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Book part
Publication date: 6 May 2003

Seleshi Sisaye

Accounting for quality and improved organizational performance has recently received attention in management control research. However, the extent to which process innovation

Abstract

Accounting for quality and improved organizational performance has recently received attention in management control research. However, the extent to which process innovation changes have been integrated into management control research is limited. This paper contributes to that integration by drawing from institutional adaptive theory of organizational change and process innovation strategies. The paper utilizes a 2 by 2 contingency table that uses two factors: environmental conditions and organizational change/learning strategies, to build a process innovation framework. A combination of these two factors yields four process innovation strategies: mechanistic, organic, organizational development (OD) and organizational transformation (OT).

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.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-84950-207-8

Article
Publication date: 31 May 2023

Valter Luís Barbieri Colombo and Ilse Maria Beuren

This study aims to examine the effects of the culture for innovation, work engagement and the use of interactive performance measurement systems (PMSs) in the interorganizational…

Abstract

Purpose

This study aims to examine the effects of the culture for innovation, work engagement and the use of interactive performance measurement systems (PMSs) in the interorganizational accounting processes automation at a shared services center (SSC).

Design/methodology/approach

A single-entity survey was carried out at an SSC provider of B2B accounting services of a multinational company in the electrical sector, and structural equation modeling was applied for data analysis.

Findings

The results show that the culture for innovation, the work engagement and the use of interactive PMS positively and significantly influence the accounting process automation in the investigated SSC. Moreover, the use of interactive PMS presents a mediating effect on the relationship between culture for innovation and work engagement.

Research limitations/implications

The research findings contribute by revealing that the culture of innovation, work engagement and the interactive PMS support the use of robotic process automation and artificial intelligence in the interorganizational automation of accounting processes in an SSC-type service ecosystem. This highlights the importance of the culture of innovation and the positive feeling toward work being reinforced by the organization and the role of the interactive PMS as a formal instrument to transmit the organizational objectives and provide a common vision.

Originality/value

The study reveals that the use of interactive PMS seems to be an important conductor of the behavior of employees toward the accounting process automation strategy at the SSC, reinforced, in this case, by the culture of innovation and work engagement.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 12
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 8 June 2010

Seleshi Sisaye and Jacob Birnberg

The purpose of this paper is to develop a contingency framework that allows researchers to classify and study management accounting innovation within the context of the literature…

3420

Abstract

Purpose

The purpose of this paper is to develop a contingency framework that allows researchers to classify and study management accounting innovation within the context of the literature on the sociology of diffusion and adoption.

Design/methodology/approach

The process of innovation in organizations involves two stages: the stages of diffusion and adoption along two dimensions of extent: technical and administrative, and scope: autonomous and systemic. A combination of these two dimensions yields four types of accounting innovations: mechanistic, organic, organizational development, and organizational transformation. Management accounting innovations has been studied using these four innovation typologies.

Findings

The paper suggests that management accounting researchers pay particular attention to an organization's approach to diffusion and adoption strategies of innovation, particularly, the extent and scope dimensions when designing and implementing process innovation programs.

Research limitations/implications

The innovation contingency framework developed in this paper facilitates the analysis of two important research questions. First, why have some innovations been readily accepted while other, apparently similar proposed innovations have not? Second, why has a particular innovation succeeded in some firms and failed in others?

Practical implications

The subject of accounting innovations and change are important to managers. Accounting innovations as administrative and technical innovations are intertwined in performance evaluation as well as compensation systems. Accordingly, they are resisted.

Originality/value

The paper's contribution is in the advancement of sociological theories in behavioral managerial accounting. The paper develops a process innovation framework that integrates organizational sociological research in process innovations, particularly in diffusion research.

Details

International Journal of Accounting & Information Management, vol. 18 no. 2
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 29 January 2021

Joanne Louise Tingey-Holyoak, John Dean Pisaniello and Peter Buss

Agriculture is under pressure to produce more food under increasingly variable climate conditions. Consequently, producers need management innovations that lead to improved…

Abstract

Purpose

Agriculture is under pressure to produce more food under increasingly variable climate conditions. Consequently, producers need management innovations that lead to improved physical and financial productivity. Currently, farm accounting technologies lack the sophistication to allow producers to analyse productivity of water. Furthermore water-related agricultural technology (“agtech”) systems do not readily link to accounting innovations. This study aims to establish a conceptual and practical framework for linking temporal, biophysical and management decision-making to accounting by develop a soil moisture and climate monitoring tool.

Design/methodology/approach

The paper adopts an exploratory mixed-methods approach to understand supply of and demand for water accounting and water-related agtech; and bundling these innovations with farm accounting to generate a stable tool with the ability to improve agricultural practices over time. Three phases of data collection are the focus here: first, a desk-based review of water accounting and water technology – including benchmarking of key design characteristics of these methods and key actor interviews to verify and identify trends, allowing for conceptual model development; second, a producer survey to test demand for the “bundled” conceptual model; third and finally, a participant-based case study in potato-farming that links the data from direct monitoring and remote sensing to farm accounts.

Findings

Design characteristics of water accounting and agtech innovations are bundled into an overall irrigation decision-making conceptual model based on in-depth review of available innovations and verification by key actors. Producer surveys suggest enough demand to pursue practical bundling of these innovations undertaken by developing an integrated accounting, soil moisture and climate monitoring tool on-farm. Productivity trends over two seasons of case study data demonstrate the pivotal role of accounting in leading to better technical irrigation decisions and improving water productivity.

Originality/value

The model can assist practitioners to gauge strengths and weaknesses of contemporary water accounting fads and fashions and potential for innovation bundling for improved water productivity. The practical tool demonstrates how on-farm irrigation decision-making can be supported by linking farm accounting systems and smart technology

Abstract

Purpose

The paper extends the organizational learning framework: Structural-Functional (SF)-single-loop or Conflictual-Radical (CR)-double-loop learning to the management accounting literature. The sociological approach of organizational learning is utilized to understand those contingent factors that can explain why management accounting innovations succeed or fail in organizations.

Approach

We view learning as enhancing an organization’s strategic competitive advantage by making it better able to adopt and diffuse innovation in respond to changes in its environment in order to manage improved performance. The success of management accounting innovations is contingent upon whether its learning process involves SF-single-loop or CR-double-loop learning to adopt and diffuse process innovation.

Findings

The paper suggests that the learning strategy that the organization chooses is the reason why some management accounting innovations are more successfully adopted than others and why some innovations are easily diffused in some organizations but not in others. We propose that the sociological approaches to learning provide an alternative framework with which to better understand the adoption and diffusion of process innovations in management accounting systems.

Originality

It has become evident that management accounting researchers need to pay particular attention to an organization’s approach to adoption and diffusion of innovation strategies, particularly when they are designing and implementing process innovation programs for an organization. According to Schulz (2001), there are two interrelated stages of the learning that can shape the outcome of the innovation process in an organization. The first stage is related to the acquisition/production (adoption) of knowledge that results in gathering information, codification, and exploration. This is followed by the second stage which is the distribution or dissemination (diffusion) processes. When these two stages – adoption and diffusion – are applied within an accounting context, they address issues that are commonly associated with the successes and/or failures of management accounting innovations.

Research limitations/implications

Although innovation involves learning, the nature of the learning process does not completely describe the manner in which an innovation affects the organization. Accordingly, we suggest that the two interrelated organizational sociological dimensions of innovations processes, namely, (1) the adoption and diffusion theories of Rogers (1971 and 1995), to approach organizational learning, and (2) the SF (single loop) and CR (double loop) approaches to learning be used simultaneously to describe management accounting innovations.

Practical implications

When an innovation is implemented, it initially can be introduced as an incremental change, one that can be limited in both in its scope and its breadth of administrative changes. This means that situations which are most likely to benefit from its initiation can serve as the prototype for its adoption by the organization. If successful, this can be followed by systemic accounting innovations to instituting broader administrative changes within the existing accounting reporting and control systems.

Article
Publication date: 10 November 2020

Prabanga Thoradeniya, Aldónio Ferreira, Janet Lee and Rebecca Tan

Drawing upon Abrahamson's (1991) typology of innovation diffusion, this study aims to investigate the factors underpinning diffusion of sustainability key performance indicators…

1298

Abstract

Purpose

Drawing upon Abrahamson's (1991) typology of innovation diffusion, this study aims to investigate the factors underpinning diffusion of sustainability key performance indicators (SKPIs) in a developing country.

Design/methodology/approach

A qualitative study was conducted in Sri Lanka involving semi-structured interviews with managers, as users of SKPIs (demand-side), and both consultants and academics, as agents in diffusion process (supply-side).

Findings

Diffusion of SKPIs was found to be driven by efficient-choice considerations, with fashion motives intertwined with these. The diffusion was influenced by developing country context issues relating to market competition, education, government and culture. It was somewhat surprising that market forces played a key role to the extent they did. Minimal stakeholder pressure was found to undermine the diffusion process, contrasting with developed countries in which key stakeholders act as catalysts. The developing country context appears to slow down the pace, rather than alter the pattern, of diffusion of SKPIs.

Research limitations/implications

This study is limited by its focus on SKPI adopters, which does not permit to draw insights regarding motivations of non-adopters.

Originality/value

This study draws upon Abrahamson's typology to explore the diffusion of SKPIs in the poorly understood developing country context. The findings provide insights into driving forces behind diffusion of SKPIs, suggesting the developing country context creates “stickiness” that influences pace rather than the pattern of diffusion of SKPIs.

Details

Accounting, Auditing & Accountability Journal, vol. 34 no. 5
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 1 July 2000

Alan D Godfrey, Patrick J Devlin and M Cherif Merrouche

The paper analyses the current process of government accounting development in Albania using an integrated diffusion‐contingency analytical framework. This framework synthesises…

Abstract

The paper analyses the current process of government accounting development in Albania using an integrated diffusion‐contingency analytical framework. This framework synthesises elements of contingency theory with theories of diffusion of innovations to provide greater insight into the organisational processes of innovation. The paper observes that the level of innovativeness of the government organisation in Albania appears to be marginally positive and that, at present, developments in government accounting are being clarified as part of the implementation phase of the innovation process.

Details

Journal of Applied Accounting Research, vol. 5 no. 3
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 19 September 2008

Malcolm Smith, Zaharah Abdullah and Rafizan Abdul Razak

The study aims to examine the scope and extent of technological and management accounting innovation in Malaysia by identifying the stage of development of practice in industrial…

3966

Abstract

Purpose

The study aims to examine the scope and extent of technological and management accounting innovation in Malaysia by identifying the stage of development of practice in industrial companies. Further, it seeks to investigate the factors determining their adoption of technological and management accounting innovations.

Design/methodology/approach

A questionnaire‐based study is conducted within a tightly defined industrial area in the Klang Valley, so permitting personal follow‐up of individual companies.

Findings

The study confirms the dominance of financial accounting for the purposes of management control, with minimal adoption of innovative management accounting tools, even for large companies.

Originality/value

The Akira model for management accounting development is applied in recognition that it will fit developing South East Asian countries better than western equivalents, because of relatively low levels of automation.

Details

Asian Review of Accounting, vol. 16 no. 3
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 2 November 2010

Seleshi Sisaye and Jacob G. Birnberg

The purpose of this paper is to apply the organizational learning framework to the management accounting literature to better understand why management accounting innovations

2800

Abstract

Purpose

The purpose of this paper is to apply the organizational learning framework to the management accounting literature to better understand why management accounting innovations succeed or fail in organizations.

Design/methodology/approach

A theoretical framework integrating diffusion and organization learning theories is developed. Diffusion theory is used to describe the process whereby the innovation is implemented. Argyris' and Argyris and Schon's theory of organizational learning is used to describe the type of learning – single loop or double loop – required by the innovation. Finally, the works of Attewell, and of Schulz relating to organizational learning, and of Rogers and of Sandberg relating to adoption and diffusion theories, were utilized to identify and understand the potential pitfalls faced by managements implementing an accounting innovation.

Findings

The paper advances the notion that an organization's approach to learning and innovation should be of interest to management accounting researchers. The single‐loop (incremental/organizational development (OD)) and the double‐loop (radical/organizational transformation (OT)) learning influences the adoption (stage one) and diffusion (stage two) strategies that are appropriate for the design and implementation of management accounting innovations.

Originality/value

The paper makes an important contribution to the behavioral accounting literature by integrating sociological diffusion and organizational learning behavior literatures and relating them to management accounting research.

Details

Review of Accounting and Finance, vol. 9 no. 4
Type: Research Article
ISSN: 1475-7702

Keywords

Article
Publication date: 27 March 2023

Xinmeng Hou, Hongji Xie, Shulin Xu, Zefeng Tong and Zeqi Liu

The purpose of this study is to investigate the impact of the accounting system reform on corporate innovation behavior and the heterogeneity and underlying mechanisms of this…

Abstract

Purpose

The purpose of this study is to investigate the impact of the accounting system reform on corporate innovation behavior and the heterogeneity and underlying mechanisms of this impact. This paper further aims to study the impact of accounting system reform on corporate value.

Design/methodology/approach

This study takes China's A-share listed corporates as a sample and uses the exogenous policy shock of the implementation of the New Accounting Standards in 2007 to design the identification strategy of propensity score matching and difference-in-differences method. By comparing the differences between the innovation level of corporates in high-tech industries and non-high-tech industries before and after the implementation of the New Accounting Standards, the impact of the accounting system reform on corporates' innovative behavior can be identified.

Findings

Results show that compared with corporates in traditional industries, high-tech corporates obtained higher patent output after the implementation of the New Accounting Standards. This reform mainly affects corporate innovation by improving corporate risk-taking. In addition, this paper finds that the reform of the accounting system has increased the market value of high-tech corporates in the long run.

Originality/value

This study provides new empirical evidence for addressing the insufficient innovation incentives for market entities and enriches the existing literature on the economic effects of the change of accounting systems and the influencing factors of corporate innovative behavior from the accounting system perspective.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

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