Anne M. Lillis

The impact of manufacturing flexibility on management control system design

Abstract Despite anecdotal evidence questioning the relevance of management accounting in firms pursuing “new” manufacturing strategies, the exact nature and role of accounting information for controlling manufacturing activities has received little empirical attention. This study examines the impact of manufacturing flexibility on the design of management control systems. In particular, we examine the implications of flexibility on the use of efficiency-based performance measurement systems and the use of integrative liaison devices. We collected data, through semi-structured interviews, from general managers in manufacturing firms in Melbourne, Australia. These interview data were used to develop measures for the constructs of interest. Exploratory analysis of the data indicates that integrative liaison devices are a critical form of control in managing the implementation of flexible manufacturing strategies. However, the role of accounting or other efficiency-based performance measures declines in those firms with a commitment to manufacturing flexibility.

Managing multiple dimensions of manufacturing performance -- an exploratory study

Abstract Drawing on qualitative data collected during semi-structured interviews with 36 profit centre managers in manufacturing firms in Victoria, Australia, this study seeks to explore the mechanisms used to manage multiple manufacturing performance dimensions arising from the pursuit of profit centre strategy. Where measures capture potentially conflicting influences on the manufacturing cost function, strategy implementation is facilitated by loosening control reactions to cost variances and through explicit attempts to integrate multiple measures. However, a joint emphasis on performance dimensions relating to manufacturing efficiency and customer responsiveness emerges as problematic. In contrast, a joint emphasis on quality and efficiency is relatively easily managed. It is suggested that in the context of responsiveness strategies, the difficulty of designing complete measures inhibits the effectiveness of performance measurement systems as a facilitator of strategy implementation.

A framework for the analysis of interview data from multiple field research sites

In general, papers reporting the results of research studies disclose little detail regarding attributes of study design, analytical processes and methods actually used by researchers. This paper describes in some depth the method choices and analytical protocol used in a field study project. The paper describes initially the link between research question, research design and analytical protocol. The major focus of the paper is the application of a systematic analytical protocol designed to encourage completeness and impartiality in the collection and analysis of qualitative data. These method issues are examined in the context of the authors experiences in the field and through the process of data analysis. The methods used are also examined critically in retrospect.

Mixed methods research in accounting

Purpose - The purpose of this paper is to set the scene for this special issue by synthesising the vast array of literature to examine what constitutes mixed methods research, and the associated strengths and risks attributed to this approach. Design/methodology/approach - This paper takes the form of a literature review. The authors draw on extensive methods research from a diverse range of social science disciplines to identify and explore key definitions, opportunities and risks in mixed methods studies. They review a number of accounting studies that adopt mixed methods research approaches. This allows the authors to analyse variance in how mixed methods research is conceptualised across these studies and evaluate the perceived strengths and limitations of specific mixed methods design choices. Findings - The authors identify a range of opportunities and challenges in the conduct of mixed methods research and illustrate these by reference to both published studies and the other contributions to this special issue. Originality/value - With the exception of Modells work, there is sparse discussion of the application and potential of mixed methods research in the extant accounting literature.

Qualitative management accounting research: rationale, pitfalls and potential A comment on Vaivio (2008)

Purpose - This papers purpose is to provide a commentary on “Qualitative management accounting research: rationale, pitfalls and potential,” a paper by Juhani Vaivio. Design/methodology/approach - The approach is to draw on alternative research paradigms to expand the definition and discussion of qualitative research in management accounting. Findings - The paper endorses many of the prescriptions in Vaivio but expands the definition and discussion of qualitative research in management accounting to recognize the blurred boundaries with field research more generally, and to be more inclusive of qualitative field research from a positivist/functionalist perspective. Similarly, the need for qualitative research to challenge textbook, economics and consulting representations of management accounting is acknowledged, but the range of catalysts is expanded to highlight the potential for qualitative research building on both qualitative and quantitative extant research. This paper also seeks to broaden the discussion of legitimate study design characteristics and data collection methods, and to stress the importance of matching research design with research question. Originality/value - The paper stresses the value of pluralism and inclusiveness in both methodological and method choices.

Sources of influence on capital expenditure decisions: a contextual study of accounting performance measurement

This paper reports the results of a series of case studies of capital expenditure decision processes in divisionalized firms. The case studies were designed to explore the elements of broadly defined control systems operating on divisional management participants in these decisions. Twenty-one interviews were conducted with central and divisional management. The findings provide an insight into the incidence of ‘functional’ capital expenditure decisions, and the contextual influences on divisional management. In particular they illustrate the role of managerial service histories, corporate familiarity with divisional operations, strategic planning and multiple performance measures within the organizational control system.

Simons' levers of control framework: Commensuration within and of the framework

Abstract Purpose Despite extensive adoption of Simons’ Levers of Control (LoC) framework, there is still considerable diversity in its operationalization which impedes the coherent development of the literature and compromises its value to researchers. The purpose of this paper is to draw researchers back to the conceptual core of the framework as a basis for stable, consistent definitions of the domain of observables. Methodology/approach We derive the conceptual core of the framework from Simons’ writings. We highlight instability in existing operational definitions of the LoC, weaknesses in the extent to which these definitions reference this conceptual core, and inconsistencies in the restriction of LoC to formal information-based routines. Findings We draw on the inconsistencies identified to build the case for commensuration or a “common standard” for the framework’s use on two levels: the constructs within the framework (through reference to the conceptual core of the framework) and the framework itself (through explicit inclusion of informal controls). Research implications We illustrate the benefits of commensuration through the potential to guide the scope of the domain of observables in empirical LoC studies, and to study LoC as complementary or competing with other management control theories. Originality/value Our approach to resolving tensions arising from inconsistencies in the empirical definitions of LoC differs from others in that we focus on the strategic variables underlying the framework to define the conceptual core. We believe this approach offers greater potential for commensuration at the level of the constructs within the framework and the framework itself.

Do the Motives for Adoption of the Balanced Scorecard Affect its Development and Use

Abstract This study examines the relationship between the motives for balanced scorecard (BSC) adoption and the development and use of the BSC. We expect that a stronger focus on economic adoption motives is associated with full development of the BSC and its integration into the performance measurement and control systems of the firm. In contrast, we expect that a higher focus on legitimacy as a motive for adoption leads to loose coupling of the BSC with the control systems of the firm. We expect legitimacy as a catalyst to BSC adoption leads to a lower level of BSC development and use, which enables the organization to keep the environment satisfied, but does not influence processes within the organization. The data are obtained from a web-based survey with 88 useful responses of firms indicating that they use the BSC. The study investigates the relationship between the motives for BSC adoption (economic and legitimacy) and the development and use of the BSC. The results provide evidence for the hypothesis that economic motives for adoption positively affect the development of the BSC. In addition, the results partially support the hypothesis that legitimacy motives negatively affect the use of the BSC. When legitimacy comes via the mechanism of mimetic isomorphism, it has a negative effect on use of the BSC. Surprisingly, however, legitimacy has a positive effect on use when it comes via the mechanism of normative isomorphism.