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1 – 10 of 211Alhashmi Aboubaker Lasyoud, Jim Haslam and Robin Roslender
The purpose of this paper is to investigate the change in management accounting and control systems (MACSs) within two large public manufacturing companies in Libya so-called…
Abstract
Purpose
The purpose of this paper is to investigate the change in management accounting and control systems (MACSs) within two large public manufacturing companies in Libya so-called Trucks and Buses Company (TBC) and National Trailers Company (NTC).
Design/methodology/approach
The paper is based on semi-structured interviews, an analysis of documents and observations. It draws on New Institutional Sociology (NIS) perspective (DiMaggio and Powell’s 1983) as theoretical framework to provide explanations regarding how the MACS in the two companies were shaped by various factors.
Findings
The main factors identified in shaping the operations of the MACS were the need to comply with the political pressures, the Libyan Government’s laws and regulations, the instructions imposed by the management committee in both companies, leading organizations’ pressures (ISO), customer satisfaction (coercive isomorphism), the influence of professional associations (normative isomorphism) and the need to imitate efficient organizations in order to be more legitimate and successful (mimetic isomorphism).
Research limitations/implications
The findings of the study have implications for understanding the operations of MACS in developing countries. Future research could focus on alternative theoretical perspectives for the investigation of the process of change in MACS such as structuration theory, agency theory and actor-network theory.
Originality/value
The proposed theoretical framework provides insights into the process of change by focusing on the interplay between the institutional forces, market forces and intra – organizational power relationships to overcome the criticism of NIS that it downplays the role of market forces and intra – organizational power relations.
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P.A. Collier, E.W. Davis, J.B. Coates and S.G. Longden
The objective of this paper is to extend research findings obtained in a preliminary survey of currency risk management in UK multinational companies (Collier and Davis, 1985) by…
Abstract
The objective of this paper is to extend research findings obtained in a preliminary survey of currency risk management in UK multinational companies (Collier and Davis, 1985) by presenting a case study analysis of currency risk management practice in large UK and US multinational companies. The research is specifically concerned with aspects of the management of foreign currency transaction and translation risk by multinational companies and the extent of risk aversion in the policies adopted.
It is generally considered that the old myths were a way of explaining the origins of the world and of humanity. They also played a vital role in uniting a society. Indeed the…
Abstract
Purpose
It is generally considered that the old myths were a way of explaining the origins of the world and of humanity. They also played a vital role in uniting a society. Indeed the idea of the epic story is one which permeates history to such an extent that it can be considered to be omnipresent.
Design/methodology/approach
It is argued that this cohesive role remains crucial today and so myths remain relevant to us today. The design of the chapter is to show this relevance in business behaviour. This is explored through a consideration of corporate reporting.
Findings
It is demonstrated that these myths continue to be reinvented in modern form. For individuals these myths provide a source of strength and a sense of roots and values; they offer a mirror to reveal the source of our anxieties and the means by which they might be resolved.
Research limitations/implications
In this chapter therefore the modern myths of the hero are explored in the context of managerial behaviour in organisations. In order to explore this there is a need first to consider the psychoanalysis of managerial behaviour before considering the mythic dimension of such reporting.
Practical and social implications
This paper demonstrates that organisational stories have a vitally important role in organisational cohesion and development.
Originality/value
The psychoanalytic approach provides an understanding which is not available through other methodologies.
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Nelson Maina Waweru, Zahirul Hoque and Enrico Uliana
Most research on management accounting change relates to practices in developed countries. This paper reports on a field study of management accounting change in the South African…
Abstract
Most research on management accounting change relates to practices in developed countries. This paper reports on a field study of management accounting change in the South African context. It uses a contingency theory framework within four retail companies to understand the processes of their management accounting systems change and to explore the rationales for such change processes. The findings indicate considerable changes in management accounting systems within the four cases. Such changes include increased use of contemporary management accounting practices notably activity‐based cost allocation systems and the balanced scorecard approach to performance measures. The paper suggests that recent environmental changes in the South African economy arising from government reform/deregulation policy and global competition largely facilitated the management accounting change processes within the participating organisations.
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Kertu Lääts, Toomas Haldma and Klaus Moeller
The purpose of this paper is to explore the dynamics of the usage of performance measurement (PM) methods and indicators, and this usage's influencing factors in service companies.
Abstract
Purpose
The purpose of this paper is to explore the dynamics of the usage of performance measurement (PM) methods and indicators, and this usage's influencing factors in service companies.
Design/methodology/approach
The study is based on the contingency theory framework and focuses on PM patterns. The sector, company size, and market environment dynamics, which are these patterns' primary determinants, are analysed. The study uses empirical survey data gathered from the 61 largest companies in Estonia. The study has a dynamic focus, explaining the changes in PM practices as in 2004 and 2007.
Findings
The research shows the increasing use of more balanced PM tools combining financial and non‐financial, market‐related and internal process dimensions. Nevertheless, the findings demonstrate that the companies predominantly used traditional cost accounting and reporting methods, as well as financial indicators for their PM. The findings highlight the similarities and differences between the PM patterns in service companies and manufacturing companies.
Research limitations/implications
The general limitations of survey‐based research have to be considered. The findings on the PM indicators and methods explain the usage's intensity, but not the effects of this usage on the performance. The study also analyses only a limited number of drivers that influence PM practices.
Originality/value
The research findings have two main implications. First, the paper contributes to the scarce knowledge about PM practices in service companies. Second, the paper considers the changes in PM patterns, concentrating on the dynamics of PM practices.
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Jonathan A. Batten and Samanthala Hettihewa
Country‐specific information on risk management is increasingly important, not only for investors and decision makers in international markets but also, for those in national and…
Abstract
Country‐specific information on risk management is increasingly important, not only for investors and decision makers in international markets but also, for those in national and regional markets. This study reports the results of a cross‐sectional survey of risk management practice and derivatives use by a sample of Australian firms. Overall, the results suggest that firm‐specific factors appear to have some influence on risk management practice with the industry of the respondent being the most important, while the degree of international exposure has the least. Larger and more internationally exposed firms are likely to have more frequent reporting of derivatives use, and are more likely to use swaps and options to manage risks than other types of firms. Issues and implications for international firms are discussed.
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David Crowther and Farzana Quoquab
This chapter discusses the origins of social entrepreneurship and the history. It sets this within our understanding of the current world, postmodern breaks with the norms of the…
Abstract
This chapter discusses the origins of social entrepreneurship and the history. It sets this within our understanding of the current world, postmodern breaks with the norms of the market and definitions and redefinitions of community within society. It discusses a number of features and theories which may explain the way such enterprises have become more significant with society and have permeated the globe. In doing so, this chapter acts as an introduction to this volume and sets the scene for the extended discussions which comprise the remaining chapters in this volume.
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This study investigates the usage of modern management accounting techniques popularly referred to as “strategic management accounting” (SMA), and the extent to which innovation…
Abstract
Purpose
This study investigates the usage of modern management accounting techniques popularly referred to as “strategic management accounting” (SMA), and the extent to which innovation attributes (namely relative advantage, compatibility, complexity, trialability and observability) determine SMA usage intensity.
Design/methodology/approach
Survey data was obtained through a structured questionnaire from 45 out of 56 publicly listed manufacturing companies on the Mainboard of the Nigerian Stock Exchange. Descriptive statistics, one-way ANOVA, exploratory factor analysis, confirmatory factor analysis and structural equation modelling were used to analyse data.
Findings
Whereas the overall usage rate of SMA as an innovation is generally moderate, there is significant difference in SMA usage intensity across industries in the manufacturing sector due to environmental uncertainty. Compatibility emerged as the strongest determinant of SMA usage intensity, implying that commercial enterprises would intensely apply SMA to remain innovative, to continuously improve and to incorporate strategy in accounting practice in a bid to survive competition. SMA will witness extensive usage if it aligns with the competitive strategies of an organisation.
Research limitations/implications
The attributes of innovation measured treat all SMA techniques as one, but did not measure relative advantage, compatibility, complexity, trialability and observability for each of the techniques. Future studies may consider investigating how innovation attributes specifically affect each SMA technique. The dimension of compatibility investigated in the study lean towards the alignment of SMA with competitive strategies. Taking into account the multidimensionality of compatibility as an innovation attribute, future studies may examine how past experience of implementing new ideas, as well as compatibility of SMA with corporate culture and value system, affect the dissemination and diffusion of management accounting innovations.
Practical implications
The paper proposes that although innovation attributes may partly explain SMA usage, coercive factors such as competition and environmental uncertainty may also be responsible for the decision to adopt innovative management accounting practices. The study therefore calls for a critical appraisal of how coercive institutional factors such as competition, regulation and actions of key stakeholders influence the decision of organisations to adopt an innovation.
Originality/value
This paper contributes to knowledge by challenging existing knowledge and presenting evidence that innovation attributes acclaimed to determine the spread of an innovation may be inapplicable in certain settings due to some environmental challenges. The study also contributes to knowledge by developing a composite scale for measuring innovation attributes specifically adapted to management accounting innovation, which can be used in future studies.
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David Crowther and Esther Ortiz Martinez
Agency Theory is normally used to explain the relationship between the managers of a corporation and its owners, or shareholders, and to legitimate the payment of share options…
Abstract
Purpose
Agency Theory is normally used to explain the relationship between the managers of a corporation and its owners, or shareholders, and to legitimate the payment of share options, and other remuneration mechanisms, to those managers on the basis that this will align the interests of the managers of a corporation with those of its owners. The paper aims to argue that this outworn legitimation is not just based on a bankrupt theory but is actually deleterious to corporate performance, managerial behaviour and the relationship between managers, shareholders and other stakeholders.
Design/methodology/approach
The approach is to examine the behaviour of the managers of The Royal Dutch/Shell Group of Companies (“Shell”) as they have continued to reinterpret accounting regulations, reclassify oil reserves and re‐report past and probable/possible future performance of the company.
Findings
The argument is predicated in the assertion that in the relationship between owners and managers of such a corporation there are actually no principals and therefore there can be no agents. Furthermore, the rewards structure developed from the theory provides a motivation for managerial misrepresentation leading to a situation in which principles are defunct. The Social Contract between all stakeholders to a corporation has been reinvigorated as a basis for sustainable performance, with consequent implications for the behaviour of all parties to the contract.
Originality/value
The paper illustrates that evidence abounds showing that corporations do not have any sense of social responsibility and do not feel constrained by any kind of ethical code, no matter what their corporate literature states, but that there are an increasing number of stakeholders to organisations who are demanding accountability – and forcing corporations to respond accordingly.
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