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Demonstrating Value: How Entrepreneurs Design New Accounting Methods to Justify Innovations

Year: 2020

Type: article

Abstract: An important activity of entrepreneurs is to justify the value of an innovation to gain support from stakeholders. We examine how entrepreneurs can develop an accounting methodology to demonstrate the value of a proposed innovation, focusing on the case of a charitable foundation’s promotion of social enterprise and its efforts to develop the accounting methodology of Social Return on Investment (SROI). We show how the process for designing new accounting methods that helps in demonstrating the value of innovations involves entrepreneurs (1) imagining the expectations of their stakeholders (2) putting in place the necessary infrastructure through which numbers can be generated and (3) iteratively reconfiguring the accounting methodology and the espoused value the innovation is expected to generate. Our study furthers understanding of the role of accounting numbers in the entrepreneurial process, particularly in situations where entrepreneurs seek to generate new accounting methodologies to develop persuasive stories about the benefits of their innovations.

Source: European Accounting Review

DOI: 10.1080/09638180.2020.1770113

Authors: Emily Barman, Matthew Hall, Yuval Millo

Institutions: Boston University, Monash University, The University of Melbourne, University of Warwick

Language: English

Topic: Accounting and Organizational Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

Funders: University of Glasgow, Menzies Centre for Australian Studies, King's College London, University of London

OpenAlex ID: W3034578871