Management accounting systems: an organizational competitive performance perspective

Abstract

PurposeThe purpose of this paper is to explore the impact of the characteristics and roles of management accounting systems (MAS) on today’s business organizations and their management, systems, procedures, people, performance and competitive environments.Design/methodology/approachA survey-based methodology was utilized in this research to gather organizational information relevant to the different facets of the MAS and their operational and strategic practices impact on organizations operating under increasingly uncertain and competitive environments. A structural equation modeling approach was utilized to uncover relevant relationships and associations among relevant variables.FindingsThe findings of this exploratory research revealed a direct influence of MAS on the managerial and organizational performance through the managers’ performance. The results also suggest that MAS is directly influenced by users’ training, and satisfaction, task uncertainty and decentralization of decisions. It was also indirectly influenced by top management support. In addition, the findings also revealed a direct influence of the decentralization of decisions on the managers’ and on organizational performance.Research limitations/implicationsWhile this study addressed important issues that have practical management value, it is limited to a sample from one country. Future studies in different businesses and cultural settings are needed to enhance the theoretical and practical contributions of the findings and conclusions of this study.Practical implicationsThe issues explored in this study are very much relevant to the utilization and design of MAS and their increasing tactical and strategic roles in the management of today’s business organizations. The findings of this study have relevant practical value for managers as they attempt to cope with increasingly competitive environments through the deployment of their existing capabilities and best practices. In this context, the accounting management system has practical utilities that facilitate the control and management of the operations and strategies of the organization.Originality/valueThis research offers practicing management an integrated approach, as they aspire to utilize their organizational MAS to increase the efficiency and effectiveness of their organizations. Integrating the different aspects of management accounting information systems, given their impact on the different aspects of the organization, is needed for the establishment of theoretical research models aiming at the enhancement of the competitive performance of today’s organizations. This study also offers to executives of small and medium enterprises (SMEs) a new multidimensional instrument for assessing the effectiveness of their management information systems, which can help to improve their benchmarking processes.

The Effect of Digital Technology and Agility On Company Performance with Management Accounting System as Mediation

“…Pedroso said the results show that MAS is directly affected by user Task confusion and decision decentralization, as well as preparation and satisfaction. It is also affected indirectly by the assistance of top management [61]. Furthermore, it is discovered that decentralization of managerial decisions has a direct impact on organizational success [62], Management accounting information systems do not mediate the relationship between innovation strategies and financial performance, according to the findings of the report.…”

Management accounting systems effectiveness, perceived environmental uncertainty and companies’ performance: the case of Jordanian companies

“…In aiming for a high-quality performance with a lower risk, contingency theory finds the need to adopt contingent factors such as environmental uncertainty together with the accounting and control systems (Hoque, 2004; Otley, 2016; Pedroso et al , 2020). Thus, it makes it crucial to acknowledge how the environmental factors could affect the management accounting systems and then the role of management accounting systems in the business environment (Abdel-Kader and Luther, 2006).…”

“…Prior studies have examined the relationship between management accounting systems and company performance, especially from the financial performance aspect (Abdul Rasid et al , 2011,2014; Agbejule, 2005; Chenhall, 2003; Kasravi et al , 2017; Mia and Clarke, 1999; Pedroso et al , 2020), but in the knowledge of how the relationship between management accounting systems and companies performance, both financial and non-financial performance, there remains a gap. However, some of these studies (Agbejule, 2005; Abdul Rasid et al , 2014; Chenhall, 2003; Ghasemi et al , 2019; Kasravi et al , 2017) mentioned that there is a direct relationship between management accounting systems and company performance, whereas other studies (Ittner et al , 2003; Jusoh et al , 2008; Mwangi et al , 2014; Perera et al , 1997) mentioned that there is no direct relationship between management accounting systems and company performance.…”

Centralization and decentralization in departmentalization processes: a review of the literature

“…De acuerdo con algunos estudios, la descentralización, al otorgar un alto grado de autonomía al personal permite que tengan una relación directa y positiva con el desempeño de la empresa (Hsiao & Wu, 2020;Pedroso et al, 2020). Asimismo, las organizaciones que gozan de una mayor descentralización fomentan una mayor participación de los empleados en cuanto a soluciones innovadoras que reflejan las perspectivas de los miembros de la empresa.…”