The Effect of Managers’ Enabling Perceptions on Costing System Use, Psychological Empowerment, and Task Performance

Posted: 12 Dec 2012

See all articles by Habib Mahama

Habib Mahama

United Arab Emirates University - College of Business and Economics

Mandy M. Cheng

UNSW Australia Business School, School of Accounting

Abstract

This study investigates whether and how managers’ enabling perceptions of their costing systems affect task performance. We propose that managers who perceive their costing system as more enabling will have higher levels of task performance, and that this relationship occurs through the intensity with which the costing system is used and the level of psychological empowerment experienced by the managers. To test these propositions, we conduct a survey of middle-level managers and analyze the responses using a PLS model. Our results generally support our propositions. Specifically, we find a positive relationship between managers’ enabling perceptions and the intensity with which the costing system is used. The intensity of use is further associated with all four dimensions of psychological empowerment (meaning, competence, self-determination, and impact). Finally, the intensity of use also has an indirect impact on task performance via the competence dimension of psychological empowerment. The present study extends prior research on costing systems, and adds to our understanding of the role managers’ perceptions play in improving costing system effectiveness.

Keywords: enabling perception, costing system, psychological empowerment, task performance

Suggested Citation

Mahama, Habib and Cheng, Mandy M., The Effect of Managers’ Enabling Perceptions on Costing System Use, Psychological Empowerment, and Task Performance. Behavioral Research in Accounting, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2188162

Habib Mahama (Contact Author)

United Arab Emirates University - College of Business and Economics ( email )

P.O. Box 15551
Al-Ain
United Arab Emirates

Mandy M. Cheng

UNSW Australia Business School, School of Accounting ( email )

Sydney, NSW 2052
Australia
(612) 9385.6343 (Phone)

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