How Much Influence Do Business Unit Management Accountants Get From Their Business Unit Managers? An Empirical Investigation

Abstract

In this study, the relationship is investigated between the allowed Business Unit (BU) Controller Influence on Management (CIM) by the BU manager and the perception of the actual influence of the BU management accountant. BU managers and BU management accountants are working together to reach the goals of the BU. How much influence do BU management accountants get from their BU managers to help them in making decisions? What kinds of the organizational culture can be associated with the degree of CIM? Answers to these kinds of questions are not yet available in literature. Based upon the analyses of a rather unique dataset of 123 interviews with BU management accountants and 123 interviews with their corresponding BU managers, we find that there is a strong relationship between the permission of the BU manager and operational CIM. Unlike our expectations, in Clan or Hierarchy culture this strong relation between allowed CIM and operational CIM is less strong than in other cultures. The relationship between the permission of the BU manager and strategic CIM is less clear than the relationship with operational CIM. In Adhocracy culture and larger organizations BU management accountants have more strategic CIM. Young and male BU management accountants seem to have more strategic CIM than their older or female colleagues.

Keywords: business unit controllers, management accountants, controller involvement in management, organizational culture