257-290. external parties. 22 No. Consequently, if MAs perceive the production of fair and truthful knowledge as constitutive of their identity (Lambert and Pezet, 2011) and if there are incompatibilities between professional and organizational demands, they could become unwilling to compromise for the sake of the organization (Hiller et al., 2014). Whereas financial accounting is prepared after a certain period of time and used by external users, managerial accounting is prepared by the management accountant for internal . Learn how your comment data is processed. Identity is formed during an individuals lifespan through the interplay of processes of self-discovery and personal interpretations as well as of social interactions. Towards a more comprehensive understanding of the roles of management accountants, Exploring management accountants role conflicts and ambiguities and how they cope with them, Qualitative Research in Accounting and Management. Ambiguous results are accessible concerning IT systems, which can provide more time for business partnering, but MAs can concurrently feel restricted by IT systems. Furthermore, in most cases, research was conducted within Europe; studies from North America or Asia are sparse within our sample publications. Finally, we have to mention the limitations of our systematic literature review. As the concept can be explained at an individual, collective or relational level, identity consists of self-chosen personal characteristics and beliefs about oneself, ones membership in groups as well as roles in relation to significant others (Vignoles et al., 2011). (2003), Enterprise resource planning systems and accountants: towards hybridization?, European Accounting Review, Vol. (Eds) (2011), Handbook of Identity Theory and Research, Springer, New York, NY. *Newman, M., Smart, C. and Vertinsky, I. Inventory valuation and product costing:This deals with determining the actual cost of goods and services. Biddle, B.J. 1, pp. *Joshi, P.L. and Robson, K. (2006), Accounting, professions and regulation: locating the sites of professionalization, accounting, Organizations and Society, Vol. 12 No. 439-458. (1988), The role of management accountants in information strategy, Journal of Information Technology, Vol. Main drivers for hybrid MAs are among others accounting regulations, internal performance monitoring policies, financial control systems as well as MAs individual preferences, personality and initiative (Byrne and Pierce, 2007; Karlsson et al., 2019a). Business partnering: is it all that good? Identities and roles can be considered as two sides of the same coin: identity looks inward to ones self-definition and encompasses the internalized meanings and internal expectations connected with a role, whereas role looks outward to the interaction arrangement in an organizational setting and focuses on external behavior expectations related to a social position (Barley, 1989; Chreim et al., 2007; Goretzki et al., 2013; Stryker and Burke, 2000). However, irrespective of the technique, the decisions should enable an organization to achieve short-term and long-term goals and objectives. Managerial accounting may define the pace and process of development of an organisation yet it has its set of drawbacks. 26 Nos 1/2, pp. 2, pp. (2014) link identity with the image of MAs. 178-199. *Caglio, A. Regarding the new generation Z with its focus on personal fulfillment, the identity perspective enables students to reflect their personal and possible appropriate professional identities. and Lyne, S.R. Importance of Accounting. We take the opportunity in the conclusion of this work to perform a more high-level analysis of the topic of analysis. 29 No. 74 No. The many options include Marketing, Data Science & Business Analytics, Operations, Finance, & HR. 15 No. Furthermore, the discussion about stereotypes such as the bean counter (Bougen, 1994; Friedman and Lyne, 1997) and the increasing business orientation of MAs commences (Cooper, 1996; Granlund and Lukka, 1997, 1998). 1, pp. 1, pp. 183-220. 19 No. A closer analysis of the contingency factors in the literature sample displays that we rely mainly on findings of large organizations concerning the changing roles and identities of MAs. 4, pp. 330-356. Role changes imply identity reconstructions as they do not only require an external legitimacy, but professionals have to internalize a new role script. Applied theories show a broad range, for instance, institutional theory (Granlund and Lukka, 1997; Burns and Baldvinsdottir, 2005), social identity theory (Horton and de Araujo Wanderley, 2018) and role theory (Byrne and Pierce, 2007). Ahrens and Chapman (2000) have already presented in their comparison of MAs that the persons interviewed experienced incompatible characteristics, such as being assertive and co-operative, theoretical and commercially minded, objective and intuitive. Exploring the background of strategic management accounting (SMA) The overwhelming interest and various research in strategic management accounting (SMA) started due to the widely published criticisms of traditional management accounting practices (MAP), which were mainly internal-focused and not strategically oriented. Decentralization is regarded as a key element for business orientation but may lead to a nested identity, implying that MAs identify more with their workgroups than with similar professional groups within the organization. Management accounting practices of firms are determined by the scope and amount of information expected from them. Certification Programs. External and organizational aspects represent the influence of social structures and are closely linked. 3, pp. Bhimani, A. and Willcocks, L. (2014), Digitisation, big data and the transformation of accounting information, Accounting and Business Research, Vol. Ahrens and Chapman (2000) scrutinize the identity of British and German MAs and state that it is striking how their statements closely resemble the ideas that they received from their institutional context the CIMA in the UK and German organizations such as the Controller Academy and the International Association of Controllers. *ten Rouwelaar, H., Bots, J. and de Loo, I. Likewise, Goretzki and Messner (2019) display that regardless of the rather positive discussion about business partnering, such changes are not free of conflicts. This information is then analysed for planning and decision-making. Cooperation, intuitions and understanding the business are essential for the future development of MAs (Endenich et al., 2017; Jrvenp, 2001; Pierce and ODea, 2003). Tajfel, H. and Turner, J. Analysis thus helps in preparing the budgets. Moreover, the authors appreciate the encouraging comments, helpful notes and suggestions from the reviewers and the participants of the Annual Congress of the European Accounting Association (EAA) in Cyprus 2019. 174-187. The results of this review are of high practical relevance for daily interactions in companies. The primary function of management is to decide bout the future course of action. *Yazdifar, H., Askarany, D. and Askary, S. (2008), Management accountants role in dependent and independent companies: does ownership matter?, JABM Journal of Accounting - Business and Management, Vol. 22 No. Furthermore, more research about additional contingency factors would broaden our knowledge. 28 Nos 2/3, pp. 431-458. However, recent findings of Byrne and Pierce (2018) extend the work on conflicts beyond the independenceinvolvement dilemma and display a broad range of conflicts caused by conflicting, ambiguous, over- and underloaded expectations of managers perceived by MAs. This might result in a nested identity, meaning that MAs identify more with their colleagues onsite than with their profession in the organization (Granlund and Lukka, 1998; Horton and de Araujo Wanderley, 2018; Vaivio, 2004). Its scope is quite vast and includes several business operations. The conclusion summarizes the findings and presents implications for research, practice and education as well as the limitations of the paper. *Emsley, D. (2005), Restructuring the management accounting function: a note on the effect of role involvement on innovativeness, Management Accounting Research, Vol. 74, pp. and Luyckx, K. (2011), Introduction: toward an integrative view of identity, in Schwartz, S.J., Luyckx, K. and Vignoles, V.L. 3, pp. Analyzing the institutional environment of MAs, it is recognizable that members of professional associations, academics, consultants and influential professionals propagate the role of an active business partner. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. 9 No. Sorensen, J.E. (2009), The image of accountants: from bean counters to extreme accountants, Accounting, Auditing and Accountability Journal, Vol. Section 3 explains the methodology, followed by characteristics of the reviewed articles in Section 4. Heinzelmann (2018) investigates the impact of IT systems on the identities of MAs, whereas Horton and de Araujo Wanderley (2018) examine multiple identities and identity conflicts. In short, management accounting is essential for businesses to ensure that their objectives are met. Conclusion Build a strong foundation around management & choose your specialization from several noteworthy options. 16 No. To the best of the authors knowledge, this study is the first to review the literature of MAs changing identities and roles from an identity perspective. and Tully, J.C. (1977), The measurement of role identity, Social Forces, Vol. Decentralization is proposed as the most promising way to change values, attitudes and interactions of MAs. 4, pp. Management accounting helps with these functions in the following ways: 1. 767-801. Marginal analysis:This assesses profits against various types of costs. What is especially novel because of the identity perspective is the focus on MAs and their internal views, perceptions and internalized meanings connected with their role instead of debating exclusively external behavior expectations. Table 5 presents findings on individual aspects of the changing identities within the sample articles. 1-21. 185-211. *Hopper, T.M. There are many functions of management accounting like Decision making, Coordinating . Comparably, the case study of Taylor and Scapens (2016) displays a clear relationship between group image, identity and the self-concepts of group members. Amendments to the legislation, such as the implementation of the SarbanesOxley act or the tightening of external reporting rules through IFRS, lead to significant changes for MAs. As there are just a few studies about identity in detail, numerous implications for future research exist. (2011), The effects of uncertainty on the roles of controllers and budgets: an exploratory study, Accounting and Business Research, Vol. and Nord, W.R. (Eds), The Sage Handbook of Organization Studies, Sage Publications, Thousand Oaks, pp. Management accounting is concerned with the future. Solabomi Ajibolade. *Emsley, D. and Chung, L.H. A management accounting system must provide timely and accurate information to facilitate efforts to control costs, to measure and improve productivity, and to devise improved production processes (Kaplan, 1983). 1, pp. The analysis of the production lines of a business identifies principal bottlenecks, the inefficiencies created by these bottlenecks, and their impact on the companys ability to generate revenues and profits. *Kaye, G.R. The review identifies ambiguous results regarding the impacts of the financial situation of an organization, contradictory findings regarding the change driver IT systems and uncertainties how digitalization will affect MAs identities and roles. Nguyen, D.H., Weigel, C. and Hiebl, M.R.W. Thus, possible conflicts already discussed in the 1980s are still emphasized, in particular the independence-involvement problem (Byrne and Pierce, 2007; Lambert and Sponem, 2012; Pierce and ODea, 2003). MAs can hold a pivotal position in helping organizations to overcome a company crisis; thus, the financial status of an organization is regarded as a specific contingency factor (de Loo et al., 2011; Endenich, 2014). 3, pp. 3 No. and Teuteberg, F. (2019), The role of business analytics in the controllers and management accountants competence profiles: an exploratory study on individual-level data, Journal of Accounting and Organizational Change, Vol. 4, pp. Stets, J.E. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. However, the functions of these two forms of accounting are quite different: management accounting is focused on monitoring and analyzing the effect of management decisions, financial accounting is focused on short-term, external reporting. The majority (24) of the journals are ranked within the AJG 2018 [2] and/or VHB JQ3 [3] and/or possess a JIF 2018 [4]. levels of collective identity and self representations, Journal of Personality and Social Psychology, The link between identity and role performance, An institutional perspective of accountants new roles the interplay of contradictions and praxis, Conceptualizing management accounting change: an institutional framework. (2019b). 23 No. Furthermore, we placed no restrictions concerning the time of publications. Linton, R. (1936), The Study of Man: An Introduction, D. Appleton-Century Co., New York, NY, London. (Department of Management Accounting and Finance, Business School. The framework integrates previous studies about the identity of MAs, thereby considering diverse research streams of identity theory. Regarding all the requested competencies, MAs might perceive some of these as incompatible. and Jazayeri, M. (2003), ERP systems and management accounting change: opportunities or impacts? 2, pp. (2003). 83-93. (1994), Joking apart: the serious side to the accountant stereotype, accounting, Organizations and Society, Vol. Accounting is important as it keeps a systematic record of the organization's financial information. A research note, Institutions and Organizations: ideas and Interests, Management accounting and management control in family businesses: past accomplishments and future opportunities, Management accountants in the United States: practitioner and academic views of recent developments, Handbooks of Management Accounting Research, Identity theory and social identity theory, Symbolic Interactionism: A Social Structural Version, The past, present, and future of identity theory, Impact of enterprise resource planning on management control system and accountants role, International Journal of Economics and Management, An integrative theory of intergroup conflict, Differentiation between Social Groups: Studies in the Social Psychology of Intergroup Relations, Human Groups and Social Identity Studies in Social Psychology, The Social Psychology of Intergroup Relations, The role of identity and image in shaping management accounting change, The influence of management accountants on managerial decisions, Multiple identities and psychological well-being: a reformulation and test of the social isolation hypothesis, Multiple identities: examining gender and marital status differences in distress, Towards a methodology for developing evidence-informed management knowledge by means of systematic review, Mobilizing local knowledge with provocative non-financial measures, Counting big: re-examining the concept of the bean counter controller, Classifying controllers by activities: an exploratory study, Journal of Applied Management Accounting Research, Introduction: toward an integrative view of identity, Enrolling managers to accept the business partner: the role of boundary objects, Controllers as business partners in managerial decision-making: attitude, subjective norm, and internal improvements. 39 No. *Morales, J. and Lambert, C. (2013), Dirty work and the construction of identity. (1983), Multiple identities and psychological well-being: a reformulation and test of the social isolation hypothesis, American Sociological Review, Vol. Although we analyze the changes of MAs, some topics have remained the same for several years or decades. Accountancy tends to refer to the profession or practice of managing financial accounts, while accounting is more commonly used to describe the . Positive image and group identity can support individual self-concepts, whereas negative image and group identity can lead to low self-concepts. 36-41. Digitalization and the accompanying data increase will intensify these changes. Interestingly, as early as the 1980s, Hopper (1980) and Sathe (1983) highlighted possible conflicts caused, on the one hand, by the contribution to business decisions and involvement, and, on the other hand, by control and independence. (2016), The role of identity and image in shaping management accounting change, Accounting, Auditing and Accountability Journal, Vol. 2, pp. 325-374. Our sample included just one paper discussing digitalization as a new challenge (Oesterreich and Teuteberg, 2019) and this calls for further research regarding the impacts of digitalization on the identities of MAs, e.g. 29 No. 2, pp. 1, pp. While the debates on bean counter stereotypes are interestingly still a topic in the 2000s (Friedman and Lyne, 2001; Vaivio and Kokko, 2006), business partnering started to dominate the role discussion within academic literature (Byrne and Pierce, 2007; Jrvenp, 2007; Lambert and Sponem, 2012; Rieg, 2018; Windeck et al., 2015). Capital budgeting:This is an analysis of informationin orderto make decisions related to capital expenditures. The consequences of more business orientation might be far-reaching as it could mean a conversion from a distant, critical and objective outsider toward an active MA contributing to relations between organizational members (Baldvinsdottir, 2009). 1. and Abrams, D. (1988), Social Identifications: A Social Psychology of Intergroup Relations and Group Processes, Routledge, London. It would be interesting to explore how some professionals succeed in creating a picture of homogeneity, which in practice might be a fragile compromise but one that allows emphasizing a legitimate picture of a profession (Morales and Lambert, 2013). (2013) describe in their case study that for the reconstruction of identity, the link with an institutional environment is necessary. Both cost accounting vs. management accounting help management make effective decisions. Visit emeraldpublishing.com/platformupdate to discover the latest news and updates, Answers to the most commonly asked questions here. It helps a business pursue its goals by identifying, measuring, analyzing, interpreting and communicating information to managers. 22 No. Understandable. (2017) conducted a cross-sectional and a longitudinal study. Concerning patterns of interaction, there is a focus on the relationship to managers but a broader interaction context is relevant for the changing identity of MAs. As management accounting depends a lot on cost accounting to prepare reports, cost accounting happens to be a subset of management accounting. *Taylor, L.C. Haslam, S.A. and Ellemers, N. (2011), Identity processes in organizations, in Schwartz, S.J., Luyckx, K. and Vignoles, V.L. 258-269. *Hiller, K., Mahlendorf, M.D. (Eds), Individuality and the Group: advances in Social Identity, Sage, London, pp. 71-88. and Kaufmann, J.B. (2006), Constructing professional identity: the role of work and identity learning cycles in the customization of identity among medical residents, Academy of Management Journal, Vol. The analyzed literature displays country-specific differences regarding the institutional environment and vocational training (Ahrens and Chapman, 2000; Brandau et al., 2014). Ashforth, B.E. Social identity theory indicates clear connections between the identity and image of group members (Dutton and Dukerich, 1991; Gioia and Thomas, 1996; Taylor and Scapens, 2016). 1, pp. 410-436. Decentralization of MAs is regarded as a key element for business orientation, because increased proximity changes the values, attitudes and interactions of MAs (Jrvenp, 2007; Pierce and ODea, 2003; Vaivio, 2004). (2000), Occupational identity of management accountants in britain and Germany, European Accounting Review, Vol. Bookkeeping is simply keeping track of our stuff and gathering information about the transactions that occur in a business or an organization. Meanwhile, different managers may interpret the same information in different ways depending on their capacity and experience in the field. Managerial accountants need to analyze various events and operational metrics in order to translate data into useful information that can be leveraged by the companys management in their decision-making process. (1991), Modernity and Self-Identity: self and Society in the Lade Modern Age, Stanford University Press, Stanford, CA. 34 No. Show abstract. 4, pp. The term role is discussed in modern science since the work of Linton (1936), who defines role as a set of behaviors linked to the inhabited status. The patterns of interaction illustrate that managers can be simultaneously a source of stability and fragility for MAs changing identities. This data may include sales figures and pricing trends, production costs, customer satisfaction . This paper systematically reviews the literature on the changing role of MAs from an identity perspective, based on a conclusive sample of 64 articles. 4, pp. The investment comes with the analysis of the outcome where . Our paper is structured as follows. 4, pp. The process generally implies the calculation and allocation of overhead charges, as well as the assessment of the direct costs related to the cost of goods sold (COGS). Business orientation leads to an increasing emphasis on new competencies without a reduction of the old ones. 11 No. Implications of information systems and digitalization as decisive issues are intensively debated in the literature sample (Jrvenp, 2007; Oesterreich and Teuteberg, 2019). Occupational role dimensions: the profession of management accounting, Beyond budgeting: review and research agenda, The role of business analytics in the controllers and management accountants competence profiles: an exploratory study on individual-level data, Management accounting information and the needs of managers: perceptions of managers and accountants compared, Individuality and the Group: advances in Social Identity, Constructing professional identity: the role of work and identity learning cycles in the customization of identity among medical residents, Tasks, interaction and role perception of management accountants: evidence from Germany, ERP systems and management accounting change: opportunities or impacts?
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