Strategic priorities of Malaysian hotels: the role of management control bureaucracy

The study examines the role of the management control system (MCS) in Malaysian hotels that pursue different strategic priorities. It is proposed that the cost leadership and differentiation strategies relationships to performance are indirect through the use of bureaucratic and non-bureaucratic MCSs. Data from a survey of 59 hotels operating in Malaysia were used to test the hypotheses. Using partial least squares, the results indicate no significant indirect effect of bureaucratic MCS on the relationship between cost leadership and performance. Additionally, non-bureaucratic MCS did not mediate the relationship between differentiation strategy and performance. Contrary to expectation, a significant indirect effect of bureaucratic MCS on the relationship between differentiation strategy and performance exists. The differentiators appear to affect the use of bureaucratic MCS to increase performance. The study implies the dominance of bureaucratic MCS in the Malaysian hotel industry and challenges the contingency-based proposition on the coupling of business strategy with MCS

Implementation of Integrated Case Studies Course for Accounting Students

AbstractAn Integrated Case Study (ICS) course provides assessment of professional capabilities and competence of accounting students. Students are required to demonstrate their capabilities to integrate various elements of accounting and business knowledge across a range of situations and apply them in the context of a professional accountant at work. The main question is how to implement ICS effectively. Based on the experiences of UKM lecturers in the implementation of ICS to accounting students, this paper hope to provide some guidelines and effective ways of conducting ICS. This study also explores students’ perception on the effectiveness of ICS based on a survey on 153 undergraduate students registered in the course. Findings show that most students found ICS course as generally effective and has improved their knowledge and skills to solve real problems in the accounting field. This study suggests the need of ICS in professional courses to enhance students’ knowledge and skills

Measuring inter-organizational cost management and open book accounting

This paper reports the findings of a study aimed at developing valid measurement for interorganizational cost management (IOCM) and open book accounting (OBA) constructs. The conceptualization of these measures were based on the prior literature in the context of supplier firms of Malaysian manufacturing sector. Using Structural Equation Modelling (SEM), measurement models of the constructs were tested and the scales were validated. The results indicated a satisfying model with acceptable reliability and validity. The findings of this study provide instruments that could be utilized as tools to assess the adoption of IOCM and OBA practices in buyer-supplier relationships. This paper extends the understanding on the concepts of IOCM and OBA practices through the introduction of a comprehensive scale covering wide dimensions of IOCM and OBA

Re-examining organizational life cycles criteria: an analysis of service organisations in growth and maturity stages

The understanding on different types of changes within and between organizational life cycle stages may identify the appropriate effectiveness model that could be applied. Hence studies have been undertaken to identify the best match of management techniques at various organizational development stages. Considering that the underlying characteristics of the life cycle model has been established more than three decades ago, the aim of this study is to re-examine the consistency of these organizational characteristics in defining the life cycle stages over years. Based on Miller and Friesen’s (1984) organizational model, this paper reevaluates the criteria of the life cycle classification scheme focusing on the growth and maturity stages. Data was collected through a questionnaire survey to top–level management of profit-oriented service firms operating in Malaysia. Using cluster analysis, the service firms are grouped according to the established criteria defining their life cycle stages namely, their strategy, the organizational structure and management decision making style. The findings suggest some inconsistencies with the initial description of growth and maturity levels’ criteria. Despite the expectation that the level of complexity of management approaches progress through the life cycle, the findings indicate that growth firms has higher mean score in all measurable items defining their stage of growth. The results also imply the likeliness of other factors influencing firms’ adaptation to changes

The moderating role of employees’ professionalism on BSC usage and organizational performance relationship

Innovations in management accounting practices require placing more comprehensive integrated performance measures to improve performance. Although there is evidence on the practice of balanced scorecard (BSC) in Malaysia, little is known about the influence of BSC usage to organizational performance and factors that improves this relationship. This paper examines the moderating effect of employees’ professionalism on the relationship between BSC usage and organizational performance. A questionnaire survey was administered to chief financial officers (CFOs) of Malaysian manufacturing firms. Using 110 responses, the findings indicate that professionalism of staffs significantly enhanced the relationship between BSC usage and organizational performance. Specifically, the findings suggest that social obligation dimension strengthens the implication of using the firms’ BSC

Tight budgetary control, business strategy, external environment and firm performance / Muhammad Dahlan, Sofiah Md Auzair and Wan Madznah Wan Ibrahim

Despite the increasing role of non-financial information and continuous criticisms of budgetary processes, budgetary controls are becoming more integrated with firms’ information system to provide cost effective practices and means of tight control. While there has been extensive research on accounting based budgetary controls, little has been done to understand the effect of tight budgetary controls on firms’ performance. This paper reports the findings of a study designed to examine the relationship between tight budgetary control and firms’ performance. Additionally, the effects of two contingent factors, namely, business strategy and external environment are considered

Pengaruh krisis peperangan terhadap amalan perakaunan pengurusan Perusahaan Kecil Sederhana (PKS) di Yaman

Kajian ini meneroka amalan perakaunan pengurusan (APP) di perusahaan kecil sederhana (PKS) di Yaman yang berhadapan krisis peperangan semenjak tahun 2015. Situasi krisis dioperasikan sebagai ketidakpastian faktor politik, ekonomi, sosial dan teknologi (PEST) manakala APP dikaji dari perspektif APP kontemporari dan tradisional. Menggunakan asas teori kontingensi dengan pendekatan konfigurasi, kajian ini menjangkakan PKS di Yaman akan memberi penekanan yang berbeza terhadap APP tradisional dan kontemporari dipengaruhi oleh persepsi kestabilan politik dan ekonomi, serta kemajuan sosial dan teknologi. Sebanyak 287 soalselidik telah diedarkan kepada pengurus atasan PKS di lima wilayah negara Yaman iaitu Sana, Aden, Hadhramout, Taiz, and AlHodiadah. Nilai min bagi kesemua faktor PEST yang rendah menyokong persepsi terhadap situasi krisis di Yaman. Bagi menguji hipotesis, dua kluster firma PKS telah dibentuk. Di dapati, Kluster 1 yang memaparkan PKS dalam keadaan politik dan ekonomi lebih stabil dan situasi sosial dan teknologi lebih maju telah menekankan penggunaan APP tradisional berbanding APP kontemporari. Manakala PKS Kluster 2 memaparkan keadaan politik dan ekonomi kurang stabil dan situasi sosial dan teknologi kurang maju memberi penekanan hampir sama terhadap APP tradisional dan APP kontemporari. Sejajar dengan jangkaan, firma PKS di kluster 1 yang menghampiri padanan kerangka kontingensi telah menunjukkan prestasi firma yang lebih baik berbanding kluster 2. Penemuan ini memberi implikasi tentang kepentingan pemahaman dan amalan APP yang sesuai walaupun berada dalam situasi krisis

Effect of enterprise resource planning systems and forms of management control on firm’s competitive advantage

In the brick of digitalization industry revolution era, this study signifies the pertinent role of Enterprise Resource Planning Systems (ERPs) towards assisting the organization towards attaining the firm’s mission and goal. This study extends the knowledge by exploring the relationship between ERPs and management control (MC), which in turn enhances firm’s competitive advantage. Realizing the limited empirical work on ERPs from management accounting and control perspective, the discussion would be drawn from business stakeholder’s perspective, instead of from information technology standpoint. The study views ERPs as an important resource in creating the capability to control the business operations and combination of both factors creates the firm’s competitive advantage. Survey questionnaires were administered via email to 972 randomly selected manufacturing firms listed in Federation of Malaysian Manufacturer Directory. Based on the 114 usable responses, the data was analyzed using a structural equation modeling (SEM) approach through partial least square (PLS) software. The findings provide empirical evidence on the significance of ERPs in determining firm’s MC approaches, both technocratic and socio-ideological forms of control. Evidently, these variables do associate positively with competitive advantage. Additionally, the analysis demonstrates that only technocratic form of MC mediates the relationship between ERPs and competitive advantage, but not for socio-ideological control. These findings provide an insight on the relationship among ERPs, form of MC and firm’s competitive advantage, which may be an input for businesses in facing the industrial digitalization era

Comprehensive Performance Measurement System (CPMS) and Satisfaction of Malaysian Football Players: A Mediating Role of Reward

This     paper    aims     to         examine           the       relationship       between Comprehensive Performance Measurement (CPMS) and football player satisfaction mediated by the role of reward. Structural Equation Model (SEM) through the PLS Smart Modeling verifies the construct and tests the hypothesis. There were 330 professional football players from the Super League and Malaysia Premier League involved in this study. The study findings showedthe reward acts as a social factor of an extrinsic motivator was fully internalised towards intrinsic motivation has a positive and significant impact on the relationship between CPMS and the football players' satisfaction. It is based on the self-determination theory, comprising three basic psychological needs: autonomy, relatedness, and competence that can influence players' satisfaction and enhance performance. This study was conducted in a football sports setting that adds to the knowledge of CPMS in performance evaluation based on self-determination theory. The CPMS, as a source of reference, can use to improve         documentation from the          aspects of setting skills standard, physical fitness, regulations, and strategies. It can increase the quality and performance of the players as well as the football team in Malaysia, all at once giving high levels of satisfactio

Performance measurement system, organisational learning and business unit performance in Islamic Banks

This study examines the relationship between performance measurement systems (PMS), business unit, and profit and loss sharing (PLS) financing performance in Islamic Banks. Two elements of PMS were studied –strategic PMS and interactive use of PMS. Utilising the survey method, questionnaires were mailed to 256 business units of Islamic Banks in Indonesia, of which 99 were returned. Employing the resourced-based view, it is expected that the effect of PMS on both performances is indirect through organisational learning. Nevertheless, strategic PMS is also expected to have a direct relationship with business unit performance. Tested using Partial Least Squares regression, the results indicate that the interactive use of PMS is indirectly related to performances through organisational learning. Strategic PMS was found to be directly related to business unit performance. The findings highlight the role of PMS in enhancing organisational learning in Islamic Banks, which translates into high performance