How CFOs determine management accounting innovation: An examination of direct and indirect effects

European Accounting Review

Volumn 18, Issue 4, 2009, Pages 667-695

  Naranjo Gil, David ^a   Maas, Victor S ^b   Hartmann, Frank G H ^c  

^a UNIVERSIDAD PABLO DE OLAVIDE   (Spain)

^b UNIVERSITY OF AMSTERDAM   (Netherlands)

^c ERASMUS UNIVERSITY   (Netherlands)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 70349758727     PISSN: 09638180     EISSN: 14684497     Source Type: Journal    
DOI: 10.1080/09638180802627795     Document Type: Article

References (119)

1. Abernethy, M. A. and Bouwens, J. (2005) Determinants of accounting innovation implementation, Abacus, 41(3), pp. 217-240.
2. Abernethy, M. A. and Brownell, P. (1999) The role of budgets in organizations facing strategic change: an exploratory study, Accounting, Organizations and Society, 24, pp. 189-204.
3. Abernethy, M. A. and Chua, W. F. (1996) A field study of control system 'redesign': the impact of institutional processes on strategic choice, Contemporary Accounting Research, 13(2), pp. 569-606.
4. Abernethy, M. A. and Guthrie, C. H. (1994) An empirical assessment of the 'fit' between strategy and management information system design, Accounting & Finance, 34, pp. 49-66.
5. Abrahamson, E. (1991) Managerial fads and fashions: the diffusion and rejection of innovations, Academy of Management Review, 16(3), pp. 586-612.
6. Aidemark, L. (2001) Managed health care perspectives: a study of management accounting reforms on managing financial difficulties in a health care organization, European Accounting Review, 10(3), pp. 545-560.
7. Anthony, R.N. (1988) The Management Control Function (Boston, MA: Harvard Business School Press).
8. Auh, S. Y. and Menguc, B. (2005) Top management team diversity and innovativeness: the moderating role of interfunctional coordination, Industrial Marketing Management, 34(3), pp. 249-261.
9. Ax, C. and Bjornenak, T. (2005) Bundling and diffusion of management accounting innovations - the case of the balanced scorecard in Sweden, Management Accounting Research, 16(1), pp. 1-20.
10. Baines, A. and Langfield-Smith, K. (2003) Antecedents to management accounting change: a structural equation approach, Accounting, Organizations and Society, 28, pp. 675-698.
11. Baird, K. M., Harrison, G. L. and Reeve, R. C. (2004) Adoption of activity management practices: a note on the extent of adoption and the influence of organizational and cultural factors, Management Accounting Research, 15(4), pp. 383-399.
12. Ballou, B., Heitger, D. L. and Tabor, R. (2003) Nonfinancial performance measures in the healthcare industry, Management Accounting Quarterly, 5(1), pp. 11-16.
13. Banker, R. D., Chang, H. and Das, S. (1998) Standard estimation, standard tightness, and benchmarking: a method with an application to nursing services, Journal of Management Accounting Research, 10, pp. 133-153.
14. Banker, R. D., Chang, H. and Pizzini, M. J. (2004) The balanced scorecard: judgmental effects of performance measures linked to strategy, The Accounting Review, 79(1), pp. 1-23.
15. Bantel, K. A. and Jackson, S. E. (1989) Top management and innovation in banking: does the composition of the top team make a difference?, Strategic Management Journal, 10, pp. 107-124.
16. Boeker, W. (1997) Strategic change: the influence of managerial characteristics and organizational growth, Academy of Management Journal, 40(1), pp. 152-170.
17. Bogan, C. E. and English, M. J. (1994) Benchmarking for Best Practices: Winning through Innovative Adaptation (New York: McGraw-Hill).
18. Bolton, M. K. (1993) Organizational innovation and substandard performance: when is necessity the mother of innovation?, Organization Science, 4, pp. 57-75.
19. Bouwens, J. and Abernethy, M. A. (2000) The consequences of customization on management accounting systems design, Accounting, Organizations and Society, 25, pp. 221-241.
20. Bromiley, P. (1991) Testing a causal model of corporate risk taking and performance, Academy of Management Journal, 34, pp. 37-59.
21. Buchanan, D., Jordan, S., Preston, D. and Smith, A. (1997) Doctor in the process: the engagement of clinical directors in hospital management, Journal of Management in Medicine, 11(3), pp. 132-156.
22. Burns, J. and Baldvinsdottir, G. (2005) An institutional perspective of accountants' new roles - the interplay of contradictions and praxis, European Accounting Review, 14(4), pp. 725-757.
23. Burns, J. and Scapens, R. W. (2000) Conceptualizing management accounting change: an institutional framework, Management Accounting Research, 11(1), pp. 3-25.
24. Byrne, S. N. and Pierce, B. (2007) Towards a more comprehensive understanding of the roles of management accountants, European Accounting Review, 16(3), pp. 469-498.
25. Camelo-Ordaz, C. C., Hernandez-Lara, A. B. and Valle-Cabrera, R. (2004) The relationship between top management teams and innovative capacity in companies, Journal of Management Development, 24(8), pp. 683-705.
26. Carpenter, M. A. (2002) The implications of strategy and social context for the relationship between top management team heterogeneity and firm performance, Strategic Management Journal, 23(3), pp. 275-284.
27. Carpenter, M. A., Geletkanycz, M. A. and Sanders, W. G. (2004) Upper echelons research revisited: antecedents, elements, and consequences of top management team composition, Journal of Management, 30(6), pp. 749-778.
28. Cavalluzzo, K. S. and Ittner, C. D. (2003) Implementing performance measurement innovations: evidence from government, Accounting, Organizations and Society, 29, pp. 243-267.
29. Chenhall, R. H. (2003) Management control systems design within its organizational context: findings from contingency-based research and directions for the future, Accounting, Organizations and Society, 28, pp. 127-168.
30. Chenhall, R. H. (2005) Integrative strategic performance measurement systems, strategic alignment of manufacturing, learning and strategic outcomes: an exploratory study, Accounting, Organizations and Society, 30(5), pp. 395-422.
31. Chenhall, R. H. and Langfield-Smith, K. (1998) The relationship between strategic priorities, management techniques and management accounting: an empirical investigation using a systems approach, Accounting, Organizations and Society, 23, pp. 243-264.
32. Chenhall, R.H. and Langfield-Smith, K. (2003) Performance measurement and reward systems, trust, and strategic change, Journal of Management Accounting Research, 15, pp. 117-143.
33. Chin, W. W. (1998) Issues and opinion on structural equation modeling, MIS Quarterly, March, pp. vii-xvi.
34. Chin, W. W., Marcolin, B. L. and Newsted, P. R. (2003) A partial least squares latent variable modeling approach for measuring interaction effects: results from a Monte Carlo simulation study and an electronic-mail emotion/adoption study, Information Systems Research, 14(2), pp. 189-217.
35. Coburn, S., Grove, H. and Fukami, C. (1995) Benchmarking with ABCM, Management Accounting, January, pp. 50-56.
36. Cohen, J. (1988) Statistical Power Analysis for the Behavioral Sciences (Hillsdale, NJ: Erlbaum).
37. Cooper, R. and Kaplan, R. S. (1999) The Design of Cost Management Systems: Text, Cases and Readings (Englewood Cliffs, NJ: Prentice Hall).
38. Covaleski, M. A., Dirsmith, M. W. and Michelman, J. E. (1993) An institutional theory perspective on the DRG framework, case-mix accounting systems and health-care organizations, Accounting, Organizations and Society, 18, pp. 65-80.
39. Daft, R. L. (1978) A dual-core model of organizational innovation, Academy of Management Journal, 21(2), pp. 193-210.
40. Damanpour, F. (1991) Organizational innovation: a meta-analysis of the effects of determinants and moderators, Academy of Management Journal, 34(3), pp. 555-590.
41. De Jonge, P., Huyse, E. J., Slaets, J. P. J., Herzog, T., Lobo, A., Rigatelli, M.,Van Dijck R. and Mellenbergh, G. J. (2001) Care complexity in the general hospital: results from a European study, Psychosomatics, 42(3), pp. 204-212.
42. Del Llano, J., Ortún, V., Martín, J. M., Millán, J. and Gené, J. (2000) Gestión Sanitaria: Innovaciones y desafíos (Barcelona: Elsevier-Masson).
43. Desombre, T., Kelliher, C., Macfarlane, F. and Ozbilgin, M. (2006) Re-organizing work roles in health-care: evidence from the implementation of functional flexibility, British Journal of Management, 17, pp. 139-151.
44. Dillman, D. A. (2000) Mail and Internet Surveys: The Tailored Design Method (New York: John Wiley).
45. Donaldson, L. (2001) The Contingency Theory of Organizations (Thousand Oaks, CA: Sage).
46. Elenkov, D. S., Judge, W. and Wright, P. (2005) Strategic leadership and executive innovation influence: an international multi-cluster comparative study, Strategic Management Journal, 26(7), pp. 665-682.
47. Elnathan, D., Lin, T. W. and Young, S. M. (1996) Benchmarking and management accounting: a framework for research, Journal of Management Accounting Research, 8, pp. 37-54.
48. Emsley, D. (2005) Restructuring the management accounting function: a note on the effect of role involvement on innovativeness, Management Accounting Research, 16(2), pp. 157-178.
49. Emsley, D., Nevicky, B. and Harrison, G. (2006) Effect of cognitive style and professional development on the initiation of radical and non-radical management accounting innovations, Accounting & Finance, 46(2), pp. 243-264.
50. Finkelstein, S. and Hambrick, D. C. (1996) Strategic Leadership: Top Executives and their Effects on Organizations (St Paul, MN: West).
51. Fornell, C. and Larcker, D. F. (1981) Evaluating structural equation models with unobserved variables and measurement error, Journal of Marketing Research, 18, pp. 39-50.
52. Foster, B. J. and Ward, T. J. (1994) Theory of perpetual management accounting innovation lag in hierarchical organizations, Accounting, Organizations and Society, 19, pp. 401-411.
53. Fullerton, R. R. and McWatters, C. S. (2004) An empirical examination with cost accounting practices used in advanced manufacturing environments, Advances in Management Accounting, 12, pp. 85-113.
54. Gosselin, M. (1997) The effect of strategy and organizational structure on the adoption and implementation of activity-based costing, Accounting, Organizations and Society, 22, pp. 105-122.
55. Granlund, M. and Lukka, K. (1998) Towards increasing business orientation: Finnish management accountants in a changing cultural context, Management Accounting Research, 9, pp. 185-211.
56. Greve, H. R. (2003) A behavioral theory of R&D expenditures and innovations: evidence from shipbuilding, Academy of Management Journal, 46(6), pp. 685-702.
57. Griffith, J. R. and Alexander, J. A. (2002) Measuring comparative hospital performance, Journal of Healthcare Management, 47(1), pp. 41-57.
58. Hambrick, D. C. and Mason, P. (1984) Upper echelons: the organization as a reflection of its top managers, Academy of Management Review, 9, pp. 193-206.
59. Hodgkinson, G. P. and Sparrow, P. R. (2002) The Competent Organization: A Psychological Analysis of the Strategic Management Process (Buckingham: Open University Press).
60. Hoffman, R. and Hegarty, W. (1993) Top management influence on innovations: effect of executive characteristics and social culture, Journal of Management, 19, pp. 549-574.
61. Holmstrom, B. (1979) Moral hazard and observability, Bell Journal of Economics, 10, pp. 74-91.
62. Hopper, T. M. (1980) Role conflicts of management accountants and their position within organisation structures, Accounting, Organizations and Society, 5, pp. 401-411.
63. Hulland, J. (1999) Use of Partial Least Squares (PLS) in strategic management research: a review of four recent studies, Strategic Management Journal, 20, pp. 195-204.
64. Hundley, G., Jacobsen, C. H. and Park, S. H. (1996) Effects of profitability and liquidity on R&D intensity: Japanese and US companies compared, Academy of Management Journal, 39(6), pp. 1659-1674.
65. Hunter, D. J. (1992) Doctors as managers: poachers turned gamekeepers?, Social Science & Medicine, 35(4), pp. 557-566.
66. Hyvonen, T. and Järvinen, J. (2006) Contract-based budgeting in health care: a study of the institutional processes of accounting change, European Accounting Review, 15(1), pp. 3-36.
67. Indjejikian, R. J. and Matejka, M. (2006) Organizational slack in decentralized firms: the role of business unit controllers, The Accounting Review, 81(4), pp. 841-872.
68. Insalud (2004) Asistencia espacializada, evolución indicadores (Madrid: Ministerio de Sanidad y Consumo).
69. Ittner, C. D. and Larcker, D. F. (1998) Innovations in performance measurement: trends and research implications, Journal of Management Accounting Research, 10, pp. 205-239.
70. Ittner, C. D., Larcker, D. F. and Rajan, M. V. (1997) The choice of performance measures in annual bonus contracts, The Accounting Review, 72(2), pp. 231-255.
71. Ittner, C. D., Larcker, D. F. and Randall, T. (2003) Performance implications of strategic performance measurement in financial services firms, Accounting, Organizations and Society, 28, pp. 715-741.
72. Jacobs, K. (2005) Hybridisation or polarisation: doctors and accounting in the UK, Germany and Italy, Financial Accountability and Management, 21(2), pp. 135-161.
73. Jacobs, R., Goddard, M. and Smith, P. C. (2005) How robust are hospital ranks based on composite performance measures?, Medical Care, 43(12), pp. 1177-1184.
74. Järvenpää, M. (2007) Making business partners: a case study on how management accounting culture was changed, European Accounting Review, 16(1), pp. 99-142.
75. Johnson, H. T. and Kaplan, R. S. (1987) Relevance Lost: The Rise and Fall of Management Accounting (Boston: Harvard Business School Press).
76. Johnston, R., Brignal, S. and Fitzgerald, L. (2002) The involvement of management accountants in operational process change, International Journal of Operations and Production Management, 22(12), pp. 1325-1339.
77. Jones, C. S. and Dewing, I. P. (1997) The attitudes of NHS clinicians and medical managers towards changes in accounting controls, Financial Accountability and Management, 13(3), pp. 261-280.
78. Joseph, N., Turley, S., Burns, J., Lewis, L., Scapens, R. and Southworth, A. (1996) External financial reporting and management information: a survey of U.K. management accountants, Management Accounting Research, 7, pp. 73-93.
79. Kaplan, R. S. and Norton, D. P. (1996) The Balanced Scorecard: Translating Strategy into Action (Boston: Harvard Business School Press).
80. Keck, S. L. (1997) Top management team structure: differential effects by environmental context, Organization Science, 8(2), pp. 143-156.
81. Kennedy, T. and Affleck-Graves, J. (2001) The impact of activity-based costing techniques on firm performance, Journal of Management Accounting Research, 13, pp. 19-45.
82. Kimberly, J. R. and Evanisko, M. J. (1981) Organizational innovation: the influence of individual, organizational, and contextual factors on hospital adoption of technological and administrative innovations, Academy of Management Journal, 24(4), pp. 689-713.
83. Krumwiede, K. R. (1998) The implementation stages of activity-based costing and the impact of contextual and organizational factors, Journal of Management Accounting Research, 10, pp. 239-277.
84. Langfield-Smith, K. (1997) Management control systems and strategy: a critical review, Accounting, Organizations and Society, 22, pp. 207-232.
85. Lant, T. K., Milliken, F. J. and Batra, B. (1992) The role of managerial learning and interpretation in strategic persistence and reorientation: an empirical exploration, Strategic Management Journal, 13, pp. 585-608.
86. Lapsley, I. (2001) The accounting-clinical interface implementing budgets for hospital doctors, ABACUS, 37(1), pp. 79-109.
87. Lapsley, I. and Oldfield, R. (2001) Transforming the public sector: management consultants as agents of change, European Accounting Review, 10(3), pp. 523-543.
88. Lapsley, I. and Wright, E. (2004) The diffusion of management accounting innovations in the public sector: a research agenda, Management Accounting Research, 15(3), pp. 355-374.
89. Maiga, A. S. and Jacobs, F. A. (2005) The effects of benchmarking and ABCM organizational support and coherence on organizational performance: a test of two way interaction, Journal of Applied Management Accounting Research, 3(1), pp. 35-54.
90. Malmi, T. (1999) Activity-based costing diffusion across organizations: an exploratory empirical analysis of Finnish firms, Accounting, Organizations and Society, 24, pp. 649-672.
91. Meneu, R., Ortún, V. and Rodríguez, F. (2005) Innovaciones en Gestión Clínica y Sanitaria (Madrid: Elsevier-Masson).
92. Miles, R. E. and Snow, C. C. (1978) Organizational Strategy, Structure, and Process (New York: McGraw-Hill).
93. Mone, M. A., McKinley, W. and Barker, V. L. (1998) Organizational decline and innovation: a contingency framework, Academy of Management Review, 23(1), pp. 115-132.
94. Naranjo-Gil, D. and Hartmann, F. (2006) How top management teams use management accounting systems to implement strategy, Journal of Management Accounting Research, 18, pp. 21-53.
95. Naranjo-Gil, D. and Hartmann, F. (2007a) How CEOs use management information systems for strategy implementation in hospitals, Health Policy, 81, pp. 29-41.
96. Naranjo-Gil, D. and Hartmann, F. (2007b) Management accounting systems, top management team heterogeneity and strategic change, Accounting, Organizations and Society, 32, pp. 735-756.
97. Nath, D. and Sudharshan, D. (1994) Measuring strategy coherence through patterns of strategic choices, Strategic Management Journal, 15(1), pp. 43-61.
98. Pettersen, I. J. (2001) Implementing management accounting reforms in the public sector: the difficult journey from intentions to effects, European Accounting Review, 10(3), pp. 561-581.
99. Pierce, B. and O'Dea, T. (2003) Management accounting information and the needs of managers: perceptions of managers and accountants compared, British Accounting Review, 35, pp. 257-290.
100. Pizzini, M. J. (2006) The relation between cost-system design, managers' evaluations of the relevance and usefulness of cost data, and financial performance: an empirical study of US hospitals, Accounting, Organizations and Society, 31, pp. 179-210.
101. Preston, A. M. (1992) The birth of clinical accounting: a study of the emergence and transformations of discourses on costs and practices of accounting in U.S. hospitals, Accounting, Organizations and Society, 17, pp. 63-100.
102. Reid, G. C. and Smith, J. A. (2000) The impact of contingencies on management accounting system development, Management Accounting Research, 11, pp. 427-450.
103. Rogers, E. M. (1983) Diffusion of Innovations (New York: The Free Press).
104. Roos, N. P., Black, C., Roos, L. L., Frohlich, N., DeCoster, C., Mustard, C., Brownell, M. D., Shanahan, M., Fergusson, P., Toll, F., Carriere, K. C., Burchill, C., Fransoo, R., Macwilliam, L., Bogdanovic, B., and Friesen, D. (1999) Managing health services: how the population health information system (POPULIS) works for policymakers, Medical Care, 37(6), pp. JS27-JS41.
105. Shields, M. D. (1995) An empirical analysis of firms' implementation experiences with activity-based costing, Journal of Management Accounting Research, 7, pp. 148-166.
106. Siegel, G. and Sorensen, J. E. (1999) Counting More, Counting Less: Transformations in the Management Accounting Profession. The 1999 Practice Analysis of Management Accounting (Montvale, NJ: Institute of Management Accountants).
107. Simons, R. (1987) Accounting control systems and business strategy: an empirical analysis, Accounting, Organizations and Society, 12, pp. 357-374.
108. Swanson, E. B. (1994) Information systems innovation among organizations, Management Science, 40(9), pp. 1069-1092.
109. Swenson, D. (1995) The benefits of activity-based cost management to the manufacturing industry, Journal of Management Accounting Research, 7, pp. 167-180.
110. Ter Bogt, H. J. and Van Helden, G. J. (2000) Accounting change in Dutch government: exploring the gap between expectations and realizations, Management Accounting Research, 11(2), pp. 263-279.
111. Thomas, A. S. and Ramaswamy, K. (1996) Matching managers to strategy: further tests of the Miles and Snow typology, British Journal of Management, 7, pp. 247-261.
112. Tihanyi, L., Ellstrand, A. E., Daily, C. M. and Dalton, D. R. (2000) Composition of the top management team and firm international diversification, Journal of Management, 26(6), pp. 1157-1177.
113. Tillema, S. (2005) Towards an integrated contingency framework for MAS sophistication: case studies on the scope of accounting instruments in Dutch power and gas companies, Management Accounting Research, 16, pp. 101-129.
114. Tomaksovic-Devey, D., Leiter, J. and Thompson, S. (1994) Organizational survey nonresponse, Administrative Science Quarterly, 39(3), pp. 439-457.
115. Van Peursem, K. A., Pratt, M. J. and Lawrence, S. R. (1995) Health management performance: a review of measures and indicators, Accounting, Auditing & Accountability Journal, 8, pp. 34-70.
116. Watkins, A. L. (2003) A balanced perspective: using nonfinancial measures to assess financial performance, Healthcare Financial Management, 57(11), pp. 76-80.
117. Wiersema, M. F. and Bantel, K. A. (1992) Top management team demography and corporate strategic change, Academy of Management Journal, 35(1), pp. 91-121.
118. Young, G. J., Charns, M. P. and Shortell, S. M. (2001) Top manager and network effects on the adoption of innovative management practices: a study of TQM in a public hospital system, Strategic Management Journal, 22(10), pp. 935-951.
119. Zajac, E. J. and Kraatz, M. S. (1993) A diametric forces model of strategic change: assessing the antecedents and consequences of restructuring in the higher education industry, Strategic Management Journal, 14, pp. 83-102.