Abstract
This paper explores management accounting change at the St. James's Gate Brewery of Arthur Guinness & Sons Ltd brought about by the effects of the First World War (WWI). In particular, how additional war risk costs were accounted for internally is revealed. Using organisational routines as a theoretical backdrop, new management accounting practices are interpreted. These new practices allocated war risk costs incurred by head office (in Dublin) to other parts of the company. The key role of existing management accounting routines in the formation of new routines is also revealed. Although WWI was an exogenous driver of change, endogenous change also featured as existing practices guided the creation/adaptation of routines. In essence, accountants within the Guinness Company drew upon their existing knowledge to deal with a new and complex scenario (i.e. the war). Thus, change and stability went hand in hand. Although change did occur, it was moderate and more adaptive, which signifies that existing accounting routines were strong and adaptable to major drivers of change such as WWI.
Original language | English |
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Pages (from-to) | 191-209 |
Number of pages | 19 |
Journal | Accounting History Review |
Volume | 24 |
Issue number | 2-3 |
Early online date | 9 Oct 2014 |
DOIs | |
Publication status | Published - Oct 2014 |
Bibliographical note
Our thanks to Eibhlin Roche and Deirdre McParland at the Guinness Archive, St. James's Gate Brewery, Dublin, Ireland. Thanks also to the two anonymous reviewers for their comments on this paper.Keywords
- accounting change
- Guinness
- the First World War
- war risk costs
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William Jackson
- Business School, Centre for Governance, Accountability, and Sustainability (GAS)
- Business School, Accountancy & Finance, Accountancy - Senior Lecturer
- School of Divinity, History & Philosophy, Centre for the History and Philosophy of Science, Technology and Medicine (CHPSTM)
Person: Academic