Exploring the Direct and Indirect Performance Effects of Information/Communication Technology and Management Accounting and Controls

Accounting and Business Research, Forthcoming

45 Pages Posted: 17 Nov 2010

See all articles by Jason Zezhong Xiao

Jason Zezhong Xiao

Cardiff Business School, Cardiff University

Rong-Ruey Duh

National Taiwan University - Department of Accounting

Chee W. Chow

San Diego State University

Date Written: November 7, 2010

Abstract

The primary aim of this paper is to explore whether, and how, information and communication technology (ICT) mediates the performance effect of management accounting and controls (MAC). A second objective is to advance understanding of Chinese firms’ management practices. Archival and survey data from 219 exchange-listed Chinese firms show that both ICT and a wide range of MAC are extensively used, though there is great variation across firms in the use of each technique. We also find that both ICT and MAC (with a few exceptions, including activity-based costing/management) have significant and positive direct performance effects and in addition, ICT enables MAC to have a significant and positive indirect performance effect. These results suggest that both the use and evaluation of ICT and MAC would be made more effective by explicitly considering the mediating role of ICT in MAC deployment. Since Chinese firms are rapidly expanding their use of ICT and MAC, they will especially benefit from paying heed to these lessons.

Keywords: Chinese Firms, Information and Communication Technology, Management Accounting and Controls, Mediating Effects, Moderating Effects

JEL Classification: M40

Suggested Citation

Xiao, Jason Zezhong and Duh, Rong-Ruey and Chow, Chee W., Exploring the Direct and Indirect Performance Effects of Information/Communication Technology and Management Accounting and Controls (November 7, 2010). Accounting and Business Research, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1710252

Jason Zezhong Xiao

Cardiff Business School, Cardiff University ( email )

Aberconway building
Colum Drive
Cardiff, CF10 3EU
United Kingdom

Rong-Ruey Duh

National Taiwan University - Department of Accounting ( email )

No. 1, Sec. 4, Roosevelt Road
Taipei, Taiwan 106
Taiwan
8862-23630231 ext 2977 (Phone)
8862-23637440 (Fax)

Chee W. Chow (Contact Author)

San Diego State University ( email )

San Diego, CA 92182-0763
United States

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