Toward an understanding of strategic control at a distance in public service delivery

Salman Ahmad, Ciaran Connolly, Istemi Demirag

Research output: Contribution to journalArticlepeer-review

Abstract

Purpose
The purpose of this paper is to explore how localized (organization-level) actors of policy initiatives that are inspired by neoliberal ideologies use management accounting and control practices. Specifically, it addresses the operational stages of a case study Private Finance Initiative (PFI) contract within the United Kingdom's (UK's) transport sector of roads for embedding government objectives in the underlying project road.

Design/methodology/approach
This paper adopts Dean's (2010) analytics of government to unpack the accounting-based control practices within the case study contract in order to articulate how, at the micro level, the government's objective of improving road-users' safety is enacted, modified and maintained through such regimes.

Findings
Drawing on a content-based analysis of UK government PFI policy and extensive case study-specific documents, together with interviews and observations, this research provides theoretical insights about how control practices, at a distance without direct intervention, function as forms of power for government for shaping the performance of the PFI contractor. The authors find that the public sector's accounting control regimes in the case study project have a constraining effect on “real partnership working” between the government and private contractors and on the private sector's incentive to innovate.

Research limitations/implications
By analyzing a single road case study PFI contract, the findings may not be generalizable.

Originality/value
This paper provides significant theoretically informed insights about how public service delivery that is outsourced to private contractors is controlled by government at a distance within complex organizational arrangements (e.g. PFI).
Original languageEnglish
JournalAccounting, Auditing and Accountability Journal
Early online date23 Nov 2020
DOIs
Publication statusE-pub ahead of print - 23 Nov 2020

Bibliographical note

© 2020 Emerald Publishing. This AAM is deposited under the CC BY-NC 4.0 licence. Any reuse is allowed in accordance with the terms outlined by the licence. To reuse the AAM for commercial purposes, permission should be sought by contacting permissions@emeraldinsight.com.

Keywords

  • Controls
  • Governmentality
  • Management accounting
  • Private Finance Initiative (PFI)
  • Public private partnership (PPP)

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