Management accounting practices transfer to foreign subsidiaries in multinational corporations: a Brazilian case

In this paper, we examine how local organisational actors make sense of and implement management accounting (MA) practices imported from foreign multinational headquarters by applying a sensemaking lens. Through a longitudinal case study of an automotive multinational in Brazil, the research illustrates a three-phase adaptation process for MA practices: beginning with standardisation, progressing to adjustments to local contexts, and culminating in ongoing refinement. In doing so, this investigation advances sensemaking theory by demonstrating how the cyclical processes of enactment, selection, and retention manifest empirically as distinct temporal phases in the cross-national transfer of MA practices. By focusing on the cognitive changes and interpretive work involved in adopting new MA practices, this study contributes to a nuanced understanding of the intricate process of transferring MA practices in multinational corporations. It emphasises the need for a comprehensive perspective that considers the complex network of technical and cultural contexts in emerging markets, particularly in South America.