Public sector accounting reforms are rarely linear or predictable. Our research investigates how competing institutional logics shaped the preparedness of 229 Portuguese public entities as they transitioned toward an IPSAS-based accounting system.
We developed a novel diagnostic proxy to capture the critical “middle phase” between formal adoption and actual implementation—where intentions are translated into tangible actions. This approach enabled us to assess not only whether entities initiated the reform, but also how effectively they mobilized to carry it forward.
Entities guided by a strong financial accounting logic were significantly more prepared, and this effect was amplified when combined with a market-oriented mindset. However, once external compliance pressures subsided, so did reform momentum—suggesting strategic compliance rather than deep institutional commitment. Contrary to prevailing assumptions, entities primarily motivated by IPSAS logic did not exhibit higher engagement, challenging the notion that legitimacy-seeking alone drives reform. In contrast, group logic played a constructive role by prompting earlier preparation.
Our findings also underscore the importance of people and context. Entities led by individuals with higher academic qualifications demonstrated greater preparedness, indicating that formal education enhances the capacity to manage complex reforms. Variation across public subsectors further influenced reform trajectories.
Overall, the study advances our understanding of how institutional logics shape reform readiness. It shows that preparedness cannot be reduced to technical compliance alone. The proxy we introduce offers regulators and policymakers a practical tool to monitor progress and anticipate implementation challenges—especially relevant for countries embarking on IPSAS or similar reforms.
For the full study, see our article in Accounting in Europe: https://doi.org/10.1080/17449480.2025.2585795
