TY - JOUR
T1 - The adoption and success of contemporary management accounting practices in the public sector
AU - Nuhu, Nuraddeen Abubakar
AU - Baird, Kevin
AU - Appuhamilage, Appuhami Bala
PY - 2017
Y1 - 2017
N2 - PurposeThe purpose of this paper is to examine the association between the interactive and diagnostic use of MCSs with the extent of adoption of contemporary management accounting practices, and the subsequent impact on the success of such practices in the public sector.Design/methodology/approachData were collected through the distribution of a mail survey of 740 questionnaires to public sector organisations in Australia, and analysed using structural equation modelling.FindingsThe study found that both the interactive and diagnostic approaches to using MCSs exhibit a positive association with the adoption of contemporary management accounting practices, both as a package and individually. In addition, while the level of success of contemporary management accounting practices was moderate, it was found that the extent of adoption of the practices enhanced their success.Practical implicationsThe findings suggest that by intensifying the use of MCSs in a more interactive and diagnostic manner, public sector organisations are more likely to adopt contemporary management to a greater extent, with the subsequent increase in the extent of adoption of such practices to exacerbate their success.Originality/valueThe study contributes to the MCS contingency-based research by highlighting the interrelationship between two aspects of MCSs, the use of controls and the adoption and success of management accounting practices.
AB - PurposeThe purpose of this paper is to examine the association between the interactive and diagnostic use of MCSs with the extent of adoption of contemporary management accounting practices, and the subsequent impact on the success of such practices in the public sector.Design/methodology/approachData were collected through the distribution of a mail survey of 740 questionnaires to public sector organisations in Australia, and analysed using structural equation modelling.FindingsThe study found that both the interactive and diagnostic approaches to using MCSs exhibit a positive association with the adoption of contemporary management accounting practices, both as a package and individually. In addition, while the level of success of contemporary management accounting practices was moderate, it was found that the extent of adoption of the practices enhanced their success.Practical implicationsThe findings suggest that by intensifying the use of MCSs in a more interactive and diagnostic manner, public sector organisations are more likely to adopt contemporary management to a greater extent, with the subsequent increase in the extent of adoption of such practices to exacerbate their success.Originality/valueThe study contributes to the MCS contingency-based research by highlighting the interrelationship between two aspects of MCSs, the use of controls and the adoption and success of management accounting practices.
KW - Adoption
KW - Contemporary management accounting practices
KW - Diagnostic use
KW - Interactive use
KW - Public sector
KW - Success
UR - http://www.scopus.com/inward/record.url?scp=85009802437&partnerID=8YFLogxK
U2 - 10.1108/ARA-02-2016-0017
DO - 10.1108/ARA-02-2016-0017
M3 - Article
AN - SCOPUS:85009802437
VL - 25
SP - 106
EP - 126
JO - Asian Review of Accounting
JF - Asian Review of Accounting
SN - 1321-7348
IS - 1
ER -