Strategic management accounting of social networking site service company in China

Abstract

PurposeSocial networking site (SNS) service is a popular cultural issue that affects communication methods and mannerisms. The purpose of this paper is to analyze the case of the growth and development of a China SNS service company using the strategic management accounting (SMA) spectrum.Design/methodology/approachThe paper primarily employs archival resources such as company reports and newspaper clippings online to provide a business and social developmental context to the study. Three propositions are developed and discussed.FindingsThe study illustrates SMA application in business. It shapes the perception of contemporary accounting, and then delivers an awareness of the relationship among business strategy, accounting, and social life.Research limitations/implicationsThis paper is based on a single case study, thus the findings may not be generalized to other popular culture service companies. The case has shown some reasons why different SMA techniques are used by the company in different stages of the organizational life cycle.Practical implicationsFirst, in the start‐up stage of an SNS service company, it engages in product development to obtain funding resources and market so as to enhance market share. Second, in the growth stage of SNS service, the company engages in product financing through the capital market and trade financing.Originality/valueThe SNS service has emerged for accounting for popular culture. Such connection is especially found in SMA in different stages of the organizational life cycles as addressed in the study.