Table Of Content

Anders Rom inM t egan Management accounting and raa tg ee dm integrated information systems ine n f ot r a mc c atiooun How to exploit the potential for management n stin accounting of information technology yg st a en md s 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 Distributed by: Samfundslitteratur Publishers Rosenørns Allé 9 DK-1970 Frederiksberg C Tlf.: +45 38 15 38 80 Fax: +45 35 35 78 22 [email protected] www.samfundslitteratur.dk All rights reserved. No parts of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information 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 2 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 3 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 4 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 5 Figure XVIII. A revised theoretical framework for research in management accounting and the IIS...............................................236 6 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 7