The Evolution of a Management Accounting Idea: The Case of Beyond Budgeting, by Sebstian Becker and Martin Messner

Working paper:
"The Evolution of a Management Accounting Idea: The Case of Beyond Budgeting"

Date: January 9, 2010

Abstract:
This paper analyses the evolution of Beyond Budgeting as a theoretical concept and as a phenomenon in practice. We draw from diffusion theory to explain why Beyond Budgeting did not have the same success as other management accounting ideas, such as Activity-Based Costing or the Balanced Scorecard. Our particular focus is thereby on the way in which the identity of Beyond Budgeting was defined – namely in terms of a comprehensive management model rather than a particular tool or technique. We demonstrate how some proponents of Beyond Budgeting actively defended this identity and, consequently, abandoned the label 'Beyond Budgeting' because of its misalignment with that identity. Others distanced themselves from the idea of a full management model and rather focused on the promotion of particular components of Beyond Budgeting. Both strategies ultimately did not favour diffusion of the concept as such. We therefore suggest that how the identity of a concept is defined is crucial for its potential to diffuse.

Authors:
- Sebastian Becker, WHU Otto Beisheim Graduate School of Management - Institute of Management Accounting and Control
- Martin Messner, HEC Paris
- Utz Schäffer, WHU Otto Beisheim Graduate School of Management

Keywords: Budgeting, management accounting, diffusion, adoption, institutional work, innovation

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