The Use of Contingency Theory in Management and Accounting Research

Ismail, Kamisah; Zainuddin, Suria; Sapiei, Noor Sharoja

doi:10.22452/ajap.vol3no1.3

Cited by 12 publications

(12 citation statements)

References 50 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…This finding supports the argument (Burkert et al, 2014), which recommends the use of moderating contingent fit between MCS and strategy on performance. This study also supports the argument (Ismail et al, 2010), which states that contingency-based management control systems are intended to test the fit between MSS with contextual variables and outcome variables (outcome) as the dependent variable. If a good fit means an increase in performance is moderate if poor fit means a decrease in performance.…”

Section: Effect Of Contingent Fit Between Mcs and Capability On Sustasupporting

confidence: 82%

“…According to Burkert et al (2014) the use of contingent fit that is moderating between MCS and strategies can improve performance, including sustainability performance. As for Ismail, Zainuddin, and Sapiei (2010) states the fit between MCS and contingency-based capabilities when producing good fit results in an increase in performance. According to Jermias and Gani (2005) contingent fit between strategy and contextual variables has a positive relationship with business unit performance.…”

Section: The Concept Of Capabilitymentioning

confidence: 99%

See 1 more Smart Citation

The Contingent Fit between Management Control System and Capabilities on Sustainability Performance

Rosini¹,

Gunawan²,

Hakim³

2020

International Journal of Business, Economics and Management

View full text Add to dashboard Cite

This study aims to analyze the contingent fit between the management control system (MCS) with capabilities to improve the company's sustainability performance. The final sample was 185 environmental managers, human resources, marketing, operational, and corporate social responsibility (CSR) managers from 45 listed companies on the Indonesia Stock Exchange that published the annual report. Primary research data were taken by questionnaire. The data analysis method uses structural equation models with the help of the Smart PLS application. The results of this study indicate that 1) MCS has a direct effect on sustainability performance. 2) MCS affects capability. 3) Capability influences sustainability performance, and 4) contingent fit between MCS and capability has a proven impact on sustainability performance. Based on these results, future studies are expected to focus not only on the influence of MCS and capabilities on sustainability performance but also on the contingent fit between MCS and these capabilities. Thus, companies need to use MCS that has a contingent fit with their capabilities to improve sustainability performance Contribution/Originality: This study uses a new estimation methodology in the form of a management control system package with proven capabilities to improve sustainability performance. The contingent fit resulting from this study can help companies determine the right strategy in improving their sustainability performance. 1. INTRODUCTION Indonesia's natural destruction due to the exploitation of resources by companies is alarming. There are 10 environmental issues that are quite serious in Indonesia, namely waste production, forest destruction, and soil pollution (source: sindonews.com). Not to mention the issue of forest fires and waste pollution, which until now has not been handled optimally. Wahana Lingkungan Hidup (source: Walhi), an environmental activist organization in Indonesia, states that there are more than 300 environmental and agrarian conflicts and environmental damage, which is quite alarming. Based on environmental issues that tend to be of concern, governments, companies, producers, and consumers are required to pay more attention to sustainability performance (Wang, Pan, Wang, & Zhou, 2020). But in the Indonesian context, sustainability performance tends not to be the focus. The proof is that until 2016 alone, only 6% of companies reported sustainability performance (source: financial services authority). In fact, the sustainability report is critical because it indicates the actual sustainability performance (Papoutsi & Sodhi, 2020).

show abstract

Section: Effect Of Contingent Fit Between Mcs and Capability On Sustasupporting

confidence: 82%

Section: The Concept Of Capabilitymentioning

confidence: 99%

The Contingent Fit between Management Control System and Capabilities on Sustainability Performance

Rosini¹,

Gunawan²,

Hakim³

2020

International Journal of Business, Economics and Management

View full text Add to dashboard Cite

show abstract

“…SCT has been used in many different studies in the management literature (Abba et al, 2018;Aver and Cadez, 2009;Betts, 2003;Furu, 2012;Islam and Hu, 2012;Ruekart et al, 1985;Tellis and Fornell, 1988;Yarbrough et al, 1998;Vidal et al, 2017). SCT has also been the basis for several studies of organization and management in academic supervision (Phelps, 1985), leadership styles (Vidal et al, 2017), marketing management (Lucas and Gresham, 1985;Ruekart et al, 1985), accounting and financial management (Abba et al, 2018;Ismail et al, 2010;Otley, 2016), laboratory medicine (Strandjord, 1981) and organizational behavior (Strandholm et al, 2004). As a general theory, SCT does not specify the particular factors that are associated with any particular situation, so determining those factors is left up to the researcher.…”

Section: Strategic Contingency Theorymentioning

confidence: 99%

How do you change the world? The role of working condition in quest for excellence in quality education: evidence from Bangladesh

Ashraf

2020

MBE

View full text Add to dashboard Cite

Purpose The purpose of this paper is to examine the relationships between quality education and human resource management practices of faculty supervisor’s support, job autonomy and working condition in the private universities. Specifically, how does the working atmosphere in the private universities in Bangladesh play a mediating role in the links between faculty supervisory support and job autonomy toward excelling quality education? Design/methodology/approach To answer this question, a theoretical framework using the strategic contingency theory as its basis was established. Data (n = 515) were analyzed using structural equation modeling. Findings The findings of the study indicate that faculty supervisor’s support and working condition have significant positive relations with quality education and the working condition has an important mediating role in the links between supervisor’s support, job autonomy and quality education in the private universities in Bangladesh. Research limitations/implications First, the study used faculty as respondents from only 19 private universities in Bangladesh where more than 100 universities are in active operation at present. Second, the study included only top-ranking private universities and ignored other low-grade local private universities ranked by the university grant commission and they should be included in the study. Third, this study did not include public universities in the survey. Fourth, only two antecedents to the working environment toward quality education were included. Finally, this study collected data only from the faculty of the school of business and economics for examining their opinion. Practical implications From an academic and practical perspective, as a cumulative body of study on the relationship between different HRM practices and quality education, this paper will be better able to advise concerned authorities of higher education intuitions on the elements they need to address to ensure quality teaching and learning in their institutes. Social implications Several factors that directly and indirectly influence quality education through pleasant working environments appear to the surface. Thus, to create a vital working condition in private universities, academic leaders or authorities should be aware to make some improvements. Originality/value The study reveals a paramount finding that can help academicians and authorities of private higher education institutes.

show abstract

“…The contingency theory applied to management accounting provides clarity on accounting occurrences in circumstances where there have been deficiencies (Christ, 2014) [15]. Further, the contingency approach focuses on the principle that there is no generally suitable accounting system to address all organizational circumstances (Emmanuel, Otley & Merchant, 1990;Ismail, Zainuddin & Sapiei, 2010;Islam & Hu, 2012) [16][17][18]. Instead, the contingency theory proposes that specific circumstances within an organization need a precise and correct accounting system.…”

Section: Literature Review: Theoretical Frameworkmentioning

confidence: 99%

Identifying ‘True’ Water Loss Information through the MFCA Model for Improved Cost-Saving Decisions in a Water Utility: A Case Study of the Doorndraai Water Treatment Scheme in South Africa

Fakoya

Imuezerua

2020

Sustainability

View full text Add to dashboard Cite

We identified the deficiency in the conventional accounting system in capturing water-loss-related information and its effect on cost-saving decisions in a water utility in South Africa. We employed the material flow cost accounting (MFCA) model in the case of the Doorndraai Water Treatment Scheme to highlight inefficient phases of the water purification processes for the manager to identify opportunities for corrective action. Findings reveal that the inability of the conventional accounting system in accurately capturing water loss information limits the scheme manager’s ability to recognize cost-saving opportunities. Consequently, we found that the implementation of the material flow cost accounting (MFCA) model identified the pumping process as a major contributor to the water scheme’s daily operating loss because of the pumping machine’s low capacitor. Besides, this pumping machine has been in operation for about five years, an indication that the water scheme had been operating at a loss daily for a number of years. Thus, we suggested that the water scheme should invest in procuring a more suitable pumping device to reduce the huge electricity cost incurred daily by the Doorndraai Water Treatment Scheme. Besides this, the paper extended the implementation of the MFCA by providing an example of how the managerial accounting system can support environmental and economic sustainability in water purification processes. Thus, we reiterate that one way of effectively managing water resources is to appropriately capture the volume of water loss and water-purification-related costs to improve its efficiency.

show abstract

The Use of Contingency Theory in Management and Accounting Research

Cited by 12 publications

References 50 publications

The Contingent Fit between Management Control System and Capabilities on Sustainability Performance

The Contingent Fit between Management Control System and Capabilities on Sustainability Performance

How do you change the world? The role of working condition in quest for excellence in quality education: evidence from Bangladesh

Identifying ‘True’ Water Loss Information through the MFCA Model for Improved Cost-Saving Decisions in a Water Utility: A Case Study of the Doorndraai Water Treatment Scheme in South Africa

Contact Info

Product

Resources

About