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Strategic management accounting of social networking site service company in China

C.C. Steve Fong (School of Business, Macao Polytechnic Institute, Macau, People's Republic of China)

Journal of Technology Management in China

ISSN: 1746-8779

Article publication date: 31 May 2011

Abstract

Purpose

Social networking site (SNS) service is a popular cultural issue that affects communication methods and mannerisms. The purpose of this paper is to analyze the case of the growth and development of a China SNS service company using the strategic management accounting (SMA) spectrum.

Design/methodology/approach

The paper primarily employs archival resources such as company reports and newspaper clippings online to provide a business and social developmental context to the study. Three propositions are developed and discussed.

Findings

The study illustrates SMA application in business. It shapes the perception of contemporary accounting, and then delivers an awareness of the relationship among business strategy, accounting, and social life.

Research limitations/implications

This paper is based on a single case study, thus the findings may not be generalized to other popular culture service companies. The case has shown some reasons why different SMA techniques are used by the company in different stages of the organizational life cycle.

Practical implications

First, in the start‐up stage of an SNS service company, it engages in product development to obtain funding resources and market so as to enhance market share. Second, in the growth stage of SNS service, the company engages in product financing through the capital market and trade financing.

Originality/value

The SNS service has emerged for accounting for popular culture. Such connection is especially found in SMA in different stages of the organizational life cycles as addressed in the study.

Keywords

Citation

Steve Fong, C.C. (2011), "Strategic management accounting of social networking site service company in China", Journal of Technology Management in China, Vol. 6 No. 2, pp. 125-139. https://doi.org/10.1108/17468771111139382

Publisher

:

Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited