Predicting change in management accounting systems: a contingent approach
This study investigated the frequency and location of changes in management accounting and control systems in a sample of Canadian manufacturing companies. Using regression and path analysis the study attempted to understand how five environmental variables influenced change in the management accounting and control systems through the organizational structure. The findings indicate that changes in management accounting were best predicted by organization capacity to learn. Such changes mostly occur in systems that support planning and control followed by those that support decision making. The intensity of competition was found to affect management accounting change through the organizational structure. Organizations that placed a high emphasis on differentiation strategies reported significant changes in their management accounting and control systems.