Discourse, counter-discourse and the evolution of accounting theory in 19th century Italy

Purpose. The study focuses on the interrelations between dominant discourse, counter-discourse and accounting theory in 19th century Italy when the country was undergoing a period of intense socio-political change which led to its unification in 1861.

Design/methodology/approach. The study draws upon the work of Foucault on procedures for the control of discourse to investigate how specific understandings of accounting become dominant in a particular socio-economic context and are then replaced by others when such context evolves.

Findings. Before Italian unification, when the country was under the influence of foreign powers, procedures for the control of discourse ensured that French theory, especially Edmond Degrange’s ‘five accounts theory’ was dominant. This changed with the unification of Italy, when the transformed socio-political context enabled the formation of a counter-discourse which supported the rise of original Italian theory, led by the work of Francesco Marchi.

Research implications. The paper shows how accounting theories and their success are intimately linked to dominant discourses in a society. New theories can replace dominant ones even if they are not necessarily progressive or better serve the needs of business in the context in which they rise.

Originality/value. The study is the first to document the process through which new accounting theories come to the fore and explicitly link it to power and discourse. The paper unveils the discursive mechanisms and shifting power relations behind the emergence of a dominant discourse and the formation of a successful counter-discourse that challenges it. It also shows that the emergence of new accounting theories is not the result of a ‘Darwinist’ process which ensures ‘the fittest survival’, but is significantly affected by power arrangements, discontinuity and social struggles.