Philosophical Assumptions & Streams of Accounting Research

All research is based on some underlying philosophical assumptions which guides the research.  Chua (1986) suggests three paradigms for qualitative research, based on the underlying research epistemology and ontology: positivist, interpretive and critical.  


Epistemology - theory of knowledge - what is knowledge? how is knowledge acquired? how do we know what we know?


Ontology - study of the nature of being, existence and reality.


Depending on the underlying philosophical assumptions of the researcher, qualitative research can be positivist, interpretive and critical.  A worthwhile point to note is that the choice of a specific qualitative research method (for instance, case study) is independent of the underlying philosophical position adopted.

1.     1. Positivist research – Positivists generally assume that reality is objectively given which are independent of the observer (researcher).  Empirical reality is objective and external to the subject.  There is a concrete reality.  Humans are characterised as passive objects; not seen as makers of social reality. Positivistic studies generally attempt to test theory (we test theory, we do not prove theory), in an attempt to increase the predictive understanding of phenomena.  Research is focused on the technical properties of better or optimal systems. 

2.      2. Interpretive research – assumed that access to reality (given or socially constructed) is only through social constructions such as language, consciousness and shared meanings.  The philosophical base of interpretive research is hermeneutics and phenomenology.  Interpretive studies generally attempt to understand phenomena though the meanings that people assign to them.  Social reality is emergent, subjectively created, socially constructed and through human interaction - subjective realities via social interaction.  Interpretive research does not predefine dependent and independent variables, but focuses on the full complexity of human sense making as the context emerges. 

3.      3. Critical research – Critical researchers assume that social reality is historically constituted and that it is produced and reproduced by people.  Although it recognises the potentiality of the individual and that people can consciously act to change their social and economic circumstances, critical researchers recognise that their ability to do so is restricted and constrained as alienating conditions of the status quo are brought to light.  Critical research focuses on the oppositions, conflicts and contradictions in contemporary society, and seeks to be emancipatory, i.e. it should help to eliminate the causes of alienation and domination.  Fundamental conflict is endemic to society.  Focuses on struggles between those who are powerful and those that are not.