A Little Change Goes a Long Way: An Institutional Perspective on Change Processes in a Family Firm

In this paper we provide both a theoretical and empirical perspective on change processes in a medium-sized family firm. Incorporating recent developments in institutional theory such as heterogeneity and practice variations, this study suggests a more dynamic, process-oriented interpretation of institutional theory. We specifically zoom in on the role of family members as change agents that are capable of overcoming embedded agency. We extend research on change management by explicitly addressing the paradox of embedded agency during change processes. Based on institutional theory and insights from prior literature on management accounting change we derive a framework to construe change processes. In doing so we highlight the crucial role of institutional contradictions and the emergence of reflective change agents as precursors for institutional change. In a second step we present the findings of an in-depth case study, in which we apply our framework to interpret management accounting changes in a family firm whose managing family members are subject to competing and contradicting institutional logics