Abstract:
In this paper we develop an understanding of the roles played by external institutional
forces and organizational entrepreneurs acting as agents in the institutionalization of the
budgeting system within a hybrid state-owned entity. Drawing upon the notions of
external institutions and agency of institutional entrepreneurs within institutional theory,
we investigated this phenomenon using data from field-interviews, observations and
archival documents. Our analysis of the findings suggests that the institutionalization of
the budgeting system in a hybrid entity is materialized amid external institutional
influences, deliberations of key organizational agents, and more importantly the
idiosyncrasies in the competitiveness and complexity of the particular industry and the
organizational setting. We contribute to the current body of literature on institutionaliza tion of management control techniques at the practice level and management control in
hybrid entities.
