Bundling and diffusion of management accounting innovations— the case of the balanced scorecard in Sweden

Abstract

Most changes in accounting are the direct or indirect consequences of diffusion processes. A study of how management accounting innovations are being adjusted and bundled together with other ideas to facilitate entry into new markets may help us to a better understanding of the popularity and adoption of management accounting practices. The present study looks at the communication, diffusion and transformation of the Balanced Scorecard (BSC) in Sweden from a supply side perspective. The high interpretative viability (Benders and van Veen, 2001) of the BSC allows for different interpretations and uses of the concept that could potentially increase the supply side effect in the diffusion process, e.g. by including elements that reduce barriers and resistance to change. We have identified three elements that the propagators of the BSC include in their Swedish BSC package, in order to make the innovation more attractive to a potential Swedish adopter market.