Management accountants and strategic management accounting: The role of organizational culture and information systems
Management accountants and strategic management accounting: The role of organizational culture and information systems
This study aims to contribute to the scant contingency theory literature on the determinants of strategic management accounting (SMA) practices and the role management accountants play. We develop and test a more complex theoretical model than in prior studies, to simultaneously examine the role of three variables: management accountant networking, information systems (IS) quality and organizational culture. These have not been examined in a single model before in the SMA literature. Using data from 149 UK manufacturing business units and the partial least square structural equation modeling, our findings document a positive relationship between management accountant networking and the implementation of SMA practices. However, this relationship is positively moderated by IS quality, which further enables management accountants to implement SMA practices. Unlike IS quality, we do not find empirical support for similar moderating effects by the outcome-oriented culture and innovation-oriented culture. Instead, the innovation-oriented culture has a significant indirect positive effect on SMA implementation through management accountant networking but not a direct one. In contrast, we find a direct positive impact of outcome-oriented culture on SMA implementation but not an indirect one through management accountant networking. These results suggest that in outcome-driven business units, the implementation of SMA practices may not be limited to the accounting function. Managers in other functions may be motivated to implement SMA practices even when management accountants are not part of the process.
Information system quality, Management accountant networking, Organizational culture, Strategic management accounting
Hadid, Wael
04eaec8f-9d51-4d07-b77d-0f2638027548
Al-Sayed, Mahmoud
f860b45e-e641-4e16-b4f8-6baf99b122f4
March 2021
Hadid, Wael
04eaec8f-9d51-4d07-b77d-0f2638027548
Al-Sayed, Mahmoud
f860b45e-e641-4e16-b4f8-6baf99b122f4
Hadid, Wael and Al-Sayed, Mahmoud
(2021)
Management accountants and strategic management accounting: The role of organizational culture and information systems.
Management Accounting Research, 50, [100725].
(doi:10.1016/j.mar.2020.100725).
Abstract
This study aims to contribute to the scant contingency theory literature on the determinants of strategic management accounting (SMA) practices and the role management accountants play. We develop and test a more complex theoretical model than in prior studies, to simultaneously examine the role of three variables: management accountant networking, information systems (IS) quality and organizational culture. These have not been examined in a single model before in the SMA literature. Using data from 149 UK manufacturing business units and the partial least square structural equation modeling, our findings document a positive relationship between management accountant networking and the implementation of SMA practices. However, this relationship is positively moderated by IS quality, which further enables management accountants to implement SMA practices. Unlike IS quality, we do not find empirical support for similar moderating effects by the outcome-oriented culture and innovation-oriented culture. Instead, the innovation-oriented culture has a significant indirect positive effect on SMA implementation through management accountant networking but not a direct one. In contrast, we find a direct positive impact of outcome-oriented culture on SMA implementation but not an indirect one through management accountant networking. These results suggest that in outcome-driven business units, the implementation of SMA practices may not be limited to the accounting function. Managers in other functions may be motivated to implement SMA practices even when management accountants are not part of the process.
Text
SMA paper- MAR- R2
- Accepted Manuscript
More information
Accepted/In Press date: 20 November 2020
e-pub ahead of print date: 28 November 2020
Published date: March 2021
Keywords:
Information system quality, Management accountant networking, Organizational culture, Strategic management accounting
Identifiers
Local EPrints ID: 445985
URI: http://eprints.soton.ac.uk/id/eprint/445985
ISSN: 1044-5005
PURE UUID: 2594cc4f-e141-4ce3-9da4-d825e383ccce
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Date deposited: 18 Jan 2021 17:31
Last modified: 17 Mar 2024 06:09
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Author:
Wael Hadid
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