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Diffusion of Management Accounting Practices in Gulf Cooperation Council Countries

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  • PREM LAL JOSHI
  • WAYNE G. BREMSER
  • ASHUTOSH DESHMUKH
  • RAJESH KUMAR

Abstract

This study examines how management accounting practices (MAPs) have been adopted and diffused by publicly listed firms in the Gulf Cooperation Council (GCC) countries. The results of our survey show that the adoption rates for MAPs in the area of cost management and strategy are low while those in the area of performance measurement are moderate. Overall, the respondents favorably perceived their success in implementing MAPs. Power and politics, not economic (or cost–benefit) reasons, were considered to be the most influential reasons for nonadoption of MAPs. The results provide partial support to the view that there is a global convergence of management accounting system designs and ideas and also indicate that the role of cultural differences is diminishing over time. Diffusion des pratiques de comptabilité de management dans les États membres du Conseil de coopération du Golfe Résumé Les auteurs examinent comment les pratiques de comptabilité de management (PrCM) ont été adoptées et diffusées par les sociétés cotées dans les États arabes membres du Conseil de coopération du Golfe (CCG). Les résultats de leur sondage montrent que les coefficients d’adoption des PrCM dans le domaine de la gestion stratégique des coûts sont faibles, alors qu’ils sont modérés dans le domaine de la mesure de la performance. Dans l’ensemble, les répondants ont une perception positive de leur succès dans la mise en œuvre des PrCM. Les motifs de non‐adoption des PrCM jugés les plus déterminants se rapportent au pouvoir et à la politique et ne sont pas d’ordre économique (ou liés au rapport coûts‐avantages). Les résultats appuient partiellement le point de vue selon lequel il y aurait convergence à l’échelle mondiale dans la conception des systèmes de comptabilité de management et dans les idées qui s’y rattachent ; ils révèlent également que le rôle des différences culturelles s’atténue avec le temps.

Suggested Citation

  • Prem Lal Joshi & Wayne G. Bremser & Ashutosh Deshmukh & Rajesh Kumar, 2011. "Diffusion of Management Accounting Practices in Gulf Cooperation Council Countries," Accounting Perspectives, John Wiley & Sons, vol. 10(1), pages 23-53, March.
    • Handle: RePEc:wly:accper:v:10:y:2011:i:1:p:23-53
    DOI: 10.1111/j.1911-3838.2011.00018.x
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