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1 – 10 of 119Accounting 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.
Seleshi Sisaye and Jacob G. Birnberg
The paper extends the organizational learning framework: Structural-Functional (SF)-single-loop or Conflictual-Radical (CR)-double-loop learning to the management accounting…
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.
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Christopher Williams and Maya Kumar
We use experiential learning theory to develop new conceptual insights into offshore outsourcing of innovation. In particular, we show how offshore vendor firms are able to…
Abstract
We use experiential learning theory to develop new conceptual insights into offshore outsourcing of innovation. In particular, we show how offshore vendor firms are able to overcome liability of outsidership and eventually learn how to innovate on behalf of their onshore clients as a result of their embedment with clients across multiple teams. We theorize that the cross-border relocation of innovative activities from a client firm to an offshore vendor is only possible when teams within the vendor team have assumed a double-loop learning capability from the client allowing them to determine governing variables relating to the client’s organizational environment. Through direct on-the-job experience working with each other, international teams comprised in part from the vendor and in part from the client can undergo different learning transitions, which we classify as either relationship-oriented or task-oriented. These transitions determine the extent to which double-loop learning can be developed in offshore locations and are influenced by intra-team dynamics and the way the joint teams organize and manage themselves. Our perspective has implications for our understanding of organizational designs associated with both client and vendor multinational enterprises seeking to benefit from innovation in offshore outsourcing.
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Seleshi Sisaye and Jacob G. Birnberg
Strange and Soule (1998) outlined the processes of innovations as follows. “Innovations are novel (at least to the adopting community), making communication a necessary condition…
Abstract
Strange and Soule (1998) outlined the processes of innovations as follows. “Innovations are novel (at least to the adopting community), making communication a necessary condition for adoption. Innovations are also culturally understood as progressive, strengthening the hand of change agents. And since innovations are risky and uncertain, adopters carefully weigh the experience of others before acting” (p. 267).
Seleshi Sisaye and Jacob G. Birnberg
Researchers in the social sciences have studied the process by which new ideas are adopted (implemented) and how acceptance is generated among those charged with accepting and…
Abstract
Researchers in the social sciences have studied the process by which new ideas are adopted (implemented) and how acceptance is generated among those charged with accepting and implementing an innovation. Sociology, in particular, has developed an extensive literature on diffusion analysis which examines how innovations are diffused (see Coleman, Katz, & Menzel, 1966; Leagans & Loomis, 1971; Rogers, 1971; Rogers & Shoemaker, 1971). While many of these studies dealt with the adoption and diffusion of a new product, for example, seed corn or drugs, the same analysis has been applied to process innovations, that is, system and organizational change.
Frans-Bauke van der Meer and Peter Marks
One ambition of most mid-career MPA programmes is to combine the attainment of an academic master degree with a qualitative leap in professional skills and functioning. This…
Abstract
Purpose
One ambition of most mid-career MPA programmes is to combine the attainment of an academic master degree with a qualitative leap in professional skills and functioning. This ambition requires that academic insights and methods be sensibly linked to real-life professional contexts and challenges. This chapter develops a rationale to enhance conditions and mechanisms that help to produce such linking, based on insights in professional learning.
Design/methodology/approach
Two methods used in the mid-career MPA programme at Erasmus University Rotterdam to help students to establish such links will be discussed. The first method involves an evolving personal learning agenda and the second method involves peer-to-peer coaching. Both methods will also be used to evaluate the added value of the programme for the professional functioning of the students.
Findings
The MPA programme makes students link theory to their own real-life practice and changes their perspective on analysis and professional intervention. Often, however, these new perspectives are quite general in nature, not taking much account of the specific context. Thorough lecturer feedback and training in peer consultation may help students to become more reflexive and to develop better situation-specific strategies.
Practical implications
The findings point to the need for further development of didactical strategies.
Originality/value
The chapter analyses professional added value of an academic programme.
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A glossary of definitions is provided below to familiarize the reader with some of the sociology and organizational behavior literature terminology used throughout this book. We…
Abstract
A glossary of definitions is provided below to familiarize the reader with some of the sociology and organizational behavior literature terminology used throughout this book. We also relate this terminology to management accounting concepts to combine these two streams of literature into an integrated process innovation framework in management accounting systems.
Paul Parboteeah, Thomas W. Jackson and Gillian Ragsdell
Knowledge management aims to increase an organization's competitive advantage through the collective management of its employees' knowledge. In the past, knowledge management was…
Abstract
Knowledge management aims to increase an organization's competitive advantage through the collective management of its employees' knowledge. In the past, knowledge management was very technologically oriented, with a focus on data mining, software, and artificial intelligence, but in recent years there has been a move toward incorporating social aspects. As knowledge management evolved into its second era, the focus shifted to defining knowledge, developing frameworks, and implementing content management systems. The current knowledge management era (third) appears to be more integrated with an organization's philosophy, goals, and day-to-day activities, and is also the “softest” with regards to a people-oriented approach (Metaxiotis, Ergazakis, & Psarras, 2005; Wiig, 2002). As knowledge management moves further into the third era, no theoretical foundation exists. As will be seen, knowledge is an unmanageable, nontransferable entity that cannot exist outside a person's brain (Abou-Zeid, 2007). As such it is not possible to define the concept of knowledge, nor even desirable, and this is in direct contrast to first generation knowledge management, which aimed to accurately define the concept of knowledge (Metaxiotis et al., 2005). The focus on frameworks (Holsapple & Joshi, 1997), systems (Hasan & Gould, 2003), and technology (Liao, 2003) that dominated second-generation knowledge management is also not compatible with the current understanding of knowledge (Abou-Zeid, 2007), suggesting that systems cannot directly manage knowledge.