Management accounting practices’ adoption in UK universities

Abstract

ABSTRACT The aim of this empirical study was to explore the extent and the determinants of management accounting practices’ (MAPs) adoption in UK universities. In this vein, the current study serves as a ‘stock-take’, first reference study for future studies investigating the effects and impact of HE funding changes on accounting systems and practices in universities. In order to contribute to understanding the determinants of MAPs’ adoption in the UK HE sector, a theoretical framework consisting of contingency theory, institutional theory and particular organisational attributes was adopted. A questionnaire survey was distributed to all 125 UK universities, of which eventually fifty-nine fully completed questionnaires, which represents 47% of all UK universities, were collected. Almost all institutions have implemented MAPs relating to cost determination and financial control, and information for management planning and control. The regression analysis concludes in a final model, which includes only seven of the initial twenty-nine variables. Prospector strategy orientation, innovative culture, trialability, mimetic and normative institutional factors and type of university are determined as the predictors of enhanced MAPs in UK universities. The findings of the current study are useful for consideration when looking into adopting new management accounting practices at Higher Education institutions.