Neale Gilbert O'Connor

The adoption of “Western” management accounting/controls in China's state-owned enterprises during economic transition

This study explores the influences on the adoption of ‘‘Western’’ management accounting/control practices by China’s state-owned enterprises (SOEs). This topic is important given the potential for such practices to affect SOE operations in the midst of China’s continued privatization programme, and the continued opening of its markets to competition. In-depth interviews were conducted with managers at four SOEs and two of their joint ventures. These interviews indicated increased use of a range of Western management accounting/controls in the SOEs. They also shed light on the factors that influenced the level of adoption. These findings were used to refine a survey instrument for data collection from 82 other SOEs. The survey indicated significant and predicted influences from use of limited-term employment contracts, joint venture experience, stock exchange listing, and the availability of training. # 2003 Elsevier Ltd. All rights reserved.

Management of information systems: Insights from accounting research

This paper advances our knowledge of information systems (IS) management by applying ideas and insights from accounting. An integrative cost-benefit framework is developed and applied to four areas of research: chargeback, outsourcing, decision support, and business process re-engineering and improvement. We show that the accounting literature contributes significantly to scholarship on the management of IS.

Strategic Response to a Volatile Environment: The Case of Cross-Cultural Cooperative Ventures

Unlike free-standing companies, joint ventures involve more complex governance structures and organizational systems. Because of interpartner dependence in the managerial process, it is more difficult for joint ventures to configure their strategies with environmental dynamics. Without such configuration, however, joint ventures will suffer from operational instability and resource misallocation. This study assesses the strategic response of joint ventures to a dynamic environment. Based on a survey of top managers in international joint ventures (IJVs) in China, it is found that managerial perceptions of increased environmental complexity and hostility are positively related to an Analyzer strategy. Proactive and Defensive strategies are either negatively or non-significantly linked with perceived environmental dynamics. Further, the Analyzer strategy is associated with superior performance for IJVs in the context of an emerging economy.

Self-selection, socialization and budget control in the PRC: a study of a U.S.–Sino joint venture and Chinese state-owned enterprise

Abstract This study examines a range of self-selection (alternatives and achievement motivation) and socialization (Western training and indoctrination) factors that are likely to be related to the use of formal budget controls in a U.S.–Sino joint venture (JV) and its state-owned Chinese partner in China. The formal budget mechanisms comprised participation in budget setting, budget emphasis in performance evaluation, and merit-based reward structure. Hypothesised relationships were set up between these variables and tested using a LISREL path model. The analysis was confined to a survey of 63 Chinese sub-unit managers in a single U.S.–Sino JV and its state-owned enterprise (SOE) partner in the advertising industry. The relationships between manager self-selection, socialization practices, and the use of merit-based rewards were found to be significant, regardless of the type of entity. The results indicate that self-selection (achievement motivation) and socialization processes are important co-determinants of the use of formal budget controls in the China context. This study is one of the firsts to test the role of self-selection and socialization in the management control of organizations in China.

The impact of political constraints and formal incentive systems on the performance of Chinese State‐owned enterprises

Purpose – The purpose of this paper is to investigate the influence of liberalization forces, political constraints (on labor decisions) and formal control mechanisms (i.e. delegation of decision authority, objective performance measurement and merit‐based rewards) on the performance of Chinese State‐owned enterprises (SOEs).Design/methodology/approach – A survey instrument was used to collect data from functional managers representing over 500 SOEs. Structural equation modeling was used to analyze the data.Findings – The findings revealed significant and positive path relationships between liberalization forces and each of the formal control mechanisms, leading to firm performance. The findings also reveal that political constraints have a significant and negative path relationship with objective performance measures and firm performance.Originality/value – The evidence provided in this study adds to our understanding of the role the institutional environment plays in the structuring and management of th...

Product/service adoption strategies and bank customer accounting in Hong Kong

Purpose – The purpose of this research is to investigate the joint influence of early product adoption and bank customer accounting in Hong Kong.Design/methodology/approach – In‐depth interviews at three Hong Kong banks provided the basis for designing a survey instrument, which was used to collect data from 35 local and overseas banks. Performance data were collected from the financial statements published by the banksFindings – Findings revealed significant interactive influences of early product adoption and customer accounting practices on bank performance. That is, performance would be enhanced if customer accounting practices were used to a greater extent in those banks that were early in adopting a greater range of products. The evidence shows that bank performance in an intensely competitive market such as Hong Kong is driven by the fit between customer accounting practices and early product adoption strategies.Research limitations/implications – This paper is subject to small sample size and the ...

Culture's Influence on Budget Emphasis: Some Method Issues and Further Evidence

ABSTRACT In light of some of the conflicting expectations and results obtained in a number of cross-cultural budget control studies, this study delineates a number of method issues and provides additional evidence of the relevance of national culture in the use of budgets for control purposes. Three method issues were put forward to explain the equivocal results found in the literature: the influence of multiple cultural dimensions; level of analysis and comparisons of means used to test hypotheses. These method issues are partly dealt with in the design of this study via measurement of cultural dimensions, using data from both local and foreign firms and using a budget emphasis instrument that suffers less from the method shortcomings in a cross-cultural comparability context. A hypothesis based on Hofstedes (1967, p. 281) statement ‘The game of budget control as I described it is a Western game’, is tested by a comparison of the use of budget criteria in performance evaluation between one Anglo-America...