Davidson, Israel

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Citation: Davidson, Israel (2011) Accounting for empowered organisations in an era of competitive  
intensity  and the age of  creative intensification :  The case for  Strategic Collaborative Accounting 
(SCA).  In:  Northumbria  Research Conference,  5-6 May 2011, Northumbria  University,  Newcastle-
upon-Tyne. 
URL: 
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Accounting in an era of competitive intensity and the age of 
creative intensification: The case  for Strategic Collaborative 
Accounting (SCA)
A presentation at the Northumbria Research Conference 2011
by
Dr Israel Nonyerem Davidson
Johnson & Kaplan (1987)
(Relevant Lost: The Rise & Fall of Management Accounting)
“Corporate management accounting systems 
are inadequate for today’s environment” -rapid 
technological change, vigorous domestic and global 
competition and enormously expanding information 
expanding capabilities.
(Chua and Baxter, 1999:p62).
“the new millennium will be a period of either 
great disciplinary gains or loss, depending on the 
ways in which researchers, educators, and practitioners 
react to the challenge of the years 2000 and beyond”
Research Plan
Define 
Research 
Aims & 
Objectives
D
E
TE
R
M
IN
A
N
TS
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F
 M
A
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U
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TI
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 R
E
LE
V
A
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IN
 2
0
2
0
+
MA
Relevance 
Gained or 
Lost?
Stages 1& 2 Stage 3 Stage 4 Stage 5
Challenges
Of the
2020+
Extant 
Literature 
Review
D
E
TE
R
M
IN
A
N
TS
O
F
 M
A
N
A
G
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M
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IN
 2
0
2
0
+
Limitations: 
M/Accting
in the 2020+
Research Method
Thank you
A presentation at the Northumbria Research Conference 2011
by
Dr Israel Nonyerem Davidson
Research Aim /Objectives
Maintenance of management accounting 
relevance in an era of competitive intensity 
and creative intensification.
(The Year 2020 & Beyond)
Research Objectives
RO1 Identify the major characteristics of 
the business environment of the 2020+
RO2 Identify the limitations of MA in 2020+
RO3 Identify the key management 
accounting challenges of the 2020+
RO4 Develop a new management accounting 
architecture to address issue of relevance in 2020+
Research Methodology
Secondary research – A desk research
                                    PUBLICATION PERIODS
Research Publication Areas Up to 1980 1981-1990 1991-2001 2002-2007 2008-2011 TOTAL
Management Accounting 1                 13             65             30             6               115            
Env ironmental Accounting 1               2               3                
Performance Measurement 1                 4                16             5               26              
Consulted Research Publications
Strategic Planning 1                 18             8               1               28              
Information / Manufacturing Technology 5               4               4               13              
Organisation Learning 1                9               4               14              
Human Resource Management 1               3               1               5                
Role Theory 1                 1                
Intellectual Capital 5               1               6                
Theory of Business Trust 1               1                
Total number of consulted works 4                18             120          54            16            212            
Literature Reviews/Findings
Management Accounting Challenges
MA - Relevance issues today:
• Technical inadequacy in capturing and reporting major attributes 
of modern manufacturing processes e.g. Flexibility, quality, customer 
satisfaction, etc.
• Strict financial focus which can lead to a myopic business outlook.
• Failure to generate information that can stimulate problem solving, 
creative thinking and dialogue.
• Innovative tools – adoption issues in practice.
(Kaplan, 1983; Bromwich & 
Bhimani, 1989; Johnson 
&Kaplan, 1991; Mackintosh, 
1994; Bjurklo, 2008)
Literature Reviews/Findings
Business Environment (2020+)
 Intense global competition e.g. Japanese multiple layers of 
competitive advantage.
• Age of creative intensification: Rapid shift from economy based 
on manufacturing and commodities to innovation economy 
that places great value on information, services, support, and 
distribution.
• Premium placed on knowledge workers (Gold-colour), a  new 
(Johnson, 1983; Kaplan, 
1983; Atkinson & Brown, 
2001;  Danneels, 2002; 
class of affluent, educated and mobile people who view 
themselves as free agents in a seller’s market.
• Collaborative value-innovation mind-set: Many products will be 
designed, assembled, and distributed via temporary alliances 
formed on-demand from a global pool of assets.
• New manufacturing technologies, processes & products and 
move to product plus service commercial models 
(SERVICISATION).
Anderson & McAdam, 
2004)
Determinants of 
MA Relevant in 2020+
• Redefinition of  the scope of MA to reflect a breath of important 
skills including leadership, continuous learning, and business 
partnering.
• Rules of measuring intangible assets – important for  competition in 
knowledge-based organisations  of 2020 + e.g. Human, structural, 
and customer capital.
• Information Processing Technology – 2020, a world of automated 
transactions and self-service anywhere + knowledge domains 
interlinked and supported with advanced communication, 
collaboration, and knowledge sharing tools.
• Complex stakeholder interests and relationship including dynamic 
alliances and open innovations will create a need for measuring 
and managing “Trust” in collaborative organisations.
• Performance measurement; particularly as functions will be 
outsourced to independent, temporary, mobile employees and 
contractors (New benchmarking standards).
(Brewer, 2008; Grossman, 
2000; Chua & Baxter, 2000; 
Voelpe et al. 2006; Bernstein, 
2010; Zak & Knack, 2001; Price 
Waterhouse Coopers, 2007 )
Next
Determinants of 
MA Relevant in 2020+
• Environmental Accounting – systems for tracking and estimating 
environmental pollution cost and environmental remediation 
liabilities.
• The need to track and report on a real time basis on every aspect 
of an organisation’s operations, markets, customers, competitors, 
production technologies, and human resources.
• Non-finance specialists  (Gold workers) in the organisations of the 
2020s assume a much more direct responsibility for, and interest in, 
the financial and non-financial outcomes of their departmental or 
business unit performance.
(Stanko et al. 2006; AICPA, 
2004; Little, 2000; de Beer & 
Friend, 2006; Johansson et al 
2010; Roberts, 2010)
Workforce in 2020
Source: Institute of Employment Research
Cares & 
Sales, 15%
Manual, 
Admin & 
Unskilled, 
33%
Knowledge 
Associated, 
52%
Japanese Multiple Layers of 
Competitive Advantage
• Automated process technology 
• Product quality
• Scale efficiency 
• Accelerated rates of new product development 
• Lead time advantages
• Shortened product life cycles 
• Deskilling of competitors through alliances and 
outsourcing 
• Creation of global brands 
(Dent, 1996)
Strategic Collaborative Accounting Architecture
(Strategic Business Partnering, Dialogue & Reporting Processes)
Knowledge Domains, Data 
Warehousing & Processing


Accounting for empowered organisations in an era of competitive intensity and the age of creative intensification : The case for Strategic Collaborative Accounting (SCA)

Accounting in an era of competitive intensity and the age of creative intensification: The case  for Strategic Collaborative Accounting (SCA)A presentation at the Northumbria Research Conference 2011byDr Israel Nonyerem DavidsonJohnson & Kaplan (1987)(Relevant Lost: The Rise & Fall of Management Accounting)“Corporate management accounting systems are inadequate for today’s environment” -rapid technological change, vigorous domestic and global competition and enormously expanding information expanding capabilities.(Chua and Baxter, 1999:p62).“the new millennium will be a period of either great disciplinary gains or loss, depending on the ways in which researchers, educators, and practitioners react to the challenge of the years 2000 and beyond”Research PlanDefine Research Aims & ObjectivesDETERMINANTSOF MANAGEMENTACCOUNTING RELEVANCE IN 2020+MARelevance Gained or Lost?Stages 1& 2 Stage 3 Stage 4 Stage 5ChallengesOf the2020+Extant Literature ReviewDETERMINANTSOF MANAGEMENTACCOUNTING RELEVANCE IN 2020+Limitations: M/Acctingin the 2020+Research MethodThank youA presentation at the Northumbria Research Conference 2011byDr Israel Nonyerem DavidsonResearch Aim /ObjectivesMaintenance of management accounting relevance in an era of competitive intensity and creative intensification.(The Year 2020 & Beyond)Research ObjectivesRO1 Identify the major characteristics of the business environment of the 2020+RO2 Identify the limitations of MA in 2020+RO3 Identify the key management accounting challenges of the 2020+RO4 Develop a new management accounting architecture to address issue of relevance in 2020+Research MethodologySecondary research – A desk research                                    PUBLICATION PERIODSResearch Publication Areas Up to 1980 1981-1990 1991-2001 2002-2007 2008-2011 TOTALManagement Accounting 1                 13             65             30             6               115            Env ironmental Accounting 1               2               3                Performance Measurement 1                 4                16             5               26              Consulted Research PublicationsStrategic Planning 1                 18             8               1               28              Information / Manufacturing Technology 5               4               4               13              Organisation Learning 1                9               4               14              Human Resource Management 1               3               1               5                Role Theory 1                 1                Intellectual Capital 5               1               6                Theory of Business Trust 1               1                Total number of consulted works 4                18             120          54            16            212            Literature Reviews/FindingsManagement Accounting ChallengesMA - Relevance issues today:• Technical inadequacy in capturing and reporting major attributes of modern manufacturing processes e.g. Flexibility, quality, customer satisfaction, etc.• Strict financial focus which can lead to a myopic business outlook.• Failure to generate information that can stimulate problem solving, creative thinking and dialogue.• Innovative tools – adoption issues in practice.(Kaplan, 1983; Bromwich & Bhimani, 1989; Johnson &Kaplan, 1991; Mackintosh, 1994; Bjurklo, 2008)Literature Reviews/FindingsBusiness Environment (2020+) Intense global competition e.g. Japanese multiple layers of competitive advantage.• Age of creative intensification: Rapid shift from economy based on manufacturing and commodities to innovation economy that places great value on information, services, support, and distribution.• Premium placed on knowledge workers (Gold-colour), a  new (Johnson, 1983; Kaplan, 1983; Atkinson & Brown, 2001;  Danneels, 2002; class of affluent, educated and mobile people who view themselves as free agents in a seller’s market.• Collaborative value-innovation mind-set: Many products will be designed, assembled, and distributed via temporary alliances formed on-demand from a global pool of assets.• New manufacturing technologies, processes & products and move to product plus service commercial models (SERVICISATION).Anderson & McAdam, 2004)Determinants of MA Relevant in 2020+• Redefinition of  the scope of MA to reflect a breath of important skills including leadership, continuous learning, and business partnering.• Rules of measuring intangible assets – important for  competition in knowledge-based organisations  of 2020 + e.g. Human, structural, and customer capital.• Information Processing Technology – 2020, a world of automated transactions and self-service anywhere + knowledge domains interlinked and supported with advanced communication, collaboration, and knowledge sharing tools.• Complex stakeholder interests and relationship including dynamic alliances and open innovations will create a need for measuring and managing “Trust” in collaborative organisations.• Performance measurement; particularly as functions will be outsourced to independent, temporary, mobile employees and contractors (New benchmarking standards).(Brewer, 2008; Grossman, 2000; Chua & Baxter, 2000; Voelpe et al. 2006; Bernstein, 2010; Zak & Knack, 2001; Price Waterhouse Coopers, 2007 )NextDeterminants of MA Relevant in 2020+• Environmental Accounting – systems for tracking and estimating environmental pollution cost and environmental remediation liabilities.• The need to track and report on a real time basis on every aspect of an organisation’s operations, markets, customers, competitors, production technologies, and human resources.• Non-finance specialists  (Gold workers) in the organisations of the 2020s assume a much more direct responsibility for, and interest in, the financial and non-financial outcomes of their departmental or business unit performance.(Stanko et al. 2006; AICPA, 2004; Little, 2000; de Beer & Friend, 2006; Johansson et al 2010; Roberts, 2010)Workforce in 2020Source: Institute of Employment ResearchCares & Sales, 15%Manual, Admin & Unskilled, 33%Knowledge Associated, 52%Japanese Multiple Layers of Competitive Advantage• Automated process technology • Product quality• Scale efficiency • Accelerated rates of new product development • Lead time advantages• Shortened product life cycles • Deskilling of competitors through alliances and outsourcing • Creation of global brands (Dent, 1996)Strategic Collaborative Accounting Architecture(Strategic Business Partnering, Dialogue & Reporting Processes)Knowledge Domains, Data Warehousing & Processing

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Accounting for empowered organisations in an era of competitive intensity and the age of creative intensification : The case for Strategic Collaborative Accounting (SCA)

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