Change Readiness and Learning Cultures in Public Accounting Firms

• In Event: Emerging and Innovative Research Session II

Abstract

In an economy characterized by ongoing globalization and rapid technological developments, organizations are continually in a state of change. Accounting firms are not immune to these forces. Additionally, firms face the looming possibility of convergence of international accounting standards. Former SEC Chairman Christopher Cox identified convergence as a “revolutionary development,” and the convergence process would present significant challenges to firms as they adapt their policies and operating procedures. Employee readiness for change is an important first step in any change process. Because change and learning are closely linked, support at the organizational level derives from a commitment to learning and the capacity to learn. A relevant construct popularized by Peter Senge in 1990 is that of the learning organization. David Garvin (2000) defined the learning organization as “an organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge.” This paper presents the findings of an empirical study of individual change readiness and employee perceptions of the learning organization in a public accounting firm. A quantitative study was conducted via Survey Monkey at a large, multi-national accounting firm and included participants from both U.S. and international member firms. Individual change readiness was measured using the Attitudes toward Change instrument developed by Dunham, Grube, Gardner, Cummings, and Pierce (1989). Organizational learning culture was assessed through Watkins and Marsick’s (1997, 2003) Dimensions of the Learning Organization Questionnaire. Correlation between the variables was analyzed using Pearson correlation coefficients, and the variances in responses due to a variety of demographic characteristics were analyzed using ANOVA. This research represents the first broad-based study of change readiness and perceptions of the learning organization within the accounting profession. The study brings a timely focus to change and learning in the profession in advance of the convergence of international standards. Ongoing dialogue regarding these topics will be beneficial to accounting firms as the convergence process presses forward.

Author

• Richard Walstra, Dominican University