Lili-Anne Kihn

Performance Outcomes in Empirical Management Accounting Research: Recent Developments and Implications for Future Research

Purpose – This paper seeks to further our understanding of the research in the area of quantitative management accounting research. The purpose of this study is: (1) to provide a synthesis and an extended discussion of the literature from the performance outcome standpoint, and (2) to foster future research in this area by identifying promising recent developments in the assessment of performance outcomes and gaps in the literature. Design/methodology/approach – A literature analysis was adopted based on empirical studies and literature reviews published in a wide range of journals. Findings – The overall conclusion of this study is that future management accounting research can still make progress in the measurement of performance outcomes. Research limitations/implications – Research published in English, and the period of the past decade was emphasized to examine recent frontiers of knowledge. The results imply that increasing and simultaneous analysis of various kinds of performance outcomes could be conducted in different settings. They include behavioral, market-based, accounting-based, non-financial, competitive strategic, social and environmental outcomes, competitiveness of systems and relative-to-peers assessments. If possible, development of performance outcomes could be investigated with longitudinal and panel, in addition to cross-sectional, research designs. Attempts could be made to analyze the nature of causality to advance both management accounting literature and social science research. Practical implications – This study furthers understanding of behaviorally-, organizationally- and strategically-oriented management accounting research that has played a central role in assessing to what extent people are likely to succeed with their management accounting and control systems in various settings. Originality/value – This paper presents a theoretical framework and several examples potentially useful for both academic scholars and practitioners.

How do controllers and managers interpret budget targets

Purpose – The purpose of this study is to further our understanding of how and why interpretations of budget targets differ from one person to another even in the same business unit.Design/methodology/approach – A qualitative case study research approach is adopted, involving a review and analysis of the literature and interviews conducted among controllers and managers of a highly successful business unit.Findings – Both the theoretical and empirical results suggest that organizational budgetary processes do not provide a similar understanding of budget targets for each person. While some shared interpretations are evident, individual‐level variations occur in the personal and subjective meanings that controllers and managers give to budget targets in their own consciousness, situationality and corporeality. A personal historical basis for understanding may impact a managers interpretation of budget targets, but the interpretations can also be dynamic and change over time.Research limitations/implicatio...

Approaches to validation and evaluation in qualitative studies of management accounting

Purpose - – This paper aims to address the reporting of validation and evaluation criteria in qualitative management accounting studies, which is a topic of critical debate in qualitative social science research. The objective of this study is to investigate the ways researchers have reported the use of evaluation criteria in qualitative management accounting studies and whether they are associated with certain paradigmatic affiliations. Design/methodology/approach - – Building on the work of Eriksson and Kovalainen [Eriksson and Kovalainen (2008) Qualitative Methods in Business Research. London, Sage], the following three approaches are examined: the adoption of classic concepts of validity and reliability, the use of alternative concepts and the abandonment of general evaluation criteria. Content analysis of 212 case and field studies published during 2006 to February 2015 was conducted to be able to offer an analysis of the most recent frontiers of knowledge. Findings - – The key empirical results of this study provide partial support for the theoretical expectations. They specify and refine Eriksson and Kovalainen’s (2008) classification system, first, by identifying a new approach to evaluation and validation and, second, by showing mixed results on the paradigmatic consistency in the use of evaluation criteria. Research limitations/implications - – This paper is not necessarily exhaustive or representative of all the evaluation criteria developed; the authors focused on the explicit reporting of criteria only and the findings cannot be generalized. Somewhat different results might have been obtained if other journals, other fields of research or a longer period were considered. Practical implications - – The findings of this study enhance the knowledge of alternative approaches and criteria to validation and evaluation. The findings can aid both in the evaluation of management accounting research and in the selection of appropriate evaluation approaches and criteria. Originality/value - – This paper presents a synthesis of the literature (Table I) and new empirical findings that are potentially useful for both academic scholars and practitioners.

An empirical investigation of the principal top management styles in the emphasis of multiple forms of controls

This study offers empirical evidence of the principal top management styles in the emphasis of multiple forms of controls. In particular, it analysed the principal styles in how top managers emphasise financial, non-financial and selected behavioural (action accountability) controls in the performance evaluations of foreign subsidiary managers and whether the different styles result in performance differences. Research propositions were assessed using cluster analysis and analysis of variance, with documentary and survey data collected from the top managers of the business units of multinational companies headquartered in Finland. The results identify, describe and profile a total of six principal styles in the emphasis of financial, non-financial and behavioural controls. Overall, the results demonstrate that managers differ significantly in the way they emphasise controls and that all styles are not as effective in enhancing performance.

The Determinants of Multiple Forms of Controls in Foreign Subsidiary Manager Evaluations

This study explores how the determinants of financial, non-financial and behavioural controls vary in foreign subsidiary manager performance evaluations. Possible impacts of the following factors are analysed: extent of geographical dispersion, decentralisation and perceived environmental changes. Hypotheses are tested, using principal component and multiple regression analysis, with data collected from annual reports and from 103 top managers from a wide range of Finnish business unit headquarters. The results suggest that, in MNCs, top managements emphasis on financial controls tends to remain very high, regardless of the contingencies analysed. However, the data support several regularities between the factors examined and non-financial controls in particular and behavioural controls to a smaller extent. This, in turn, leads to variations in the relative emphasis on financial controls.

Emerging diversity in management accounting research : the case of Finnish doctoral dissertations, 1945-2015

Purpose Several scholars have recently highlighted the narrowness of accounting research regarding it as a threat to scholarly developments in the field. The aim of this study was to chart progress in management accounting research using a sample of doctoral dissertations published in Finland. In particular, the study examines the range and diversity of research strategic choices in Finnish dissertations over time, including the topics and methodological and theoretical approaches chosen. The authors also briefly compare findings over time and with other progress studies. Design/methodology/approach A longitudinal historical investigation was selected. All of the 80 management accounting doctoral dissertations published in Finnish business schools and departments during 1945-2015 were analysed. Findings The findings reveal that an expansion of doctoral education has led to an increasing diversity of research strategic choices in Finland. Different issues have been of interest at different times; so, it has been possible to cover a wide range of cost, management accounting and other topics and to use different methodological and theoretical approaches over time. Consequently, management accounting has become a rich and multifaceted field of scientific research. Research limitations/implications While this analysis is limited to doctoral research in Finland, the results should be relevant in advancing the understanding of the development of management accounting research. Practical implications Overall, the findings support the view that there have been, and continue to be, many ways to conduct innovative research in the field of management accounting. Social implications Dissertation research in this field has been extensive and vital enough to educate new generations of academics, guarantee continuity of the subject as an academic discipline and make management accounting a significant academic field of research. Originality/value The paper contributes to current research on management accounting change by an analysis of a sample of doctoral dissertations.