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Strategic Management Accounting: Exploring distinctive features and links with strategy

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Author Info
Cinquini, Lino
Tenucci, Andrea

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Abstract

Several different approaches to Strategic Management Accounting (SMA) can be found in the literature of management accounting since Simmonds (1981) coined the term. Although, there is a little empirical research about SMA practice, with the exception of the studies of Guilding et al. (2000) and Cravens & Guilding (2001). The paper aims at enrich the fragmented knowledge on the topic by a contingency research. Firstly, it presents the results of a web-survey on Italian companies appraising the frequency of SMA techniques adoption. Then a factor analysis is performed in order to define some features at the hearth of SMA adoptions by the users. Thirdly, a correlation analysis between the adoption of SMA techniques and both company size and competitive strategy (splitted into pattern, mission and positioning) is conducted. Given the limited attention on the topic by empirical research, SMA techniques usage appears to be greater than what might have been presumed. The findings underline that Attribute costing, Customer accounting, Strategic Pricing and Competitive Position Monitoring represent the widely used SMA techniques. Four features of Strategic Management Accounting emerge clearly from the factor analysis: competitor, long run, process and customer orientation. While in the correlation analysis only strategic positioning and, weakly, strategic mission seem to play a contingent role in SMA technique usage.

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File URL: http://mpra.ub.uni-muenchen.de/212/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 212.

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Date of creation: 15 Sep 2006
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Handle: RePEc:pra:mprapa:212

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Related research
Keywords: Strategic Management Accounting Strategy

Find related papers by JEL classification:
M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting

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  1. Guilding, Chris, 1999. "Competitor-focused accounting: an exploratory note," Accounting, Organizations and Society, Elsevier, vol. 24(7), pages 583-595, October. [Downloadable!] (restricted)
  2. Chapman, Christopher S., 1997. "Reflections on a contingent view of accounting," Accounting, Organizations and Society, Elsevier, vol. 22(2), pages 189-205, February. [Downloadable!] (restricted)
  3. Simons, Robert, 1990. "The role of management control systems in creating competitive advantage: New perspectives," Accounting, Organizations and Society, Elsevier, vol. 15(1-2), pages 127-143. [Downloadable!] (restricted)
  4. Govindarajan, V. & Gupta, Anil K., 1985. "Linking control systems to business unit strategy: impact on performance," Accounting, Organizations and Society, Elsevier, vol. 10(1), pages 51-66, January. [Downloadable!] (restricted)
  5. Bouwens, Jan & Abernethy, Margaret A., 2000. "The consequences of customization on management accounting system design," Accounting, Organizations and Society, Elsevier, vol. 25(3), pages 221-241, April. [Downloadable!] (restricted)
  6. Simons, Robert, 1987. "Accounting control systems and business strategy: An empirical analysis," Accounting, Organizations and Society, Elsevier, vol. 12(4), pages 357-374, June. [Downloadable!] (restricted)
  7. Langfield-Smith, Kim, 1997. "Management control systems and strategy: A critical review," Accounting, Organizations and Society, Elsevier, vol. 22(2), pages 207-232, February. [Downloadable!] (restricted)
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