Management accounting and control practices in a lean manufacturing environment

Fullerton, Rosemary; Kennedy, Frances A.; Widener, Sally K.

doi:10.1016/j.aos.2012.10.001

Cited by 145 publications

(210 citation statements)

References 51 publications

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“…A number of papers examine how the management control activities foster or impede implementations of Lean Management [5,6], [10,11,12,13,14,15,16]. A major attention is given to the following practices: the extent of dedicated teamwork, focused performance reporting, implementation or regular audits, allocation of responsibilities, use of financial and non-financial incentives.…”

Section: Literature Reviewmentioning

confidence: 99%

Negative Side Effects of Lean Management Implementations – A Causal Analysis

Mueller

Strzelczak

2015

Advances in Production Management Systems: Innovative Production Management Towards Sustainable Growth

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Section: Literature Reviewmentioning

confidence: 99%

Negative Side Effects of Lean Management Implementations – A Causal Analysis

Mueller

Strzelczak

2015

Advances in Production Management Systems: Innovative Production Management Towards Sustainable Growth

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“…AMT, which provides diverse tangible and intangible benefits, is regarded as the premiere competitive weapon to achieve manufacturing and business goals (Fullerton, Kennedy, and Widener, 2013). Since manufacturing capabilities are more central to determining the strategic position of a firm, the strategic importance of AMT is also enormous (Fullerton, Kennedy, and Widener, 2013). This strategic consequence requires the consideration of AMT as a key variable in the formulation and implementation of business strategy.…”

Section: A Amt and Mais Strategic Alignmentmentioning

confidence: 99%

“…Because of these forms of flexibility, AMT brings various strategic benefits, such as quality improvement, economies of scope, and shortened lead and delivery times. AMT, which provides diverse tangible and intangible benefits, is regarded as the premiere competitive weapon to achieve manufacturing and business goals (Fullerton, Kennedy, and Widener, 2013). Since manufacturing capabilities are more central to determining the strategic position of a firm, the strategic importance of AMT is also enormous (Fullerton, Kennedy, and Widener, 2013).…”

Section: A Amt and Mais Strategic Alignmentmentioning

confidence: 99%

“…Rather, they focused on the alignment between IS strategy and business strategy without considering the causal factors of alignment. It is generally assumed that the advanced manufacturing technology (AMT) adopted by manufacturing firms requires a high level of strategic alignment of management accounting information systems (MAIS) (Banker, Bardhan, and Chen, 2008;Fullerton, Kennedy, and Widener, 2013). However, the causal relationships between AMT, strategic alignment of MAIS, and organizational performance have not been empirically examined.…”

Section: ⅰ Introductionmentioning

confidence: 99%

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The Strategic Alignment of Management Accounting Information Systems, and Organizational Performance

Choe¹

2017

Glob Bus Financ Rev

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A B S T R A C TUsing structural equation modeling, this study empirically examined the causal relationships among the level of advanced manufacturing technology (AMT), facilitation of alignment, the degree of strategic alignment of management accounting information systems (MAIS), and the improvement of production performance. The causal relationships between MAIS strategic alignment and information characteristics of MAIS were also investigated. Results showed that the level of AMT has a significant and positive impact on alignment facilitation. A significant causal relationship between alignment facilitation and MAIS strategic alignment was also found. It was shown that under high degrees of MAIS strategic alignment, MAIS must provide broad-scope and integrated types of information. The causal relationships between MAIS strategic alignment and organizational performance were significant and positive. Thus, it is concluded that under high levels of AMT, high degrees of MAIS strategic alignment positively contribute to the improvement of a firm's production performance. Ⅰ. IntroductionStrategic alignment of information systems (IS) has become an important research topic. Thus, many studies (e.g., Alina and Daniel, 2013;King and Teo, 1997;Wu, Straub, and Liang, 2015) have suggested definitions and types of IS strategic alignment and investigated its impact on performance. Das, Zahra, and Warkentin (1991) have suggested a framework that links strategic IS planning and business strategy, Received: Jun. 20, 2017; Revised: Oct. 16, 2017; Accepted: Nov. 17, 2017 † Jong-min Choe Professor, School of Business, Kyungpook National University, Taegu, Republic of Korea Tel. +82-53-950-5445 E-mail: choejj@knu.ac.kr and relates it to company performance. Alina and Daniel (2013) defined the strategic alignment of IS as a collaborative process among business strategy, business organization, and IS infrastructure and strategy. King and Teo (1997) proposed four types (i.e., degrees) of alignment: administrative, sequential, reciprocal, and full integration. They also empirically examined and demonstrated the positive effects of the degrees of alignment on organizational performance. Wu, Straub, and Liang (2015) defined IS strategic alignment as the fit between business strategy and IS strategy. They confirmed the positive impact of IS strategic alignment on business performance. In investigating the effects of IS strategic alignment on performance, some prior studies did not consider contingency variables that may influence the strategic

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“…This might offer a relatively well-stocked firm an advantage in a competitive marketplace especially during the times of rising demand. In this regard, carrying inventories almost works as a hedge against sudden demand shock and offers firms some degree of strategic advantage in an uncertain market characterized by demand uncertainties (Caglayan, Maioli et al 2012, Agrawal and Smith 2013, Fullerton, Kennedy et al 2013, Jones and Tuzel 2013, Wu 2013.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Are Inventories Accretive? Lessons from Inventory and Earnings Relationship in the U.S. Capital Goods Sector

Ray¹

2017

AFR

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This paper presents results documenting the effects of inventories (considered as current assets) on corporate earnings in the US capital goods industry. The results reveal that inventories may have a negative impact on corporate earnings. Therefore, shareholder wealth may be negatively impacted by carrying inventories in the US capital goods sector. Carrying inventories may be crowding out non-inventory assets. Interestingly, higher inventories may lead to depressed overall sales. Depressed overall sales may contribute to further reduction in non-inventory assets. This reduction in non-inventory assets may further result in lower corporate earnings. These results strengthen the need for optimal inventory management and also call for a more nuanced treatment of inventories in the standard accounting literature. These results also strengthen the popular rationale for lean supply chain management. This paper contributes to the literature on the close relationship between operational efficiency and corporate financial outcomes.

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Management accounting and control practices in a lean manufacturing environment

Cited by 145 publications

References 51 publications

Negative Side Effects of Lean Management Implementations – A Causal Analysis

Negative Side Effects of Lean Management Implementations – A Causal Analysis

The Strategic Alignment of Management Accounting Information Systems, and Organizational Performance

Are Inventories Accretive? Lessons from Inventory and Earnings Relationship in the U.S. Capital Goods Sector

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