Attributes of Innovation and Management Accounting Changes

Askarany, Davood

doi:10.7903/cmr.1144

Cited by 5 publications

(3 citation statements)

References 27 publications

(42 reference statements)

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“…Wanyoike et al , 2012) and no significant association between characteristics of innovation and the adoption of management accounting innovations (e.g. Askarany, 2016). These inconsistencies in result underscore the need to conduct country-specific studies on the subject.…”

Section: Context and Research Gapmentioning

confidence: 99%

Do innovation attributes really drive the diffusion of management accounting innovations? Examination of factors determining usage intensity of strategic management accounting

Oyewo

2021

JAAR

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PurposeThis study investigates the usage of modern management accounting techniques popularly referred to as “strategic management accounting” (SMA), and the extent to which innovation attributes (namely relative advantage, compatibility, complexity, trialability and observability) determine SMA usage intensity.Design/methodology/approachSurvey data was obtained through a structured questionnaire from 45 out of 56 publicly listed manufacturing companies on the Mainboard of the Nigerian Stock Exchange. Descriptive statistics, one-way ANOVA, exploratory factor analysis, confirmatory factor analysis and structural equation modelling were used to analyse data.FindingsWhereas the overall usage rate of SMA as an innovation is generally moderate, there is significant difference in SMA usage intensity across industries in the manufacturing sector due to environmental uncertainty. Compatibility emerged as the strongest determinant of SMA usage intensity, implying that commercial enterprises would intensely apply SMA to remain innovative, to continuously improve and to incorporate strategy in accounting practice in a bid to survive competition. SMA will witness extensive usage if it aligns with the competitive strategies of an organisation.Research limitations/implicationsThe attributes of innovation measured treat all SMA techniques as one, but did not measure relative advantage, compatibility, complexity, trialability and observability for each of the techniques. Future studies may consider investigating how innovation attributes specifically affect each SMA technique. The dimension of compatibility investigated in the study lean towards the alignment of SMA with competitive strategies. Taking into account the multidimensionality of compatibility as an innovation attribute, future studies may examine how past experience of implementing new ideas, as well as compatibility of SMA with corporate culture and value system, affect the dissemination and diffusion of management accounting innovations.Practical implicationsThe paper proposes that although innovation attributes may partly explain SMA usage, coercive factors such as competition and environmental uncertainty may also be responsible for the decision to adopt innovative management accounting practices. The study therefore calls for a critical appraisal of how coercive institutional factors such as competition, regulation and actions of key stakeholders influence the decision of organisations to adopt an innovation.Originality/valueThis paper contributes to knowledge by challenging existing knowledge and presenting evidence that innovation attributes acclaimed to determine the spread of an innovation may be inapplicable in certain settings due to some environmental challenges. The study also contributes to knowledge by developing a composite scale for measuring innovation attributes specifically adapted to management accounting innovation, which can be used in future studies.

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Section: Context and Research Gapmentioning

confidence: 99%

Do innovation attributes really drive the diffusion of management accounting innovations? Examination of factors determining usage intensity of strategic management accounting

Oyewo

2021

JAAR

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“…DOI theory has been applied by prior studies to explain the diffusion of management accounting innovations (Leftesi, 2008; Askarany, 2016; Epstein, 2012; Tucker and Parker, 2014). Accordingly, we uniquely used DOI theory to explain the diffusion of ISAsas the adoption rate has been gradually increasing over time.…”

Section: International Auditing Standards and Financial Market Indicatormentioning

confidence: 99%

Financial market consequences of early adoption of international standards on auditing: international evidence

Elmghaamez

Gerged²,

Ntim

2020

MAJ

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Purpose This paper aims to investigate the effects of the early adoption of International Standards on Auditing (ISAs) on Financial Market Indicators (FMIs) from a diffusion of innovation (DOI) theory perspective. Design/methodology/approach Using panel data from 110 countries in a period that spans from 1995 to 2014, this study applies an ordinary least squares regression model to investigate the financial consequences of adopting ISAs. This analysis was supplemented with estimating a fixed-effects and two-stage least squares regression models to address any concerns regarding the possible existence of endogeneity problems. Findings This study reports three key findings. First, the authors find that early ISAs adoption has a negative effect on several financial market consequences, namely stock market integration, market capitalisation, market turnover, market return, market development, stock price volatility and stock trading volume. Second, using an alternative measure to the one that is proposed by DOI theory, the authors found that some financial indicators have been significantly improved after ISAs adoption, but only for listed firms that prepared their financial statements under International Financial Reporting Standards and audited by ISAs simultaneously. Finally, the financialindicators of European stock markets, however, have insignificantly shrank post the mandatory adoption of ISAs in 2006. Practical implications The empirical evidence raises questions about how ISAs were enforced and implemented. For example, countries that adopted ISAs at early stages may have been dominated mostly by recently established stock exchanges. This implies a crucial need to determine and apply the best type of auditing regime that can increase investors trust and enhance the credibility of stock markets information, which might ultimately advance the FMIs over time significantly. Originality/value To-date, studies investigating the impact of the adoption of ISAs on FMI from a DOI theory perspective are virtually non-existent. The study, therefore, seeks to contribute to the extant literature by examining the influence of ISAs adoption on a wide range of FMIs.

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“…Most of the academic papers analyzed the adoption or/and diffusion of an innovation in different organizations, including Alcouffe and Guedri (2008), Becker et al (2015) and Oturakci and Yuregir (2018) for ABC method; Askarany (2016) for the use of enterprise ressource planning or Sisaye and Birnberg (2010) for MAIs. The angle of this paper is quite different because it focuses on one single organization and two different innovations with different futures.…”

Section: Introductionmentioning

confidence: 99%

Understanding the adoption or rejection of management accounting innovations within an SME using Rogers’ conceptual frameworks

Hamadi

Fournès

2022

JAOC

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Purpose The purpose of this paper is to understand the adoption or rejection of management accounting innovations (MAIs) in the specific context of small and medium entreprises (SMEs) through a constructivist approach of the theory of the diffusion of innovations. Design/methodology/approach The paper uses a case study approach during the rollout of two MAIs run by the company’s management controller. One of them was adopted, and the other was rejected. To understand the perception of different actors in the company, the authors carried out 28 semistructured interviews at different periods of time: when the management controller started his job, when he/she was introduced to the two MAIs and at the decision-making to adopt or reject the innovations. The approach of Rogers’ framework is here constructivist. The case study allows us to analyze qualitatively the intrinsic perceived attributes of the innovations as well as the organizational innovativeness and to put them into context. Findings MAIs are not merely technical innovations but social practices. The relative advantage is necessary but not sufficient for their adoption. This paper also demonstrates the importance of the champion in the specific context of SMEs. This key player in the promotion and adoption of MAIs in SMEs has to be endorsed by the leader of the organization to ensure the innovation’s adoption. In addition, Rogers’ framework underlines that the predominant factor is complexity as both an endogenous and a heterogeneous element, underscoring the information and training that the project’s promoter should organize for the staff. Research limitations/implications The main limit is due to the methodological approach (case study): Would these factors be as significant in a completely different sector to management accounting or in another type of enterprise? Practical implications The analytical grid combines different organizational and individual factors described by Rogers and provides us with a predictive approach to the innovation’s chances of adoption and the risk of rejection. Social implications Complexity, both as an innovation attribute perceived by individuals and as an internal characteristic of the organization, is a decisive factor in the rejection or adoption decision. Originality/value This paper answers to two main research gaps. Most of papers analyze the introduction of one unique innovation in different entities. Here, the authors focus on one entity with two different innovations. In addition, most of papers were retrospective. In this paper, thanks to the case study, the introduction and the process of adoption of two innovations were studied at the time it happened and not after the events had occurred. Moreover, while most papers using Roger’s framework are quantitative, the authors pay attention to the meaning of the different characteristics at different stages and in the specific context of one SME with a constructivist qualitative approach.

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Attributes of Innovation and Management Accounting Changes

Cited by 5 publications

References 27 publications

Do innovation attributes really drive the diffusion of management accounting innovations? Examination of factors determining usage intensity of strategic management accounting

Do innovation attributes really drive the diffusion of management accounting innovations? Examination of factors determining usage intensity of strategic management accounting

Financial market consequences of early adoption of international standards on auditing: international evidence

Understanding the adoption or rejection of management accounting innovations within an SME using Rogers’ conceptual frameworks

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