Performance Implications of Misalignment Among Business Strategy, Leadership Style, Organizational Culture and Management Accounting Systems

27 Pages Posted: 11 Jan 2018

See all articles by Johnny Jermias

Johnny Jermias

Simon Fraser University (SFU) - Beedie School of Business

Lindawati Gani

University of Indonesia

Christina Juliana

Universitas Atmajaya

Date Written: January 9, 2018

Abstract

The purpose of this study is to examine the performance consequences of misalignment among business strategy, organizational configurations and management accounting systems. Based on a questionnaire surveys conducting in publicly held manufacturing companies listed in Indonesia Stock Exchange, we hypothesize and find that misalignments among business strategy, leadership style, organizational culture and management accounting systems are negatively associated with both financial and non-financial performance. The findings of our study suggest that product differentiation companies should employ transformational leaders, promote flexible organizational culture, and use broad-focused management accounting systems. By contrast, cost leadership companies should employ transactional leaders, promote controlled organizational culture and use narrow-focused management accounting systems.

Keywords: Misalignment, Business Strategy, Leadership Style, Organizational Culture, Management Accounting Systems

JEL Classification: D21, G32, L1, M41

Suggested Citation

Jermias, Johnny and Gani, Lindawati and Juliana, Christina, Performance Implications of Misalignment Among Business Strategy, Leadership Style, Organizational Culture and Management Accounting Systems (January 9, 2018). 2018 Canadian Academic Accounting Association (CAAA) Annual Conference. Available at SSRN: https://ssrn.com/abstract=3099151 or http://dx.doi.org/10.2139/ssrn.3099151

Johnny Jermias (Contact Author)

Simon Fraser University (SFU) - Beedie School of Business ( email )

8888 University Drive
Burnaby, British Colombia V5A 1S6
Canada
604-291-4257 (Phone)
604-291-4920 (Fax)

Lindawati Gani

University of Indonesia ( email )

Jl. Prof. Sumitro Djojohadikusumo
Depok, DKI 16424
Indonesia

Christina Juliana

Universitas Atmajaya ( email )

Universitas Atmajaya
Indonesia

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