Management accounting changes and the interaction effect of management accounting practices and integrated information systems on organisational performance : evidence from Thailand

Abstract

The overall objective of this research was to examine phenomenon of management accounting changes in the context of Thailand, through exploring changes of management accounting practices (MAPs) and examining underlying influential factors with the use of contingency theory and diffusion of innovations theory. Furthermore this study aims to shed some light on the interaction effect of MAPs and integrated information systems (IISs) on organisational performance. A mixed method research strategy was adopted including questionnaires survey and one-to-one interviews. The study includes five findings: three mains and two ancillaries. First, MAPs have remained relatively unchanged over the period of 2001-2012, in particular conventional MAPs are still dominant, but there are signs of diffusion of advanced MAPs (i.e. Activity-based Costing (ABC) and Balanced Scorecards (BSC)). Second, using binary logistic regression analyses, results indicate that environmental uncertainty, differentiation strategy and IIS implementation promote MAP adoption whereas a decentralised structure and organisational culture are barriers. Third, MAPs and IISs do not have any interaction effect on organisational performance; however, individually they do have positive direct impacts on organisational performance. Additionally, the considered reasons for adoption or rejection of advanced MAP are unveiled as external consultants, following other Thai lead organisations, a lack of knowledge and resources, and a lack of top management support. Finally, organisational outlook of the top manager groups (culture perspective) influenced the advanced MAP usages. Organisations with top managers reflecting flexibility values tend to use more advanced MAPs than those reflecting control values. This study contributes to the existing knowledge of MAP changes by adding Thai organisational and cultural dimensions. This study also contributes to the inspiration for academics and practitioners to be concerned about the interaction effect of MAP adoption and IIS implementation on organisational performance (including financial and non-financial performance).