Abstract
Value concepts with a multi-stakeholder approach in the management accounting field are the subject of recent interest. The most popular management accounting conceptions, namely, activity-based costing (management) and balanced scorecard, reveal how the changed management accounting role integrates a focus on three key stakeholder groups: employees, customers and shareholders. Built on previous management accounting studies, this article explores when the management accounting system ensures value creation. The relationship between value creation and the management accounting system were disclosed using the multistakeholder theoretical approach. Research methods adopted in this study are empirical survey and empirical field study. The implementation level of modern management accounting conceptions was analysed using quantitative data (survey). Deeper analysis was performed in a Lithuanian organisation disclosing relationships between value creation and the implementation level of management accounting conceptions (case study). The results of the research revealed that modern management accounting conceptions might be a precondition for the changing role of management accounting but it depends on the implementation level and the organisation’s ability to manage all capacities of these conceptions.
Highlights
The preconditions of a knowledge economy have influenced global changes, which had an impact on the value-creation drivers
The nature of decisions had changed as well. This situation determined the popularity of modern management accounting tools: activitybased costing management (ABCM) and balanced scorecard (BSC)
We argue that the changing role of management accounting might influence value creation, but it is ensured when modern management accounting conceptions are in the integration stages and really working
Summary
The preconditions of a knowledge economy have influenced global changes, which had an impact on the value-creation drivers. Management accounting studies disclosed the significance of management accounting as a stimulus for organisational change and progress They substantiated the benefit of the performance measurement process for financial results (improving financial indicators, increasing market value) and for ongoing performance improvement, communication and control processes. Studies on management accounting changes were conducted by Hoque and Hopper (Bangladesh, 1994), Libby and Waterhouse (Canada, 1996), Alam (Bangladesh, 1997) Dent (World-wide, 1996), Granlund and Lukka (Finland, 1998), Laitinen (Finland, 1999), Anderson and Lannen (India, 1999), Wnuk and Sobanska (Poland, 2000), Haldma and Laats (Estonia, 2000), Luther and Longden (South Africa, 2001) These studies were based on conceptual contributions by Innes and Mitchell (1990), Kellet and Sweeting (1991), Coates, et al (1992), Cobb and Helliar (1995) as well as Burns and Scapens (2000)
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