Strategic accounting and the accounting profession: some guidelines to enhance the managerial role of accountants in organizations
DOI:
https://doi.org/10.17533/udea.rc.n80a07Keywords:
strategic accounting, strategic accounting techniques, strategy, competition, business contextAbstract
The goal of this article is to shed some light on the skills and requirements that strategic accounting demands from accounting professionals in order to enhance their roles in organizational management and strategic scenarios. Based on a literature review on strategic accounting for the period 1981-2021 in the Scopus and Science Direct database, it was found that the roles of accountants are enhanced when these professionals broaden their focus to include the external environment in the analysis, particularly information on the market, competitors, customers, and suppliers. Similarly, studying organizational strategy, both their own and that of competitors, provides useful information for understanding the steps taken by organizations to achieve a long-lasting competitive advantage. Strategic accounting data aids in the development of connections between accounting, organizational strategy, and strategic management.
Downloads
References
Abdelmoneim, A. & Jones, T. (2014). Relationship between strategic management accounting techniques and profitability - a proposed model. Measuring Business Excellence Vol. 18, No.3, pp. 1-22.
Abdul, I., Azhar, Z. & Norzaidi, M. (2012). Strategic management accounting and benchmarking practices in Malaysian hospitals. Journal of Applied Sciences Research, 8 (3), pp. 1665-1671.
Abdullah, N. & Said, J. (2015). Enhancing the governance of government linked companies via strategic management accounting practices and value creation. Procedia Economics and Finance 28, pp. 222-229.
Agasisti, T., Arnaboldi, M. & Azzone, G. (2008). Strategic management accounting in the Italian experience. High Educ 55, pp. 1-15.
Alamri, M. (2018). Strategic management accounting and the dimensions of competitive advantage: testing the associations in Saudi industrial sector. International Journal of Academic Research in Accounting, Finance and Management Sciences 8 (2), pp. 48-64.
Alborov, R., Kontsevaya, S., Klychova., G. & Kuznetsovd, V. (2017). The development of management and strategic management accounting in agriculture. Journal of Engineering and Applied Sciences 12 (19), pp. 4979-4984.
AlMaryani, M. & Sadik, H. (2012). Strategic management accounting techniques in Romanian companies: some survey evidence. Procedia Economics and Finance 3, pp. 387-396.
Arunruangsirilert, T. & Chonglerttham, S. (2017). Effect of corporate governance characteristics on strategic management accounting in Thailand. Asian Review of Accounting Vol. 25 No. 1, pp. 85-105.
Atrill, P. & Mc Laney, E. (2009). Management accounting for decisions makers. Lombarda. Prentice Hall.
Bromwich, M. (1990). The case for strategic management accounting: the role of accounting information for strategy in competitive markets. Accounting, organizations and society volume 15, issue 1-2, pp. 27-46.
Bromwich, M., and Bhimani, A. (1994). Management accountant pathways to progress. The Chartered Institute of Management Accountants, London.
Brouthers, K. & Roozen, F. (1999). Is it time to start thinking about strategic accounting? Long Range Planning, Vol. 32, No. 3, pp. 311-322.
Cadez, S. & Guilding, C. (2008). An exploratory investigation of an integrated contingency model of strategic management accounting. Accounting, organizations and society 33, pp. 836-863.
Cadez, S. & Guilding, C. (2012). Strategy, strategic management accounting and performance: a configurational analysis. Industrial Management & Data Systems Vol. 112, Issue 3, pp. 484-501.
Chartered Institute of Management Accountants CIMA. (1991). Management Accounting: Official Terminology, CIMA, London, 1991.
Chartered Institute of Management Accountants CIMA. (2015). Management accounting in support of the strategic management process. Volume 11, Issue 1, pp. 1-20.
Chenhall, R. (2007). Theorizing contingencies in management control systems research, in Chapman, A., Hopwood, A. & Shields, M. (2007). Handbook of management accounting research. Pp. 163-205.
Cinquini, L. & Tenucci, A. (2010). Strategic management accounting and business strategy: a loose coupling? Journal of Accounting & Organizational Change Vol. 6, No. 2, pp. 228-259.
Coad, A. (1996). Smart work and hard work: explicating a learning orientation in strategic management accounting. Management Accounting Research 7, pp. 387-408.
Collier, P. & Gregory, A. (1995). Strategic management accounting: a UK hotel sector case study. International Journal of Contemporary Hospitality Management, Vol. 7 No. 1, pp. 16-21.
Cuganesan, S., Dunford, R. & Palmer, I. (2012). Strategy management accounting and strategy practices within a public sector agency. Management Accounting Research 23, pp. 245-260.
Dixon, R., & Smith, D. (1993). Strategic Management Accounting. Omega, 21, pp. 605-618.
Dmitrović, L. & Suljović, E. (2017). Strategic management accounting in the Republic of Serbia. Economic Research-Ekonomska Istraživanja, Vol. 31 No. 1, pp. 1829-1839.
Duçi, E. (2021). The relationship between management accounting, strategic management accounting and strategic cost management. Academic Journal of Interdisciplinary Studies Vol 10, No, 5, pp. 376-389.
Fernandez, A. & Muñoz, C. (1996). La actuación estratégica de la empresa y la contabilidad de gestión. Revista Española de Financiación y Contabilidad Vol. XXV, No. 89, pp. 821-836.
Gao, Y., Bao, L. & Guo, Y. (2016). Research of Implementation Mode of Strategic Management Accounting. Proceedings of the 6th International Asia Conference on Industrial Engineering and Management Innovation, DOI 10.2991/978-94-6239-145-1_91
G’iyosov, I. (2019). The theorical features of the organization of the strategic management accounting in business. ISJ Theoretical & Applied Science, 09 (77), pp. 260-266.
Gong, Y. (2013). Global operations strategy: fundamentals and practice. Berlin. Springer.
Guilding, C., Cravens, K. & Tayles, M. (2000). An international comparison of strategic management accounting practices. Management Accounting Research, 11, pp. 113-135.
Höglund, L., Holmgren, M., Martensson, M. y Svärdsten, F. (2021). Strategic management accounting in the public sector context: the case of the Swedish Transport Administration. Journal of Public Budgeting, Accounting & Finance Management Vol. 33, No. 4, pp. 468-486.
Hutaibat, K., Alberti, L. & Al-Htaybat, K. (2011). Strategic management accounting and the strategising mindset in an English higher education institutional context. Journal of Accounting & Organizational Change Vol. 7, No. 4, pp. 358-390.
Inghirami, I. (2014). Reshaping strategic management accounting systems. Frontiers in Artificial Intelligence and Applications Volume 261, pp. 495-506.
Innes, J. (1998). Strategic management accounting in tones. Hand Book of management accounting. London.
Johnson, T. & Kaplan, R. (1987). Relevant lost: the rise and fall of management accounting. Boston. Harvard Business School.
Kraus, S., Breier, M. & Rodríguez, S. (2020). The art of crafting a systematic literature review in entrepreneurship research. International Entrepreneurship and Management Journal 16, pp. 1023-1042.
Lachmann, M., Knauer, T. & Trapp, R. (2013). Strategic management accounting practices in hospitals: empirical evidence on their dissemination under competitive market environments. Journal of Accounting & Organizational Change Vol. 9, No. 3, pp. 336-369.
Langfield, K. (2008). Strategic management accounting: how far have we come in 25 years? Accounting, Auditing & Accountability Journal Vol. 21 No. 2, 2008, pp. 204-228.
Larrinaga, C. (1999). Perspectivas alternativas de investigación en contabilidad: una revisión. Revista de Contabilidad Vol. 2, No. 3, pp. 103-131.
Lord, B. (1996). Strategic management accounting: the emperor´s new clothes? Management Accounting Research 7, pp. 347-366.
Ma, Y. & Tayles, M. (2009). On the emergence of strategic management accounting: an institutional perspective. Accounting and Business Research Vol. 39. No. 5, pp. 473–495, 2009.
Manyaeva, V., Piskunov, V. & Fomin, V. (2016). Strategic management accounting of company costs. International Review of Management and Marketing 6 (S5), pp. 255-264.
Mclellan, J. (2012). Strategy and MA practices alignment and its effect on organizational performance. International Conference on Excellence in Business Sharjah, United Arab Emirates, pp. 1-23.
Nejad, A., Nezhad, B. & Abdul, S. (2017). The indirect effect of strategic management accounting in the relationship between CEO characteristics and their networking activities and company performance. Journal of Accounting & Organizational Change Vol.13, No. 4, pp. 471-491.
Nishimura, A. (2003). Management accounting: feed forward and Asian perspectives. New York. Palgrave Macmillan.
Nixon, B., & Burns, J. (2012). The paradox of strategic management accounting. Management Accounting Research 23, pp. 229-244.
Noordin, R., Zainuddin, Y. & Tayles, M. (2009). Strategic management accounting information elements: Malaysian evidence. Asia-Pacific Management Accounting Journal Vol. 4, Issue 1, 17-34.
Obohn, C. & Ajibolade, S. (2017). Strategic management accounting and decision making: A survey of the Nigerian Banks, Future Business Journal 3, pp. 119-137.
Ojra, J., Opute, A. y Alsolmi, M. (2021). Strategic management accounting and performance implications: a literature review and research agenda. Future Business Journal 7(1):64, pp. 1-17.
Pasch, T. (2019). Organizational lifecycle and strategic management accounting. Journal of Accounting & Organizational Change Vol. 15, No. 4, 2019, pp. 580-604.
Pavlatos. O. (2015). An empirical investigation of strategic management accounting in hotels, Interntional Journal of Contemporary Hospitality Management Vol. 25, No. 5, pp. 756-767.
Porter, M. (1987). From competitive advantage to corporate strategy. Harvard Business Review, pp. 43-59.
Rickwood, C., Coates, J. & Stacey, R. (1990). Stapylton: strategic management accounting to gain competitive advantage. Management Accounting Research 1, pp. 37-49.
Roslender, R. & Hart, S. (2002). Integrating management accounting and marketing in the pursuit of competitive advantage: the case for strategic management accounting. Critical Perspectives on Accounting 13, pp. 255-277.
Roslender, R. & Hart, S. (2003). In search of strategic management accounting: theoretical and field study perspectives. Management Accounting Research 14, pp. 255-279.
Ryan, B., Scapens, R. y Theoblad. M. (2004). Metodología de la investigación en finanzas y contabilidad. Barcelona. Deusto.
Shank J. y Govindarajan, V. (1993) Strategic cost management: the new tool for competitive advantage. The Free Press, New York.
Shank, J. (2006). Strategic cost management: upsizing, downsizing, and right(?) sizing. Contemporary issues in management accounting, pp. 355-379.
Shi, W. (2021). Analyzing enterprise asset structure and profitability using cloud computing and strategic management accounting. Plos One16(9), pp. 1-21.
Simmonds, K. (1981). Strategic management accounting. Journal of the Institute of Cost and Management Accountants 59, pp. 26-30.
Simmonds, K. (1982). Strategic management accounting for pricing: a case example. Accounting and Business Research, pp. 206-214.
Szendi, J. & Shum, C. (1999). Strategic management accounting practices in Latin America. Journal of Accounting and Finance Research, Summer, pp. 1-13.
Tanc, A. & Gokoglan, K. (2015). The impact of environmental accounting on strategic management accounting: a research on manufacturing companies. International Journal of Economics and Financial Issues 5 (2), pp. 566-573.
Tillmann, K. & Goddard, A. (2008). Strategic management accounting and sense-making in a multinational company. Management Accounting Research 19, pp. 80-102.
Turner, M., Way, S., Hodari, D. & Witteman, W. (2017). Hotel property performance: the role of SMA.
Ward, K. (1992). Strategic Management Accounting. Oxford. Butterworth-Heinemann.
Ward, K. (1993). Accounting for a ‘sustainable competitive advantage. Management Accounting Vol. 71, pp. 36-48.
Zenita, R., Sari, R., Anugerah, R. & Said, J. (2015). The Effect of Information Literacy on Managerial Performance: The Mediating Role of Strategic Management Accounting and the Moderating Role of Self Efficacy. Procedia Economics and Finance 31, pp. 199-205.
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Contaduría Universidad de Antioquia
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Author’s copyright of the articles is transferred to the University of Antioquia to have abstracts and full texts available in databases that disseminate each issue’s contents. However, the authors may disseminate their work published in the Journal through their personal pages and institutional repositories.
