The mediating role of management control system characteristics in the adoption of management accounting techniques
ISSN: 0114-0582
Article publication date: 25 June 2020
Issue publication date: 11 December 2020
Abstract
Purpose
This study aims to investigate the mediating role of management control system (MCS) characteristics in the relationship between state type, reflected through societal institutions (SIs), and two sets of management accounting techniques (MATs), namely, performance measurement techniques (PMTs) and cost measurement techniques (CMTs).
Design/methodology/approach
Structural equation modeling was used to analyze data from a cross-sectional survey of 136 firms in the United Arab Emirates (UAE).
Findings
The findings show a direct positive impact of state-type construct on MCS characteristics, and that MCS characteristics partially mediate the reported significant relationships between state type and the use of PMTs. While the findings show a similar positive relationship between state type and CMTs, MCS characteristics do not mediate this relationship.
Research limitations/implications
Although these results are affected by limitations associated with the survey method used, they are useful in explaining the necessary conditions supporting the use of MATs in general and performance measurement techniques in particular.
Practical implications
The study uses a cross-section of companies in the UAE, an attractive global investment destination, as its sample. The results can help investors better understand the choice of MATs in the UAE and its relation to MCS characteristics.
Originality/value
This study contributes to management accounting literature by determining the mediating role of MCS characteristics on the relationship between state type and the choice of two sets of MATs, whereas existing literature assumes a direct relation between the two.
Keywords
Acknowledgements
The authors are grateful for the constructive comments of participants at the 5th International Conference on Accounting, Business and Economics (Kuala Terengganu, MALAYSIA, 2018) for their valuable comments on an earlier draft of this paper. Support from the Institute of Management Accountants (IMA) and the Association of Chartered Certified Accountants (ACCA) in data collection is acknowledged with gratitude.
Citation
Youssef, M.A.E.-A., Moustafa, E.E. and Mahama, H. (2020), "The mediating role of management control system characteristics in the adoption of management accounting techniques", Pacific Accounting Review, Vol. 32 No. 4, pp. 421-442. https://doi.org/10.1108/PAR-10-2019-0133
Publisher
:Emerald Publishing Limited
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