Development of the Meso Perspective of Fraud Conceptualization: A Grounded Theory Approach

The paper studies fraud conceptualization at different levels that motivate criminal behavior. Accounting fraud literature is analyzed using the grounded theory approach to find new themes and inconsistencies concerning fraud conceptualization. According to our analysis, fraud conceptualization in literature is divided into two-tier levels; micro and macro, which include individual and environmental factors. These factors are derived from five well-known fraud conceptualization papers in accounting literature. These five journal articles were analyzed, and factors were generated using an open and axial coding methodology. According to the coding mechanism of grounded theory, literature fails to include the gap between the individual fraud offender and the institutional governance and departmental control mechanisms, which are considered meso variables in our study. Hence, based on the review of a well-carved-out piece of literature on accounting, a meso-tier level that incorporates departmental factors is derived that integrates the micro and macro factors into a three-tiered model. The theoretical model is then applied to the Carillion fraud case to comprehend and legitimize the meso-level theory.