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The mediating role of management control system characteristics in the adoption of management accounting techniques

The mediating role of management control system characteristics in the adoption of management... This study aims to investigate the mediating role of management control system (MCS) characteristics in the relationship between state type, reflected through societal institutions (SIs), and two sets of management accounting techniques (MATs), namely, performance measurement techniques (PMTs) and cost measurement techniques (CMTs).Design/methodology/approachStructural equation modeling was used to analyze data from a cross-sectional survey of 136 firms in the United Arab Emirates (UAE).FindingsThe findings show a direct positive impact of state-type construct on MCS characteristics, and that MCS characteristics partially mediate the reported significant relationships between state type and the use of PMTs. While the findings show a similar positive relationship between state type and CMTs, MCS characteristics do not mediate this relationship.Research limitations/implicationsAlthough these results are affected by limitations associated with the survey method used, they are useful in explaining the necessary conditions supporting the use of MATs in general and performance measurement techniques in particular.Practical implicationsThe study uses a cross-section of companies in the UAE, an attractive global investment destination, as its sample. The results can help investors better understand the choice of MATs in the UAE and its relation to MCS characteristics.Originality/valueThis study contributes to management accounting literature by determining the mediating role of MCS characteristics on the relationship between state type and the choice of two sets of MATs, whereas existing literature assumes a direct relation between the two. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Pacific Accounting Review Emerald Publishing

The mediating role of management control system characteristics in the adoption of management accounting techniques

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0114-0582
DOI
10.1108/par-10-2019-0133
Publisher site
See Article on Publisher Site

Abstract

This study aims to investigate the mediating role of management control system (MCS) characteristics in the relationship between state type, reflected through societal institutions (SIs), and two sets of management accounting techniques (MATs), namely, performance measurement techniques (PMTs) and cost measurement techniques (CMTs).Design/methodology/approachStructural equation modeling was used to analyze data from a cross-sectional survey of 136 firms in the United Arab Emirates (UAE).FindingsThe findings show a direct positive impact of state-type construct on MCS characteristics, and that MCS characteristics partially mediate the reported significant relationships between state type and the use of PMTs. While the findings show a similar positive relationship between state type and CMTs, MCS characteristics do not mediate this relationship.Research limitations/implicationsAlthough these results are affected by limitations associated with the survey method used, they are useful in explaining the necessary conditions supporting the use of MATs in general and performance measurement techniques in particular.Practical implicationsThe study uses a cross-section of companies in the UAE, an attractive global investment destination, as its sample. The results can help investors better understand the choice of MATs in the UAE and its relation to MCS characteristics.Originality/valueThis study contributes to management accounting literature by determining the mediating role of MCS characteristics on the relationship between state type and the choice of two sets of MATs, whereas existing literature assumes a direct relation between the two.

Journal

Pacific Accounting ReviewEmerald Publishing

Published: Dec 11, 2020

Keywords: Management accounting techniques; Performance measurement techniques; Cost measurement techniques; Management control system characteristics; Societal institutions; United Arab Emirates

References