IDEAS home Printed from https://ideas.repec.org/a/eme/arjpps/arj-07-2020-0202.html

The global management accounting principles (GMAP) and the relationship between organizational design elements

Author

Listed:
  • Babajide Oyewo
  • Venancio Tauringana
  • Babajide Moses Omikunle
  • Olusola Owoyele

Abstract

Purpose - This study aims to investigate the relationship between organizational design elements (i.e. quality of management accounting skills and performance management system, PMS), management accounting practice (MAP) sophistication and organizational competitiveness using the Global Management Accounting Principles (GMAP) framework. Design/methodology/approach - Survey data was obtained through a structured questionnaire from 131 Nigerian firms. Measures of the quality of management accounting skills, robustness of PMS structure, MAP sophistication and organizational competitiveness were derived from the GMAP framework. Structural equation modelling was applied to explore the complexity of relationship among variables. Findings - While the quality of management accounting skills was found to have a positive but insignificant impact on MAP sophistication, the impact of PMS structure on MAP sophistication was positive and significant. MAP sophistication has a positive impact on organizational competitiveness, but the magnitude of its contribution appears to depend on the quality of management accounting skills and the robustness of PMS structure. The inability of MAP sophistication to exert much influence on organizational competitiveness is attributable to the low contribution of management accounting skills. The result supports the proposition that performance is optimized when all organizational design elements are concurrently improved. Practical implications - The study shows that organizations need to critically look into the quality of skills possessed by personnel in the accounting function, as all organizational design elements must be given equal importance to achieve the best results. Originality/value - The study contributes to knowledge by investigating the quality of management accounting skills and the robustness of PMS as organizational design elements affecting MAP and organizational competitiveness using the GMAP framework. The study operationalizes some elements of the GMAP framework by developing measurements that can be used by future studies.

Suggested Citation

  • Babajide Oyewo & Venancio Tauringana & Babajide Moses Omikunle & Olusola Owoyele, 2022. "The global management accounting principles (GMAP) and the relationship between organizational design elements," Accounting Research Journal, Emerald Group Publishing Limited, vol. 35(5), pages 637-659, March.
    • Handle: RePEc:eme:arjpps:arj-07-2020-0202
    DOI: 10.1108/ARJ-07-2020-0202
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/ARJ-07-2020-0202/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/ARJ-07-2020-0202/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/ARJ-07-2020-0202?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
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Gerdin, Jonas, 2005. "Management accounting system design in manufacturing departments: an empirical investigation using a multiple contingencies approach," Accounting, Organizations and Society, Elsevier, vol. 30(2), pages 99-126, February.
    2. David Bedford & Mikko Sandelin, 2015. "Investigating management control configurations using qualitative comparative analysis: an overview and guidelines for application," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 26(1), pages 5-26, April.
    3. Teerooven Soobaroyen & Bhagtaraj Poorundersing, 2008. "The effectiveness of management accounting systems: Evidence from functional managers in a developing country," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(2), pages 187-219, January.
    4. Thomas Gackstatter & Benedikt Müller-Stewens & Klaus Möller, 2019. "Effective accounting processes: the role of formal and informal controls," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(2), pages 131-152, July.
    5. Chris Akroyd & Ralph Kober & Danni Li, 2019. "The emergence of management controls in an entrepreneurial company," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(3), pages 1805-1833, September.
    6. repec:eme:jaar00:jaar-05-2018-0059 is not listed on IDEAS
    7. David T. Tan & Larelle Chapple & Kathleen D. Walsh, 2017. "Corporate fraud culture: Re-examining the corporate governance and performance relation," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57(2), pages 597-620, June.
    8. Binh Bui & Larelle Chapple & Thu Phuong Truong, 2020. "Drivers of tight carbon control in the context of climate change regulation," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(1), pages 183-226, March.
    9. Matthäus Tekathen & Binh Bui & Zhichao (Alex) Wang, 2019. "Strategising in the midst of management controls: a case study on the relationship between management controls and promises on strategies," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(3), pages 1763-1804, September.
    10. Elsa Pedroso & Carlos F. Gomes, 2020. "The effectiveness of management accounting systems in SMEs: a multidimensional measurement approach," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 21(3), pages 497-515, June.
    11. Timur Pasch, 2019. "Strategy and innovation: the mediating role of management accountants and management accounting systems’ use," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(2), pages 213-246, July.
    12. Cadez, Simon & Guilding, Chris, 2008. "An exploratory investigation of an integrated contingency model of strategic management accounting," Accounting, Organizations and Society, Elsevier, vol. 33(7-8), pages 836-863.
    13. Bo Karlsson & Anders Hersinger & Monika Kurkkio, 2019. "Hybrid accountants in the age of the business partner: exploring institutional drivers in a mining company," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(2), pages 185-211, July.
    14. Moores, Ken & Yuen, Susana, 2001. "Management accounting systems and organizational configuration: a life-cycle perspective," Accounting, Organizations and Society, Elsevier, vol. 26(4-5), pages 351-389.
    15. Rajeev Sharma & Sunil Mithas & Atreyi Kankanhalli, 2014. "Transforming decision-making processes: a research agenda for understanding the impact of business analytics on organisations," European Journal of Information Systems, Taylor & Francis Journals, vol. 23(4), pages 433-441, July.
    16. Larelle Chapple & Thu Phuong Truong & Steven Cahan, 2015. "Continuous disclosure compliance: does corporate governance matter?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 55(4), pages 965-988, December.
    17. Michael G. Jacobides, 2007. "The Inherent Limits of Organizational Structure and the Unfulfilled Role of Hierarchy: Lessons from a Near-War," Organization Science, INFORMS, vol. 18(3), pages 455-477, June.
    18. Gammie, Elizabeth & Kirkham, Linda, 2008. "Breaking the link with a university education in the creation of a chartered accountant: The ICAS story," The British Accounting Review, Elsevier, vol. 40(4), pages 356-375.
    19. Beverley Jackling & Paul De Lange, 2009. "Do Accounting Graduates' Skills Meet The Expectations of Employers? A Matter of Convergence or Divergence," Accounting Education, Taylor & Francis Journals, vol. 18(4-5), pages 369-385.
    20. Babajide Oyewo, 2017. "Predictors of the Effectiveness of Management Accounting Function in Nigerian Firms," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 64(4), pages 487-512, December.
    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. Bedford, David S. & Malmi, Teemu & Sandelin, Mikko, 2016. "Management control effectiveness and strategy: An empirical analysis of packages and systems," Accounting, Organizations and Society, Elsevier, vol. 51(C), pages 12-28.
    2. Pedroso, Elsa & Gomes, Carlos F., 2024. "Disentangling the effects of top management on management accounting systems utilization," International Journal of Accounting Information Systems, Elsevier, vol. 53(C).
    3. Samagaio, António & Crespo, Nuno Fernandes & Rodrigues, Ricardo, 2018. "Management control systems in high-tech start-ups: An empirical investigation," Journal of Business Research, Elsevier, vol. 89(C), pages 351-360.
    4. Ellen Haustein & Robert Luther & Peter Schuster, 2014. "Management control systems in innovation companies: a literature based framework," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(4), pages 343-382, February.
    5. Ana Filipa M. Roque & Maria-C�u G. Alves & M�rio Raposo, 2020. "Management control in born-global firms: a case study," Estudios Gerenciales, Universidad Icesi, vol. 36(154), pages 3-14.
    6. Binh Bui & Carolyn Fowler, 2022. "Carbon controls in a New Zealand electricity utility: An application of theoretical triangulation," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(4), pages 4423-4451, December.
    7. Stewart Jones & Nurul Alam, 2019. "A machine learning analysis of citation impact among selected Pacific Basin journals," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(4), pages 2509-2552, December.
    8. Kludacz-Alessandri Magdalena, 2020. "The Relationship between Cost System Functionality, Management Accounting Practices, and Hospital Performance," Foundations of Management, Sciendo, vol. 12(1), pages 223-236, January.
    9. José Luis Esparza-Aguilar & Domingo García-Pérez-de-Lema & Antonio Duréndez, 2016. "The effect of accounting information systems on the performance of Mexican micro, small and medium-sized family firms," Tourism Economics, , vol. 22(5), pages 1104-1120, October.
    10. Stefanie Einhorn & Xaver Heinicke & Thomas W. Guenther, 2021. "Management control packages in family businesses: a configurational approach," Journal of Business Economics, Springer, vol. 91(4), pages 433-478, May.
    11. Cooper, Christine, 2015. "Entrepreneurs of the self: The development of management control since 1976," Accounting, Organizations and Society, Elsevier, vol. 47(C), pages 14-24.
    12. Abdel-Kader, Magdy & Luther, Robert, 2008. "The impact of firm characteristics on management accounting practices: A UK-based empirical analysis," The British Accounting Review, Elsevier, vol. 40(1), pages 2-27.
    13. Mirna Indriani & Nadirsyah, 2015. "Interaction Effect Of Budgetary Participation And Management Accounting System On Managerial Performance: Evidence From Indonesia," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 9(1), pages 1-13.
    14. Jenny Jing Wang, 2022. "The labour surplus and COVID‐19: the outlook for Chinese migrant low‐skilled workers," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(1), pages 577-596, March.
    15. Ana Filipa Roque, 2018. "Control Systems and Strategy: A Literature Review," GATR Journals jmmr201, Global Academy of Training and Research (GATR) Enterprise.
    16. Adrien Bernard Bonache & Philippe Chapellier & Zouhour Ben Hamadi & Abdallah Mohammed, 2015. "Determinants of the complexity of accounting information systems of managers of SMEs: Cultural contingencies and endogeneity [Les déterminants de la complexité des systèmes d'information comptables," Post-Print hal-03822778, HAL.
    17. Macinati, Manuela S. & Anessi-Pessina, E., 2014. "Management accounting use and financial performance in public health-care organisations: Evidence from the Italian National Health Service," Health Policy, Elsevier, vol. 117(1), pages 98-111.
    18. JORISSEN, Ann & REHEUL, Anne-Mie & LAVEREN, Eddy & MARTENS, Rudy, "undated". "Short-term planning Ssphistication in SMEs: The relationship with strategy and perceived environmental uncertainty," Working Papers 2006022, University of Antwerp, Faculty of Business and Economics.
    19. Teirlinck, Peter, 2017. "Configurations of strategic R&D decisions and financial performance in small-sized and medium-sized firms," Journal of Business Research, Elsevier, vol. 74(C), pages 55-65.
    20. Uyar, Ali & Kuzey, Cemil, 2016. "Does management accounting mediate the relationship between cost system design and performance?," Advances in accounting, Elsevier, vol. 35(C), pages 170-176.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    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:eme:arjpps:arj-07-2020-0202. 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: Emerald Support (email available below). General contact details of provider: .

    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.