To read this content please select one of the options below:

Perceived environmental uncertainty, supply chain purchasing strategy, and use of MAS information: An empirical study of Finnish firms

Adebayo Agbejule (Department of Production Engineering, Vaasa University of Applied Sciences, Vaasa, Finland)
Ashley Burrowes (Department of Accountancy, University of Wisconsin – La Crosse, La Crosse, Wisconsin, USA)

Managerial Auditing Journal

ISSN: 0268-6902

Article publication date: 16 October 2007

2145

Abstract

Purpose

The purpose of this paper is to investigate the relationship between perceived environmental uncertainty (PEU), supplier development (SUD) and the use of broad scope management accounting systems (MAS) information. In recent years, many companies have come to recognize the important role supply chain purchasing strategy plays in achieving competitive advantage. One of the key components of the supply chain purchasing strategy is supplier development. In addition, there have been calls for research into how changes in supply chain management affect the use of MAS.

Design/methodology/approach

About 78 managers from different organizations participated in this Finnish study. Using operations management and accounting literature, four hypotheses were proposed in the study. Data were collected from managers using a mail‐out questionnaire.

Findings

The results revealed that PEU is a determinant of SUD, which, in turn, is a determinant of the use of MAS. In other words, SUD plays a mediating role in the relationship between PEU and the use of broad scope MAS information.

Research limitations/implications

This paper describes the responses from 78 managers in medium to large size manufacturing firms in North‐Western Finland and consequently a caveat about generalizability is appropriate notwithstanding the high‐global esteem of Finnish manufacturing.

Practical implications

The competitive production environment that exists today has forced many firms into lean production. This paper suggests that under such conditions of uncertainty the incorporation of SUD data into the MAS may prove very salutary.

Originality/value

The findings of this paper should prove useful to firms entertaining an upgrade and broadening the scope of their MAS to include supply chain management information, particularly as it relates to supplier development.

Keywords

Citation

Agbejule, A. and Burrowes, A. (2007), "Perceived environmental uncertainty, supply chain purchasing strategy, and use of MAS information: An empirical study of Finnish firms", Managerial Auditing Journal, Vol. 22 No. 9, pp. 913-927. https://doi.org/10.1108/02686900710829417

Publisher

:

Emerald Group Publishing Limited

Copyright © 2007, Emerald Group Publishing Limited

Related articles