Management accounting in less developed countries: what is known and needs knowing

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to evaluate management accounting research in developing countries and formulate suggestions for its progression. Design/methodology/approach -This is a desk based study of existing literature analysed through a framework of management control transformation in developing countries derived from the authors' research. Findings -Research is growing, especially on accounting in state-owned and privatised enterprises but more is needed on small and micro enterprises, agriculture, non-governmental organisations, and transnational institutions. Originality/value -This is the first review of this area and thus should help intending and existing scholars.MAS research by country, stage of development, topic, theory and research methods Our definition of MAS embraces processes, structures and information for organisational decisions, governance, control and accountability. ;It is deliberately broad -too narrow and technical definitions deflect attention from historical, social, political and economic factors, and their unanticipated consequences. Rigid boundaries are dangerous as development issues need open, imaginative, problem-based approaches that transgress disciplines and forms of accounting. We excluded financial accounting papers on LDCs, including social and environmental accounting ones (see Gray and Kouhy, 1993) but in retrospect such demarcations may be dangerous, as will be discussed.

New public management, cost savings and regressive effects: A case from a less developed country

“…While we do not wish to claim that the processual model will be applicable to all NPM-related cost management reforms, nevertheless, regressive outcomes are always a possibility, especially in the structural conditions where many public sector organisations operate in less developed countries. Previous studies have demonstrated similar structural conditions for NPM in poorer countries (Allawattagee et al, 2007;Hopper et al, 2009). In many of these cases, NPM reforms are brought about by private sector ideals of cost management and are championed by private sector change agents (Wickramasinghe and Hopper, 2005).…”

“…Most of these shifts in policy are often a function of international politics and of the economic dependence of these countries on economically stronger nations (ibid). This political and economic context has had a direct bearing on the management accounting and control practices of public sector organisations in less developed countries (Hopper et al, 2009). First, in most of these public sector organisations, 'bureaucratic' management accounting and controls were in place to enable the state to make rational decisions about resource allocations.…”

“…The case organisation, CAA, was formed in 1982 to run aviation affairs (regulation, air traffic control) as well as to manage the airports. 1950s and 1960s), nationalisation (1970s), and privatisation (1980s onwards) (Hopper et al, 2009). In terms of the management of public sector organisations, the country suffered from all the issues that are the hallmark of less developed countries, i.e., bad governance, corruption, politicization, and inefficiency (Allawattage et al, 2007).…”

“…Subsequent changes to management controls in the public sector were generally linked with poor financial performance followed by 'reform' programmes advised by international lending agencies (Uddin and Hopper, 2003;Hopper et al, 2009). These reforms took the form of partial or full privatisation of state-owned entities (Uddin and Hopper, 2001;Hopper, 2005, Uddin andTsamenyi, 2005).…”

“…Public-sector organisations operating in less developed countries have unique historical, cultural, and political circumstances (Hopper et al, 2009). Most of the less developed countries have gone through a similar historical transformation: independence from a colonial power during the middle of the twentieth century, state-led industrialisation cum central planning during the 1950s, and privatisation and NPMrelated reforms during the 1980s and 1990s (Alawattage et al, 2007).…”