The four process innovation typologies are applied to characterize innovations in accounting such as activity based costing (ABC). ABC has been discussed as a multi-phased innovation process that provides an environment where both the initiation and the implementation of accounting change can occur. Technical innovation can be successfully initiated as organic innovation that unfolds in a decentralized organization and requires radical change and double loop learning. Implementation occurs best as a mechanistic innovation in a hierarchical organization and involving incremental change and single loop learning. The paper concludes that if ABC is integrated into an OD or OT intervention strategy, the technical and administrative innovation aspects of ABC can be utilized to manage the organization’s operating activities.
Sisaye, S. (2003), "PROCESS INNOVATION AND ADAPTIVE INSTITUTIONAL CHANGE STRATEGIES IN MANAGEMENT CONTROL SYSTEMS: ACTIVITY BASED COSTING AS ADMINISTRATIVE INNOVATION", Advances in Management Accounting (Advances in Management Accounting, Vol. 11), Emerald Group Publishing Limited, Bingley, pp. 251-285. https://doi.org/10.1016/S1474-7871(02)11011-2
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