Two Decades of Research on Comparative Management Accounting - Achievements and Future Directions

Abstract

Comparative Management Accounting research has explored the applications, transferability and cross‐country adaptation of management accounting practices since the early 1990s. These efforts have been triggered by findings indicating that the adoption of foreign management accounting techniques generates comparative advantages in environments characterised by increasing global business competition. However, the literature on Comparative Management Accounting is heterogeneous in terms of its methods and theory and tends to focus on a great variety of practices and instruments. Therefore, this paper reviews the existing literature, elaborating on the dimensions of comparative research in management accounting. In addition, it provides insights into shortcomings and developments in the field and identifies directions for future research and implications for corporate practice.

Management control in multinational companies: a systematic literature review

“…Extent literature reviews in relevant journals discuss specific insights such as headquarters-subsidiary relationships (e.g., Kostova et al 2016), or analyze in detail the impact of individual factors like culture and its relevance for the design of management control systems (MCSs) (e.g., Harrison and McKinnon 1999) or explore specific regions (e.g., Hopper et al 2009). Another field of research compares management accounting across regions (e.g., Endenich et al 2011;Kuttner and Feldbauer-Durstmueller 2016). MNCs operate in various countries with widely differing characteristics and hence need to consider a broad set of influencing factors within and outside the company when designing their MCS.…”

“…Companies that establish international subsidiaries need to adapt to economic, political and other conditions in the respective host countries (Endenich et al 2011) and have to overcome geographical and cultural divides to manage their operations (Dent 1996). Management control (MC) helps to align employee decisions and actions with corporate objectives (Chow et al 1999).…”

Comparative Studies of the Use of Management Accounting Information

“…The increasing number of calls for papers on the topic of management accounting in transitional and emerging economies indicates the growing academic interest in these regions (Endenich et al, 2011). Our paper contributes to a better understanding of the management accounting design and use in foreign subsidiaries and companies operating in former communist CEE countries.…”

“…The institutional theory is expected to generate interesting results, especially in the area of comparative studies, as it helps to explore the influences of global trends and professionalization on the use and design of management control systems in developing countries. Combining institutional theory and comparative studies can be also helpful for understanding country-specific styles and aims of management accounting information, as well as links between incentive structures and different institutional conditions (see Endenich et al, 2011). According to the institutional theory, companies transfer institutionalized management accounting practices accepted by other companies or in other countries (see Meyer and Scott, 1992).…”

“…Particularly multinational corporations consider that country-specific conditions influence the effectiveness of management accounting practices in subsidiaries operating in different national settings. In this context, comparative studies help companies to identify and understand the inefficiencies of management accounting systems in country specific cases (see Endenich et al, 2011). Comparative studies of management accounting focus on management accounting practices from different countries or cultural regions (see Shields et al, 1991;Ahrens, 1996;Chow et al, 1996), either matching companies from two or more countries, or checking practices identified in one country against literature.…”