Strategic management accounting in the public sector context: the case of the Swedish Transport Administration

Linda Höglund, Mikael Holmgren Caicedo, Maria Mårtensson and Fredrik Svärdsten

Journal of Public Budgeting, Accounting & Financial Management, 2021, vol. 33, issue 4, 468-486

Abstract: Purpose - The objective of this paper is to generate further knowledge about strategic management accounting (SMA) in the public sector context. The authors attempt to do this through a study of SMA work in a public sector agency (PSA), the Swedish Transport Administration (STA). The paper elaborates on the formation of the agency's strategies and the challenges the agency's SMA work had to deal with, and focuses its analysis on the interplay between SMA and the characteristics of the public sector as well as how it is constitutive of strategy. Design/methodology/approach - The empirical material was gathered between 2013 and 2015 and consists of documents that include the STA's appropriation, mandate, strategic and operational plans, and balanced scorecard, as well as interviews with 35 civil servants at various levels of the STA. Findings - The study finds that, depending on the performances of PSAs in their specific environment and the influences from the environment's constituents, SMA may function as an instrument that makes or breaks strategies. The characteristics of the public sector context may therefore affect SMA, and by extension, strategy, in several ways. First, the present case shows that the inherent reduction that the focus of SMA techniques entails, and their inability to deal with the complexity of a PSA's context, places them at constant risk of becoming strategically irrelevant in the eyes of knowledgeable local managers in a PSA. Second, interventions from the government may override a PSA's SMA and in effect make a PSA's strategic focus ambiguous. Third, outside monitoring performed by such actors as the National Audit Office and the mass media may influence a PSA's SMA work both directly and indirectly when the agency and the government are responsive to the agenda set by such scrutiny. Originality/value - The paper broadens the scope of earlier SMA research in the public sector by including the specific characteristics of the public sector in the analysis and how accounting techniques may come to compete for strategic placement as they are propelled from within and from without the organization.

Keywords: Public sector agencies; Strategic management accounting; Central government (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jpbafm:jpbafm-12-2019-0180

DOI: 10.1108/JPBAFM-12-2019-0180

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