Adoption of advanced management accounting practices in Gulf Cooperation Council countries : insights from institutional theory analysis

Mufid, A

Abstract

Adoption of Advanced Management Accounting Practices in Gulf Cooperation Council countries: Insights from institutional theory analysis

This study investigates the adoption of advanced Management Accounting Practices (MAPs) in GCC countries and helps fill the gap in understanding of developments in management accounting in that region. Drawing on (NIS), the study considers the impact of various factors on the decision to adopt advanced MAPs, the relationship between organizational characteristics and that decision, and the factors facilitating adoption. It used a questionnaire survey to collect data from 153 GCC listed companies. The data was analysed through the descriptive and explanatory methods of statistical analysis.
The findings indicate that the adoption level of advanced MAPs in GCC countries is relatively low, with almost 38% of the organizations surveyed implementing or trailing these practices. Of all the factors considered, the consultancy industry was found to have the most and a high level of influence on adoption decisions whilst other factors were moderately influential. Top management support was the highest facilitating role in advanced MAPs adoption, followed by the levels of employment of management consultants to facilitate implementation. Several organizational characteristics were found to have a significant relationship with advanced MAPs adoption, including being private sector and manufacturing companies, of large size, operating in international markets, facing high levels of marketing competition and having a strategic focus on innovation and production diversity.
This study provides further empirical evidence of the robustness and generalisability of NIS in explaining the reasons behind the adoption of change in MAPs. Specifically, it complements recent arguments for the primacy of the mimetic consultancy factor amongst all the institutional factors influencing advanced MAPs adoption. It contributes to the literature by studying the adoption of advanced MAPs in a GCC countries context and by comprehensively examining the factors influencing decisions and those facilitating adoption and implementation.

Citation

Mufid, A. Adoption of advanced management accounting practices in Gulf Cooperation Council countries : insights from institutional theory analysis. (Thesis). University of Salford

• Thesis Type: Thesis
• Deposit Date: Jun 25, 2019
• Publicly Available Date: Jun 25, 2019
• Award Date: May 31, 2019