IDEAS home Printed from https://ideas.repec.org/a/bla/acctfi/v64y2024i2p2085-2110.html

Management accountants with a growth mindset and changes in the design of costing systems: The role of organisational culture

Author

Listed:
  • Odysseas Pavlatos
  • Marilou Ioakimidis

Abstract

Based on implicit person theories, this paper investigates the relationship between the growth mindset of management accountants and changes in the design of costing systems, as well as the role that organisational culture plays in this relationship. Using survey data from 146 management accountants of manufacturing companies, we find that management accountants who have a growth mindset increase the complexity, inconclusiveness, and functionality of their firm's costing system, compared to those who have a fixed mindset. Additionally, our results show that innovation‐oriented culture (a dimension of organisational culture) strengthens the relationship between growth mindset and changes in the design of the costing system.

Suggested Citation

  • Odysseas Pavlatos & Marilou Ioakimidis, 2024. "Management accountants with a growth mindset and changes in the design of costing systems: The role of organisational culture," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(2), pages 2085-2110, June.
    • Handle: RePEc:bla:acctfi:v:64:y:2024:i:2:p:2085-2110
    DOI: 10.1111/acfi.13209
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/acfi.13209
    Download Restriction: no
    File URL: https://libkey.io/10.1111/acfi.13209?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David S. Yeager & Paul Hanselman & Gregory M. Walton & Jared S. Murray & Robert Crosnoe & Chandra Muller & Elizabeth Tipton & Barbara Schneider & Chris S. Hulleman & Cintia P. Hinojosa & David Paunesk, 2019. "A national experiment reveals where a growth mindset improves achievement," Nature, Nature, vol. 573(7774), pages 364-369, September.
    2. Janet Hanson & Arthur Bangert & William Ruff, 2016. "Exploring the Relationship between School Growth Mindset and Organizational Learning Variables: Implications for Multicultural Education," Journal of Educational Issues, Macrothink Institute, vol. 2(2), pages 222243-2222, December.
    3. Burchell, Stuart & Clubb, Colin & Hopwood, Anthony & Hughes, John & Nahapiet, Janine, 1980. "The roles of accounting in organizations and society," Accounting, Organizations and Society, Elsevier, vol. 5(1), pages 5-27, January.
    4. Emily E. Griffith & Jacqueline S. Hammersley & Kathryn Kadous & Donald Young, 2015. "Auditor Mindsets and Audits of Complex Estimates," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 53(1), pages 49-77, March.
    5. Gosselin, Maurice, 1997. "The effect of strategy and organizational structure on the adoption and implementation of activity-based costing," Accounting, Organizations and Society, Elsevier, vol. 22(2), pages 105-122, February.
    6. Lauren Keating & Peter Andrew Heslin, 2015. "The Potential Role of Mindsets in Unleashing Employee Engagement," Post-Print hal-02312168, HAL.
    7. Gordon, Lawrence A. & Narayanan, V. K., 1984. "Management accounting systems, perceived environmental uncertainty and organization structure: An empirical investigation," Accounting, Organizations and Society, Elsevier, vol. 9(1), pages 33-47, January.
    8. Odysseas Pavlatos & Xara Kostakis, 2018. "The impact of top management team characteristics and historical financial performance on strategic management accounting," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 14(4), pages 455-472, November.
    9. Hadid, Wael & Hamdan, Mohammed, 2022. "Firm size and cost system sophistication: The role of firm age," The British Accounting Review, Elsevier, vol. 54(2).
    10. Pizzini, Mina J., 2006. "The relation between cost-system design, managers' evaluations of the relevance and usefulness of cost data, and financial performance: an empirical study of US hospitals," Accounting, Organizations and Society, Elsevier, vol. 31(2), pages 179-210, February.
    11. Schoute, Martijn, 2011. "The relationship between product diversity, usage of advanced manufacturing technologies and activity-based costing adoption," The British Accounting Review, Elsevier, vol. 43(2), pages 120-134.
    12. Kevin Baird & Graeme Harrison & Robert Reeve, 2007. "Success of activity management practices: the influence of organizational and cultural factors," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 47(1), pages 47-67, March.
    13. Aaron Saiewitz & Elaine (Ying) Wang, 2020. "Using Cultural Mindsets to Reduce Cross‐National Auditor Judgment Differences," Contemporary Accounting Research, John Wiley & Sons, vol. 37(3), pages 1854-1881, September.
    14. David A. Brown & Peter Booth & Francesco Giacobbe, 2004. "Technological and organizational influences on the adoption of activity‐based costing in Australia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 44(3), pages 329-356, November.
    15. Khalil, Sandra & Sidani, Yusuf, 2022. "Personality traits, religiosity, income, and tax evasion attitudes: An exploratory study in Lebanon," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 47(C).
    16. Drury, Colin & Tayles, Mike, 2005. "Explicating the design of overhead absorption procedures in UK organizations," The British Accounting Review, Elsevier, vol. 37(1), pages 47-84.
    17. repec:eme:jaar00:09675421211281317 is not listed on IDEAS
    18. Lauren Keating & Peter Andrew Heslin, 2015. "The potential role of mindsets in unleashing employee engagement," Post-Print hal-02312163, HAL.
    19. Odysseas Pavlatos, 2012. "The impact of CFOs' characteristics and information technology on cost management systems," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 13(3), pages 242-254, November.
    20. Peter Andrew Heslin & Lauren Keating & Amirali Minbashian, 2019. "How Situational Cues and Mindset Dynamics Shape Personality Effects on Career Outcomes," Post-Print hal-02312160, HAL.
    21. Odysseas Pavlatos, 2012. "The impact of CFOs' characteristics and information technology on cost management systems," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 13(3), pages 242-254, November.
    22. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    23. Henri, Jean-François & Wouters, Marc, 2020. "Interdependence of management control practices for product innovation: The influence of environmental unpredictability," Accounting, Organizations and Society, Elsevier, vol. 86(C).
    24. Al-Sayed, Mahmoud & Dugdale, David, 2016. "Activity-based innovations in the UK manufacturing sector: Extent, adoption process patterns and contingency factors," The British Accounting Review, Elsevier, vol. 48(1), pages 38-58.
    25. Martin Hiebl, 2014. "Upper echelons theory in management accounting and control research," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(3), pages 223-240, January.
    26. Kevin Baird & Sophia Su & Amy Tung, 2018. "Organizational Culture and Environmental Activity Management," Business Strategy and the Environment, Wiley Blackwell, vol. 27(3), pages 403-414, March.
    27. Schoute, Martijn, 2009. "The relationship between cost system complexity, purposes of use, and cost system effectiveness," The British Accounting Review, Elsevier, vol. 41(4), pages 208-226.
    28. Argyris, Chris, 1977. "Organizational learning and management information systems," Accounting, Organizations and Society, Elsevier, vol. 2(2), pages 113-123, March.
    29. Malmi, Teemu, 1999. "Activity-based costing diffusion across organizations: an exploratory empirical analysis of Finnish firms," Accounting, Organizations and Society, Elsevier, vol. 24(8), pages 649-672, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hadid, Wael & Hamdan, Mohammed, 2022. "Firm size and cost system sophistication: The role of firm age," The British Accounting Review, Elsevier, vol. 54(2).
    2. Abernethy, Margaret A. & Anderson, Shannon W. & Nair, Sujay & Jiang, Yile (Anson), 2021. "Manager ‘growth mindset’ and resource management practices," Accounting, Organizations and Society, Elsevier, vol. 91(C).
    3. Lino Cinquini & Paolo Collini & Alessandro Marelli & Andrea Tenucci, 2015. "Change in the relevance of cost information and costing systems: evidence from two Italian surveys," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(3), pages 557-587, August.
    4. Simon Alcouffe & Jonathan Maurice & Nadine Galy & Loïc Gate, 2019. "Is the limited diffusion of management accounting innovations really a paradox? A meta-analysis of the relationship between product diversity and the adoption of Activity-Based Costing [La faible diffusion des innovations en contrôle de gestion es," Post-Print hal-02124677, HAL.
    5. Al-Sayed, Mahmoud & Dugdale, David, 2016. "Activity-based innovations in the UK manufacturing sector: Extent, adoption process patterns and contingency factors," The British Accounting Review, Elsevier, vol. 48(1), pages 38-58.
    6. Askarany, Davood & Yazdifar, Hassan, 2012. "An investigation into the mixed reported adoption rates for ABC: Evidence from Australia, New Zealand and the UK," International Journal of Production Economics, Elsevier, vol. 135(1), pages 430-439.
    7. Schoute, Martijn, 2011. "The relationship between product diversity, usage of advanced manufacturing technologies and activity-based costing adoption," The British Accounting Review, Elsevier, vol. 43(2), pages 120-134.
    8. Abedalqader Rbaba’h, 2013. "The influence of Company Characteristics Factors to Activity Based Costing System Implementation," Journal of Education and Vocational Research, AMH International, vol. 4(2), pages 36-46.
    9. Alcouffe, Simon & Galy, Nadine & Gaté, Loïc, 2016. "Une méta-analyse qualitative de la littérature sur les déterminants de l'adoption de l'activity-based costing [A meta-analysis of the literature on the determinants of the adoption of activity-based costing]," MPRA Paper 73381, University Library of Munich, Germany.
    10. Schoute, Martijn, 2009. "The relationship between cost system complexity, purposes of use, and cost system effectiveness," The British Accounting Review, Elsevier, vol. 41(4), pages 208-226.
    11. Simon Alcouffe & Pierre Mévellec, 2012. "Analyse de la littérature sur l'ABC et proposition d'une taxinomie," Post-Print hal-00936600, HAL.
    12. Ahmed Abdel‐Maksoud & Wagdy Abdallah & Mayada Youssef, 2012. "An empirical study of the influence of intensity of competition on the deployment of contemporary management accounting practices and managerial techniques in Egyptian firms," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 28(2), pages 84-97, February.
    13. David Emsley & Lai Hong Chung, 2010. "How Management Accountants' Cognitive Style and Role Involvement Combine to Affect the Effort Devoted to Initiating Change," Abacus, Accounting Foundation, University of Sydney, vol. 46(3), pages 232-257, September.
    14. Lino Cinquini & Paolo Collini & Alessandro Marelli & Andrea Tenucci, 2008. "An exploration of the factors affecting the diffusion of advanced costing techniques: a comparative analysis of two surveys (1996-2005)," Working Papers 200801, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.
    15. Simon Alcouffe, 2002. "La Diffusion De L'Abc En France : Une Etude Empirique Utilisant La Theorie De La Diffusion Des Innovations," Post-Print halshs-00584420, HAL.
    16. Soon-Yau Foong & Neilson Anak Teruki, 2009. "Cost-system functionality and the performance of the Malaysian palm oil industry," Asian Review of Accounting, Emerald Group Publishing, vol. 17(3), pages 212-225, September.
    17. Ittner, Christopher D. & Larcker, David F., 2001. "Assessing empirical research in managerial accounting: a value-based management perspective," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 349-410, December.
    18. Cinquini, Lino & Collini, Paolo & Marelli, Alessandro & Tenucci, Andrea, 2008. "An exploration of the factors affecting the diffusion of Advanced Costing techniques: a comparative analysis of two surveys (1996-2005)," MPRA Paper 10911, University Library of Munich, Germany.
    19. Kubota, Takaya & Okuda, Shin'ya, 2023. "Relationship between top managers’ interest in accounting information and accounting practices in startups," International Journal of Accounting Information Systems, Elsevier, vol. 51(C).
    20. Maria-Victòria Sánchez-Rebull & Angels Niñerola & Ana-Beatriz Hernández-Lara, 2023. "After 30 Years, What Has Happened to Activity-Based Costing? A Systematic Literature Review," SAGE Open, , vol. 13(2), pages 21582440231, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:acctfi:v:64:y:2024:i:2:p:2085-2110. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaanzea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.