Measuring management accounting practices using textual analysis

Management Accounting and Operations Management: Understanding the Challenges from Integrated Manufacturing

Rapid growth in technologies and competitive business environments have brought significant changes in management accounting practices in the manufacturing industries. To cope with these changes a good number of management accounting tools have been developed in helping managerial decisions both at operating and strategic levels. Researchers have identified that the implementation of such tools in developed countries brought success in decision making though research in this particular area in less developed countries, especially in Bangladesh, is not significant yet. Thus, this research aimed to explain the changes that have taken place and the factors behind the changes in management accounting practices (MAP) in manufacturing industries. The listed manufacturing companies in Bangladesh consist of the population and sample of the study. Factor reduction techniques were used to analyze the influencing variables behind the changes in MAP. The paper reveals that the changes that have taken place from 2001 to 2010 period in MAP are mainly in the operational areas while after 2011 the changes in MAP have mostly taken place in the area of strategic decision making. The factors behind the changes are categorized under the heads of Changes in Business and Organization Strategy and Changes in Manufacturing and Information Technology by applying factor analysis.

Changes in the business environment requires that a company adopts a more adaptive strategy. A business strategy is not just about planning, but it needs to be supported with meaningful information. Management accounting complements a business strategy by providing crucial information, not just limited to cost efficiency, but customer satisfaction and quality management. However, the adoption of management accounting practices (MAPs) is believed to be influenced by strategy. Using the Miles and Snow (1978) business strategy typology model, this study examined the influence of business strategy on the adoption of MAPs, focusing on how the different types of business strategies used in organizations may influence the adoption of MAPs. Data was collected from manufacturing companies in Malaysia. The result showed that most Malaysian manufacturing companies utilized three major classifications of strategies, i.e., defender, prospector, analyzer, and only a few were classified as reactors. The result showed that the adoption level of both traditional and advanced MAPs is also high. Findings from this study indicated an influence of the defender and analyzer types towards adopting traditional MAPs, whereas the prospector type had influenced the adoption of advanced MAPs. Keywords: management accounting practices, business strategy, defender, prospector, analyzer, reactor

The main aim of this research is to review the frameworks currently developed and practiced in the public sector, in particular, the Malaysian local governments, and to identify the requirements for a better framework that can secure management control and facilitate accountability to users, the public and interested stakeholders. Specifically, this study investigates the management accounting and control practices, and the micro-accounting systems used by the local governments. It also examines the extent of the reforms or changes in these systems and the extent of micro-accounting implementation in these organisations. Among the management accounting practices, the results reveal that local government organizations are heavily involved with budgeting and performance measurement tools and show reasonable interest in accountability issues.

The purpose of this study is to investigate the impacts of external and internal organizational factors of the privatization process on management accounting practices and the impact of these changes on the financial performance of listed companies on Tehran Stock Exchange that more than 51% of the companies' shares have been transferred to the private sector. This research, based on institutional and structural theories, provides an exhaustive explanation of changes in management accounting practices by considering the conflict of the internal and external factors and the role of the human factor in the privatization process. In this study, according to the general policies of Article 44 of the Constitution, to increase competitive advantage, management accounting has been used as a mediating variable in the relationship between privatization and financial performance. To this research, 60 companies which their ownership transferred to the private sector during the period from 2002 to 2018 were investigated. To collect data, questionnaire survey and companies financial statements were adopted and to test the hypothesis Structural equation An investigating of the impacts of external and internal organizational 19 modeling using Smart PLS software. The findings of the study show that external and internal organizational factors in the privatization process, have a significant impact on the management accounting practices that these changes effects on the financial performance of companies. The result is that in the privatization process, the external and internal organizational factors and contradiction of the incompatibility of these factors with the human factor provide the conditions for changes in management accounting practices that effect on the financial performance of companies. The results of the current study could be useful for the effectiveness of management accounting changes and their impact on the financial performance of companies in the merger and acquisition processes in developing countries.

Management accounting techniques that improve customers satisfaction in banks include decision making, costing, performance evaluation, time driven activity-based costing and budgeting. The study focuses on present practices of management accounting for customer satisfaction in Nepalese commercial bank. Management accounting practices (MAPs) play important role in customer satisfaction through enhancing Nepalese commercial banks’ decision-making, financial efficiency, and service quality. This study examines how MAPs and customer satisfaction are related, with a particular emphasis on decision-support systems, cost control, performance evaluation, benchmarking, TDABC and budgeting in commercial banks. The study used a survey method to conduct a quantitative investigation and a descriptive research design to examine the management accounting practices and customer satisfaction of Nepalese commercial banks. Based on judgmental sampling 300 branch managers out of 591 branch managers and 350 customers provided questionnaire for this study. Using cluster sampling, the five banks are chosen based on their largest paid-up capital. In order to fulfill the research objectives, primary data are collected using online questionnaires as well as printed questionnaires. On the basis of responses given by 285 branch managers out of which 300 usable data and 285 responses received from customers out of which 350 are usable data, data are analyzed using various statistical tools. The analysis showed that commercial banks are practicing management accounting for customer satisfaction. The result of the study indicated that there is positive association between management accounting practices and customer satisfaction in Nepalese Commercial Banks. The study concludes that Nepalese commercial banks should adopt robust management accounting practices to enhance their customer satisfaction.

Following Vietnam’s re-unification in 1975, accounting practices and systems throughout the country were similar to those adopted by the Soviet Union and China. Since the late 1980s, however, Vietnam has been in the process of transforming itself from a centrally planned economy to a market-oriented one, as a result of which the business environment has become much more competitive. The orientation of the accounting system has changed from one that served only the needs of state tax authorities to one that could also serve the needs of management. In turn, these changes have created a need for management accounting in Vietnamese enterprises. Despite such far-reaching changes, there is a lack of systematic knowledge about the current state of management accounting practices (MAPs) in Vietnam. This situation is consistent with a general lack of detailed information and understanding of MAPs in developing and/or transitional economies. This study seeks to help fill an important gap in the literature by investigating past and current MAPs in Vietnamese enterprises, factors that may have facilitated the adoption of western MAPs in such enterprises, and the costs and benefits of such adoption. In so doing, the study will add to management accounting literature by contributing supplementary information relating to an Asian perspective of MAPs. Data was collected using a multi-method approach including a questionnaire survey and interviews. Data for the study were collected from 220 accouting heads and vice heads of medium-to-large enterprises. Follow-up interviews were conducted with 20 accounting heads/vice heads to obtain further information and clarifications. The quantitative data collected was analyzed using both descriptive and inferential statistics (including t-tests, ANOVA, and structural equation modeling), while the qualitative data was used to shed further light on the various relationships described by the quantitative analysis.

Lean strategy is becoming more and more popular, not only in manufacturing but also in service organizations. Drawing on previous research (e.g. Kennedy, Widener, 2008; Fullerton et al., 2013) the paper aims to empirically examine whether service organizations use specific management accounting systems (MAS) to support lean strategy. The case study method was used in the research to gain a deeper understanding of the phenomena analyzed. It was found that there is a positive and significant association between lean practices and employee empowerment, whiteboard use and individual process costing. There were no positive and significant associations, however, between lean practices and MAS simplicity. Thus, it was generally observed that departments with higher use of lean methods also use management accounting practices more extensively. Limited evidence was found, however, that in the case of company management, accounting practices work together (as a package) to support lean strategy. Only in the case of employee empowerment and whiteboards were associations between their use and top management support for lean initiatives found. It was surprising that some department managers, who used lean tools extensively, pointed out that they would like to obtain much more detailed financial information from the Accounting Department than is now possible. It was also observed that management accounting tasks related to lean practices are moving from the Accounting Department to operational departments. The management accounting system, according to both the managers and accountants we interviewed, is still, in part, a set of data and not a mode of action, which is contrary to the lean management philosophy. DOI: http://dx.doi.org/10.5755/j01.ee.29.5.20763

Purpose – This study investigates the interplay between strategic performance measurement and management accounting to gain a deeper understanding of how strategic measures of performance evolve with the managerial accounting practices. Design/Methodology/Approach – The study explored the performance measures used at a bank focused on the development and sustainability initiatives in Africa. Thirty-two semistructured interviews were conducted with directors, managers, and analysts from nine different categories of job families. Findings – Analysis shows that managers assimilate a comprehensive, multifaceted measurement system to understand the creation and delivery of sustainable value. The results show that the managerial accounting practices adapt to incorporate an integrated set of performance measures that afford sustainable value to the stakeholders. The findings provide rich insights into how the managers adapt their information assimilation practices to the changing demands of the different stakeholders and adopt practices which innovate measures of performance that are aligned to the strategic goals. Finally, the findings illustrate that the interplay between strategic performance and managerial accounting practices has the potential to improve or inhibit sustainable development. Originality/Value – Little is known about how performance measures evolve, and how they interplay with the managerial accounting practices within organizations. This study reveals that the interplay of strategic performance measurement and managerial accounting can only be understood in the confluence of organizational change and sustainability. While acknowledging the need to embrace change and sustainability simultaneously, the study offers insights into the dynamics of change – the duality of emergent managerial accounting practices and the evolution of strategic performance measurement systems.

This study investigates the impact of cost and management accounting (CMA) practices on operational efficiency and service quality in the hotel industry of Uttar Pradesh, India. Drawing on the Resource-Based View (RBV) and the Service-Profit Chain framework, the research conceptualises CMA practices as strategic organisational resources that enhance service outcomes through improved operational performance. A quantitative, cross-sectional survey design was adopted, collecting data from 476 hotels across various categories, ownership types, and locations. Using structural equation modelling (SEM), the study examines the relationships between five dimensions of CMA practices—budgeting, costing, performance measurement, decision support, and technology and analytics—operational efficiency, and service quality. The findings reveal that costing, decision support, and technology and analytics significantly enhance operational efficiency, while budgeting and performance measurement show no significant effects. Operational efficiency has a strong positive influence on service quality and mediates the effects of costing, decision support, and technology and analytics on service outcomes. The results highlight the strategic importance of adopting modern, technology-driven CMA practices to achieve operational excellence and deliver superior guest experiences. This study extends accounting and hospitality literature by providing empirical evidence from an emerging economy context and offers practical insights for hotel managers, policymakers, and professional bodies. It underscores the need for data-driven, analytics-enabled accounting systems to strengthen competitiveness and enhance service quality in dynamic hospitality environments.

PurposeMalaysia has moved towards global competitiveness. As an important contributor to the Malaysian economy, this change makes manufacturing companies in Malaysia need to ensure that their business operation and management cope with the current changes. To do this they need to reconsider their existing management accounting practices more than ever. Therefore, this study is carried out to determine how changes in management accounting practices in Malaysian manufacturing companies took place in response to a changing business environment and the effect of changes on performance.Design/methodology/approachA structured questionnaire survey is used to collect the data from various manufacturing companies in Malaysia. The Federation of Malaysian Manufacturer Directory is used as a sampling frame.FindingsThe results show that the level of changes in management accounting practices increased over the five year period from 2003 to 2007. The changes mostly occurred through the introduction of new practices, replacement of existing practices and modification of the way existing practices were used. Findings in this study also reveal that there are no significant differences in management accounting practices among local and foreign companies, or between small and medium, and large companies. This study also support previous research in terms of the positive relationship between changes in management accounting practices and performance.Originality/valueTaken together this research outcome has contributed to the existing management accounting change literature especially in a developing economy setting.

Behavioral Implications of Management Accounting Practices: A Contemporary Issue in Management Accounting

Management accounting (MA) helps to formulate strategies in manufacturing enterprises (ME). This paper is the outcome/product of a study on the Management Accounting Practices (MAP) of Nine (9) manufacturing enterprises from 4 sectors listed in the Chittagong Stock Exchange (CSE) on the year of 2019. The study aims to evaluate the present scenario of MA practices. The primary data were collected through a structured questionnaire from 139 respondents selected from nine enterprises and found that the highest mean score was 4.71, on Management accounting information is very essential for manager to take decision making and lowest mean score is 4.28, for the practice of management accounting to enhance profitability and the average mean score was 4.4871 in the scale of 5. The study also revealed that about 59% to 98% of enterprises have disclosed the management accounting information both in descriptive & monetary nature. New and innovative techniques of management accounting should be implemented to gain competitive advantages. The study has recommended improving the management accounting practices in this regard.

The purpose of this study is to determine the relationship between management accounting practices and strategy development in SMEs. SMEs are among the main actors of economic development and growth. To determine the right strategies in a variable and competitive market, the qualitative and quantitative knowledge produced by the accounting system is needed. The management accounting system can influence managerial decisions, change strategies, and affect the performance of the firm through its extensive practices. Using the multivariate statistical analyses, the results of the applied studies for SMEs show that the management accounting system’s planning and control, cost management, and performance measurement and evaluation functions significantly affect which strategy the firms will implement. According to the research, the management accounting practices used by SMEs are related to the company strategies they have taken, and these actions have been reached as an effect on the strategies of the companies.

Practitioners are from Mars; Academics are from Venus? An Empirical Investigation of the Research – Practice Gap in Management Accounting