Psychology Theory in Management Accounting Research

Do comprehensive performance measurement systems help or hinder managers’ mental model development?

“…Thus, in this study, learning is viewed as a change in the potential behaviour (changed mental models), not a change in behaviour itself. subjective, internal representations of systems of relations that can be used to support managers' judgements, decisions and explanations (Birnberg, Luft and Shields, 2007;Markman, 1999;Markman and Gentner, 2001). A manager's mental model of business operations relates to assumptions and expectations about how the business operates and knowledge of how actions, activities and outcomes are related (Kaplan and Norton, 1996a;Lant, Milliken and Batra, 1992;McKinnon and Bruns, 1992;Mintzberg, 1973;Neely and Al-Najjar, 2006).…”

Realising the richness of psychology theory in contingency-based management accounting research

“…My focus is on the use of psychology theory in contingency-based management accounting research, which has long been used to study management accounting practices (Argyris, 1953;Birnberg et al, 2007).…”

“…Psychology theory is focused on explaining and predicting behaviour by examining primarily individual rather than organizational and social behaviour, and subjective rather than objective phenomena (Birnberg at al., 2007). As such, psychology theory can be used within contingency based management accounting research in order to understand and explain the operation and effects of management accounting practices through consideration of how they influence individuals' mental states and behaviours.…”

“…As such, psychology theory can be used within contingency based management accounting research in order to understand and explain the operation and effects of management accounting practices through consideration of how they influence individuals' mental states and behaviours. To do so, studies can draw on a variety of psychology theories from cognitive, motivational and social psychology (Birnberg et al, 2007). For example, Franco-Santos et al (2012) identify several psychology theories used to understand the effects of contemporary performance measurement systems, such as information processing, goal setting and justice theories.…”

“…For excellent overviews of the use of psychology theory in management accounting research, see Birnberg et al (2007) and Luft and Shields (2009). 3 This points to the continued richness of pioneering studies and the opportunities for current research that can be created from revisiting them.…”