Do innovation attributes really drive the diffusion of management accounting innovations? Examination of factors determining usage intensity of strategic management accounting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Babajide Oyewo
Keyword(s):  
Factor Analysis ◽  
Strategic Management ◽  
Management Accounting ◽  
Environmental Uncertainty ◽  
Relative Advantage ◽  
Competitive Strategies ◽  
Content Type ◽  
Future Studies ◽  
Strategic Management Accounting ◽  
Innovation Attributes

PurposeThis study investigates the usage of modern management accounting techniques popularly referred to as “strategic management accounting” (SMA), and the extent to which innovation attributes (namely relative advantage, compatibility, complexity, trialability and observability) determine SMA usage intensity.Design/methodology/approachSurvey data was obtained through a structured questionnaire from 45 out of 56 publicly listed manufacturing companies on the Mainboard of the Nigerian Stock Exchange. Descriptive statistics, one-way ANOVA, exploratory factor analysis, confirmatory factor analysis and structural equation modelling were used to analyse data.FindingsWhereas the overall usage rate of SMA as an innovation is generally moderate, there is significant difference in SMA usage intensity across industries in the manufacturing sector due to environmental uncertainty. Compatibility emerged as the strongest determinant of SMA usage intensity, implying that commercial enterprises would intensely apply SMA to remain innovative, to continuously improve and to incorporate strategy in accounting practice in a bid to survive competition. SMA will witness extensive usage if it aligns with the competitive strategies of an organisation.Research limitations/implicationsThe attributes of innovation measured treat all SMA techniques as one, but did not measure relative advantage, compatibility, complexity, trialability and observability for each of the techniques. Future studies may consider investigating how innovation attributes specifically affect each SMA technique. The dimension of compatibility investigated in the study lean towards the alignment of SMA with competitive strategies. Taking into account the multidimensionality of compatibility as an innovation attribute, future studies may examine how past experience of implementing new ideas, as well as compatibility of SMA with corporate culture and value system, affect the dissemination and diffusion of management accounting innovations.Practical implicationsThe paper proposes that although innovation attributes may partly explain SMA usage, coercive factors such as competition and environmental uncertainty may also be responsible for the decision to adopt innovative management accounting practices. The study therefore calls for a critical appraisal of how coercive institutional factors such as competition, regulation and actions of key stakeholders influence the decision of organisations to adopt an innovation.Originality/valueThis paper contributes to knowledge by challenging existing knowledge and presenting evidence that innovation attributes acclaimed to determine the spread of an innovation may be inapplicable in certain settings due to some environmental challenges. The study also contributes to knowledge by developing a composite scale for measuring innovation attributes specifically adapted to management accounting innovation, which can be used in future studies.

An empirical investigation of strategic management accounting in hotels

2015 ◽  
Vol 27 (5) ◽  
pp. 756-767 ◽  
Author(s):  
Odysseas Pavlatos
Keyword(s):  
Strategic Management ◽  
Management Accounting ◽  
Environmental Uncertainty ◽  
Organizational Factors ◽  
Survey Method ◽  
Content Type ◽  
Strategic Management Accounting ◽  
Historical Performance ◽  
Perceived Environmental Uncertainty ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the relationship between contextual factors, strategic management accounting (SMA) and historical performance in hotels. Design/methodology/approach – An empirical survey was conducted on a sample of 106 leading hotels in Greece. Findings – The analysis of the survey data indicates that seven contingent factors affect SMA usage in hotels: The seven factors are perceived environmental uncertainty, structure, quality of information system (IS) information, organizational life cycle stage, historical performance, strategy and size. The findings also indicate that lagging performance affects SMA and that this effect is moderated by the perceived environmental uncertainty. Research limitations/implications – Some of the limitations are inherent to the survey method used, such as the use of perceptual measures and the potential of common method bias. Data were collected from the Greek hospitality industry, and consequently, the results may be generalizable only to that population. Practical implications – The accounting professionals and hotel managers will also be benefited, as the study aims to identify the most relevant SMA tools adopted in the hotel industry, as well as the relationship between these tools and other external and organizational factors. Originality/value – This research adds to the current knowledge in management accounting system design in hotels. This paper increases the understanding as to why hotels are more likely to implement SMA. The results provide the first empirical evidence of the relation between SMA usage, organizational factors, external factors and historical performance in hotels.

Linking strategic management accounting and quality management systems

2018 ◽  
Vol 24 (6) ◽  
pp. 1302-1320 ◽  
Author(s):  
Leonardo Sedevich-Fons
Keyword(s):  
Quality Management ◽  
Strategic Management ◽  
Management System ◽  
Quality Management System ◽  
Management Accounting ◽  
Simultaneous Application ◽  
Content Type ◽  
Area Of Interest ◽  
Strategic Management Accounting ◽  
Joint Consideration

Purpose Quality management is gradually becoming an area of interest among management accounting practitioners and scholars because of its significant effects on performance and increasing adoption by organizations. Therefore, the purpose of this paper is to explore the relationships between these two broad disciplines and provide guidelines for their joint consideration. Design/methodology/approach Two specific management innovations are analyzed in detail: strategic management accounting (SMA) and ISO 9000 quality management system (QMS). Such an analysis includes a literature review of both frameworks, the identification of benefits associated with their simultaneous application and the design of a comprehensive model integrating their individual principles. Findings It is concluded that these management schemes are compatible and complementary from a theoretical standpoint; and that, therefore, their combined implementation might help organizations improve overall performance. It is also argued here that their use in conjunction could facilitate the spread of SMA techniques and the full exploitation of QMSs. Originality/value A new management system proposing the incorporation of SMA tools into traditional QMSs is introduced, and some recommendations for its practical use are presented.

Organizational lifecycle and strategic management accounting

2019 ◽  
Vol 15 (4) ◽  
pp. 580-604 ◽  
Author(s):  
Timur Pasch
Keyword(s):  
Strategic Management ◽  
Management Accounting ◽  
Development Stage ◽  
Management Control ◽  
Content Type ◽  
Performance Effect ◽  
Life Cycle Stages ◽  
Strategic Management Accounting ◽  
German Speaking ◽  
Organizational Lifecycle

Purpose This study aims to examine the relationship between organizational lifecycle stages, the adoption of strategic management accounting (SMA) practices and the performance consequences of SMA adoption. Design/methodology/approach The analysis is based on survey data from 377 firms operating in German speaking countries. Findings The author finds that the firms’ adoption rates of SMA increase from the birth to the revival lifecycle stages and drop at the decline stage. Firms that deviate from the optimal SMA profile have lower performance compared to the firms that do not deviate. The negative performance effect, however, is only significant for firms that have too little SMA practices and is not significant for firms that adopt too much SMA practices. Research limitations/implications These results suggest that firms that fail to implement a sufficient level of SMA suitable for their development stage will not develop as fast as their competitors. This study is subject to general limitations of survey research, particularly with respect to the operationalization of the variables, the number of contextual variables in the empirical model and sample coverage. Practical implications The implication for managerial practice is that greater efforts should be directed toward eliminating underfit than overfit regarding the implementation of management control systems. Originality/value This is the first analysis of the adoption of SMA at different life cycle stages and the consequences of misfitted adoption.

The indirect effect of strategic management accounting in the relationship between CEO characteristics and their networking activities, and company performance

2017 ◽  
Vol 13 (4) ◽  
pp. 471-491 ◽  
Author(s):  
Abolfazl Amanollah Nejad Kalkhouran ◽  
Bahareh Hossein Nezhad Nedaei ◽  
Siti Zaleha Abdul Rasid
Keyword(s):  
Strategic Management ◽  
Indirect Effect ◽  
Management Accounting ◽  
Chief Executive ◽  
Company Performance ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Strategic Management Accounting ◽  
The Impact ◽  
Ceo Characteristics

Purpose The purpose of this paper is to investigate the effect of chief executive officer (CEO) characteristics and involvement in networks on strategic management accounting (SMA) and, in turn, the indirect effect of SMA on company performance. Design/methodology/approach A model is advanced and tested using partial least-squares path modelling and data were collected from a sample of 121 service small and medium-sized enterprises (SMEs) in Malaysia. Findings The results indicate significant and positive relationships between the CEO education and the application of SMA as well as between involvement in networks and SMA. Moreover, it is found that SMA has an indirect effect in relations of CEO education, involvement in networks and company performance. Practical implications SMEs’ leaders may realize their important role in affecting outcomes by their choices, which are in turn affected by their characteristics and activities. Originality/value This study provides an empirical evidence on the impact of two new factors on the SMA by considering contingency theory and upper echelons theory simultaneously for explaining relationships and developing a new model.

Relationship between strategic management accounting techniques and profitability – a proposed model

2014 ◽  
Vol 18 (3) ◽  
pp. 1-22 ◽  
Author(s):  
Abeer Abdelmoneim Mohamed ◽  
Tracy Jones
Keyword(s):  
Strategic Management ◽  
Management Accounting ◽  
Information And Communications Technology ◽  
Communications Technology ◽  
Content Type ◽  
Technology Sector ◽  
Strategic Model ◽  
Strategic Management Accounting ◽  
Proposed Model ◽  
Prior Literature

Purpose – The purpose of this study is to propose a comprehensive strategic model to manage profitability. Strategic management accounting concepts and tools are adopted to explore and manage the main profitability drivers (cost, assets, and revenue). Design/methodology/approach – A deductive approach is used to identify the variables of the profitability model. Phase one of this study rely on reviewing prior literature in the field in order to identify the key profitability drivers that uses in managing profitability (costs, assets and revenue).Phase two of the research focuses on testing the perceptions of the managers of Egyptian “Information and communications technology” sector, the relative merits of such a model. Findings – The most important finding in the current study, which has not been investigated in previous studies, is that the proposed comprehensive profitability model which contains cost, the assets and revenue techniques was a better predictor of profitability than the alternative models, which contain a combination of two variables. Originality/value – As the first study of its kind, this model contributes to the theoretical literature in the field. It is also a practical contribution in managing profitability of the Egyptian “Information and communications technology” sector.

scholarly journals Revisiting the relevance of strategic management accounting research

2020 ◽  
Vol 4 (2) ◽  
pp. 129-148 ◽  
Author(s):  
Md Mamunur Rashid ◽  
Md Mohobbot Ali ◽  
Dewan Mahboob Hossain
Keyword(s):  
Strategic Management ◽  
Organizational Context ◽  
Management Accounting ◽  
Employee Performance ◽  
Case Study Method ◽  
Content Type ◽  
Strategic Management Accounting ◽  
Adoption And Implementation ◽  
Influential Paper

Purpose The purpose of this study is to present a review of the literature on strategic management accounting (SMA). Specifically, it focuses on the trend of SMA research since the publication of Langfield-Smith’s (2008) influential paper “Strategic management accounting: how far have we come in 25 years?” which raised the question of relevance of further SMA research. Design/methodology/approach The study reviewed articles published on SMA as a whole (comprising a set of advanced management accounting techniques) and its specific techniques for the period of 2008 to 2019 in 23 leading accounting journals. Findings The review finds that research on SMA has focused on the contingencies influencing the adoption and implementation of SMA techniques and the effects of such adoption on various aspects of firm and employee performance. The renovation and modification of existing practices in attempt to match with the organizational context has also attracted the attention of several SMA scholars. In addition, a noticeable shift to the strategic management theory and case study method was observed during the study period. Originality/value The study focuses on the trend of SMA research in an attempt to revisit the relevance of further research in this arena, particularly as a response to the criticism raised by Langfield-Smith (2008).

Strategic management accounting practices in hospitals

2013 ◽  
Vol 9 (3) ◽  
pp. 336-369 ◽  
Author(s):  
Maik Lachmann ◽  
Thorsten Knauer ◽  
Rouven Trapp
Keyword(s):  
Strategic Management ◽  
Management Accounting ◽  
Structural Characteristics ◽  
Capital Budgeting ◽  
Future Research ◽  
Content Type ◽  
Performance Differences ◽  
Strategic Management Accounting ◽  
Starting Point ◽  
The Impact

PurposeThe purpose of this paper is to give an overview of the use of strategic management accounting (SMA) techniques in hospitals under competitive market environments. The paper analyses the dissemination of SMA techniques in consideration of structural characteristics and perform a cluster analysis in order to investigate performance differences between various groups of hospitals.Design/methodology/approachThe paper collected empirical data in a nationwide survey of German general hospitals. Analyses are based on questionnaires from 116 hospitals.FindingsResults show that strategies are applied and regularly adjusted in most hospitals. However, SMA techniques are not in widespread use. The paper explores performance differences between the clusters comprised. The paper finds evidence that the use of SMA techniques varies among hospitals based on their structural characteristics.Research limitations/implicationsThe authors' exploratory analysis suggest that further study exploring both the determinants and effects of the use of SMA techniques in hospitals represents an interesting path for future research. This study is subject to limitations, particularly concerning the limited number of contextual variables and performance measures taken into consideration.Practical implicationsConsidering the limited use of SMA techniques, this paper conclude that hospitals should consider the adoption of additional practices. The paper identifies particular potential for development in the areas of risk management and capital budgeting methods.Originality/valueThis study provides the first comprehensive overview of SMA techniques used in hospitals and advances the literature, which primarily includes case study evidence on single SMA techniques or analyses of the impact of strategies and health reforms on “conventional” management accounting practices. This paper, then, constitutes a useful starting point for further research on SMA practices in hospitals.

Effect of corporate governance characteristics on strategic management accounting in Thailand

2017 ◽  
Vol 25 (1) ◽  
pp. 85-105 ◽  
Author(s):  
Teerachai Arunruangsirilert ◽  
Supasith Chonglerttham
Keyword(s):  
Corporate Governance ◽  
Strategic Management ◽  
Audit Committee ◽  
Stock Exchange ◽  
Management Accounting ◽  
Management Strategies ◽  
Primary Data ◽  
Business Success ◽  
Content Type ◽  
Strategic Management Accounting

Purpose The purpose of this paper is to explore relationships between corporate governance characteristics and strategic management accounting (SMA). The relationships provide insight into a debatable issue of whether corporate governance characteristics affect applications of SMA in Thailand. SMA is supporting tools for an organization to effectively execute its management strategies aiming for business success. Design/methodology/approach This study analyzes primary data from survey and corporate governance data from year 2011 to 2013 of companies listed on the Stock Exchange of Thailand. Findings Results show that corporate governance characteristics significantly affect SMA in two aspects, namely, participation and usage. This study finds some results that, on the one hand, separation of CEO’s role and chairmanship, size of independent board, and frequency of audit committee meetings positively affect both participation and usage. On the other hand, an independent chairman and board size negatively affect both participation and usage. Originality/value Findings confirm framework of enterprise governance issued by the International Federation of Accountants that not only does corporate governance provides assurance control, but it also provides strategic governance through behavioral applications of SMA tools and supports.

Association between strategic management accounting facets and organizational performance

2019 ◽  
Vol 14 (2) ◽  
pp. 212-234 ◽  
Author(s):  
Ahmad Mohammed Alamri
Keyword(s):  
Strategic Management ◽  
Financial Performance ◽  
Organizational Performance ◽  
Organizational Context ◽  
Stock Exchange ◽  
Management Accounting ◽  
Data Set ◽  
Content Type ◽  
Strategic Management Accounting ◽  
The Impact

Purpose The purpose of this paper is to develop an extensive conceptualization of strategic management accounting (SMA) facets, as well as to explore the impact of these facets on both financial and non-financial measures of organizational performance (OP). Design/methodology/approach Data are collected from 435 accounting managers working in Saudi companies listed in the Saudi Stock Exchange. The study applies hierarchical regression analysis to test the association between SMA facets and OP. Findings The results show that SMA facets significantly affect OP, assessed in the two major categories of financial and non-financial performance. Research limitations/implications The dominance of companies listed in the Saudi Stock Exchange in the data set limits the generalizability of the findings. Practical implications The present study supports the idea that companies can enhance their OP by adopting some facets of SMA such as the availability of appropriate structural arrangements, supportive resources, adequate information types and usages and good organizational climate. Originality/value The current study expands the conceptualization of SMA in light of organizational context as a set of facets to overcome the polarization found in the existing literature and explores their impact on OP, including non-financial performance, for which empirical evidence is still scant.

Sign in / Sign up

Export Citation Format

Share Document