When global accounting standards meet the local context-Insights from an emerging economy

We investigate the translation and application of global accounting standards in a local context, with Romania as our country case study. Our theoretical framework is derived from institutional theory. We develop this by complementing isomorphism(DiMaggio and Powell, 1983) with an emphasis on the behavior of actors and with the different strategic responses that organizations enact as a result of the institutional pressures toward conformity, following Oliver (1991). We contend that local actors play a more important role in triggering organizational responses than is implied by Oliver's (1991) framework in the application of International Financial Reporting Standards (IFRS). This is because organizational responses to these global standards are conditioned by the interplay between actors, who are searching for legitimacy and the attainment of their own (mutually conflicting) interests. Contrary to earlier institutional propositions, we find that acquiescence strategies may occur even when there is a great degree of constituent multiplicity, and that avoidance may occur in entities with a smaller degree of multiplicity. We thus argue that countries are not homogeneous in terms of accounting practices. Finally we suggest that intraorganizational interests and actions are important for IFRS implementation, and future research should investigate this in depth. (C) 2013 Elsevier Ltd. All rights reserved.