Changes In Management Accounting Practices Research Articles

CONTROLLING THE CHANGING OF MANAGEMENT ACCOUNTING PRACTICES IN THE ENTERPRISE RESOURCES PLANNING ENVIRONMENT

The aims of this research is to give empirical evidence of changes in management accounting practices (MA) by examining the effects of changes in data quality, information quality and management accounting tasks on the efficiency and effectiveness of accounting, and indirectly on change in management accounting after the adoption of an enterprise resource planning (ERP) systems. Empirical analysis of the study used primary data from a survey of 29 manufacturing companies with 102 CFO respondents, accounting managers and business controllers, with a response rate of 28.43%, providing significant support for the proposed model. Structural equation modeling (SEM) approach with testing tools using partial least square (PLS) is used in this research. The linear thing with the results of previous research is the same, it was found that the erp implementation time is the determinant of significant MA changes, while the difference from previous researchers is in the end user, where the company that has adopted the ERP system has just felt a greater MA change when compared to users early on. The results showed that the implementation of global ERP and the use of business intelligence tools (BI) were significantly related to changes in MA practices.

The effect of the organizational change on company performance mediated by changes in management accounting practices

This study examines the effect of the organizational change on company performance which is mediated by changes in management accounting practices. High environmental uncertainty requires company management to make organizational changes and changes in management accounting practices to achieve performance. The study uses a survey method with a total of 1945 respondents as managers of middle to upper manufacturing companies in 389 manufacturing companies in Indonesia. Data analysis techniques use partial least square, with more accommodating considerations for analyzing complex models with various indicators that are reflective and formative. The results of the study indicate that organizational change had a positive effect on changes in management accounting practices. Changes in accounting practices have positive effects on corporate performance, and changes in management accounting practices are able to mediate environmental changes in performance. Meanwhile, organizational change does not affect the company's performance.

Management Accounting Dynamics in Bangladesh: Areas and Factors Behind the Changes

Rapid growth in technologies and competitive business environments have brought significant changes in management accounting practices in the manufacturing industries. To cope with these changes a good number of management accounting tools have been developed in helping managerial decisions both at operating and strategic levels. Researchers have identified that the implementation of such tools in developed countries brought success in decision making though research in this particular area in less developed countries, especially in Bangladesh, is not significant yet. Thus, this research aimed to explain the changes that have taken place and the factors behind the changes in management accounting practices (MAP) in manufacturing industries. The listed manufacturing companies in Bangladesh consist of the population and sample of the study. Factor reduction techniques were used to analyze the influencing variables behind the changes in MAP. The paper reveals that the changes that have taken place from 2001 to 2010 period in MAP are mainly in the operational areas while after 2011 the changes in MAP have mostly taken place in the area of strategic decision making. The factors behind the changes are categorized under the heads of Changes in Business and Organization Strategy and Changes in Manufacturing and Information Technology by applying factor analysis. Keywords: Bangladesh, business strategy, changes in decision making, information technology, management accounting, manufacturing

A review on management accounting change. What's next?

The interest of researchers on the issue of changes in management accounting practices has increased over the years. Many works have been published that widely vary according to the nature of the business context in which change is implemented, the theoretical approach used, research focus and research methods adopted. The general picture which emerges from these contributions is that Management Accounting Change (MAC) is a complex topic. This is why it still lacks a clear and agreed definition and there’s no consensus on which is the most appropriate paradigm to study it. Based on this evidence, the aim of this study is to provide a deep understanding of MAC phenomenon, conducting a scoping study based on papers published in both Italian and International Accounting Journals. Typologies, causes, as well as the organizational and managerial implication of change are analyzed. Finally, some suggestions for further studies are presented.

Identity conflict and the paradox of embedded agency in the management accounting profession: Adding a new piece to the theoretical jigsaw

This paper aims to extend the literature on institutional change by exploring the role of identity conflict as a critical driver of embedded agency amongst management accounting (MA) professionals. Specifically, we draw on Social Identity Theory to develop a conceptual framework that links identity and identity conflict to change related behavior. In this framework, we explain how multiple identities constrain but also stimulate agentic behavior in organizations. In particular, we highlight the underlying mechanisms through which conflicts in multiple identities lead to institutional change through processes of identity work and job crafting. Moreover, we specify how job discretion and business involvement affect the embedded agency of management accountants operating in different professional roles. We further predict that changes in MA practices are likely to have an effect on management accountants’ identities and may create new identity conflicts if they diverge from existing institutionalized identities. We highlight the implications of this model for our understanding of embedded agency and for future research directions in the field.

Explanations for the gap between management accounting rules and routines: An institutional approach

This is a longitudinal in‐depth case study that was conducted within a Portuguese public sector organization, the National Postal Service of Portugal, where two management accounting innovations were implemented. The aim of one of the innovations – Income Statements – was to account for the financial results for the different areas within the organization, which could filter down to its basic elements. The aim of the other – Key Performance Indicators – was to provide indicators to monitor business performance. These innovations were not used in practice as planned, which afforded me the opportunity to explain the existing gap between their rules and routines. To do this, I based this study on the old institutional economics (OIE) inspired management accounting change literature.Following a strategy of collating together issues from more than one theory, this study contributes to the OIE inspired management accounting change literature by providing evidence that trust and power issues should be analyzed simultaneously and not separately, in order to extend our understanding of how management accounting innovations are (or are not) used in practice, and it also provides evidence that external and internal pressures or the lack of them should be considered through time and not only in explaining the initial stage(s) of the management accounting change processes. The study also provides practical insights for those who intend to carry out changes in management accounting practices in an organizational setting.

Changes in management accounting practices in Malaysia

PurposeMalaysia has moved towards global competitiveness. As an important contributor to the Malaysian economy, this change makes manufacturing companies in Malaysia need to ensure that their business operation and management cope with the current changes. To do this they need to reconsider their existing management accounting practices more than ever. Therefore, this study is carried out to determine how changes in management accounting practices in Malaysian manufacturing companies took place in response to a changing business environment and the effect of changes on performance.Design/methodology/approachA structured questionnaire survey is used to collect the data from various manufacturing companies in Malaysia. The Federation of Malaysian Manufacturer Directory is used as a sampling frame.FindingsThe results show that the level of changes in management accounting practices increased over the five year period from 2003 to 2007. The changes mostly occurred through the introduction of new practices, replacement of existing practices and modification of the way existing practices were used. Findings in this study also reveal that there are no significant differences in management accounting practices among local and foreign companies, or between small and medium, and large companies. This study also support previous research in terms of the positive relationship between changes in management accounting practices and performance.Originality/valueTaken together this research outcome has contributed to the existing management accounting change literature especially in a developing economy setting.

Factors Influencing Changes in Chinese Management Accounting Practices

This study provides insight into the factors that influence change in Chinese management accounting practices. Multivariate analysis indicates that the size of the firm, foreign partner and level of knowledge of senior managers and employees have positive bearing on the changes in management accounting practices of the foreign-partnered joint ventures. The size and level of knowledge of senior managers appear to influence changes in management accounting practices. However, no support is found for the hypothesis that the Chinese government has a significant influence on the changes in management accounting practices of joint ventures and state-owned enterprises.