Strategic management accounting and decision making: A survey of the Nigerian Banks. Journal of Accounting & Organizational Change. 565-589. 573-606. Therefore, this paper aims to contribute to a comprehensive understanding of the ongoing changes concerning MAs by focusing on their identities, to deliver a structured overview of the current state of research, to identify research gaps, to provide new perspectives on identity and role changes of MAs, to show possible implications for research, practice as well as education and thus to motivate scholars to contribute to this field of research. 517-554. and Hinings, C.R. The section of bookkeeping is called as cost accounting. Social competencies are gaining significance, as MAs depend on functioning networks to communicate their information and to convey their ideas. (1983), Multiple identities and psychological well-being: a reformulation and test of the social isolation hypothesis, American Sociological Review, Vol. Chreim, S., Williams, B.E. Concerning patterns of interaction, there is a focus on the relationship to managers but a broader interaction context is relevant for the changing identity of MAs. Horton and de Araujo Wanderley (2018) predict that changes in management accounting practices will affect MAs identities. 2, pp. 24-46. This course will provide you with the accounting language's essentials. *Lambert, C. and Sponem, S. (2012), Roles, authority and involvement of the management accounting function: a multiple case-study, European Accounting Review, Vol. They mention similar courses at the Controller Academy supporting the adaption of identities, as professionals are encouraged there to act as business partners. To the best of the authors knowledge, this study is the first to review the literature of MAs changing identities and roles from an identity perspective. 1-27. 123-153. 6 No. Further articles explain that changes in the roles came along with changes in the perceptions of MAs themselves. Furthermore, there are implications for education as management accounting students can be encouraged to occupy themselves with their identity, self-view, characteristics and values instead of exclusively discussing external expectations of their potential future profession. Section 3 explains the methodology, followed by characteristics of the reviewed articles in Section 4. This review identified several external factors such as professional associations and educational institutions as well as organizational and individual factors that impact MAs identity and act as change drivers. 28 Nos 2/3, pp. Analysis thus helps in preparing the budgets. and Nord, W.R. (Eds), The Sage Handbook of Organization Studies, Sage Publications, Thousand Oaks, pp. (2006), On the edge of identity: boundary dynamics at the interface of individual and organizational identities, Human Relations, Vol. Analyzes data:The accounting data is presented in a meaningful way by calculating ratios and projecting trends. Similar to prior reviews in the field of business and management (Senftlechner and Hiebl, 2015), studies that contain more information regarding our research focus were regarded as richer and are more often cited. 39 No. *Vaivio, J. it helps one to advance knowledge in accouting. 44 No. They display that the image has changed from responsible, rational MAs pictured in the 1970s and 1980s to a more adventurous, and powerful image created in the 1990s. *Baldvinsdottir, G.H. Conclusion Spending more time than needed in order to reach a decision can cost your business more than you can afford. The analyzed literature displays country-specific differences regarding the institutional environment and vocational training (Ahrens and Chapman, 2000; Brandau et al., 2014). Barley, S.R. When these portals are approached by the students, they need to share their educational desires with the experts of the portal. and Vondracek, F.W. (2019b). Visit emeraldpublishing.com/platformupdate to discover the latest news and updates, Answers to the most commonly asked questions here. In the 1990s, there are some historical considerations about MAs (Boyns and Edwards, 1997; Carmona et al., 1997; Edwards et al., 1995). *Erhart, R., Mahlendorf, M.D., Reimer, M. and Schffer, U. Management accounting is the process of preparing reports about business operations that help managers make short-term and long-term decisions. Other MAs might have valid reasons to evade positioning themselves as business partners (Burns and Baldvinsdottir, 2005; Granlund and Lukka, 1998). Solabomi Ajibolade. The process generally implies the calculation and allocation of overhead charges, as well as the assessment of the direct costs related to the cost of goods sold (COGS). (2017) conducted a cross-sectional and a longitudinal study. Bibliographical information of the reviewed publications, External aspects of the changing identities, Organizational aspects of the changing identities, Individual aspects of the changing identities, Google Scholar is a search engine mainly for scholarly publications, and available online at https://scholar.google.com, The Academic Journal Guide (AJG) 2018 published by the Chartered Association of Business Schools (CABS) can be found at https://charteredabs.org/academic-journal-guide-2018/, The JOURQUAL3 (JQ3) ranking from the German Academic Association for Business Research (VHB) is available at https://vhbonline.org/vhb4you/jourqual/vhb-jourqual-3/gesamtliste/, We refer to Journal Impact Factors (JIF) found in InCites Journal Citation Reports from Thomson Reuters, located at https://jcr.incites.thomsonreuters.com/. Nowadays, MAs are esteemed because of their participation in decision-making processes, although they have concurrently internal control responsibilities. Only Erhart et al. Management accounting practices of firms are determined by the scope and amount of information expected from them. In addition, management accounting students should become aware how developments in legislation and compliance, IT and digitalization or organizational and personal characteristics shape MAs work, orientation and interaction styles and thus their identities. for only $11.00 $9.35/page. In order to achieve business goals, managerial accountinguses a number of different techniques. 3, pp. *Granlund, M. and Lukka, K. (1998), Towards increasing business orientation: Finnish management accountants in a changing cultural context, Management Accounting Research, Vol. Our literature sample presents country-specific differences in the historical and theoretical development of management accounting concepts, which is displayed in diverse terms, approaches and institutional contexts. Capital budgeting is concerned with the analysis of information required to make the necessary decisions related to capital expenditures. 11 No. Bhimani, A. and Willcocks, L. (2014), Digitisation, big data and the transformation of accounting information, Accounting and Business Research, Vol. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. *Hopper, T.M. Continue. But their scope and tools are completely different. *Horton, K.E. Many studies (Byrne and Pierce, 2018; Lambert and Sponem, 2012; Windeck et al., 2015) regard the relationship between managers and MAs as decisive. 3 No. 74, pp. *ten Rouwelaar, H., Bots, J. and de Loo, I. That way there might be bias in decision-making process. Furthermore, individuals may embrace different notions of identities which they desire for the future (Horton and de Araujo Wanderley, 2018). 2. Kubek, A. and Machek, O. 2, pp. 58 No. 257-290. 21 No. (2009), Management accounting and the institutionalization of trust, Problems and Perspectives in Management, Vol. As most of the analyses concentrate on larger companies, more studies could focus on small and middle-sized companies to comply with the variety of organizations. Therefore, workplace identities are regarded as nested identities (Horton and de Araujo Wanderley, 2018). Discover your next role with the interactive map. It involvescalculating thebreak-even point, which requires knowing the contribution marginon the companys sales mix. Help. and Corley, K.G. 3, pp. Additionally, to managers as their focal audience, there is the relevance of a broader interaction context for MAs identities. and Robson, K. (2006), Accounting, professions and regulation: locating the sites of professionalization, accounting, Organizations and Society, Vol. 1, pp. The main functions of management accounting include: 3-25. and Tully, J.C. (1977), The measurement of role identity, Social Forces, Vol. Conclusion A management accountant's responsibilities can be a variety of things, depending on the company you work for, the . *Byrne, S. and Pierce, B. 3. 14 No. The first articles about roles from the 1980s start with role conflicts (Hopper, 1980; Sathe, 1983). 71-88. MAs identity is linked with their image in the public and within the organization and is challenged by increasing demands, conflicting expectations and technological progress. Oyserman, D. and James, L. (2011), Possible identities, in Schwartz, S.J., Luyckx, K. and Vignoles, V.L. 3, pp. Such critical situations might result in a more influential position and acceptance of MAs (Cooper, 1996; Endenich, 2014). Senftlechner, D. and Hiebl, M.R.W. In addition, digitalization and the accompanying data increase influence MAs and their interaction styles. 319-335. Thus, identity conflicts show the need for change, but indicate concurrently that the idea of business partnering is still not straightforward. *Friedman, A.L. Importance of Accounting. 5, pp. Impact of Management Accounting on Decision Making: A Zimbabwean 2, pp. Regarding these images, we have to be aware about the lacking differentiation between financial accountants and MAs in the English-speaking literature. In some European countries, the MA is labeled as controller and the interchangeable use of these two terms is commonly found in the analyzed literature (Ahrens and Chapman, 2000; de Loo et al., 2011; Oesterreich and Teuteberg, 2019; Verstegen et al., 2007). Cost and management accounting in early Victorian Britain: a chandleresque analysis? (2019), Symbolic categories and the shaping of identity, Qualitative Research in Accounting and Management, Vol. 30-45. 858-882. Theoretical background . Alvesson, M. and Willmott, H. (2002), Identity regulation as organizational control: producing the appropriate individual, Journal of Management Studies, Vol. FMVAFinancial Modeling & Valuation Analyst CBCAAdvertiser Banking & Credit Commentator CMSAFunds Markets & Security Analyst BIDABusiness Intelligence & Input Analyzer FPWMFinance Planning & Wealth Management Specialty. article type, data collection, time frame, sample information) is summarized in Table 2. 3, pp. However, recent findings of Byrne and Pierce (2018) extend the work on conflicts beyond the independenceinvolvement dilemma and display a broad range of conflicts caused by conflicting, ambiguous, over- and underloaded expectations of managers perceived by MAs. Keeps a record of business transactions. Inventory valuation and product costing:This deals with determining the actual cost of goods and services. *Windeck, D., Weber, J. and Strauss, E. (2015), Enrolling managers to accept the business partner: the role of boundary objects, Journal of Management and Governance, Vol. First, there's bookkeeping. levels of collective identity and self representations, Journal of Personality and Social Psychology, The link between identity and role performance, An institutional perspective of accountants new roles the interplay of contradictions and praxis, Conceptualizing management accounting change: an institutional framework. Table 3 summarizes the main findings of the sample regarding external aspects of the changing identities. and Abrams, D. (1988), Social Identifications: A Social Psychology of Intergroup Relations and Group Processes, Routledge, London. What you can infer from financial accounting is limited tonumerical results like profit and loss, but in management accounting youcandiscuss the cause and effect relationships behind those results. 19 No. and Maas, V.S. Several studies (de Loo et al., 2011; Mistry et al., 2014; Oesterreich and Teuteberg, 2019) indicate that bean counting aspects are still essential for MAs operating in smaller sized firms. Interestingly, as early as the 1980s, Hopper (1980) and Sathe (1983) highlighted possible conflicts caused, on the one hand, by the contribution to business decisions and involvement, and, on the other hand, by control and independence. Wolf, S., Weienberger, B.E., Wehner, C.M. Postmes, T. and Jetten, J. Organizations are the general context, but subgroups such as financial managers specify the platform for career ambitions. Professional identity is regarded as a major element of identity and means ones perception of work-related interests, abilities, goals and values (Kielhofner, 2002; Schwartz et al., 2011; Skorikov and Vondracek, 2011). 12 No. Moreover, their identity is shaped in a broader context by different types of interactions and their perception of whether people, who are important to MAs, appreciate or disapprove a certain behavior (Goretzki and Messner, 2019). 4, pp. Massaro, M., Dumay, J. and Guthrie, J. Applied theories show a broad range, for instance, institutional theory (Granlund and Lukka, 1997; Burns and Baldvinsdottir, 2005), social identity theory (Horton and de Araujo Wanderley, 2018) and role theory (Byrne and Pierce, 2007). 1, pp. The identity of professionals depends on their situation vis--vis other occupations, and professionals consequently strive for the most prestigious occupation. Why Management Accounting Is Important | Industry Today 2, pp. 1, pp. 41 No. and Gardner, W. (1996), Who is this We? 1, pp. It is noteworthy that regardless of propagating the change to business partners, the negative image of the MA is still a topic within the sample publications. *Boyns, T. and Edwards, J.R. (1997), Cost and management accounting in early Victorian Britain: a chandleresque analysis?, Management Accounting Research, Vol. Show abstract. 73-105. (2000), Identity theory and social identity theory, Social Psychology Quarterly, Vol. As identities and roles evolve interactively (Barley, 1989; Chreim et al., 2007), it is challenging to differentiate between these two concepts. Digitalization and the accompanying data increase will intensify these changes. 1187-1210. . (2019), Management accounting research on farms: what is known and what needs knowing?, Journal of Accounting and Organizational Change, Vol.
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