Methodological problems in functional fixation research: Criticism and suggestions

Abstract Accounting researchers have long been interested in how users of accounting information process the information in making decisions. One line of research argues that users become “functionally fixated” on the outputs of accounting systems. This line of research argues that form rather than substance becomes more important to (fixated) decision makers. This paper reviews the methodology employed in the accounting studies done to date. It concludes that flaws in the methodology used in these studies prevent us from determining if fixation exists. More importantly, these methodological flaws prevent us from answering the question of why it exists, if it does. The paper offers an alternative methodology to the one currently employed which it is argued will provide insights into the question.