Management accounting and new product development: a systematic literature review and future research directions

Abstract

This paper systematically reviews the existing literature at the crossroads of management accounting and new product development. At present, the accumulated knowledge on this topic is fragmented. Different research settings, diverse research focuses, and the use of different research methods are amongst the main reasons for the existing fragmentation and lack of an overall, conceptually coherent view of the knowledge gained on the management accounting phenomenon in new product development environments. As a response to the current knowledge fragmentation, the purpose of this paper is to consolidate existing evidence, provide an overview of the literature’s state-of-the-art, and propose paths for its future development. As a result of the systematisation attempt, this paper recognises the threefold identity of management accounting research in new product development and proposes a conceptual framework that collocates existing contributions along a research spectrum that gradually shifts the focus from the more technical-oriented aspects of management accounting to the more sociological-oriented aspects. Accordingly, this paper identifies the following research paths and systematise their relative contributions: (1) management accounting techniques and calculations; (2) management accounting information types and roles; (3) management accountants’ involvement and roles in new product development environments. Besides allowing the systematisation of previous investigations, this paper’s three research avenues provide a ‘lighthouse’ to those who, in future, aim to contribute to the current debate and knowledge creation at the intersection of management accounting and new product development. In this regard, the final part of the paper advances nine research propositions that emanate from the literature review and outlines a research agenda with directions for future research.

A Review of U.S. Management Accounting Evolution: Investigating Shifts in Tools and Methodologies in Light of National Business Dynamics

“…The field of management accounting is poised for significant transformations, driven by new technological advancements and evolving business needs. Magnacca and Giannetti (2023) conduct a systematic literature review on management accounting in the context of new product development. Their study identifies three main research paths: management accounting techniques and calculations, types and roles of management accounting information, and the involvement and roles of management accountants in new product development environments.…”

Cost at Risk (CaR): a Methodology for Costing under Uncertainty

“…By focusing on activities, ABC offers, among others, the following advantages: it identifies the activities that do not add value, identifies expensive or inefficient processes, facilitates continuous improvement, and offer information for the reduction of costs (Gosselin, 2006;Parker, 2016). The ABC can be used also to understand the cost implications of additional internal activities that might be required to meet different customers' specific requests (Magnacca & Giannetti, 2023).…”

Risk Analysis: Changing the Story with the Statistical Stochastic Process and VaR

“…However, studies have long identified the potential risks in following traditional wisdom such as this. For example, Lint and Pennings [50] argued that NPV can only be used if NPD processes are static. They also stressed that risk assessment is an unquestionably important part of the NPD process.…”

“…In line with this research, a number of studies have begun considering the role that uncertainty plays in NPD portfolio management. [50] used the Real Options concept to demonstrate uncertainty and flexibility in NPD projects. They argued that although much has been written about NPD, relatively little has been written about incorporating uncertainty.…”