The case for strategic management accounting: the role of accounting information for strategy in competitive markets
Article Abstract:
Two economic theories concerned with the global competitiveness of US companies suggest an increased role for management accounting in providing and analyzing information necessary for strategic planning. The first theory focuses on the importance of demand and cost factors of a company's products. The role for management accounting lies in costing extant and new products and regularly monitoring those costs. The second theory, contestable market theory, deals with the cost structure of a company relative to the cost structures of actual and potential competitors, and the strength of the company's strategy relative to that competition. The role for accounting lies in monitoring the structures of all companies in the company's market, and monitoring all companies that may enter that market. The contestable market theory is particularly adaptable to high technology manufacturing.
Publication Name: Accounting, Organizations and Society
Subject: Business
ISSN: 0361-3682
Year: 1990
User Contributions:
Comment about this article or add new information about this topic:
The role of management control systems in creating competitive advantage: new perspectives
Article Abstract:
A process model of strategy and control where management regulates strategic uncertainties through the choice of strategy and management control systems is presented. The concepts used to develop the model include: the limited attention of management, strategic uncertainties, and organizational learning. Managers do not have the time or the intellectual ability to process all the information available to them. Managers are faced with strategic uncertainties, including: changes in government laws, increased competition, and advances in technology. Organizational learning is the manner in which organizations adjust to their environment. The model introduces concepts linking management control systems to competitive advantage. Management control can be used to manage an evolving strategy instead of focusing on what the organization already knows and does well.
Publication Name: Accounting, Organizations and Society
Subject: Business
ISSN: 0361-3682
Year: 1990
User Contributions:
Comment about this article or add new information about this topic:
Accounting control systems and business strategy: an empirical analysis
Article Abstract:
Accounting theoreticians have suggested that control systems should be altered to mesh with corporate strategy. This hypothesis is tested through examination of accounting control system differences between two groups of companies that employ different approaches. Questionnaire and interview data are employed to show evidence of the manner in which companies match their strategies and accounting control systems. Preliminary evidence is also discussed which indicates that there is a relationship between business strategy, accounting control systems, and corporate performance.
Publication Name: Accounting, Organizations and Society
Subject: Business
ISSN: 0361-3682
Year: 1987
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Strategic management and economics. The relative impact of actual and potential rivalry on firm profitability in the pharmaceutical industry
- Abstracts: A strategic contingency model of corporate structure. Planning and financial performance among small firms in a growth industry
- Abstracts: Matching compensation and organizational strategies. The role of human resources strategy in export performance: a longitudinal study
- Abstracts: The treatment of interest under SSAP 24. The balance sheet implications of SSAP 24. SSAP 24: time to sort out the balance sheet
- Abstracts: Last filing for tax year changes excused for preparers' errors. AMT increases advantages of cross-purchase arrangements over redemption agreements