Role Of Management Accounting Research Articles

Configuring a profile-deviation-analysis to statistical test complementarity effects from balanced management control systems in a configurational fit approach

This paper develops novel test formulas able to test performance effects from balancing control forms in management control systems using the notion of complementarity. Extant research has underlined the importance of researching and understanding complementarity effects stemming from multiple control forms—i.e., management control systems. In configurations of management controls, a number of control forms work interdependently. In some cases, these interdependencies produce complementarity effects, which previous literature has not captured in full, as synergy effects from interdependencies in configurations are often treated implicitly or tested too reductionistic. Previously used statistical test techniques and formulas have not been fully developed to test performance effects using a configurational fit approach that accounts for complementarity effects from balancing multiple control forms and roles of management accountants (finance functions). In configurations of management control systems, control forms and/or roles of management accountants can be balanced to fit local optima for each control form, and simultaneously fitting the distance, i.e. balance, to other control forms/roles, in which the latter can produce complementarity effects. This balance type of complementarity is a subset of the broader notion of complementarity. To move research forward, new formulas are developed that is suited to testing complementarity effects from balancing management control forms. In this way, the black box of how configurations of control forms produce performance is being opened, yet not completely, to better examine how they collectively produce performance. The developed test formulas are illustrated using survey-data on whether multiple roles of management accountants can affect performance in a complementing manner given the strategy of the company they serve.

The Role of Management Accounting in Competition Policy : The Case of the Inverness Route

Although competition policy is an important area for accounting research, contributions from management accountants are lacking. This article aims to show that management accountants can help clarify a number of issues in competition policy using diagnostic tools such as analytical constructs and concepts of cost to establish relevant facts and cost. Accordingly, this article demonstrates that the employment of such diagnostic tools can give insights into anti-competitive behavioral issues in competition policy, as illustrated in the Inverness route case.

Total Quality Management and the Role of Management Accountants on Organisational Performance: The Service Sector in Malaysia

Manuscript type: Research paper Research aims: This study examines the relationship between total quality management (TQM), the role of the management accountant and organisational performance among the service sector in Malaysia. Design/Methodology/Approach: This study collects data from 100 private service organisations in Malaysia via a self-administered printed questionnaire. Data collected are analysed using partial least squares (PLS) 3.0. Research findings: The results reveal that TQM has a positive significant impact on organisational performance. The TQM’s practice of focussing more on customers and the designing of services also show significant effects on organisational performance. This study finds that management accountants do not moderate the relationship between TQM and organisational performance. Theoretical contribution/Originality: This study expands the previous literature by examining the role of the management accountant as a moderator between TQM and organisational performance. Practitioner/Policy implications: The results derived from this study can be used to facilitate the application of TQM in service organisations so as to enhance their organisational performance. The findings can also assist managers in the service organisations to determine the functions of their management accountants because this can impact on the successful adoption of TQM. Research limitation/Implications: The limitations of this study includes its scope which is confined to only the service industry. Future research should expand further to cover other industries. Keywords: TQM, Organisational Performance, Role of the Management Accountant, Service JEL Classification: M41

Application Strategy of Management Accounting in Financial Management of Colleges and Universities

In recent years, application of management accounting has been gaining a lot of attention. The positive role of management accounting in financial management has also been widely recognized. After the official implementation of new government accounting system, environment and situation for financial management in colleges and universities are different from that in the past. In addition to adjustment according to relevant requirements, financial management of colleges and universities are also required to carry out trial application of management accounting. Through analysis of application of management accounting in financial management of some colleges and universities, it can be found that application of management accounting is not being carried out well and is restricted by many difficult factors. This paper will analyze the difficulties of application of management accounting in financial management of colleges and universities, and put forward suitable suggestions for better application of management accounting.

Is Traditional Management Accounting Still in Use? Contemporary Issues

This paper aims to review the relevant literature on the role of management accounting in organizational management. It also compares traditional and new or strategic management accounting and their limitations. It focused on the role of management accounting in the constitution of organizations and the ways in which management accounting systems as structures of intentionality both shape and are shaped by shared norms and understandings. The findings help to understand the concerns of the current mainstream in management accounting literature. In fact, the findings cohere with Hopwood and Scapens and their followers in the sense that management accounting is not a static phenomenon but one that changes over time to reflect new forms and practices. It was also found that management accounting is part and parcel of organizational change. By reviewing a subset of the studies on accounting history published during the period 1980 - 2018, this paper updates accounting history literature by focusing on management accounting research. The paper also contributes to the existing literature by presenting the discussions of management accounting and organizational change. However, other studies can consider this paper as starting point to examine other areas of accounting such as financial accounting.

Strategy and innovation: the mediating role of management accountants and management accounting systems\u2019 use

This study contributes to understanding how firms pursuing differentiation strategy enhance exploratory innovation outcomes through business partner management accountants and their use of management accounting systems. Separate streams of literature analyzed the relationship between strategy and the role of management accountants in firms; and the relationship between the role of management accountants and new product innovation. Drawing on this evidence, I hypothesize that the relationship between differentiation strategy and exploratory innovation is mediated by two factors: a greater business partner orientation of management accountants and their subsequent use of the management accounting systems for attention focusing and decision making purposes. I find empirical support for the proposed three-path mediated effect using a structural equation model with survey data from 244 firms from German-speaking countries. In total, these findings reveal that management accounting department can be part of the strategy implementation mechanism in firms that emphasize exploratory innovation.

Overview, Practices and Role of Management Accountants

Overview, Practices and Role of Management Accountants

Big Data Analytics and the Management Accountant

A business exists to earn more revenue with less costs and thus making it a profitable venture. Therefore it will strive cost containment with investment to develop its competitive position. To arrive at this balance is not easy and it requires deep understanding of the drivers of cost, risk and value in the business. All three factors are highly dynamic and management requires constant and current information for better decision making and performance management. Usage of Big Data Analytics have become imminent to improve operational performance and sustaining or improving competitive position. Research findings indicate that organizations are struggling to get valuable insights from their data. Businesses need to adopt strategic thinking and be innovative to ensure that they have the needed capabilities to exploit advances in big data analytics for not only success but also for survival in the technology and digital age. Management Accountants have an important role to play in ensuring business success in today’s data-driven era. Therefore they need to develop their skills continually so that they remain relevant to their employer’s needs. They also required to stay abreast of developments and upskill themselves in the discipline of analytics and data science so that they continue to contribute their value to the business and to the profession they serve. This paper explains the meaning of business analytics, its value to business and the evolution of roles of management accountants in the era of globalization and digital age and the need for management accountants to acquire the skills of business analytics and data science to retain their relevance to the corporate world.

The role of management accounting systems in sustainable and development strategies

Abstract The cycle of corporate measures in line with consideration of apprehensions related to supportable progress and communal and environmental accountability broadens the constraint of routine measurement to take into justification social and environmental gauges. The role of management accounting, historically orientated toward the dimension of economic and financial performance, is consequently questioned in its capacity to evolve towards an integration of these standards into the dimension, management and performance reporting fashions. Environmental control Accounting may be understood as an extension of outmoded management accounting (Anthony 1988, Simons 1995) toward environmental control (Boiral 2007, Renaud 2009). Conversely, several pieces of research tend to indicate that, some distance from integration, we’d rather witness phenomena of loose coupling among monetary, environmental and social performance systems. Management accounting could then be refocused on management and reporting of economic and economic overall performance, even as different functions of the enterprise might be in charge of the social and environmental dimensions of overall performance. This can be seen as an instance of Brunsson’s (1989) thesis on organizational hypocrisy. The purpose of this paper is to look at the position of management accounting structures in sustainable and development techniques. Specifically, it is a concern of interrogating closely the speculation of a decoupling that would bring about the focusing of control accounting systems on the sole scope of financial and economic measures and reporting. The study will use a survey method of quantitative research to examine the impacts of the inclusion of environmental and social dimensions to the management accounting basic functions. It will engage workers of entities working in Lebanon. A survey will examine management accountants’ perceptions about the Environmental Management Accounting. The results will show the possibilities of actions of the environmental management accounting and the arbitration between financial priorities, environmental and social issues and will propose different configurations of environmental management accounting.

A Focus on ‘Control’: Reconciling Contemporary Transaction Cost Economics with Behavioural Contingency Accounting Perspectives

Transaction cost economics and contingency research in managerial accounting currently are approached largely as two formally distinct fields of study. This brief review paper aims to reconcile the literature on both subjects in so far as possible, by examining broadly their underlying assumptions and reported conclusions with the view towards identifying differences and similarities. An important integration is achieved by showing that transaction cost economics and the ‘decision influencing’ role of management accounting concentrate essentially on different aspects to a shared concern with organisational control. However, it additionally is revealed that transaction cost economics does not account adequately for the existence of management accounting’s ‘decision facilitating’ function, and that in comparison to the former the latter’s relatively stronger empirical focus is more suited towards finding potential solutions to the actual control problems which confront real organisations. The paper concludes by observing that both paradigms presently to a large extent do not pay attention to a particular principal-agent situation in which control may need to be exercised.

Management Accounting Maturity Levels Continuum Model: a Conceptual Framework

Until now, in the financial domain, there were only few attempts made to develop maturity models – a useful tool to identify strengths and weaknesses of certain domains of an organization. The aim of this paper is to present a maturity model for management accounting. The method used to develop the model is an interpretive approach, in which an exploratory sequential mixed method research design was applied to broadly explore and understand data on management accounting systems in various settings and in its historical perspective. This study extends my previous research on development of management accounting and financial leadership (Lebedev, 2014, 2015, 2016, 2018, 2019b, 2019a). The framework traces 10 prototype roles of management accounting along their continuum of maturity (from “non-existent” to “strategic leadership”). Each maturity level reflects the extent to which management accounting creates value for its users based on the support provided for “conversations” among stakeholders, the deepness of leadership “embodied” into the management accounting function, and the effectiveness of management accounting principles and management accounting practices (MAPs) employed. This study contributes to the theory of management accounting by offering a framework for understanding of the evolution of financial function and management accounting. In practical terms, the results of the research could be applied to support decisions in transformation of financial function along its maturity continuum (both conducted internally by managers and/or with external support of consultants and advisors), supporting the process of reconciliation of current practices of a company being transformed to a proposed transformational strategy and chosen direction of implementation.

Integrated Management Approach Towards Sustainability: An Egyptian Business Case Study

Several studies have focused mainly on the following approach to tackle sustainable development issues at the management level: single sustainability managerial tools adoption (e.g., sustainable balance scorecard) and the “overlap” process between traditional management practices and sustainability-oriented ones. Conversely, integration as an “alignment” process between different sustainability management practices represents a research field, which is currently underinvestigated. Filling this gap, the purpose of the present study is to deepen and find empirical evidence on how sustainability management accounting, control, and reporting systems can be integrated through an alignment process. To this aim, we focused our analysis on a Mediterranean holding company, which is a well-known sustainable corporate practitioner to foster sustainable development in a socioeconomic and environmental problematic context. Therefore, we developed a single business case study analyzing an Egyptian firm to give practical evidence on the role of management accounting, control, and reporting practices in addressing sustainability issues. The analysis shows that the aligning process of different management practices involves a plurality of business aspects to manage, among them cultural and organizational ones. Despite its complexity, such a process is fundamental to pursue medium–long-term goals, ensuring sustainable firm growth and social wellbeing.

Perspectives of accounting students and teachers on the changing role of management accountants in organisations

Owing to a highly competitive global market, economic crises and changes in manufacturing and information technology, organisations are compelled to improve their financial planning and control functions. These and other changes have contributed to the evolving role of the management accounting function in organisations. Whereas cost accounting’s main focus was on finding the cost of manufacturing products, the objective of management accounting is to use financial and non-financial information to assist management with decision making. Although management accountants have long played multiple roles in organisations, there is a definite shift towards a more strategic approach, opening up new vistas of opportunity. However, this widening scope of the changing practice of management accounting demonstrates a lack of a recognisable and coherent occupational identity. The objective of this study was to determine whether prospective accounting students and accounting teachers are aware of the changing role and status of management accountants. This study presents the results of a survey among fi rst-year accounting students as well as interviews with accounting teachers to assess their perceptions of the current role of management accountants in organisations. This study exposes a lack of knowledge of the status of management accountants and their strategic role in organisations. Recommendations are made for tertiary institutions to alleviate this information gap and for further research on this issue.

Changing Role of Management Accounting in 21st Century

Accounting is a changing phenomenon. Applied sciences and concepts continuously evolve and redefine accounting. Management accounting is a subfield of accounting that plays a vital role in the enterprise environment. This study highlights the changing role of management accounting in 21st century focusing on purpose, function, and role of information technology on its transformation. The main source of information retrieval has been taken from web and search engines. The framework of the study has outlined into historical need for reforming management accounting system, future direction, new scope, trends, role of information technology in management accounting transformation, and the changing role of management accountants. It will be of remarkable significance to reap a proper understanding of how management accounting works locally and globally. The 21st century has viewed the emergence of information age and the resulting economy driven by knowledge as a source of competitive advantage. Therefore, this era calls for professionals with an appropriate balance between technical skills and breadth of knowledge to be compatible with the ongoing transformation.

Outsourcing relationship management: accounting in the decision mix

PurposeThe paper aims to examine the role of management accounting and accounting information in decisions to outsource and manage outsourcing relationships.Design/methodology/approachThe paper uses a case study method. Data are collected through semi-structured interviews and informal discussions with executives of the participating companies. Official documents and secondary materials were analysed.FindingsThe findings of these cases present evidence of some roles given to accounting information and varying tasks assumed by accountants and finance staff in the outsourcing projects undertaken. These roles and tasks range from financial evaluation of new outsourcing proposals and alternatives, consultation and price negotiations in the planning and feasibility stages to the management of outsourcing relationships including monitoring, cost analysis, performance measurement, internal audit, design and implementation of risk-reward payment schemes. Managing the outsourced functions in one case involved in the use of informal control mechanisms such as trust, knowledge sharing, mutual understanding and cooperation between partners.Practical implicationsThe paper highlights the role of management accounting and information in outsourcing relationship management and evaluation. The case findings provide the opportunity for management practitioners to understand the strategic role of management accountants in the management of inter-firm relationships.Originality/valueThe case study presents new empirical evidence of the role of management accounting and accounting information in the management control of outsourcing relationships.

Exploring management accountants’ role conflicts and ambiguities and how they cope with them

PurposeThe aim of this study is to explore the nature of the expectations of operations managers (OMs) and the enacted roles of management accountants (MAs) and to understand how MAs construct roles around these expectations.Design/methodology/approachA qualitative design draws upon company documentation and 36 semi-structured interviews with MAs and OMs. The study uses role theory as a theoretical lens with its core concepts of role expectations, role conflict and role ambiguity. The design draws from role theory’s original development and testing to pair particular roles of MAs with particular roles of OMs in operational settings.FindingsThe findings indicate that there are a number of different forms of OMs’ expectations giving rise to role conflicts and role ambiguity for the roles of MAs. OMs’ expectations were identified as conflicting expectations, ambiguous expectations, overloaded expectations and underloaded expectations. MAs construct roles in different ways around these OMs’ expectations, including prioritising the line function, competence deployment, non-accommodation and communication. Factors moderating OMs’ expectations are also identified, including characteristics of the OM and the role of the finance manager.Research limitations/implicationsThe study is based on an in-depth investigation of a small number of roles of MAs paired with OMs, and no assurances can therefore be given regarding generalisability of the findings.Practical implicationsThe results provide an understanding of the varied nature of expectations that OMs have of MAs and mechanisms through which MAs can address these expectations. It suggests ways in which both MAs and OMs in operational settings can reduce conflicts and ambiguities.Originality/valueThis paper provides an in-depth analysis of the expectations of OMs in relation to the roles of MAs and contributes to the literature on the roles of MAs using role theory. It shows how different forms of OMs’ expectations have related mechanisms used by MAs to navigate these expectations through role constructions.

Ethical Implications of Management Accounting and Control: A Systematic Review of the Contributions from the Journal of Business Ethics

Management accounting and control seeks to provide information that substantiates decision-making at all firm levels and thus may also foster ethical decision-making. Against this background, this article presents a systematic literature review of research on management accounting and control and business ethics that has been published in the Journal of Business Ethics. Through this review, we intend to bring to the forefront a research topic that has been widely neglected in broader literature reviews on accounting ethics research and that has been covered by a small number of articles published by traditional leading accounting journals only. Our systematic literature review is guided by a theoretical framework that integrates the decision-facilitating and decision-influencing roles of management accounting and control information and the stages of the ethical decision-making process. Through this theoretical lens, we analyze 64 management accounting and control articles published in the Journal of Business Ethics over more than three decades. Synthesizing and structuring this research, we discuss prior accomplishments and elaborate on avenues for future research.

A research note of potential scientific management accounting research area in CEECs

The paper is a commentary on the future of management accounting in Central and Eastern European countries, portrayed in the manuscript in the Journal Sustainability in its Special Issue titled “Corporate Social Responsibility (CSR) in Developing Countries: Current Trends and Development”. The manuscript “The Development Perspectives of Sustainable Management Accounting in Central and Eastern European Countries” written by Beata Zyznarska-Dworczak promotes the role of management accounting in a wider social, ethical, environmental, cultural and historical context. This approach contributes to the understanding of sustainable management accounting towards socio-economic transformations and developments in Central and Eastern European countries, in the research perspectives of alternative management accounting. It encourages to treat sustainable management accounting as a social and institutional activity, realizing a complementary role (to conventional) of the management accounting system in this region of Europe because of its emerging economy perspective. This approach determines new potential scientific management accounting research area. The aim of this paper is to outline the potential for researchers to influence the development perspectives of sustainable management accounting. The paper, as a thought provoking discussion of science, raises the following questions: may the alternative context of sustainable management accounting provide opportunities for researchers investigating accounting issues in Central and Eastern European countries? is it possible to combine alternative perspectives into management accounting research? how to combine it with conventional economics-based mainstream research? How to measure corporate sustainability performance in management accounting system?

Tasks, interaction and role perception of management accountants: evidence from Germany

The role of management accountants (MAs) has been discussed for more than a decade. Scholars as well as practitioners advocate a new role for MAs: the business partner who is involved in managerial decisions and strategic tasks. This is contrasted with the “bean counter” doing more repetitive and operational tasks. Different tasks and accountant–manager interactions are important indicators of MAs’ roles. An empirical assessment of them would allow us to understand what roles MAs fulfill and which contingency factors impact roles. Contrasting results on tasks and interaction with self-perceived roles of MAs helps to understand the extent of self-serving perception. The sample consists of 183 German MAs. Data were analyzed using multivariate multilevel modeling and ordinal regression. On a descriptive level, the results indicate an extension of tasks from operational into strategic areas. That supports the notion of role extension and so-called hybrid MAs. The main contingency factors affecting roles are the position of MAs, the hierarchical level of the MA function, group affiliation and capital market orientation. The second result is that role perception of respondents is independent of what they do and how intensively they interact with managers. It follows from the study that assuming clear-cut roles and transition to one role is too simplistic. A great variety of tasks and interactions of MAs exists. Future studies should take this complexity fully into account. Additionally, self-rating and self-perceived roles do not seem to be coherent with responses of MAs on what they do and how intensively they interact with managers, which is explained by self-serving bias.

Managing the Impact of Economic Recession on Nigerian Economy: The Role of Management Accountants

Managing the Impact of Economic Recession on Nigerian Economy: The Role of Management Accountants