An interpretive inquiry into accounting practices in Islamic organisations in Malaysia

This dissertation seeks to explore accounting practices in two Islamic organisations in Malaysia. The study makes a contribution towards the need for accounting research to become more explanatory as a social practice wherein theory is both informed and developed by observation. This is an attempt to study accounting practices in a cultural setting that has not been the subject of previous interpretive accounting research. This interpretive research uses ethnographic and grounded theory as its research methodological approach. The research process of such a methodology is an iterative process involving ongoing analysis and reflection through stages of exploration where the researcher commences with a problem to study. The thesis consists of nine chapters, arranged in four interrelated parts. Each part reflects the research process, starts with a literature review and problem focus; proceeds with the research methodology; follows with the emergent theories; and finally presents the empirical results and descriptive theories. This study uses to complementary modes of theorising, namely, an inductive theoretical development process based upon the 'paradigm model' developed by Strauss and Corbin (1990), and a "modes of thought" and "modes of action" framework developed by Jacobson (1991) as an interpretive schema to describe the findings. This study has shown that "values" are the central phenomenon in both organisations. Accounting and accountability practices have been found to be lacking in esteem and to be based on an informal set of relationships and procedures. With regards to personal accountability, the study shows the conflicting influence of Islamic religious values and power relationships.The "modes of thought" or "contextual conditioners" stem primarily from the underlying influence of Islamic values, power relationships, and societal culture. The accounting practice represents the "modes of action" where in Federal Territory State Religious Council (FTSRC), it has functioned as a rational management tool.