Reinventing the finance function

Introduction

Contemporary trends and global developments increasingly challenge the tasks, design and role of the finance function in organizations. Legal and social pressures require organizations to improve sustainability accounting and performance; geopolitical tensions show how business practices’ focus on efficiency require adjustments, as they carry substantial risks in moments of unexpected disruptions and, in the course of the digital transformation, new business models are emerging, requiring reorganizations of business processes. While these examples are not exhaustive, they illustrate that fundamental shifts in business practices and organizational set-ups are taking place.

Given these developments, this call for papers invites investigations on the finance function’s position and potential reinvention in times of change and disruption. As a backbone of organizations, finance functions have traditionally assumed responsibility for financial reporting, risk management, compliance, management accounting and control. Moving beyond these activities, finance functions increasingly aspire to become “strategic partners” of the top management team, being heavily involved in strategic initiatives (Chang et al., 2014). Consequently, in many organizations, finance has evolved into a function that not only measures and reports but also drives performance (Verbeeten and Heinen, 2021). 

However, although contemporary developments may open up new opportunities for the finance function, they might also undermine its traditional position in organizations. While prior work has primarily focused on the various roles of finance professionals (e.g., Fourné et al., 2023; Goretzki and Messner, 2019), the current developments raise questions about their relationships with other professions and domains in organizations. Trends in the areas of sustainability and digitalization have already given rise to new organizational actors, which increasingly shape how problems are defined and solutions are developed (cf. Abbott, 1988). For instance, finance professionals’ involvement in sustainability initiatives is reported to be limited (Ascani et al., 2021; Ballou et al., 2012). Similarly, they sometimes fail to develop new management practices that go beyond traditional approaches (Tillema et al., 2022). Finally, while digital technologies imply considerable potential for its involvement, finance is often a latecomer in processes of digital transformation (Firk et al., 2023). These findings raise the question of what the future of the finance function will be in the context of current shifts and disruptions. 

These concerns call for a reorientation of research into the activities and inner workings of the finance function and its interactions and relationships with other professional groups within organizations. This special issue thus aims to explore the opportunities and threats for the finance function emerging from recent developments outside and within organizations and to analyze their implications for its practice and positioning. 

Submissions information

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Author Guidelines

Authors should select (from the drop-down menu) the special issue title at the appropriate step in the submission process, i.e. in response to “Please select the issue you are submitting to”. 

Submitted articles must not have been previously published, nor should they be under consideration for publication anywhere else, while under review for this journal.

Key deadlines

Opening date for submissions: January 2024

Submissions close: 31st October 2024