Ebook Linking Management Accounting And Control Systems, Strategy, Information Technology, Manufacturing Technology And Organizational Performance Of The Firm In Contingency Framework
Increased global competition has led firms to seek competitive advantage through clearly articulated strategies, advanced management accounting systems, advanced manufacturing systems and advanced information technology, among other things (e.g. Chenhall & Langfield-Smith 1998a, Baines & Langfield-Smith 2003, Mabert et al. 2003a). In order to achieve competitiveness there should be an optimal fit between the strategy, management accounting systems and information technology used by the firm (e.g. Kaplan & Norton 1996, Ittner & Larcker 1997, Bouwens & Abernethy 2000, Palmer & Markus 2000, Ittner & Larcker 2001, Davis et al. 2002, Chenhall 2003) as well as between the strategy, manufacturing technology and information technology of the firm (e.g. Mahmood & Mann 1993, Kathuria et al. 1999, Samson & Terziovski 1999, Goh 2000, Mia 2000, Chan et al. 2006). It is argued that the effectiveness of strategy is enhanced by advanced management accounting systems. Advanced information technology is needed to provide proper information to enable management accounting systems to relate to support the formulation, implementation and control of strategy. According to the contingency theory, this fit should lead to enhanced organizational performance (e.g. Nanni et al. 1992, Atkinson et al. 1997, Chenhall & Langfield-Smith 1998a, Baines & Langfield-Smith 2003, Gerdin 2005). If the management accounting systems are found to be useful, then they are likely to be used and be beneficial to individuals, who then presumably can approach their tasks with enhanced information. These individuals then make improved decisions. It is also argued that the effectiveness of the strategy is enhanced by advanced manufacturing technologies and advanced information technology. This fit ensures the successful deployment of a company’s technological capabilities in pursuit of its business strategy goals.
In management accounting literature there has been an increased emphasis on both traditional and non-traditional performance measures (e.g. Chenhall 1998b, Hyvönen 2005, Ittner & Larcker 1998). Contemporary performance measures such as Balanced Scorecards or customer satisfaction surveys are proposed as ways of linking operations to the company’s strategies thereby enhancing organizational performance. The growing emphasis on non-financial measures arises from the critiques that financial measures have received. They have been criticized for excessive internal orientation or being historical and not being able to provide the information managers need in a highly competitive environment (e.g. Ittner & Larcker 1998).
Firms are increasingly taking advantage of a variety of packaged information technology systems. Global distribution channels, numerous international plant sites and closely integrated sourcing arrangements change the way companies do business (Mabert et al. 2003b). Information technology is a key component in managing organizations and provides the means to integrate processes, enforce data integrity and better manage resources (Mabert et al. 2003a). The developments and availability of information technology have changed the way management information is produced and presented to managers. Recently, it has been recognized that firms are faced with the challenge of integrating information technology into accounting practices (Olsen & Cooney 2000). Accounting and information technology are connected because information technology concerns the firm’s financial ledgers and reporting systems (Granlund & Mouritsen 2003). Mabert et al. (2000) report that 75% of U.S. manufacturing firms are pursuing enterprise resource planning systems and that 44% have already implemented them. It has also been estimated that at least 30 000 firms worldwide have implemented enterprise resource planning systems (Mabert et al. 2003b). These systems help firms to integrate all corporate information into one shared database allowing the same information to be retrieved from different organizational positions (e.g. Quattrone & Hopper 2005). Information technology has also become a powerful tool for strategy. It has been claimed that information technology choices are strategic to the extent that they support or enable the firm’s business strategy (e.g. Porter & Millar 1985). Because of recent substantial investments in information technology, it is important to know under what circumstances they are most effective in enhancing organizational performance.
The constructs investigated in this dissertation are strategy, management accounting systems, manufacturing technology and information technology. In addition, we investigate their links to organizational performance. The first essay focuses on the adoption and benefits of management accounting practices, whereas the next essay studies the relations between customer-focused strategy, performance measurement techniques, information technology and their link to customer performance. By customer performance we mean a construct that measures market share, sales volume, market developments and development of new products. The third essay, in turn, studies the relations between manufacturing technology, information technology, strategy and organizational performance. The first three essays use a survey method. The fourth essay studies management accounting systems and their relations to strategy and information technology by using the multiple case method.
Contents
Abstract
Acknowledgements
Essays
Contents
1 Introduction
2 Literature review, theoretical framework and contribution of the thesis
- 2.1 Structure and theoretical framework
- 2.1.1 Management Accounting Systems
2.1.2 Management accounting systems and strategy
2.1.3 Information technology and strategy
2.1.4 Management accounting systems, information technology and strategy
2.1.5 Manufacturing technology and strategy
2.1.6 Manufacturing technology, information technology and strategy
2.2 Contribution of the thesis
3 Adoption and benefits of management accounting systems: evidence from Finland and Australia
4 Strategy, performance measurement techniques and information technology of the firm and their links to organizational performance
5 Strategy, manufacturing technology and information technology of the firm and their links to organizational performance
6 Strategy, management accounting systems and information technology of the firm case analysis of six Finnish companies
7 Conclusion
References
Essays
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