Aksom H. Institutional Analysis of Management Innovation Diffusion.

This thesis explores potential differences between Scandinavian and Ukrainian model of modern management innovation within our hypothetical model which accounts for interpretations, meanings, understandings and attitudes of local mediators and potential adopters. Beyond Budgeting has emerged a decade ago as the latest and most advanced management accounting and control innovation which performs such vital tasks in organizations as decision making and control assistance. However, this innovation hasn’t yet enjoyed the same degree of success as its more popular predecessors – activity based costing and balanced scorecard. Given its interpretative viability and ambiguity of principles and ideas formulation, this innovation allows itself for different interpretations and configurations in adoption. It is therefore assumed that institutional forces play defining role in shaping novel management practices when they enter new locations and face new social and cultural contexts. Institutional theory allows explaining and predicting organizational and individual behavior linking it with causal processes and patterns in respective institutional environment. Among other things, these institutional effects can explain the diversity in diffusion and adoption of innovations, filling the blind spots in the former diffusion of innovation theory.