A Critical Reflection on the Philosophical Basis of Financial Accounting Research Paradigms

Abstract

This Contemporary financial accounting research has paid limited attention to the underlying philosophical foundations, resulting in contributions that add little to the development of accounting theory and conceptual frameworks. In science policy, it is widely recognized that addressing complex, real-world problems require interdisciplinary research (IDR). For instance, funding programs like Horizon 2020 actively promote interdisciplinary collaboration. However, the epistemological foundations that enable successful IDR to remain poorly understood. This article aims to explore the epistemology of interdisciplinary research, particularly in the context of solving practical problems. It highlights the cognitive and epistemic challenges researchers face when engaging in IDR. A review of educational literature indicates that higher education lacks a coherent understanding of IDR epistemology, which hinders effective teaching and application. The article further explores the philosophical underpinnings of financial accounting research; namely, ontology, epistemology, and axiology. A lack of interest in the epistemology of IDR is attributed to a dominant scientific paradigm—referred to as the "physics paradigm”which overlooks the profound epistemological challenges posed by IDR in science education, research, and philosophy of science. As an alternative, the "engineering paradigm" of science is proposed. This paradigm posits that the aim of science is to generate knowledge as a means to perform epistemic tasks. It views theories, models, laws, and concepts not as objective representations of reality, but as epistemic tools shaped by their construction processes. Research paradigms in financial accounting—such as the functionalist, interpretive, and critical (radical humanist and radical structuralist) paradigms—are shaped by underlying ontological and epistemological assumptions. These philosophical positions also influence the choice of research methodology. Therefore, a strong grasp of philosophical foundations is essential for researchers, particularly those exploring the social dimensions of accounting. Epistemology addresses the nature, scope, and justification of knowledge, while ontology concerns the nature of reality and existence. This article refers to the taxonomy of financial accounting research developed by Hopper and Powell, offering a framework to guide future studies. Emphasizing philosophical clarity will enhance the quality and theoretical development of financial accounting research.