Thank you to Reviewers 2014

Enterprise resource planning (ERP) systems, such as SAP, have become widely used in recent years, especially in large companies. Although a considerable amount has been written about them in the professional accounting and computing literature, somewhat surprisingly comparatively little attention has been given to them in accounting research journals. However, the field studies which are beginning to appear suggest that ERP systems are having only a relatively moderate impact on the character of management accounting and the work of management accountants. However, it is argued in this paper that as such studies adopt a relatively 'static' approach, they do not explore the processes of management accounting change or study how opportunities are opened up by the implementation of ERP systems. The paper reports a longitudinal case study of the implementation of SAP in the European division of a large US multinational, in which management accounting change is viewed as an evolutionary process. In this case, although there were no fundamental changes in the nature of the management accounting information used following the implementation of SAP, there were changes in the role of management accountants - in particular: (i) the elimination of routine jobs; (ii) line managers with accounting knowledge; (iii) more forward-looking information; and (iv) a wider role for the management accountants. However, it is not claimed that SAP was the driver of these changes; rather it is argued that the characteristics of SAP (specifically, its integration, standardization, routinization and centralization) opened up certain opportunities and facilitated changes which were already taking place within the company. The paper ends with a call for further longitudinal case studies of the implementation of ERP systems to study how these characteristics facilitate and reinforce processes of management accounting change in other companies.     

The ‘third hand’: Private sector consultants in public sector accounting change

Abstract

This paper explores the role of large private sector consulting firms in the promotion and implementation of public sector accrual accounting. By focusing on an early adopter of accrual accounting for its entire public sector, this research presents an analysis of the activities of large consulting firms in the process of a significant public sector accounting change. The role of consultants in the change is presented by analysing primary data extracted from archival sources and oral histories provided by a number of prominent actors classified as users of information (politicians), producers of information (bureaucrats) or accounting consultants. The role and impact of the consulting firms' actions can be better understood by applying concepts of non-coercive isomorphism and the interplay between self-interest and perceived public interest. The consulting firms are shown to have used phantom images to promote the case for accounting change. This was done with a zealous belief that bringing public sector accounting into line with private sector accounting was an inherently righteous objective.     

Accounting Insights from the Healthcare Sector

There has been a major debate on the merits of accrual accounting in the public sector in general. This paper is an implementation study of accrual accounting in local government. It examines this issue from an implementation perspective. The implementation perspective adopted draws on Matland's ambiguity–conflict model (1995). This research is informed by a combined methods approach: the analysis of public documents and debates; a survey of local authority capital accountants and case study information on management's perceptions of this accounting information. This research reveals a complex outcome of reformers' initiatives which has resulted in these accounting changes being retained within the accounting domain and having limited impact on wider potential users of this information.     

A method for improving ERP implementation success by the principles and process of user-centred design

Enterprise resource planning (ERP) systems are implemented to increase the productivity and operational efficiency of companies. However, the implementation activities and changes within operational processes pose a temporary threat to productivity. Reported difficulties in implementation projects frequently relate to organisational and human-centred issues; like the ability and motivation of the organisation to accept the new ERP system. User-centred design (UCD) is a multidisciplinary process that aims at improving human working conditions by early user involvement in the system design, e.g. user observation or usability testing. UCD was originally developed for the design of interactive computer systems. The underlying question for this research is how the principles and process of UCD can be applied to ensure the usability of an ERP system. This article presents: first, a literature review of ERP implementations; second, a literature review of UCD applications; third, a method to combine the UCD and ERP system implementation processes; and finally a discussion of the UCD approach for ERP implementation.     

Challenges in designing,implementing and operating an environmental management system

Introducing an effective environmental management system (EMS) to an organization is a complex process. This complexity is belied by current EMS models that concentrate on EMS frameworks and components, and present a relatively simple approach to the process, especially the introduction and implementation phases. While these models outline what should be introduced, they provide little guidance on how EMSs may be implemented. Experience indicates that effective EMS introduction may be adversely affected by a number of conditions, but EMS literature has yet to recognize these barriers. There is a significant gap between EMS theory and application. This paper discusses the degree to which current EMS models address practical EMS design and implementation, barriers to successful EMS introduction, strategies and tactics for overcoming these barriers and implications for EMS practice. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.     

Shared leadership in enterprise resource planning and human resource management system implementation

Human resource management systems (HRMS) integrate human resource processes and an organization's information systems. An HRMS frequently represents one of the modules of an enterprise resource planning system (ERP). ERPs are information systems that manage the business and consist of integrated software applications such customer relations and supply chain management, manufacturing, finance and human resources. ERP implementation projects frequently have high failure rates; although research has investigated a number of factors for success and failure rates, limited attention has been directed toward the implementation teams, and how to make these more effective. In this paper we argue that shared leadership represents an appropriate approach to improving the functioning of ERP implementation teams. Shared leadership represents a form of team leadership where the team members, rather than only a single team leader, engage in leadership behaviors. While shared leadership has received increased research attention during the past decade, it has not been applied to ERP implementation teams and therefore that is the purpose of this article. Toward this end, we describe issues related to ERP and HRMS implementation, teams, and the concept of shared leadership, review theoretical and empirical literature, present an integrative framework, and describe the application of shared leadership to ERP and HRMS implementation.     

Management Accounting Practices in the U.S. and Japan: Comparative Survey Findings and Research Implications*

In recent years, the success of Japanese firms in the global market has prompted efforts to understand the sources of their competitive advantage. It has been suggested that one such source is the Japanese firms' management accounting systems, and a number of articles have claimed that important differences do exist between U.S. and Japanese firms in this area. However, these claims have tended to be supported by anecdotal, rather than systematic, evidence. The objective of this article is to contribute further insights into similarities and differences between U.S. and Japanese firms' management accounting practices. Exhaustive searches of published surveys in the U.S. and Japanese literatures (much of which is in Japanese) provided the basis for U.S.-Japan comparisons on six aspects of management accounting practices. In turn, these comparisons were used for deriving implications for future research. Two major limitations of extant research and, thus, directions for future research are identified. First, future research needs to go beyond the simple use or non-use of techniques to investigate more detailed aspects of technique use. Second, since management accounting is only one component of a firm's total management system, attention also needs to be devoted to the organizational context, process, and goals of a firm's management accounting practices.     

会计目标与管理会计报告系统创新

会计报告是为实现会计目标而设计的会计信息报告系统。管理会计作为现代会计的一个分支,管理会计目标与管理会计报告设计理应符合会计目标和会计报告设计的要求。会计报告应包括对外报告(财务会计报告)和对内报告(管理会计报告)。从会计目标与会计报告的总体要求出发,着重探讨了管理会计目标与管理会计报告的设计,建立了管理会计报告的四大系统,完善了会计报告体系。     

A combination of QFD and imprecise DEA with enhanced Russell graph measure: A case study in healthcare

Quality function deployment (QFD) is a proven tool for process and product development, which translates the voice of customer (VoC) into engineering characteristics (EC), and prioritizes the ECs, in terms of customer's requirements. Traditionally, QFD rates the design requirements (DRs) with respect to customer needs, and aggregates the ratings to get relative importance scores of DRs. An increasing number of studies stress on the need to incorporate additional factors, such as cost and environmental impact, while calculating the relative importance of DRs. However, there is a paucity of methodologies for deriving the relative importance of DRs when several additional factors are considered. Ramanathan and Yunfeng [43] proved that the relative importance values computed by data envelopment analysis (DEA) coincide with traditional QFD calculations when only the ratings of DRs with respect to customer needs are considered, and only one additional factor, namely cost, is considered. Also, Kamvysi et al. [27] discussed the combination of QFD with analytic hierarchy process–analytic network process (AHP–ANP) and DEAHP–DEANP methodologies to prioritize selection criteria in a service context. The objective of this paper is to propose a QFD–imprecise enhanced Russell graph measure (QFD–IERGM) for incorporating the criteria such as cost of services and implementation easiness in QFD. Proposed model is applied in an Iranian hospital.     

Providing Managerial Accounting Information in the Presence of a Supplier

Abstract

This paper identifies a novel effect which is crucial for the design of a management accounting information system. In contrast to prior literature, we explicitly model the firm's relationship to a supplier. We show that in addition to the previously identified trade-off – benefits of more information versus indirect or direct (agency) costs of information acquisition – another effect occurs: the input price effect. This effect influences the optimal design of the management accounting information system and changes the regimes where information acquisition is optimal for the principal. Also, in case of endogenous input prices we demonstrate that – perhaps surprisingly – paying an information rent to the agent can be beneficial because it works as a commitment towards an over-charging supplier to exploit the input price effect.     

The use of simulation in system design: A case study using the precision location strike system

The purpose of the article is to illustrate the use of computer simulation study and modeling in the design of complex systems. When new systems are designed, decision-makers rely heavily upon judgment, intuition and experience. The method discussed is intended to enhance these executive attributes by providing a vehicle with which the decision-maker may be proactive before implementing the system rather than being solely reactive after implementation.The application of a method known as the “systems science paradigm” is discussed and illustrated using the U.S. Air Force's Precision Location Strike System. The problem was to design a logistical support structure for the Strike System. The three major options proposed were to locate repair and resupply structures at the point of equipment use in Europe, to have a mixed system, or to locate support at a base in the continental United States.The research employed the paradigm suggested to develop an experimental Q-GERT simulation model of the processes and structures envisioned. Data development for abstract systems is illustrated and methods to experiment with alternate structures are developed and discussed. The concept of multiechelon inventory and repair are addressed within the problem's context.A proposed design alternative resulted from application of the process. Methods, other than cost effectiveness, to evaluate the system are also suggested. Implementing the design process for ill-defined systems appears to be an effective method for dealing with such design problems.     

基于公司治理的会计控制问题探讨

有效的会计控制对于公司治理结构的优化及推行均有重要作用;反过来,公司治理结构直接影响会计控制的有效性。公司治理与会计控制具有“共生互动”的关系,因而会计控制须纳入公司治理的整体架构当中,做到两个同步：一是在搭建公司治理结构的过程中,同步设计会计组织架构及运行机制;二是在公司治理配套制度体系建设过程中,同步建立会计监督和资金监控机制。     

The effects of IT-enabled supply chain process change on job and process outcomes: A longitudinal investigation

Prior research on information technology (IT)-enabled supply chain management (SCM) has primarily focused on macro-level issues (e.g., IT capabilities related to SCM, and SCM design and optimization) and outcomes (e.g., firm performance). There has been limited research that focuses on micro-level outcomes related to employees who actually execute SCM processes in organizations. These employee-level outcomes are important because successful implementation of SCM systems and processes hinges on SCM employees’ support and commitment. I develop and test a model positing that SCM employees’ perceptions of changes in their work process characteristics, i.e., process complexity and process rigidity, following a new SCM system implementation will influence their job outcomes, i.e., job performance, job satisfaction, job anxiety, and job security, and their perceptions of process outcomes, i.e., process performance and relationship quality. The model incorporates a holistic appraisal of the extent of change—change radicalness—as a mechanism between work process characteristics and outcomes. The model is supported in three studies conducted in the context of three different SCM system implementations (N = 278, 282, and 304, respectively). In particular, I found that individuals perceived a significant change in their work process characteristics following an SCM system implementation, and changes in work process characteristics had a significant impact on job and process outcomes. These findings contribute to the information systems and operations management literatures and their intersections by offering insights on challenges related to IT-enabled SCM innovation implementation in organizations.     

Business Strategy at the Base of the Pyramid

The design and implementation of base of the pyramid (BoP) solutions or products require multinational companies to make adjustments to their business strategies and processes. While this strategic opportunity has been argued for in BoP related publications, a 'traditional' strategic management perspective has not been applied. This paper aims towards using the strategic management process as an analytic framework for case studies at the BoP, allowing analysis of which aspects are particularly critical for achieving respective solutions. This includes reaching sustainability related objectives. A total of seven cases covering both products and services have been researched, allowing a contribution towards the applicability of strategic management in respective situations. Further, the importance of specific strategy process elements is assessed. While it seems obvious that strategic management thought can be applied, the analytic criteria put forward (i.e. company, initial need, motivation, external analysis, stakeholder, product/service, strategic choice, organizational implementation, supply chain, economic outcome, effects on sustainable development) are particularly geared towards the BoP solutions. While previous literature centres on analysing needs, the case based research provides the insight that aspects of internal organization, supply chain management and sustainability outcomes are of equal importance. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

The Decision Usefulness of Fair Value Accounting – A Theoretical Perspective

ABSTRACT

Regulators such as the SEC and standard setting bodies such as the FASB and the IASB argue the case for the conceptual desirability of fair value measurement, notably on the relevance dimension. Recent standards on financial instruments and certain non-financial items adopt the new measurement paradigm. This paper takes issue with the notion of decision usefulness of a fair-value-based reporting system from a theoretical perspective. Emphasis is put on the evaluation of the theoretical soundness of the arguments put forward by regulators and standard setting bodies. The analysis is conducted as economic (a priori) analysis. Two approaches to decision usefulness are adopted, the measurement or valuation perspective and the information perspective. Findings indicate that the decision relevance of fair value measurement can be justified from both perspectives, yet the conceptual case is not strong. The information aggregation notion that underlies standard setters' endorsement of fair value measurement turns out to be theoretically restricted in its validity and applicability. Also, comparative analysis of fair value accounting vs. historical cost accounting yields mixed results. One immediate implication of the research – a condition for the further implementation of fair value accounting – is the need to clarify standard setters' notion of accounting income, its presumed contribution to decision relevance and its disaggregation.     

医院财务管理中全成本合算系统的研究

本文主要是通过对医院财务管理中采用全成本合算系统的价值意义、全成本核算在实施过程中所遵循的原理以及医院在实施全成本核算中所面临的主要的问题和存在的主要矛盾来展开描述,通过对这些问题的探讨使得大家对医院财务管理中采用全成本核算系统有一个更加深入的认识。     

Understanding the practice of performance measurement in industrial collaboration: From design to implementation

This study focuses on the design and implementation of a performance measurement system (PMS) for industrial collaboration. This article provides insights from two case studies of industrial collaboration. The research aims to study the crucial characteristics of PMS design and implementation in industrial collaboration, in which multiple tiers, extending beyond the buyer-supplier dyad, are considered. Prerequisites and challenges are crucial characteristics that should be examined in the design and implementation of a PMS. The results indicate three main characteristics affect the design and implementation of a PMS in an industrial collaboration: 1) the importance of collaboration, 2) the importance of coordination and integrated information systems within the system implementation, and 3) the importance of acknowledging the impact of varied customer needs.     

Reevaluating waste as a resource under a circular economy approach from a system perspective: Findings from a case study

The circular economy (CE), definable as a system focused on the reorganization of material, information, and energy flows to achieve greater resource efficiency through the reuse, remanufacturing, and recycling of materials, is a concept widely discussed by practitioners and scientists of many disciplines. Waste recycling is integral to the CE, but there are still few articles focused on waste, and only few studies shed light on CE implementation at the company level. This paper focuses on a particular type of waste, that is, absorbent hygiene products (AHPs), which represents a nonnegligible fraction of municipal solid waste, considered an increasingly serious global challenge. We conducted our analysis on FaterSMART, an Italian firm that developed a unique worldwide technology able to totally convert AHP raw material wastes into recyclable materials, under a CE approach. The case study findings are based upon semi-structured interviews, direct observations, and analysis of FaterSMART's archival documents and are analyzed according to a framework developed for the research and focused on the place of waste from a linear economy, in which waste is considered a burden to CE, in which waste is considered a resource. The latter case is what we found that happens at FaterSMART. FaterSMART's findings could contribute to open up new management scenarios and stimulate further research into how this and similar types of technology will help societies to change from the “use-it-once-and-throw-it away” mentality of linear business models to the sustainable CE model that fully conceptualize waste as a resource for the system.     

Why More Forward-Looking Accounting Standards Can Reduce Financial Reporting Quality

A premise of standard setters and of much empirical research is that improving the quality of accounting standards and their implementation increases information in capital markets. This paper challenges this premise and shows that there are situations in which ‘better’, that is, more forward-looking, accounting standards reduce the information content of financial reports. The reason is that a forward-looking accounting standard affects the smoothness of reported earnings, which can conflict with the manager's smoothing incentive and her willingness to incorporate private information in the financial report. Although the manager could eliminate the effect by earnings management, it is too costly to do so. As a consequence, the capital market's ability to infer the financial and nonfinancial information in reported earnings declines. This finding should increase the awareness that an ‘improvement’ in accounting standards, without considering incentives and other information residing in firms, can adversely affect the quality of financial reporting.     

上市公司变更会计师事务所对会计稳健性的影响研究

伴随着我国证券市场的逐渐发展和完善,上市公司发生会计师事务所变更的现象日益普遍,这逐渐引起监管部门、媒体以及社会大众的高度关注。目前国内外有大量关于上市公司发生会计师事务所变更和会计稳健性的研究,但大都没有将两者结合起来。基于此,将2010—2014年所有深沪A股上市公司作为研究对象,考察会计师事务所变更对会计稳健性的影响,并区分不同变更类型进行研究。研究发现,上市公司发生会计师事务所变更会降低其会计稳健性。