Can Management Accounting Be Helpful for Young and Small Companies? Systematic Review of a Paradox

Abstract

While management accounting (MA) implies potential benefits for large established companies, its usefulness for young and small companies is less clear. This review analyzes and partially resolves the paradox and provides a structured overview of present knowledge. A systematic literature search yielded 67 empirical papers in 25 journals. Drawing on the results of a two‐step coding process, this study proposes 20 novel second‐level constructs expressing the types of MA, their antecedents and their consequences in young and small companies. The main results show that, in discussing MA, the literature refers mainly to business planning, accounting‐based management control activities and financial accounting. Most studies find MA to be helpful for young and small companies because it provides tools to overcome difficulties arising from company growth and reduces information asymmetry with external partners. Overall, however, the empirical literature on this topic is highly concentrated, offers theoretical construct definitions of poor quality, and lacks a clear statement of what MA really does in young and small companies. Therefore, future research and theory development are warranted.

Assessing Implementation of Managerial Accounting Practices: Perspective of Pakistani SMEs

“…With this approach, a cohesive framework was developed which the authors have named as 'value-based framework' . A systematic literature review on management accounting for small companies by Pelz (2019) indicates that it is very imperative for founders for young and small businesses to select cost management practices keeping into consideration business activities such as product development, sales and financial management. Naz et.al (2016) worked on another aspect of the same topic and studied the influence of internal organizational culture in adoption of a particular CMA system within Pakistani manufacturing companies.…”

The effectiveness of management accounting systems in SMEs: a multidimensional measurement approach

“…Third, this multidimensional tool could be helpful for study the benefits of the MAS utilization in small and medium-sized enterprises, and for developing new management accounting theories, responding to the recent calls for additional research on these subjects (Azudin and Mansor, 2018;Ismail et al, 2019;Lavia López and Hiebl, 2015;Pelz, 2019;Sandalgaard and Nielsen, 2018).…”

“…However, this traditional view where management accounting is unsuitable for innovation has been challenged (Chenhall and Moers, 2015), leading to a paradigm shift in the use of MAS by the executives of small and medium enterprises (Davila et al, 2009) being able to assist them in the continuous process of change (Aaltola, 2019). As such, MA approaches in SMEs should be differentiated from those for large companies, taking into account their innovative and organizational characteristics (Pelz, 2019) We can find several research topics on management accounting, which deepened our understanding of how enterprises can use this management tool to improve their performance and therefore improve their competitiveness. Sometimes the literature uses the terms management accounting (MA), management accounting systems (MAS), management control systems (MCS), and organizational controls (OC) interchangeably (Chenhall, 2003).…”

“…In this context, the management accounting systems and the information they provide are topics that have gained increasing research relevance. As such, recent literature has been calling for more research on this subject for SMEs (Azudin and Mansor, 2018;Ismail et al, 2019;Lavia López and Hiebl, 2015;Pelz, 2019;Sandalgaard and Nielsen, 2018).…”

O Efeito Do Ambiente Na Relação Entre O Uso Das Informações Gerenciais E O Desempenho Empresarial Nas Mpes

“…O uso dessas informações ajuda as empresas a tomarem decisões mais assertivas e a obterem melhores níveis de desempenho (ATKINSON et al, 2015;HORNGREN, SUNDEM;STRATTON, 2004). As informações contribuem para desenvolvimento das MPEs, auxiliando-as a superar os obstáculos de crescimento e de sustentação no mercado (PELZ, 2019). No entanto, as diversas pesquisas que buscaram compreender melhor a relação entre a contabilidade gerencial e os benefícios que ela produz para MPEs apresentaram resultados divergentes (OLIVEIRA;MULLER;NAKAMURA, 2000;BERNARDES;MIRANDA, 2011).…”