Accounting for a mining company’s transformation in Ukraine

Abstract Purpose – This study investigates how and why a new management accounting control (MAC) regime emerged in a previously government-owned energy company with a Soviet past, in the context of changing politico-economic dynamics in Ukraine. Design/methodology/approach – Drawing upon data from a case study of a large Ukrainian energy company with a Soviet past that has undergone major transformations in recent years, we analyze MAC regime changes in the company from an institutional logics perspective. All primary and secondary data used in this study were collected from 2012–2016. Retrospective interviews and extensive use of written materials, including corporate documents and other publicly available data, helped us reconstruct those events which we could not observe personally. Findings – We observed that MAC regime changes in the company mirror overall changes in the political and economic environment and Ukraine’s willingness to become closer to the West. The company seems to follow liberal Western market logics and eliminate those of Soviet heritage. The MAC regime changes seemed to contribute to the company’s survival during challenges caused by the political and economic crises that began in 2014 with the annexation of Crimea and other Ukrainian territories in the East of the country, demonstrating the usefulness of the new MAC regime and overall business logic. Research implications/limitations – This study adds to the literature on management accounting and control change in emerging economies and extractive industries, by highlighting the role of changing institutional logics in shaping a MAC regime. We explain why, in some contexts (i.e., Ukraine), organizational actors accept and favor liberal Western market logics. Originality/value – A particularly significant facet of this study concerns its extension of the role of MAC and the way it is perceived in a new international context in times of significant transformation. The results suggest that MAC regime change may be favorably received, if based on local values and aspirations. Keywords: management accounting control (MAC) regime, institutional logics, liberal Western market logics, illiberal Soviet heritage logics, case study, energy company, coal mining. Paper type: Research paper