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Article
Publication date: 5 September 2016

Ranjith Appuhami and Sujatha Perera

The purpose of the study is to examine the use of management controls by a public partner to minimise risks associated with a public-private partnership (PPP) in a…

1017

Abstract

Purpose

The purpose of the study is to examine the use of management controls by a public partner to minimise risks associated with a public-private partnership (PPP) in a developing country.

Design/methodology/approach

Using case study method, management controls used in a power project formed as a PPP are examined based on data gathered from semi-structured interviews and documentary analysis.

Findings

The study reveals that the public partner of the PPP used multiple controls depending on the nature of risks in different phases of the project. While bureaucratic control was the predominantly used control pattern throughout the three phases (namely, selecting, building and operating) of the PPP, trust-based controls also played an important role. Market controls on the other hand played, somewhat, a nominal role, particularly in the selecting phase of the project. The study also highlights the problematic nature of forming PPPs in developing countries despite the various benefits associated with such organisational arrangements. Additionally, the study provides insights into how certain contextual features of developing countries affect the way in which controls are applied.

Practical implications

The insights provided in this paper would be beneficial to policy makers, in developing countries in particular, when making decisions in relation to implementation, management and risk control of PPPs.

Originality/value

This study makes an original contribution to the existing literature on PPPs by examining the way in which management controls are used to minimise risk in a PPP in a developing country.

Details

Journal of Accounting & Organizational Change, vol. 12 no. 3
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 25 February 2020

Eddy Mayor Putra Sitepu, Ranjith Appuhami and Sophia Su

The purpose of this paper is to examine the relationship between the interactive use of budgets, role clarity and individual creativity.

Abstract

Purpose

The purpose of this paper is to examine the relationship between the interactive use of budgets, role clarity and individual creativity.

Design/methodology/approach

Survey data was collected from mid-level managers in publicly listed Indonesian companies. The data was analysed using partial least squares.

Findings

The findings indicate that while there is no direct association between an interactive use of budgets and individual creativity, an interactive use of budgets can affect individual creativity via role clarity.

Originality/value

This study is one of only a few studies that provide empirical evidence on the relationships between individual creativity, role clarity and the interactive use of budgets. While previous studies have been undertaken in Western countries such as the USA and the UK, this study focuses on an emerging economy – Indonesia in which firms have been trying to improve individual creativity.

Details

Pacific Accounting Review, vol. 32 no. 2
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 2 August 2018

Ranjith Appuhami

The purpose of this study is to examine whether audit committee characteristics influence the cost of equity capital.

Abstract

Purpose

The purpose of this study is to examine whether audit committee characteristics influence the cost of equity capital.

Design/methodology/approach

Drawing on signalling theory, this study hypothesises that the presence of an AC with adequate characteristics serves as a market “signal” of the credibility of the effective monitoring process and hence affects the perception of capital providers on the cost of equity capital. The study uses a multiple regression analysis on data collected from a sample of top Australian listed firms.

Findings

The study finds that audit committee characteristics such as size, meeting frequency and independence are significantly and negatively associated with the cost of equity capital. However, there is no significant evidence that the financial qualifications of audit committee directors are associated with the cost of equity capital.

Originality/value

While there have been several studies examining the cost of equity capital, there is very limited research on the cost of capital in Australian firms. The study aims to fill this gap, in part, and contribute to the literature on corporate governance and signalling theory.

Details

Pacific Accounting Review, vol. 30 no. 3
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 16 October 2017

Chaminda Wijethilake, Rahat Munir and Ranjith Appuhami

The purpose of this paper is to examine the role of management control systems (MCS) in strategically responding to institutional pressures for sustainability (IPS)…

3650

Abstract

Purpose

The purpose of this paper is to examine the role of management control systems (MCS) in strategically responding to institutional pressures for sustainability (IPS). Drawing on institutional theory (DiMaggio and Powell, 1983) and strategic responses to institutional pressures framework (Oliver, 1991), the study argues that organisations strategically respond to IPS using MCS.

Design/methodology/approach

Data were collected by interviewing sustainability managers of a large-scale multinational apparel manufacturing organisation with its headquarters in Sri Lanka.

Findings

The study finds that organisations actively respond to IPS using acquiescence, compromise, avoidance, defiance, and manipulation strategies. The results not only reveal that formal MCS play a critical role in complying with IPS, but also in more active responses, including compromise, avoidance, defiance, and manipulation. The findings highlight that organisations use MCS as a medium to respond strategically to IPS, and in turn, the use of MCS has important implications for organisational change and improvement.

Practical implications

The study has implications for Western organisations, finding that suppliers committed to sustainability in Asia strategically respond to IPS as a means of strengthening outsourcing contracts, instead of blindly accepting. Findings indicate that organisational changes and success seem to be a function of strategically responding to IPS rather than operating an organisation by neglecting sustainability challenges. The organisational ability to use MCS in strategically responding to IPS has the potential for long-term value creation.

Originality/value

This study provides novel insights into the MCS, strategy and sustainability literatures by exploring different uses of MCS tools in strategically responding to IPS. More specifically, it shows how the use of MCS tools varies in supporting strategic responses, and with respective IPS. In doing so, it enhances our understanding of the importance of the use of MCS in dynamics of institutional change and practical variances in strategically responding to IPS.

Details

Accounting, Auditing & Accountability Journal, vol. 30 no. 8
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 2 October 2019

Nuraddeen Abubakar Nuhu, Kevin Baird and Ranjith Appuhami

This study aims to examine the role of organisational dynamic capabilities (strategic flexibility and employee empowerment) in mediating the relationship between…

1902

Abstract

Purpose

This study aims to examine the role of organisational dynamic capabilities (strategic flexibility and employee empowerment) in mediating the relationship between management control systems (MCSs), in particular the interactive and diagnostic approaches to using controls, with organisational change and performance.

Design/methodology/approach

Data were collected based on a mail survey of public sector organisations in Australia and analysed using structural equation modelling (SEM).

Findings

The findings indicate that strategic flexibility and employee empowerment mediate the association between the interactive approach to MCSs with organisational performance, and strategic flexibility mediates the relationship between the interactive approach to MCSs with organisational change.

Practical implications

The study’s findings inform public sector practitioners as to how to enact change within and enhance the performance of public sector organisations. Specifically, managers are advised to focus on the use of interactive controls and the development of two dynamic organisational capabilities, strategic flexibility and employee empowerment.

Originality/value

The study provides an initial empirical insight into the relation between controls and dynamic capabilities and their role in enacting change and performance within the public sector. The findings suggest that the achievement of new public management ideals is reliant upon the organisational environment, with change and performance facilitated by the interactive use of controls and strategic flexibility and employee empowerment.

Details

Journal of Accounting & Organizational Change, vol. 15 no. 3
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 2 May 2019

Shamim Tashakor, Ranjith Appuhami and Rahat Munir

The purpose of this paper is to examine the association between the belief-based factors (attitude, subjective norm (SN) and perceived behavioural control (PBC)) and…

1287

Abstract

Purpose

The purpose of this paper is to examine the association between the belief-based factors (attitude, subjective norm (SN) and perceived behavioural control (PBC)) and environmental management accounting (EMA) practices.

Design/methodology/approach

Drawing on the theory of planned behaviour (TPB), the study develops a structural model and uses partial least squares (PLS) technique to analyse data collected based on a survey of the Australian cotton farmers.

Findings

The findings indicate that while attitude and PBC significantly influence farmers’ intention to adopt EMA practices, SN has a significant indirect influence on EMA practices through farmers’ attitude and PBC. Further, the study reveals that while the intention of more environmentally friendly farmers is largely influenced by attitude and SN, the intention of less environmentally friendly farmers is primarily driven by PBC.

Practical implications

The study provides important insights into the role of attitude, SN and PBC in motivating farmers towards adopting EMA practices. Such insights could also help farmers in designing effective EMA practices.

Originality/value

This study contributes to very limited EMA literature on TPB by integrating three belief-based factors namely attitude, SN and PBC.

Details

Accounting, Auditing & Accountability Journal, vol. 32 no. 4
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 6 February 2017

Nuraddeen Abubakar Nuhu, Kevin Baird and Appuhami Bala Appuhamilage

The purpose of this paper is to examine the association between the interactive and diagnostic use of MCSs with the extent of adoption of contemporary management…

2688

Abstract

Purpose

The purpose of this paper is to examine the association between the interactive and diagnostic use of MCSs with the extent of adoption of contemporary management accounting practices, and the subsequent impact on the success of such practices in the public sector.

Design/methodology/approach

Data were collected through the distribution of a mail survey of 740 questionnaires to public sector organisations in Australia, and analysed using structural equation modelling.

Findings

The study found that both the interactive and diagnostic approaches to using MCSs exhibit a positive association with the adoption of contemporary management accounting practices, both as a package and individually. In addition, while the level of success of contemporary management accounting practices was moderate, it was found that the extent of adoption of the practices enhanced their success.

Practical implications

The findings suggest that by intensifying the use of MCSs in a more interactive and diagnostic manner, public sector organisations are more likely to adopt contemporary management to a greater extent, with the subsequent increase in the extent of adoption of such practices to exacerbate their success.

Originality/value

The study contributes to the MCS contingency-based research by highlighting the interrelationship between two aspects of MCSs, the use of controls and the adoption and success of management accounting practices.

Details

Asian Review of Accounting, vol. 25 no. 1
Type: Research Article
ISSN: 1321-7348

Keywords

Book part
Publication date: 29 March 2016

Nuraddeen Abubakar Nuhu, Kevin Baird and Ranjith Appuhami

This study examines the association between the use of a package of contemporary and a package of traditional management accounting practices with organizational change…

Abstract

Purpose

This study examines the association between the use of a package of contemporary and a package of traditional management accounting practices with organizational change and organizational performance.

Methodology/approach

Data were collected based on a mail survey distributed to a sample of 740 public sector organizations.

Findings

The findings indicate that while the prevalence of traditional practices is still dominant, such practices were not associated with organizational change or performance. Rather, those organizations that use contemporary management accounting practices to a greater extent experienced greater change and stronger performance.

Practical implications

The findings suggest that contemporary management accounting practices can assist public sector practitioners in improving performance and promoting organizational change.

Originality/value

The study provides an empirical insight into the use and effectiveness of management accounting practices in the public sector. The study provides the first empirical analysis of the effect of using a package of management accounting practices in the public sector.

Article
Publication date: 5 May 2015

Ranjith Appuhami and Mohammed Bhuyan

– The purpose of this paper is to examine the influence of corporate governance on intellectual capital (IC) in top service firms in Australia.

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Abstract

Purpose

The purpose of this paper is to examine the influence of corporate governance on intellectual capital (IC) in top service firms in Australia.

Design/methodology/approach

Drawing on the agency theory, the paper develops hypotheses about relationships between corporate governance mechanisms (chief executive officer [CEO] duality, board size, board composition and subcommittee composition) and IC. The study uses a multiple regression analysis on data collected from corporate annual reports of 300 firm-year observations.

Findings

The findings of the regression analysis indicate that CEO duality, board composition and remuneration committee composition are significantly associated with IC. In contrast, there is no evidence that board size and audit committee composition have an effect on IC. The study contributes to agency theory in general and the literature on IC and corporate governance more specifically.

Practical implications

The findings of the study might be of interest to regulators, investment analysts, shareholders, company directors and managers in Australia, as well as academics, in designing corporate governance mechanisms to develop IC.

Originality/value

Corporate governance is country-specific and, hence, its impact on managerial decisions leading to IC is different from country to country. This study provides empirical evidence on the relationship between corporate governance and IC in top service firms in Australia.

Details

Managerial Auditing Journal, vol. 30 no. 4/5
Type: Research Article
ISSN: 0268-6902

Keywords

Book part
Publication date: 29 March 2016

Abstract

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78441-652-2

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