Strategic management accounting: how far have we come in 25 years?

Abstract

Purpose -The purpose of this paper is to provide a review of the origins of strategic management accounting and to assess the extent of adoption and "success" of strategic management accounting (SMA). Design/methodology/approach -Empirical papers which have directly researched SMA and prior review papers of the adoption and implementation of SMA or SMA techniques are reviewed. As well as assessing the extent of adoption of SMA and the reasons underlying an apparent low adoption rate, the role of accountants in adopting and implementing SMA is considered. Finally, the success or otherwise of SMA is discussed. Findings -SMA or SMA techniques have not been adopted widely, nor is the term SMA widely understood or used. However, aspects of SMA have had an impact, influencing the thinking and language of business, and the way in which we undertake various business processes. These issues cut across the wider domain of management, and are not just the province of management accountants. Research limitations/implications -There is limited value in conducting future surveys of the adoption and implementation of SMA or SMA techniques. Rather, the focus should be on how SMA-inspired techniques and processes diffuse into general practice within organizations. Originality/value -Twenty-five years after the term strategic management accounting was first introduced in the literature, this paper brings together disparate literature and provides a broad assessment of the "state-of-the-art" of strategic management accounting to inform researchers and practitioners.

Interest in the Management Accounting Profession: Accounting Students’ Perceptions in Jordanian Universities

“…Management accounting as a discipline, profession and practice has recently been given a considerable amount of unwanted attention, since renowned accounting academics have considered both the academic discipline and the professional practice as a 'dated' concept (Langfield-Smith, 2008;Milne et al, 2008;Otley, 2008). Otley (2008), for instance, suggests that financial management and analysis exist but that middle management often undertake such analyses themselves, thus do not need a designated accounting professional for this purpose.…”

Accomplishing Water Strategy Policies in Hospitals: The Role of Management Information Systems and Managerial Styles

“…The strategic management literature emphasizes the importance of managerial styles and management information systems to achieve multiple strategic objectives [9,10]. However, despite significant interest from practitioners and academics in water management literature, relatively little is known about how the combination of different managerial styles and management information systems can influence the achievement of multiple strategic policies [29,30], such as water cost saving and water quality enhancement.…”

“…These systems provide managers with comprehensive information, such as operational and financial information, externally and internally oriented, and information with a focus on both past and future events [7,8]. Empirical results thus far are confused and mixed, since researchers have usually analyzed a specific management information technique [9,10]. Researchers have also extensively examined one single characteristic in the design of management information systems at a time.…”

“…Second, while prior literature argues that management information systems can facilitate different water strategy policies simultaneously, the present paper directly examines how this relationship works. The achievement of water strategy policies focused on cost saving and water strategy policies focused on quality enhancement are analyzed, and thus it is acknowledged that both types of strategic goals and policies may not be mutually exclusive, as in fact, hospitals are currently more often pressed towards the implementation of both strategic goals simultaneously [10].…”

Strategic Management Accounting Practices among Indigenous Nigerian Manufacturing Enterprises

“…SMAP involves longer-term evaluation, with a significant effect on the organization. Although they may have an internal element, they also have an external element (Langfield-Smith, 2008). These distinctions show that MA is more concerned with the activities within the organization ignoring the external influences which is very important to the growth of the business.…”