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The Global Management Accounting Principles (GMAP) and the relationship between organizational design elements

The Global Management Accounting Principles (GMAP) and the relationship between organizational design elements
The Global Management Accounting Principles (GMAP) and the relationship between organizational design elements
Purpose: this study investigates the relationship between organizational design elements (i.e., quality of management accounting skills and performance management system, PMS), management accounting practice (MAP) sophistication and organizational competitiveness using the Global Management Accounting Principles (GMAP) framework.

Design/methodology/approach: survey data was obtained through a structured questionnaire from 131 Nigerian firms. Measures of the quality of management accounting skills, robustness of PMS structure, MAP sophistication and organizational competitiveness were derived from the GMAP framework. Structural Equation Modelling (SEM) was applied to explore the complexity of relationship among variables.

Findings: whilst the quality of management accounting skills was found to have a positive but insignificant impact on MAP sophistication, the impact of PMS structure on MAP sophistication was positive and significant. MAP sophistication has a positive impact on organizational competitiveness, but the magnitude of its contribution appears to depend on the quality of management accounting skills and the robustness of PMS structure. The inability of MAP sophistication to exert much influence on organizational competitiveness is attributable to the low contribution of management accounting skills. Result supports the proposition that performance is optimized when all organizational design elements are concurrently improved.

Originality/value: the study contributes to knowledge by investigating the quality of management accounting skills and the robustness of PMS as organizational design elements affecting MAP and organizational competitiveness using the GMAP framework. The study operationalizes some elements of the GMAP framework by developing measurements that can be used by future studies.


Practical implications: the study shows that organizations need to critically look into the quality of skills possessed by personnel in the accounting function, as all organizational design elements must be given equal importance to achieve the best results.
1030-9616
Oyewo, Babajide, Michael
36c93e4d-3041-4cef-8a0d-9f72f417e249
Tauringana, Venancio
27634458-b041-4bc1-94da-3e031d777e4f
Omikunle, Babajide
fff67d80-01a6-4230-936a-b38b4524757e
Owoyele, Olusola
cb4f3572-b92a-4f78-8a46-548119c2f4c9
Oyewo, Babajide, Michael
36c93e4d-3041-4cef-8a0d-9f72f417e249
Tauringana, Venancio
27634458-b041-4bc1-94da-3e031d777e4f
Omikunle, Babajide
fff67d80-01a6-4230-936a-b38b4524757e
Owoyele, Olusola
cb4f3572-b92a-4f78-8a46-548119c2f4c9

Oyewo, Babajide, Michael, Tauringana, Venancio, Omikunle, Babajide and Owoyele, Olusola (2022) The Global Management Accounting Principles (GMAP) and the relationship between organizational design elements. Accounting Research Journal. (In Press)

Record type: Article

Abstract

Purpose: this study investigates the relationship between organizational design elements (i.e., quality of management accounting skills and performance management system, PMS), management accounting practice (MAP) sophistication and organizational competitiveness using the Global Management Accounting Principles (GMAP) framework.

Design/methodology/approach: survey data was obtained through a structured questionnaire from 131 Nigerian firms. Measures of the quality of management accounting skills, robustness of PMS structure, MAP sophistication and organizational competitiveness were derived from the GMAP framework. Structural Equation Modelling (SEM) was applied to explore the complexity of relationship among variables.

Findings: whilst the quality of management accounting skills was found to have a positive but insignificant impact on MAP sophistication, the impact of PMS structure on MAP sophistication was positive and significant. MAP sophistication has a positive impact on organizational competitiveness, but the magnitude of its contribution appears to depend on the quality of management accounting skills and the robustness of PMS structure. The inability of MAP sophistication to exert much influence on organizational competitiveness is attributable to the low contribution of management accounting skills. Result supports the proposition that performance is optimized when all organizational design elements are concurrently improved.

Originality/value: the study contributes to knowledge by investigating the quality of management accounting skills and the robustness of PMS as organizational design elements affecting MAP and organizational competitiveness using the GMAP framework. The study operationalizes some elements of the GMAP framework by developing measurements that can be used by future studies.


Practical implications: the study shows that organizations need to critically look into the quality of skills possessed by personnel in the accounting function, as all organizational design elements must be given equal importance to achieve the best results.

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GMAP and Organisational Design Elements ACCEPTED PAPER - Accepted Manuscript
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More information

Accepted/In Press date: 25 February 2022

Identifiers

Local EPrints ID: 455628
URI: http://eprints.soton.ac.uk/id/eprint/455628
ISSN: 1030-9616
PURE UUID: 3d17654f-e365-4e83-8a6a-e0adbf73fa1f
ORCID for Babajide, Michael Oyewo: ORCID iD orcid.org/0000-0002-4499-601X
ORCID for Venancio Tauringana: ORCID iD orcid.org/0000-0002-1433-324X

Catalogue record

Date deposited: 29 Mar 2022 16:47
Last modified: 17 Mar 2024 04:08

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Contributors

Author: Babajide, Michael Oyewo ORCID iD
Author: Babajide Omikunle
Author: Olusola Owoyele

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