The diffusion of balanced scorecard from the perspective of adopters: Evidence from Australia

© 2018 Academic Research Centre of Canada The purpose of this paper is to explore the shortcomings of the Balanced Scorecard (BSC) as a performance measurement tool, and to examine the extent of association between its diffusion and the characteristics of its adopters in practice. This study uses a survey approach and targets registered members of Chartered Institute of Management Accountants (CIMA) in Australia. The results show that ignoring the risks, environmental and sustainability factors as well as neglecting the concerns/rights of relevant stakeholders are the key shortcomings of the BSC in practice. The findings further confirm that it is vital to distinguish between the diffusion of the BSC as a practice (one single tool) and as a process (a chain of different activities). Because some attributes of adopters are only associated with the initial decisions to adopt (or not) the BSC (as a practice) but not with the sequential implementation stages of its adoption (as a process) and vice versa

Management accounting and the shortcomings of current performance measurement 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 non-financial 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

Contextual Factors and the Diffusion of MAIs in Manufacturing and Non-Manufacturing Sectors in Libya.

The diffusion of innovation theory has already addressed the major contextual factors hindering or facilitating the diffusion of management accounting innovations (MAIs) in organisations. However, the diffusion of MAIs in less developed countries (such as Libya) is still very low, and the contextual factors addressed by the diffusion of innovation seem to fail to explain the low diffusion. To address this important gap in the literature, this study used contingency theory and investigated the association between a variety of contextual (contingent and institutional) factors and the diffusion of MAIs in Libyan manufacturing and non-manufacturing organisations. Seven MAIs were chosen from the literature perceived to have higher popularity, namely, ABC, ABM, BSC, TC, life-cycle costing, benchmarking, and Kaizen. A questionnaire acted as the data collection instrument. Two hundred and fifty questionnaires were distributed, and one hundred and three useable ques-tionnaires were returned. The results indicate that three factors were significantly associated with facilitating the adoption of MAIs in both sectors. They were using computer systems for MA purposes, top management support, and MA training programmes

B2B Networking, Renewable Energy, and Sustainability

While the benefits and advantages of using renewable energies are remarkable, and their prices have been decreasing dramatically and are expected to fall further, the diffusion and adoption of renewable energies still lag behind fossil energies. This paper improves our understanding regarding the role of the interrelationship among businesses (as an example of B2B networking amongst parent and subsidiary firms). Furthermore, it demonstrates the way/s that such interrelationships can contribute to the diffusion and adoption of sustainable and energy-efficient technologies. This study describes four diffusion channels in the interrelated firms which can help with promoting and using renewable and sustainable energies. The paper also reports the actual share of each diffusion channel contributing to implementing sustainable energy-efficient technologies in practice. The findings suggest that parent organisations enforce the majority (over 50%) of sustainable and energy-efficient technologies implemented in a B2B environment. In comparison, inter-subsidiary relationships are responsible for less than 30% of the implemented sustainable and energy-efficient technologies in organisations. The findings are in line with the forced perspective theory. They could, to some degree, explain the differences in the levels of implementation of sustainable and energy-efficient technologies in practice. These findings can help practitioners prioritise the diffusion channels when they want to facilitate the implementation of new technologies in their organisations. While some organisations may expect a more successful implementation of innovations initiated by subsidiaries than those enforced by parent organisations, the levels of success of the adoption of sustainable and energy-efficient technologies are not examined in this study. Further research is recommended to investigate the extent of association between different diffusion channels and the levels of success in terms of the adoption of innovation. We did not find similar studies to compare the results, which could be one of the limitations of this study

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

Employers’ Perceptions of Information Technology Competency Requirements for Management Accounting Graduates

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 Zealand's 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

Attributes of adopters and the diffusion of benchmarking

To take advantage of the most recent advances, organisations may need to proceed with the adoption of benchmarking. However, the extant literature suggests that benchmarking is not widely adopted by many organisations. Contributing to the literature, current study is aiming to improve our understanding about the diffusion of benchmarking by exploring the impacts of attributes of adopters on the diffusion of benchmarking in organisations in Australia. Surveying Australian CIMA members, this study identifies 12 organisational factors which can influence the diffusion of benchmarking in practice

Management accountants' role in dependent and independent companies: does ownership matter?

The issue of (changing) accountants' roles has been given considerable coverage in recent years, in both professional and academic accounting literature. This paper contributes to the debate by comparing the roles of accountants in independent organisations with the roles of accountants in dependent, subsidiary organisations. Do accountants working in dependent organisations have larger or smaller roles, or different roles, to accountants working for independent organisations? One thousand qualified members of the Chartered Institute of Management Accountants (CIMA), UK, were randomly selected for a postal questionnaire survey. This survey provides evidence which contributes towards an understanding of the influence and role of parent companies in management accounting practices and the role of management accountants in their subsidiary companies. This study relies on the data collected through a questionnaire survey. However, the extent of the role and influence of parent companies, and also the ways in which they impact on subsidiary companies need to be studied in greater depth i.e., case study method. The findings of this study will assist business consultants, system designers and managers to understand the differences between dependent and independent companies when considering implementation of any changes in their existing management accounting systems and practices. Most of the evidence to date on the relationship between parent and subsidiary companies is subject to fairly basic analysis, and presented in very general terms. Thus, this paper aims to contribute to towards this important debate through making a comparison of changing roles between independent and dependent organisations