Management accounting and performance measurement practices in service sector in Oman

Abstract

The importance of management accounting practices in measuring multidimensional aspects of performance is rapidly increasing. However, little is known about such practices in the service sector and even less is known about the practices in developing countries. This paper reports on the performance measurement practices of four Omani service organisations. More specifically, it sought to understand and explain what factors affected the design and use of multidimensional performance measurement systems in the firms studied. The results indicate the way of using the performance measures models of the companies analysed differs depending on management's views and discretion, economic and social constraints, and competition.