Predicting Change in Management Accounting Systems: The Effects of Competitive Strategy
Global Journal of Business Research, Vol. 2, No. 1, pp. 25-41, 2008
17 Pages Posted: 18 Feb 2010
Date Written: 2008
This study reports on a survey that investigated changes in management accounting and control systems in 31 Canadian manufacturing companies. Six variables that may influence changes in management accounting and control systems are identified from contingency theory literature. The findings indicate considerable changes in the organizations’ management accounting systems during the three year period. Changes in management accounting were best predicted by organizational capacity to learn. Such changes mostly occur in systems that support planning and control. Organizations that placed a high emphasis on differentiation strategies reported significant changes in their management accounting and control systems. Moreover the intensity of competition was found to affect management accounting change through the organizational structure.
JEL Classification: M40
Suggested Citation: Suggested Citation