Management accounting and integrated information systems

302 Pages·2008·2.53 MB·English

by  Anders Rom

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PhD School in Economics and Business
ISSN 0906-6934 Administration
ISBN 978-87-593-8352-0 CBS / Copenhagen Business School PhD Series 5.2008
CBS PhD nr. 5 Anders Rom omslag A5 - Engelsk udgave.indd 1 18/02/08 10:44:15
Management accounting and
integrated information systems
Anders Rom
Management accounting and integrated information systems
How to exploit the potential for management accounting of information technology
1. edition 2008
PhD Series 5.2008
© The Author
ISBN: 978-87-593-8352-0
ISSN: 0906-6934
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No parts of this book may be reproduced or transmitted in any form or by any means,
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storage or retrieval system, without permission in writing from the publisher.
Anders Rom
Management accounting and
integrated information systems
How to exploit the potential for management
accounting of information technology
CBS / Copenhagen Business School
PhD School in Economics and Business Administration
PhD Series 5.2008
Table of contents
Table of contents............................................................................................2
List of figures..................................................................................................5
List of tables...................................................................................................7
Acknowledgements........................................................................................9

Chapter 1. Introduction...............................................................................10
1.1 Motivation and purpose.................................................................................10
1.2 Research paradigm..........................................................................................13
1.3 Thesis structure and content.........................................................................19

Chapter 2. Literature review........................................................................22
2.1 Introduction....................................................................................................22
2.2 The method of the literature review............................................................22
2.3 Definitions of key variables...........................................................................27
2.4 Development of a theoretical framework...................................................42
2.5 Literature review: the findings......................................................................50
2.6 Directions for future research.......................................................................77
2.7 Research questions of this research project................................................81
2.8 Summary and introduction to the next chapter.........................................84

Chapter 3. Research method........................................................................86
3.1 The research method of research question 1.............................................86
3.2 The research method of research question 2.............................................88
3.3 Quality measures.............................................................................................91
3.4 A multi-method approach.............................................................................96
3.5 Summary and introduction to next chapter................................................98
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Chapter 4. A survey study on the relationship between management
accounting tasks and the IIS...................................................100
4.1 Introduction and development of hypotheses.........................................100
4.2 Research method..........................................................................................111
4.3 Descriptive statistics.....................................................................................136
4.4 Analysis..........................................................................................................148
4.5 Discussion......................................................................................................155
4.6 Summary and introduction to next chapter..............................................159

Chapter 5. The balanced scorecard of Danish Broadcasting
Corporation...............................................................................161
5.1 Introduction..................................................................................................161
5.2 Research method..........................................................................................163
5.3 Presentation of the company......................................................................167
5.4 Introduction to the balanced scorecard of the resources
directorate......................................................................................................175
5.5 Analysis..........................................................................................................189
5.6 Discussion......................................................................................................211
5.7 Summary and introduction to the next chapter.......................................225

Chapter 6. Discussion, contribution and future research.........................227
6.1 Introduction..................................................................................................227
6.2 Cross-study discussion.................................................................................228
6.3 Conclusions and contributions...................................................................236
6.4 Directions for future research.....................................................................243

Resumé (Summary in Danish)...................................................................247
References ..................................................................................................252
Appendices.................................................................................................273
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1. List of journals reviewed.............................................................................273
2. List of single interviews with companies..................................................275
3. The measurement instrument.....................................................................276
4. Factor loadings of management accounting items..................................281
5. Statistics of the equation explaining management accounting
practices..........................................................................................................285
6. Attendance of meetings at Danish Broadcasting Corporation..............288
7. Sample documents from Danish Broadcasting Corporation.................291

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List of figures
Figure I. Management accounting theory, practice and information
systems...................................................................................................11
Figure II. Transaction-oriented information systems, analysis-
oriented information systems and the organisation........................41
Figure III. A theoretical framework for research on management
accounting and the IIS........................................................................50
Figure IV. The relationship between control variables, management
accounting tasks and the integrated information system.............104
Figure V. The relationship between control variables, management
accounting tasks and the integrated information system.............107
Figure VI. The relationship between control variables, management
accounting factors and the integrated information system..........133
Figure VII. Satisfaction with the support of the IIS (y-axis) and priority
of management accounting tasks (x-axis).......................................153
Figure VIII. Organisation chart of Danish Broadcasting Corporation............172
Figure IX. Organisation chart of the resources directorate............................172
Figure X. Organisation chart of the accounting department........................173
Figure XI. Organisation chart of the department of service and
administration.....................................................................................174
Figure XII. The strategy map of the resources directorate..............................181
Figure XIII. Organisation of the balanced scorecard.........................................186
Figure XIV. The analysis framework....................................................................191
Figure XV. The BSC software and competition as interacting,
independent variables........................................................................222
Figure XVI. The BSC software and competition as interacting,
independent variables and other variables moderating the
support of the BSC software............................................................223
Figure XVII. A theoretical framework for research on management
accounting and the IIS (a reproduction of Figure III).................228
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Figure XVIII. A revised theoretical framework for research in
management accounting and the IIS...............................................236

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List of tables
Table I. The two groups of components of the IIS along the
dimension of integration.....................................................................41
Table II. Evaluation of existing theoretical frameworks................................45
Table III. Principal components loadings of dimension and
department variables.........................................................................119
Table IV. Principal components loadings of module groups.......................121
Table V. Principal components loadings of analysis-oriented and
transaction-oriented information systems......................................122
Table VI. Principle components loadings of management accounting
variables...............................................................................................123
Table VII. Test statistics for construct validity.................................................127
Table VIII. Number of employees in responding organisations.....................137
Table IX. ERP systems in Danish organisations............................................138
Table X. ERP system modules in Danish organisations..............................139
Table XI. Modules of analysis-oriented information systems in
Danish organisations.........................................................................140
Table XII. Descriptive statistics of management accounting factors............141
Table XIII. Significant relationships between control variables and IIS
and management accounting variables...........................................147
Table XIV. The impact of transaction-oriented and analysis-oriented
information systems on management accounting.........................149
Table XV. The impact of transaction-oriented and analysis-oriented
information systems on management accounting tasks...............151
Table XVI. Interviews............................................................................................165
Table XVII. The BSC software and the design of the balanced
scorecards............................................................................................197
Table XVIII. The BSC software and causality......................................................202
Table XIX. The BSC software and the four processes.....................................206
Table XX. The BSC software and the quarterly BSC meetings.....................211
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