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

2012 ◽  
Vol 28 (2) ◽  
pp. 193 ◽  
Author(s):  
Alfred E. Seaman ◽  
John J. Williams
Keyword(s):  
Corporate Governance ◽  
Management Accounting ◽  
Systems Change ◽  
Future Research ◽  
Moderating Effects ◽  
Accounting Systems ◽  
Management Accounting Systems ◽  
Significant Relationships ◽  
Improved Performance ◽  
The Impact

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.

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

2010 ◽  
Vol 26 (5) ◽  
Author(s):  
John J. Williams ◽  
Alfred E. Seaman
Keyword(s):  
Management Accounting ◽  
High Reliability ◽  
Explanatory Power ◽  
Systems Change ◽  
Governance Structure ◽  
Accounting Systems ◽  
Management Accounting Systems ◽  
Performance Dimensions ◽  
The Impact ◽  
Performance Dimension

<p class="MsoNormal" style="text-align: justify; line-height: normal; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; 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;">&nbsp; </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;">&nbsp; </span>Survey data was obtained from top-level accounting professionals in a sample of 124 Canadian firms.<span style="mso-spacerun: yes;">&nbsp; </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;">&nbsp; </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;">&nbsp;</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>

The Impact Of Information Technology On Performance: The Mediating Role Of Management Accounting Systems

2012 ◽  
Author(s):  
Noor Azizi Ismail
Keyword(s):  
Information Technology ◽  
Information Systems ◽  
Firm Performance ◽  
Management Accounting ◽  
Accounting Information ◽  
Accounting Systems ◽  
Mediating Role ◽  
Management Accounting Systems ◽  
The Impact ◽  
The Relationship

Kertas kerja ini melaporkan hasil kajian yang menerangkan hubungan antara kecanggihan Teknologi Maklumat (IT) dan prestasi firma yang bersaiz kecil dan sederhana (SMEs), dengan memasukkan ke dalam model kajian, keupayaan sistem perakaunan pengurusan untuk menghasilkan maklumat perakaunan pengurusan (kapasiti MAS). Bagi menguji hubungan tersebut, data telah dikumpul daripada 310 firma menggunakan kaedah soal selidik. Hasil ujian menunjukkan bahawa kecanggihan IT merupakan penentu kepada kapasiti MAS, sementara kapasiti MAS pula akan menentukan prestasi firma. Dalam kata lain, kapasiti MAS memainkan peranan sebagai penghubung antara kecanggihan IT dengan prestasi firma. Interpretasi hasil ujian ini ialah firma yang menggunakan IT yang lebih canggih akan dapat menghasilkan maklumat perakaunan pengurusan yang mencukupi dan seterusnya dapat meningkatkan prestasi firma. Kata kunci: Teknologi Maklumat, sistem maklumat, sistem perakaunan pengurusan, sistem maklumat perakaunan, industri kecil dan sederhana This paper reports the results of a study which offers an explanation for the relationship between Information Technology (IT) sophistication and performance of small and medium sized enterprises (SMEs), by incorporating into the model of the capability of management accounting systems to generate management accounting information (MAS capacity). To assess the relationship, data were collected from 310 (25% response rate) SMEs by way of questionnaire surveys. The results indicate that IT sophistication is a determinant of MAS capacity, which, in turn, is a determinant of firm performance. In other words, MAS capacity plays a mediating role in the relationship between IT sophistication and firm performance. An interpretation of the results is that those firms that employed sophisticated IT can generate sufficient management accounting information and thereby improve performance. Key words: Information Technology, information systems, management accounting system, accounting information systems, small and medium enterprises

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

2011 ◽  
Vol 22 (1) ◽  
Author(s):  
Alfred E. Seaman ◽  
John J. Williams
Keyword(s):  
Management Accounting ◽  
Environmental Uncertainty ◽  
Accounting System ◽  
Industrial Firms ◽  
Accounting Systems ◽  
Managerial Performance ◽  
Management Accounting Systems ◽  
Improved Performance ◽  
Primary Hypothesis ◽  
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;">&nbsp; </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&ndash;performance relationship.<span style="mso-spacerun: yes;">&nbsp; </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;">&nbsp; </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;">&nbsp; </span>When PEU is low, a &lsquo;defensive&rsquo; 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 &lsquo;aggressive&rsquo; 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>

The alignment between management accounting and lean manufacturing: rhetoric and reality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amanda Oliveira Fontenelle ◽  
Juliana Keiko Sagawa
Keyword(s):  
Case Studies ◽  
Lean Manufacturing ◽  
Management Accounting ◽  
Future Research ◽  
Maturity Model ◽  
Accounting Systems ◽  
Content Type ◽  
Management Accounting Systems ◽  
Function Management ◽  
Lean Accounting

Purpose Lean manufacturing (LM) has advocated gains by reducing waste and intensifying continuous improvement. As a holistic organizational policy, it must overpass the limits of the manufacturing function. Management accounting should be aligned to lean thinking, aiming to meet the demands and goals of a lean organization. This paper aims to investigate the degree of alignment between management accounting systems and LM practices. Design/methodology/approach Two representative case studies were carried out in industry leaders in the implementation of LM, in Brazil. The key research constructs and were identified by means of a systematic literature review. The rhetoric and practice concerning the alignment between management accounting and LM are discussed based on the existing theory and the conducted case studies. Findings The analysis showed that many of the principles that form the rhetoric of lean accounting are far from the accounting practices observed in the companies. Using the theory-building function of case studies, 10 propositions to be tested in future research are proposed. The main propositions are also summarized in a framework based on analogies with optical lenses. Originality/value To the best of the knowledge, there are no previous in-depth studies focusing on characterizing this alignment between management accounting and LM practices. The analysis yields prescriptive directions for managers that seek to improve this alignment in their business. This study also proposes a five-stage maturity model, which can be used by the managers to assess this alignment and to set goals for reaching more advanced levels of maturity.

scholarly journals Separation – integration – and now …? A historical perspective on the relationship between German management accounting and financial accounting

2016 ◽  
Vol 22 (1) ◽  
pp. 67-91 ◽  
Author(s):  
Michael Brandau ◽  
Christoph Endenich ◽  
Robert Luther ◽  
Rouven Trapp
Keyword(s):  
Management Accounting ◽  
Transformation Process ◽  
Financial Accounting ◽  
Future Research ◽  
Institutional Pressures ◽  
Commercial Law ◽  
Accounting Systems ◽  
Current Accounting ◽  
Management Accounting Systems ◽  
The Relationship

German accounting has traditionally followed a dual ledger approach with strictly separated internal cost accounting, as the basis for management information, and external financial accounting focusing on creditor protection and based on the commercial law. However, the increased adoption of integrated accounting systems implies a significant change in the relationship between financial and management accounting systems. We use Hegelian dialectic to trace the historical development of German accounting from separated systems and antithetical propositions of full integration, to the emergence of partial integration as the synthesis of this transformation process. The foundation of our paper is a comprehensive analysis of the literature on the relationship between financial and management accounting in Germany. On this basis, we elaborate how financial accounting in Germany has been shaped by its economic context and legislation, and how financial accounting – accompanied by institutional pressures – in turn influenced management accounting. We argue that the changing relationship between management and financial accounting in the German context illustrates how current accounting practice is shaped not only by its environment, but also by its historical path. Based on this reasoning, we discuss several avenues for future research.

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