Management accounting change in developing countries: evidence from Libya

Abstract

Purpose The purpose of this paper is to investigate the change in management accounting and control systems (MACSs) within two large public manufacturing companies in Libya so-called Trucks and Buses Company (TBC) and National Trailers Company (NTC). Design/methodology/approach The paper is based on semi-structured interviews, an analysis of documents and observations. It draws on New Institutional Sociology (NIS) perspective (DiMaggio and Powell’s 1983) as theoretical framework to provide explanations regarding how the MACS in the two companies were shaped by various factors. Findings The main factors identified in shaping the operations of the MACS were the need to comply with the political pressures, the Libyan Government’s laws and regulations, the instructions imposed by the management committee in both companies, leading organizations’ pressures (ISO), customer satisfaction (coercive isomorphism), the influence of professional associations (normative isomorphism) and the need to imitate efficient organizations in order to be more legitimate and successful (mimetic isomorphism). Research limitations/implications The findings of the study have implications for understanding the operations of MACS in developing countries. Future research could focus on alternative theoretical perspectives for the investigation of the process of change in MACS such as structuration theory, agency theory and actor-network theory. Originality/value The proposed theoretical framework provides insights into the process of change by focusing on the interplay between the institutional forces, market forces and intra – organizational power relationships to overcome the criticism of NIS that it downplays the role of market forces and intra – organizational power relations.

An institutional perspective on the selection and use of accounting textbooks: the case of universities in Indonesia

“…During recruitment, employers prefer students who have graduated from accredited institutions. Hence, conformity to coercive pressure is perceived as the key to an organization’s survival and competitiveness (Lasyoud et al , 2018). For example, by conforming, organizations may not suffer in the market.…”

“…An institution refers to “a set of rules that govern human behavior and shapes social relations” (Lichtenstein, 1996, p. 244). The actions of organizational actors are externally pressured and shaped by societal actions (Meyer and Rowan, 2006; Lasyoud et al , 2018). This theory is used in this study because it provides a sociology-based alternate perspective, given the strong institutional-environment pressures governing accounting education.…”

Determinan Penerapan Akuntansi Manajemen pada Usaha Mikro Kecil dan Menengah: Bukti Empiris dari Kota Tarakan

“…Dalam konteks globalisasi dan lingkungan bisnis yang semakin kompetitif dewasa ini, merupakan tantangan bagi suatu entitas usaha untuk mempertahankan efisiensi operasinya (Lasyoud et al, 2018). Keberhasilan suatu entitas usaha tergantung pada banyak keputusan manajerial yang didasarkan pada informasi akuntansi, khususnya akuntansi manajemen (Burns and Scapens, 2000).…”

“…Akuntansi manajemen adalah juga alat untuk menganalisis dan mengevaluasi realisasi pengeluaran, pendapatan dan laba (Ediraras, 2011, Maharsi, 2000, Mardikawati et al, 2014, Sigilipu, 2013. Akuntansi manajemen memainkan peranannya yang terbesar sebagai alat bagi manajemen untuk membuat keputusan, meningkatkan daya saing pada sebagian entitas bisnis (Lasyoud et al, 2018, Panjaitan et al, 2018.…”

The mediating role of management control system characteristics in the adoption of management accounting techniques

“…Carpenter and Feroz (2001) and Ezzamel et al (2007) found that state regulative factors have an impact on the formation of MCSs. Lasyoud et al (2018) found that the main factors in shaping the operations of MCSs were the need to comply with political pressures, the government’s laws and regulations and the influence of professional associations. Hoque and Hopper’s (1994) study, also, confirms the conclusions of other studies claiming that the broader social, economic, political and institutional contexts govern the ways MCSs operate in the organization.…”