemma faced by external auditors in their cooperative work with internal auditors and the balance/imbalance in their opinions concerning efficiency gains, independence, professionalism and audit quality.

Abstract/Research Summary: This study explains the conditions underwhich new venture boards are less or more culturallydiverse in terms of their directors' country of birth. Longitudi-nal data on 5,515 Swedish ventures suggest that most direc-tors are recruited from founders' proximate social settings neighborhoods in which they reside and past workplaces and that diversity levels in these social settings strongly predict the national culture diversity in venture boards. Given the rapid internationalization of workplaces and region saround the world, this paper provides important clues regarding how culturally diverse upper echelons are being incorporated into the organizational design of new ventures.

Managerial Summary: Most New Venture Boards exhibitlimited diversity in terms of their directors' country of birth, as they are drawn from the venture founders' network. Yet,some new venture boards are indeed born diverse. Our study reveals that founders with prior exposure to culturally diverse workplaces and residential neighborhoods are much more likely to design a culturally diverse board at founding. Given the rapid internationalization of workplaces andregions in most countries around the world, our paper provides important clues regarding how national culture diversity in top management emerges and is being incorporatedinto the organizational design of new ventures.

This paper describes an exploratory study of whether and in what way ‘double-edged learning’ can develop from understanding the relationship between structure and judgment and thus capture students’ experience of the audit profession. The study is based on a focus group/individual interviews conducted with students performing their work-integrated learning assignments where they interact with auditors. Identifying two themes defined as Perceiving the profession and auditing and Entering into and forming in the audit profession derived from the data, it appears that when positioned within a work-integrated learning context, students develop awareness of the use of standards and checklists on one hand as well as the importance of discretional judgment on the other. Based on these results, we theorise as to how double-edged learning manifests itself in students’ experiences and understanding of the relationship between structure and judgment.

The attractiveness of audit firms as employers appears to have decreased in recent years and the audit profession is currently experiencing high employee turnover. A shortage of personnel increases the risk of long-term stress and illness. This paper therefore proposes audit firm employees' well-being as an important research topic and explores the antecedents of well-being of Swedish audit firm employees in comparison with those of other business professionals. Based on a nationwide survey of members of the Swedish association of business professionals, with a focus on psychological well-being (measured through General Health Questionnaire-12 (GHQ-12)), the study shows that the psychological well-being of the professionals in this study generally aligns with the results from similar studies in a Swedish context. However, the findings indicate that audit industry respondents have the lowest psychological well-being and that employer change, job satisfaction, and life satisfaction were the strongest antecedents of their psychological well-being.

This study explores how auditors’ attitudes toward marketing and their views on the importance of marketing affect how they balance their time spent on marketing and auditing activities. The purpose is to understand how changes in the business environment for auditors affect the relationship between the auditing profession and marketing. The study is based on a survey of 711 auditors in Sweden. The findings suggest that auditors with a positive attitude toward marketing spend significantly more time on marketing activities compared to those with a less positive attitude. Furthermore, auditors who view marketing activities as important spend significantly more time on marketing activities. The study controlled for the number of years as approved or authorized auditor, age of the auditor, and firm affiliation. The results indicate that the theoretical distance between the auditing profession and marketing does not exist in practice to the same degree as it used to. The findings of the study have implications for international auditing theory and practice in illuminating the relationship of marketing and auditing in a wider business context.

Purpose:

The purpose of this paper is to explain how professional and organisational identities influence auditors’ perception of commercialisation in audit firms.

Design/methodology/approach:

The paper is based on a survey distributed to 3588 members of FAR, the professional institute for authorized public accountants, approved public accountants and other highly qualified professionals in the accountancy sector in Sweden, and answered by 374 of the professionals surveyed.

Findings:

Findings of the study indicate that commercialisation in audit firms is a three- dimensional construct consisting of market-, customer- and firm process orientations. The results of the study show that the stronger the auditors’ organisational identity, the more influence it has on auditors’ perception of all three dimensions of the increasing commercialisation of their firm. The increasing strength of that professional identity is shown to be reflected in the perception of their firm to be firm process oriented, while no effect is shown on the other two dimensions of commercialisation (market and customer orientations orientations).

Originality/value:

The paper presents a new conceptualisation and set of measures of audit firms’ commercialisation and shows how professional and organisational identities influence perception.

Purpose

This paper seeks to explain how auditors’ professional and organizational identities are associated with commercialization in audit firms. Unlike previous studies exploring the consequences of commercialization in the firms, our study directs its attention toward the potential driver of commercialization, which we argue to be the identities of the auditors.

Design/methodology/approach

The paper is based on 374 responses to a survey distributed to 3588 members of FAR, the professional association of accountants, auditors and advisors in Sweden. The study used established measures of organizational and professional identity and introduced market, customer and firm process orientation as aspects of commercialization. The study explored the data through descriptive statistics, principle component analysis and correlation analysis and tested the hypotheses with multiple linear regression analysis.

Findings

The findings indicated that the organizational identity of auditors has a positive association with three aspects of commercialization: market orientation, customer orientation and firm process orientation. Contrary to the arguments based on prior literature, our study has found that the professional identity of auditors is also a positively associated with commercialization. This indicates a change of the role of professional identity vis-à-vis commercialization of audit firms. The positive association between professional identity and commercial orientation could indicate the development of “organizational professionalism.” The study also found differences between the association between professional identity and commercialization in Big 4 and non-Big 4 firms. While in Big 4 firms, professional identity is positively associated only with the firm’s process orientation, in non-Big 4 firms, professional identity has a positive association with all three aspects of commercialization.

Originality/value

The paper provides insight into how auditors’ identities have influenced commercialization of audit firms and into the normalizing of commercialization within auditing. The study also developed a new instrument for measuring commercialization, one based on market, customer and firm process orientation concepts. This paper suggests that this instrument is an alternative to the observation through proxies.

Globalisation includes international product markets and capital, but also involves internationalisation of corporate governance mechanisms. We propose that internationalisation of governance mechanisms is related to improved performance of the corporation. For example, listing at several stock markets implies pressure to improve information flow and stronger adherence to international standards, which will reduce possibility for slack. Recruiting top managers and board members from an international arena will, among other things, enlarge the market for managerial labour and the market for board members, presumably putting more pressure on present managers and board members, and increase the probability of finding an adequate new manager or new board members. An integrated EU would support the internationalisation of the mechanisms through reducing the transaction costs of Europeanization. An initial test on a sample of listed Swedish corporations indicates that the proposition could be rejected. Two main reasons can be found as an interpretation of the results 1.) that mechanisms with governance functions, such as capital structure and the board have several functions, and that the governance function is not always the most important one, and 2.) that governance mechanisms cannot be analysed in isolation, since they are included in a coherent corporate governance strategy.

Purpose – The purpose of this paper is to investigate how internationalisation of corporate governance mechanisms influences firm performance.

Design/methodology/approach – The paper is based on the data collected from annual reports of the year 2004, from all 239 Swedish corporations listed on the Stockholm Stock Exchange, on which a quantitative analysis was performed.

Findings – The findings suggest that internationalisation of corporate governance does not have a straightforward influence on firm performance, which can be due to: the fact that mechanisms with governance functions have several functions, of which governance is but one; and the fact that governance mechanisms cannot be analyzed in isolation, since they are included in a coherent corporate governance strategy.

Originality/value – The paper is the first to investigate the corporate governance mechanisms' internationalisation issue.

The paper presents a congruence model where factors belonging to the environment, to the corporation, and to the management control system of the corporation are expected to influence the functional emphasis put on the budget, i.e., the function of coordination, responsibility and evaluation. Through a test performed on 111 Swedish corporations, we find indications that the budget is very much alive; it appears to focus more on dealing with external situations than with internal characteristics; and it appears to be part of the formalisation of the organisation. We draw these conclusions based on our findings that suggest that the budget is being used mainly as a coordinative device, and less as an instrument for evaluating actions.

Det är inte en bra väg att försämra revisorernas kunskaper i ekonomi. Kvaliteten i revisionen får inte bli lidande, skriver Sven-Olof Yrjö Collin och Timurs Umans i en replik.

We present a model of supervising bachelor and master theses that we have developed at Kristianstad University in Sweden. It emphasizes 1.) engagement, in that the research engaged supervisor becomes engaged in both the subject of the thesis and the students writing it; 2.) the Humboldt principle, in that teachers and students collaborate for mutual benefit; 3.) the Socratic method, in that the supervisor drives students´ learning through posing questions. The model implies intense and frequent supervision, seminars with students as opponents and respondents, and finally, popular presentation, where the results are presented for an educated public. The examination of the theses have the double function of securing high standard examination and to develop the staff in their supervisory and examinatory skills. The direction of the supervisory team is mainly made through common norms, such as a thesis have to be driven by theory, methodological pragmatism implying that the problem, not the authors preferences, determine which analytical method to use and empirical orientation that theories needs to be tested or evaluated. The model described has shown good results, both in national evaluations and through number of scientific publications.

Gastronomy program at Kristianstad University has since many years been working with innovative processes and have created a number of courses aimed at developing innovative generic skills among their students. One of such courses is “Creative concept and product development in the foodstuff”.  The course presents the students an opportunity to develop new and exciting food stuff products in team of learners. The course has now run for 4 years and students have expressed satisfaction with their innovative skill development and the usefulness of skills acquired in their future career.  While the course have received many positive evaluations, a systematic evaluation of its structure and implementation has not yet been performed. This project aimed at evaluating how different aspects of team work (e.g. diversity and experiences) relate to students' development of innovative skills within the course. The study’s theoretical base lays in the field of collaborative learning (e.g. Bruffee, 1993), team learning (Slavin, 1978) and well as acquisition of generic skills in the collaborative and team learning processes. The project utilized an Input-Process-Output (Ilgen, et al. 2005) model where exploration diversity, team process and self-perceived outcomes and relationship between those have been investigated by the means of qualitative and quantitative methods. Relying on the surveys and reflective diaries of the course participants the study showed how various diversity aspects of the teams related to their processes and self-assessed outcomes, as well as show how students reason about collaboration in diverse groups. Based on the findings the study puts forward suggestion of how to manage the team work in increasingly diverse classes in the institutions of higher education and which method both students and instructors could employ to rip the benefits of this diversity.  

This systematic review covers the extant literature on corporate governance in entrepreneurial firms. Using a sample of 137 research papers published from pre-1990 through June 2018 in 60 journals, we categorize outlets, research methods (quantitative, qualitative, review, and non-empirical), theoretical perspectives, and research questions, highlighting key patterns. We then summarize the concepts under study in the sample literature, and the geographical sources and model specification ofquantitative empirical studies. The conclusion highlights the quite fragmented nature of the field and the substantial knowledge gaps, and then proposes an actionable agenda for future research in terms of theories, research questions, research settings, and research designs. In particular, we describe the need to explore how corporate governance mechanisms interact with one another and affect firm outcomes, by applying novel theoretical perspectives and methods that could provide a better understanding of entrepreneurial firms’ functioning.

Relying on the actorhood theory, this study explores how European Course of Auditors (EXA) depicts and stages itself in relation to its stakeholder. To explore ECAs actorhood journey this study employs visual accounting methodology and analyses front pages of its official journal from its inception in 2009 until 2019. By showing how combination of different visual artefacts have evolved over time this study highlights how transnational public organisations such as the ECA construct their actorhood and position themselves on the stage.  It further reveals the underlying legitimacy mechanisms through which organisations like ECA position themselves in the public eye. Finally, the study illuminates how individuals and context are depicted in interaction with each other and how this interaction reveals the development of the actorhood journey of the ECA over time.

Research Question/Issue

How does organizational context influence the impact of board control over managerial decisions on shareholder wealth?

Research Findings/Insights

We introduce a new theoretical concept—organizational discretion—to characterize the upper limit of managers’ latitude of actions presented by their organizational context, and propose that it moderates the impact of board control on shareholder wealth. Specifically, we first argue that strategic control by boards over managerial decisions reduces managers’ latitude of actions and leads to trade‐offs between the containment of managerial opportunism and the pursuit of strategic opportunities, which consequently influence the relationship between strategic control and shareholder wealth. We then suggest that the trade‐offs incurred by strategic control over managerial decisions are more prominent in firms with high organizational discretion. Because of the trade‐offs, we propose that boards are likely to decide whether to rely more on strategic control or financial control in internal corporate governance based on their firms’ level of organizational discretion.

Theoretical/Academic Implications

By introducing the concept of organizational discretion and highlighting the trade‐offs caused by boards’ strategic control over managerial decisions, we advance a contingency perspective to enhance the understanding about the impact of board control on shareholder wealth. It also bridges the strategic management and corporate governance research on managerial discretion that has largely evolved separately in the literature.

Practitioner/Policy Implications

Boards should attend to the trade‐offs between the containment of managerial opportunism and the pursuit of strategic opportunities when exercising strategic control over managerial decisions. Moreover, considering the trade‐offs involved, boards should carefully design and implement internal corporate governance mechanisms based on their firms’ level of organizational discretion.

What are the forces that influence strategic managerial decisions in the contextof economic transition? In this paper, we analyse how strategic and governanceforces influence the degree of discretion perceived by managers operating in thecontext of the transition economy of Russia. An exploratory case study providesinsights about the managerial decision-making process in a transition economythrough the exploration of context-specific factors that shape the perceived degreeof managerial discretion. The findings of the paper redefine the concept,indicating the existence of a relationship between strategic and governanceforces and their joint influence on managerial discretion. Our results provide anumber of practical and theoretical implications for the managerial decisionmakingprocess in Eastern Europe.

The concept of managerial discretion has previously been discussed in the two distinct fields of corporate governance and strategic management research. Strategy researchers view discretion as a scope of opportunities for managers to act upon, while the corporate governance view is that  discretion is a potential threat for a company. We attempt in this paper to unite previously divergent perspectives on the concept by building a comprehensive model that explains the antecedents of managerial discretion at organizational and environmental levels. Within this framework, we develop a typology of managerial discretion consisting of four distinct categories. We propose that the four categories of discretion will inform situations where managers will have different degrees of influence on organizational outcomes.

The aim of the paper is to understand how SMEs perceive professionalism its influences on the customer loyalty of the banks they work with. This is being explored through investigating the black box found in the relationship between these two concepts. The paper hypotheses that corporate image and relationship quality are the intervening variables in the professionalism relationship to customer loyally, while switching barriers are then serve as moderators of the relationship between corporate image and relationship quality and customer loyalty. The paper is based on a survey answered by 335 owners of SMEs in Sweden. The findings of the paper indicate that 1) increasing perception of banks’ professionalism has a positive impact on banks’ corporate image and on the relationship quality SME possesses, 2) increasing positive perception of the banks’ corporate image and increasing relationship quality leads to higher customer loyalty, 3) switching barriers do not moderate the relationship between perceived corporate image and relationship quality of the bank SME works with, 4) that perceived corporate image and relationship quality mediate the relationship between perceived professionalism of the bank in its influence on customer loyalty of SME to its bank.

The aim of this study was to explore how female PhD students experience and perceive their well-being. Focus groups were conducted with female PhD students employed at a Swedish university. The study was performed using a phenomenological hermeneutic approach based on the concept of the lifeworld, used as both a philosophical perspective and a methodology. Three main themes emerged from the analysis: being true to oneself, being in the sphere of influence, and performing a balancing act. By unfolding these themes, the study shows that perceptions and experiences of well-being in female PhD students are a multifaceted phenomenon and materialize through interaction of different aspects of ‘‘self ’’ (agent) and ‘‘others’’ (structure). As well as illustrating these perceptions and experiences, the study also presents female PhD students’ conceptualization of their well-being, expressed in terms of a white-water rafting metaphor.

The aim of this article is to explore how managerial focus influences organizational ambidexterity in different organizational forms at the local government level. An entrepreneurial, leadership, or stakeholder managerial focus will each find reflection in the simultaneous pursuit of exploration and exploitation of resources, and the influence will differ with the organizational form, i.e. whether a local government administration (LGA), or a local government corporation (LGC). Hypotheses are tested on Swedish public organizations operating in the waste management and water and sewerage industries. The findings indicate that LGCs have higher levels of organizational ambidexterity, and that the determinants differ from those in LGAs.

This article lays a research agenda for the studies of cultural diversity in top management teams, by reviewing models, methods and definitions utilised within this stream of research. It reviews three different models that are used in studies of cultural diversity of top management teams, as well as elaborates on different methods, and conceptualisation of culture. The article concludes with a discussion, and suggests the research agenda in studies of cultural diversity in top management teams, proposing the use and combination of models, methods as well as conceptualisation and measurement of culture. Key result of this paper is development of the analytical framework for the studies of cultural diversity in top management teams and proposition of the alternative ways of operationalisation of culture and exploration of the black-box of team processes.