Davood Askarany

Diffusion of Innovation and Business Size: A Longitudinal Study of PACIA

Purpose - Size is one of the most controversial influencing factors in the diffusion literature. This paper seeks to shed light on this controversy by examining the relationship between business size and the diffusion of both technological innovation and activity-based costing (ABC) as an administrative innovation. The findings are expected to provide some guidelines for managers in helping them to determine how to facilitate the diffusion of innovations in their organisations. Design/methodology/approach - The research adopts a longitudinal survey method to examine practices within the Plastics and Chemicals Industries Association, which is the pre-eminent national body representing Australias fourth largest manufacturing sector. Findings - The study suggests a significant positive relationship between business size and both technological innovation and the implementation of ABC. Originality/value - Knowledge of the impact of size on diffusion of innovation has been complicated by the mixed results of extant studies; the paper significantly contributes to this debate.

Culture and Accounting Practices in Turkey

This paper examines the effects of cultural values on accounting practices in Turkey by applying Grays theory (Gray, 1988) of socio-cultural factors on accounting values and practices. We compared the model of accounting with accounting-profession authority, the quality and uniformity of financial disclosures, and accounting measurements in present Turkey. This country is a unique case among developing countries because of its specific geopolitical and cultural features. Our results confirm Grays theory that high uncertainty avoidance and low individualism are positively associated with high conservative accounting measurements. In addition, the study confirms that the highest power distance, uncertainty avoidance, and the lower individualism are positively associated with accounting uniformity. However, large power distance, high uncertainty avoidance, and collectivisms negatively affect professionalism and financial disclosures.

Contextual Factors and Administrative Changes

This paper explores the impact of a variety of contextual factors on the diffusion of six administrative innovations. The paper explores the level importance of 13 contextual factors on decisions(s) to implement (or not) administrative changes. It also examines the level of association between contextual factors and the diffusion of six administrative innovations, finding that the several contextual factors contribute significantly to the incidence of administrative change.

Employers' Perceptions of Information Technology Competency Requirements for Management Accounting Graduates.

Abstract Management accountants work in a computerized workplace with information technology (IT) for producing financial ledgers and for reporting. Thus, the role of the management accountant has shifted from capturing and recording transactions to analyzing business issues. The research question is: what IT knowledge and skills do employers require of management accounting graduates? An exploratory field research approach was used; chief financial officers and their subordinates at some of New Zealands largest firms were consulted. These respondents were consistent in their requirements. They emphasized intermediate proficiency with some Microsoft tools (Excel, Word, PowerPoint, and Outlook) and sufficient familiarity with the structure and navigation of an enterprise resource planning system to process transactions such as accounts receivable. Of those requirements, Excel for analysis was the most important. Our contributions update and augment the literature by clarifying the perceptions of employers regarding the IT competencies required of management accounting graduates.

An Investigation into the Diffusion of Cost and Management Accounting Innovations in Australia

Contemporary studies suggest that the take-up of most of recent management accounting innovations still lag behind those of traditional systems. However, except few (e.g. activity-based costing and balanced scorecard) other management accounting innovations relatively received less publicity in the literature. So, it is not very clear what the other main management accounting innovations of the past three decades (both from academic and practitioner perspectives) are. Performing a historical review of the development of cost and management accounting innovations, this paper addresses the major developments of management accounting innovations in the literature and then examines the extent of the introduction, the diffusion and the levels of organisational satisfaction with management accounting techniques in Australia over the past decades. The historical review of the development of cost and management accounting innovation in this study confirms the existence of an ongoing challenge for management accounting techniques over time in terms of coping with the requirements of other developments/innovations such as technological changes and innovations in manufacturing systems and information systems in organisations. According to the findings, despite the introduction of a considerable number of management accounting innovations during the past three decades, the majority of organisations in Australia (more than 50%) are reluctant to implement new management accounting techniques and at the same time are unhappy with their implemented management accounting techniques. However, according to the findings, there has been a positive development (from 2003 to 2007) in terms of the extent of organisations’ satisfactions with their implemented management accounting innovations.

An Exploratory Study into the Implementation of Management Accounting Changes in Australia

This paper is an exploratory study which investigates the introduction and implementation of management accounting changes in Australia. The study first examines the introduction of relatively new management accounting techniques in professional journals, conferences, workshops, and professional development programs over a four-year period in Australia. These are among the main sources of transferring information on cost and management accounting changes to potential users in Australia. The purpose of such a study is to get a clear picture of the scope and extent of recently developed cost and management accounting techniques introduced to practitioners in Australia. By identifying the major management accounting changes and developments faced by organizations, the study then investigates the extent of implementations of such changes in practice. The study further explores the hindering and facilitating factors contributing to the implementation of new management accounting changes in organizations.

Requirements for Information Technology with Newly Hired Management Accounting Graduates

The purpose of this paper is to determine what employers require newly hired management accounting graduates to have in terms of information technology knowledge and skills. The management accounting curriculum literature was examined along with pronouncements from relevant professional associations. CFOs at some of the largest New Zealand firms were interviewed. These CFOs were consistent on the IT knowledge and skills required by management accounting graduates, i.e., intermediate proficiency in some Microsoft tools (Excel, Word, PowerPoint, and Outlook) and familiarity with an ERP system to understand transaction processing. Of those requirements Excel for analysis was by far the most important. Our contribution challenges the literature and the professional associations, and clarifies what educators should provide to management accounting students.

ERP systems and management accounting: New understandings through “nudging” in qualitative research

Purpose This paper aims to show how our understanding of the effects of enterprise resource planning (ERP) systems on management accounting are influenced through “nudging” by researchers in their preamble before interviews begin. Design/methodology/approach There were two groups of comparable respondents. Each group received a different preamble to the same questions. The differences in group responses were analyzed. Findings When the impact of ERP implementation on the physical, transactional and information flows within the firm were nudged, the responses focused on how the chart of accounts had to be expanded to account for the additional data introduced by transaction processing. When the IT and ERP system knowledge and skills were nudged, the responses tended to emphasize analyses or the use of new information through the use of drill down functionality. This research provides new insights and contributions to understanding how nudging affects or directs respondent assessments of the impact of ERP systems on management accounting. Research limitations/implications The research is limited by the relatively small samples and by the fact that these were different research projects. Practical implications Nudging has an obvious impact on research that should not be ignored. Social implications Unintentional nudging should be considered with all research projects. Originality/value This paper makes explicit that nudging occurs in research whether intentional or unintentional.

Management Accounting and the Shortcomings of Current PerformanceMeasurement Systems

Balanced Scorecard (BSC) is one of the most talked about performance measurement systems in the management accounting literature in the past two decades. In this paper, we argue that the BSC has failed to perform as a comprehensive performance measurement systems though it focuses on both financial and nonfinancial indicators. By presenting a historical review of the BSC, we explore the key shortcomings of the BSC and discuss the steps which have been taken to address the shortcomings of the BSC since its introduction in the 1990s. And finally, we present our research findings regarding the shortcomings of the BSC in practice

How Can We Improve the Balanced Scorecard

Balanced Scorecard (BSC) is one of the most popular performance measurement tools of the past two decades. However, many current and potential adopters of the BSC are not convinced that the technique is able to present a comprehensive picture of organizations’ performance. This commentary paper is aiming to address some of the shortcomings of the BSC in practice and provide some suggestions for its improvement. The BSC links non-financial measures with financial measures in four areas of performance concerned with financials, internal process, customers and innovation and learning [1,2]. The literature on the BSC has noticeably highlighted its effectiveness and its usefulness as performance measurement systems for the businesses [3-13]. The overall assessment is that the BSC can contribute to organizations’ performance if fully implemented. It enables organizations to clarify their visions and strategies and translate them into actions. It provides feedback around both the internal business processes and external outcomes to (continuously) improve strategic performance and results. When fully deployed, the BSC transforms strategic planning from an academic exercise into the nerve centre of an enterprise [1,14,15]. Nonetheless, despite its suggested merits, research on the diffusion of the BSC indicates that its adoption rate is lower than those of other managerial tools such ABC [16,17]. So, it is unclear if the BSC suffer from any shortcoming/s that might have contributed to its slow adoption in the current ever-changing environment of the 21st century. To learn more about the issues related to the adoption and the implementation of BSC in practice, we have surveyed more 1000 practitioners in different studies in Australia, New Zealand and the UK over the past 10 years. In these studies, we have investigated the impact of a variety of contextual factors such as attributes of the BSC, characteristics of adopters, characteristics of society, etc. on the adoption of the BSC. We have also explored practitioners’ views on the shortcomings of the BSC. While we have found many contextual factors are influencing managers’ decisions regarding the adoption of the BSC in practice, according to our findings, ignoring the risks, environmental and sustainability factors as well as neglecting the concerns/rights of other relevant stakeholders (besides customers) are the key shortcomings of the BSC, which could undermine its diffusion in practice. Further studies are recommended to explore how we can develop a comprehensive BSC to incorporate additional parameters such as sustainability, risk and environment factors into four classic perspectives of the BSC to address its short comings.