Review of the theories used to evaluate management accounting change Since the early work of Johnson and Kaplan (1987) management accounting change has become a topic of much debate. Akbar (2010) suggests that the profile and importance of management accounting systems and practices in organisations has increased resulting in a persistent call for change. Over time academics have used a variety of theories and developed models and frameworks in order to aid understanding of management accounting change in organisations, these can be grouped into six categories which are shown in table 1 below. Table 1: Summary of the theoretical lenses used to evaluating management accounting change Theory Key elements Key authors Zimmerman, (1979) Transaction Cost Theory Management accounting Banker et al (1996) change can only be Cooper and Slagmulder, achieved if the cost of (2004) managerial coordination is reduced Agency Theory Management accounting Baiman (1982, 1990) change is brought by Spicer and Ballew, (1983) principals who recognise Wilson and Chua (1993) that existing management accounting systems do not solve their agency problem Lapsley and Pettigrew, Contingency Theory An examination of the (1994) changes to management Ezzamel et al, (1996) accounting systems in Baines and response to (2003) environmental changes and Luther (2008) Dimaggio and Powell Institutional Theory New Institutional (1991) Sociology (NIS) Granlund and Lukka Management accounting (1998) changes conform to Jarvenpaa (2009) external structures
Review of the theories used to evaluate management accounting change Since the early work of Johnson and Kaplan (1987) management accounting change has become a topic of much debate. Akbar (2010) suggests that the profile and importance of management accounting systems and practices in organisations has increased resulting in a persistent call for change. Over time academics have used a variety of theories and developed models and frameworks in order to aid understanding of management accounting change in organisations, these can be grouped into six categories which are shown in table 1 below. Table 1: Summary of the theoretical lenses used to evaluating management accounting change Theory Key elements Key authors Transaction Cost Theory Management accounting change can only be achieved if the cost of managerial coordination is reduced Zimmerman, (1979) Banker et al (1996) Cooper and Slagmulder, (2004) Agency Theory Management accounting change is brought by principals who recognise that existing management accounting systems do not solve their agency problem Baiman (1982, 1990) Spicer and Ballew, (1983) Wilson and Chua (1993) Contingency Theory An examination of the changes to management accounting systems in response to environmental changes Lapsley and Pettigrew, (1994) Ezzamel et al, (1996) Baines and (2003) and Luther (2008) Institutional Theory New Institutional Sociology (NIS) Management accounting changes conform to external structures Dimaggio and Powell (1991) Granlund and Lukka (1998) Jarvenpaa (2009)