Changes In Management Accounting Systems Research Articles

Institutional perspective of change in management accounting system: A case study approach

The objective of this study is to examine the drivers of change in the management accounting system in a large manufacturing Libyan-Italian joint-venture public company (LIJV). To achieve this objective, a qualitative case study research is adopted. The research data were gathered by conducting 17 semi-structured interviews with the managers and senior staff of the case company. The data collected from the interviews were supported by documentary reviews and observations. The findings of this study indicate that changes in management accounting systems in the company are attributable to institutional factors, competitive pressures, and market forces. Specifically, isomorphic institutional pressures (i.e., coercive, mimetic, and normative isomorphism forces) appeared to be the main drivers of management accounting system change. These findings are consistent with Zoubi’s (2011) findings. Additionally, our findings reveal that the primary sources of the barriers to management accounting change include: 1) the nation’s regulations and laws, 2) management misconduct and corruption in management and financial activities, and 3) company managers’ resistance. Drawing on the new institutional sociology (NIS) theory, our case findings provide a comprehensive understanding of the change process in management accounting systems by focusing on the role of market pressures, institutional pressures, and intra-organizational power. The contribution of this research is the improved utilization of NIS in explaining the change in management accounting.

PENGARUH PENDELEGASIAN WEWENANG TERHADAP KINERJA ORGANISASI

The purpose of this study is to determine the Effect of Delegation of Authority on Or- ganizational Performance with Change of Management Accounting System as Intervening Vari- able. This research was conducted at the Manufacturing Company located in Serang District. As the object of his research, the middle manager with 125 questionnaires spread, but the question- naire that can be processed as much as 72 questionnaires (58%). The questions questionnaire measured with a scale of 1-5. Data were analyzed by using SEM (Structural Equation Model) through SmartPLS (Partial Least Square) 2.0 versions. The results of this study indicate (1) Delegation of authority has a positive effect on Management Accounting System Changes, (2) Changes in Management Accounting System has a positive effect on Organizational Performance, and (3) Delegation of Authority positively af- fects organizational performance.

PENGARUH INTENSITAS PERSAINGAN, DELEGASI, STRATEGI DAN PERUBAHAN SISTEM AKUNTANSI MANAJEMEN TERHADAP KINERJA ORGANISASI

This study examined the correlation between competition intensity, delegation, strategy, management accounting system changes, and organizational performance. This study took a manufacturing company located in Banten Province as the object of research. The number of samples in this study were 72 respondents. Data were analyzed by using SEM (Structural Equation Model) through the program SmartPLS (Partial Least Square) version 1.0. The results of this study states the intensity of competition has positive influence on the delegation of authority. The intensity of competition has positive influence on changes in management accounting system. The intensity of competition has positive influence on organizational performance. Delegation of authority has positive influence on changes in management accounting system. Delegation of authority has positive influence on organizational performance. Changes in accounting management system has positive effects on organizational performance. The intensity of competition has positive influence on strategy. Strategy has positive influence on organizational performance. Manufacturing companies are expected to be used as a tool for evaluation and improvement of performance. Further research is expected to add external factors variable (information technology, organizational culture, etc.) and add to more respondents. Researchers are also expected to develop further research of various other business entities, such as the banking, hotel, service, commercial or state enterprise. Scope of the research is the sampling object.

Change of Management Accounting Practices

Currently, the use of traditional management accounting techniques such as traditional product costing is not meeting user needs for a variety of reasons. It has been claimed that traditional management accounting techniques are unable to satisfy the users of such techniques in terms of providing them with timely and detailed information. The use of management accounting techniques to support business processes, enabling competitive advantage and creating value is highly relevant for most businesses today. It also encourages the provision of capabilities to reduce cost and improve product quality, process flexibility, and build relationships supplier-customer and ultimately improve performance. The research has been done by investigating the contribution of the ease of use and usefulness to accept a change in the hospital management accounting system. All the hospitals (37 hospitals) in Jakarta constituted our population. A sample for this research used 23 management accounting system changes. Our research shows that hospital management accounting system changes are acceptable. The disagreement is related with the functional issues required to support the new system. Previous researchers argue that the delegation of decision rights (decentralization) can reduce the potential for resistance of management accounting innovation implemented in two ways: (a) by creating the environment which allows managers to ensure that their subunits are able to adapt to the new signals provided by accounting innovations and (b) by enabling subunit managers to become involved in the design of these systems.

English

Family business succession is considered inherent to family businesses and represents a critical process that is generally characterised by resistance to change. This study aims to investigate the role of management accounting systems (MASs) in family business succession, in order to understand how changes in MASs during the succession across different family generations can help the succession process itself, facilitating the rise of the new leader, supporting changes, and reducing resistance to them. The research adopts a case study approach, focusing on organizational routines and their changes, at the same time taking into account the socioemotional wealth of the family firm. Evidence from the study shows the strategic role of MAS in managing the succession process, through the implementation of new routines and rules in helping the decision-making process and in achieving the firm’s leadership. Key words: Family business succession, management accounting changes, routines, socioemotional wealth.

Fatores para a Implementação da Mudança em Sistemas de Contabilidade Gerencial

Esta pesquisa objetivou analisar os fatores motivadores do processo de mudança do sistema de contabilidade gerencial, sob a ótica da teoria institucional. Classificou-se a pesquisa como descritiva, qualitativa, operacionalizada pelo procedimento de estudo de caso explicativo. Os dados foram coletados por meio de entrevistas semiestruturadas, e analisados pela técnica da análise de conteúdo. Os resultados mostram que, no caso analisado, a mudança nos sistemas de contabilidade gerencial foi motivada por um conjunto particular de fatores (improvisação e pressão social do ambiente), representativos de pressões internas e externas às organizações, cada qual com sua intensidade.

Hospital acquisitions, parenting styles and management accounting change: An institutional perspective.

Many healthcare scholars have applied institutional theories to the study of management accounting systems (MAS) change. However, little attention has been devoted to MAS change within groups. Kostova etal. highlight the limitations of traditional institutional frameworks in studying groups since they are characterised not only by the existence of external institutional environments but also by intra-organisational (meso-level) ones. Given this background, the research question is: how does the meso-level institutional environment affect MAS change in healthcare groups? We use a longitudinal multiple-case study design to understand the role of headquarters in shaping local MAS change. We would expect companies to adopt similar MAS. However, we argue that the relationship between external institutions and MAS change cannot be wholly understood without taking into consideration the role of headquarters. Our analysis shows how hospitals facing the same external institutional environment implement different MAS as a consequence of different parenting styles. From a scientific perspective, our article contributes to broaden traditional institutional theoretical frameworks.

Successful changes in management accounting systems: A healthcare case study

This paper explores how a change in the management accounting systems (MAS) of healthcare organisations was implemented in a manner acceptable to those involved. The study employed a longitudinal case study of a university hospital in southern Italy, and was informed by Broadbent and Laughlin's Middle Range Theory (MRT). The findings revealed that the change in the MAS was successful due to the involvement of professionals in the ongoing process of change. This involvement reduced their natural tendency to resist, and increased the commitment of the various groups of professionals to the new business culture.

The Relationship of Competition, Delegation of Authority and Changes in Management Accounting Systems with Corporate Performance based on Path Analysis Model

Present study aimed to analysis whether delegation of authority and changes in control and management accounting systems, adjusts or increases the relationship between competition and corporate performance. Study Population is companies listed in Tehran Stock Exchange and needed data is gathered from questionnaire and financial statements. Excel software used to category information and for testing hypothesis statically software was used. Results show that there is a positive and meaningful relationship between competition power and management delegation of authority, change in control systems and management accounting system and corporate performance and changes in control and management accounting systems. Results also show that there is relationship between delegation of authority with variables like control and management accounting systems changes and corporate performance. Other results explain that there is meaningful relationship between changes in control and management accounting systems with corporate performance of management.

The Effects of National Culture on Changes in Management Accounting Systems

This study utilises Hofstede’s (1980, 1991) framework to investigate the influence of national culture on the volume of management accounting control systems (MACS) changes, and their location, nature and perceived success. We collect data on French manufacturing companies which are comparable with those collected in Canada (Libby & Waterhouse, 1996), Singapore (Williams & Seaman, 2001) and Malaysia (Sulaiman & Mitchell, 2005). We find dramatic differences in MACS changes attributable to cultural differences. A high degree of uncertainty avoidance is reflected in more changes to controlling systems, and individualism and power distance reinforce this result. A high degree of Confucian dynamism is reflected in more changes to planning systems. However, the effect of culture on changes to bonuses is limited. Individualism explains differences in the nature and perceived success of changes. Belonging to a collectivistic culture limits elimination of MACS, while belonging to an individualistic culture increases the likelihood of addition of MACS. Managers in individualistic cultures rate the success of changes more highly than managers in collectivistic cultures. More specifically, managers in individualistic cultures consider they have been most successful in introductions of new techniques while managers in collectivist cultures think they have been most successful in modifications. Other differences are explained by macroeconomic factors and similar results are observed in the location and nature of change. This study also enhances examination of the heterogeneous nature of change.

A framework for assessing cost management system changes: the case of activity-based costing implementation at food industry

Article history: Received October 28, 2014 Received in revised format 15 January 2015 Accepted 28 January 2015 Available online January 31 2015 An opportunity to investigate the technical and organizational effect of management accounting system changes has appeared with companies' adoption of activity-based costing (ABC). This paper presents an empirical investigation to study the effects of ABC system for case study from food industry in Iran. From this case, the paper develops a framework for assessing ABC implementation and hypotheses about factors that influence implementation. The study detects five cost centers and for each cost center, it determines different cost drivers. The results of our survey has detected that implementation of ABC system not only helps precise allocation of overhead costs but also helps internal management companies for better planning and control of production, making better decisions for company's profits. Growing Science Ltd. All rights reserved. 5 © 201

Analysis of the Factors Affecting Resistance to Changes in Management Accounting Systems

Despite changes in the environment and management accounting practices, studies indicate that management accounting systems do not change or change at a much slower rate than expected. The stability of the management accounting systems used by companies may relate to resistance to changing these systems. This study analyzes the factors that contribute to resistance to implementing an integrated management system from the perspective of institutional theory, grounded in the old institutional economics. Methodologically, this study provides a qualitative assessment of the problem and a descriptive analysis of the resistance factors through a case-study approach. The data were collected using semi-structured interviews and analyzed through content analysis. Two companies were selected for this study due to their differing characteristics. The following seven factors were analyzed for resistance to implementing integrated management systems: institutional power, ontological insecurity, trust, inertia, lack of knowledge, acceptance of routines and decoupling. However, there was no evidence to characterize hierarchical power. The research findings indicate that changing management accounting systems, through the implementation of an integrated management system, faces internal resistance in these organizations. Each factor varies in intensity but is permanently present in these companies, such as ontological insecurity, trust, inertia, lack of knowledge, acceptance of routines and decoupling. These factors are awakened when the change process begins and, if they gather enough force, can stop the change.

Uncovering Governance And Mindfulness Patterns For Improved Performance: The Role Of Management Accounting Systems Change

This study extends the model developed in Williams and Seamans [Williams, J. J. and Seaman, A. E. (2010). Corporate Governance and Mindfulness: The Impact of Management Accounting Systems Change, The Journal of Applied Business Research, Vol. 26, No. 5, pp. 1-17] exploratory paper examining the moderating effects of management accounting systems (MAS) change on the corporate governance/mindfulness relationship for a Canadian sample of 124 top-level accounting professionals. Canonical correlation analysis was applied to the linkage of multiple cognitive processes of mindfulness (Weick and Sutcliffe, 2001; 2007) and the governance dimensions of performance and conformance specified by the International Federation of Accountants (2009), underpinned by the moderating effects of five different components of MAS change, which yielded 13 significant relationships. The latter were subsequently analyzed for important gestalts (i.e., patterns) in the overall relationship, and assessed within the context of aligning professional accounting practices involving systems changes to the IFAC (2009) governance framework. These findings appear to have implications for improved governance structures in practice as well as offering a rich foundation for future research.

The relations among competition, delegation, management accounting systems change and performance: A path model

This paper is concerned with an empirical investigation into the relations among competition, delegation, management accounting and control systems (MACS) change and organizational performance. It follows a standard contingency type path modeling to propose that intensity of competition causes firms to change their MACS and that this change enhances their performance. Delegation of authority is implicated in the model as competition encourages delegation, and this in turn causes the change in MACS, as well as enhancing performance directly. The results from a sample of Australian strategic business units indicate that (1) increased competition results in improved organizational performance indirectly through a greater number of changes in MACS, and (2) increased delegation of authority to lower level management leads to higher organizational performance. These results contribute to the management accounting change literature by providing empirical evidence that the relationship between competition and organizational performance is mediated by a decentralized organizational form and changes in MACS of the firm.

Management Accounting Systems Change And Sub-Unit Performance: The Moderating Effects Of Perceived Environmental Uncertainty

<p class="MsoBodyText" style="line-height: normal; margin: 0in 0.6in 0pt 0.5in;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">This study reports the findings of an empirical study that investigated changes in five major management accounting system components (MASCs) and their linkages to the external environment and managerial performance.<span style="mso-spacerun: yes;">  </span>Responses from 116 Singaporean CFOs located in small- to medium-sized manufacturing and industrial firms were used to test the primary hypothesis that perceived environmental uncertainty (PEU) moderates the MASCs change–performance relationship.<span style="mso-spacerun: yes;">  </span>Positive evidence permitted subsequent analysis showing that different configurations of MASCs change enhanced CFO performance under both low and high levels of PEU.<span style="mso-spacerun: yes;">  </span>Further statistical evidence demonstrated that it is changes in specific components, matched with specific levels of PEU, which is responsible for improved performance.<span style="mso-spacerun: yes;">  </span>When PEU is low, a ‘defensive’ pattern of MASCs change emerged, dominated by more importance placed on emphasizing planning systems changes and de-emphasizing costing systems changes. Under conditions of high PEU, an ‘aggressive’ pattern of change was revealed, characterized by more primacy given to emphasizing novel changes to decision making systems while de-emphasizing changes to reward and bonus systems.</span></span></p>

Corporate Governance And Mindfulness: The Impact Of Management Accounting Systems Change

<p class="MsoNormal" style="text-align: justify; line-height: normal; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="font-family: "Times New Roman","serif"; color: black; font-size: 10pt; mso-themecolor: text1;" lang="EN-SG">The International Federation of Accountants (2009) argues that a governance structure should go beyond conformance with regulations and equally support a performance dimension that can lead to better outcomes.<span style="mso-spacerun: yes;">  </span>This paper explores the relationship between these two governance dimensions and the capacity for mindfulness, utilizing organizational theory that describes high reliability organizations.<span style="mso-spacerun: yes;">  </span>Survey data was obtained from top-level accounting professionals in a sample of 124 Canadian firms.<span style="mso-spacerun: yes;">  </span>Regression results support the hypothesis that both the conformance and performance dimensions of governance are significant determinants of the capacity for mindfulness.<span style="mso-spacerun: yes;">  </span>Additional analysis shows that the explanatory power of this relationship persists when management accounting systems change is low but it is significantly greater under conditions of high management accounting systems change. <span style="mso-spacerun: yes;"> </span>The latter finding is notable in that the most important determinants of the capacity for mindfulness emerge from the performance dimension and not the conformance dimension, which has implications for achieving a balanced governance structure. <strong style="mso-bidi-font-weight: normal;"></strong></span></p>

Management accounting change: a comparative study of Indian and UK organisations

In the last two decades, management accounting research has received considerable attention. The research findings highlight a significant role for management accounting systems in modern organisations due to which management accounting information is now used in planning, decision making, control, performance measurement and business strategy in most organisations. However, as a result of the changing business needs, increased global competition and rapidly changing production technology, the internal management accounting systems of companies face severe challenges. This study, therefore, explores the changes in management accounting systems with respect to a number of change drivers and evaluates those changes in relation to the changing needs of different organisations in India and the UK. Two main drivers of management accounting system change are revealed: increased competition and changes in production technology. It is concluded that changes in management accounting systems attributed to change drivers have considerable effects on organisational performance in both Indian and UK organisations.

Predicting Change in Management Accounting and Control Systems: Additional Evidence from Australia

This paper reports the results of a questionnaire survey investigating organizational and environmental determinants of the rate of changes in management accounting and control systems (MACS) within Australian manufacturing firms. The Australian findings are also compared with the findings of two related prior studies [Libby, T., and Waterhouse, J. H. 1996. Predicting change in management accounting system. Journal of Management Accounting Research, 8, 137-150; and Williams, J. J., and Seaman, A. E. 2001. Predicting change in management accounting systems: national culture and industry effects. Accounting, Organizations and Society, 26, 443-460]. The change rate for a list of 23 components of MACS and the extent to which this rate is associated with intensity of market competition, decentralization, organizational capacity to learn, and firm size are reported. The study uses survey responses of 34 managers, drawn from a cross-section of Australian manufacturing companies. In the current study, the average number of changes in MACS in the sample organizations was 5.29 times in the period 2003-2005; this was 15.7 percent more than the average of 4.46 changes reported by Libby and Waterhouse and 44.8 percent more than the average of 2.92 changes reported by Williams and Seaman in their sample manufacturing firms. Consistent with Libby and Waterhouse, the results provide strong support for a positive association between the rate for changes in MACS and intensely competitive environments. Also, consistent with Libby and Waterhouse and Williams and Seaman, organizational capacity to learn was found to be an important predictor of the rate for changes in MACS. However, contrary to expectation, the rate for changes in MACS is not significantly associated with decentralization. On the other hand, contrary to Libby and Waterhouse and Williams and Seaman, firm size appeared to be an important predictor of the rate for changes in MACS.

Management accounting change in South Africa

Most research on management accounting change relates to practices in developed countries. This paper reports on a field study of management accounting change in the South African context. It uses a contingency theory framework within four retail companies to understand the processes of their management accounting systems change and to explore the rationales for such change processes. The findings indicate considerable changes in management accounting systems within the four cases. Such changes include increased use of contemporary management accounting practices notably activity‐based cost allocation systems and the balanced scorecard approach to performance measures. The paper suggests that recent environmental changes in the South African economy arising from government reform/deregulation policy and global competition largely facilitated the management accounting change processes within the participating organisations.

Management accounting systems change and departmental performance: the influence of managerial information and task uncertainty

Despite the proliferation of new management accounting techniques amidst pressures of organizational and global change, the issue of changes in firm-wide management accounting and control systems (MACSs) has largely been ignored in the research literature. This study explores the indirect effect of MACSs change on departmental performance for a cross-sectional sample of 232 medium-sized Singaporean firms. It is hypothesized that MACSs change affects performance but not directly. Instead, this relationship is mediated by managerial-relevant information (MRI) that is impacted by MACSs change, which, in turn, enhances performance. Task uncertainty is expected to moderate the intervening linkages; specifically, the latter are anticipated to strengthen under conditions of more task variability and task difficulty and, thus, augment the indirect effect of MACSs change on performance. The results offer support for the positive indirect effect of improving departmental performance from more MRI, triggered by MACSs change. Although not large, the indirect effect is strengthened when task variability and task difficulty are high. Overall, the findings are consistent with the stated purposes of management accounting that are embedded in normative definitions, and which are relied upon to motivate the framework for analysis.