FACTORS THAT INFLUENCED THE CHANGE IN MANAGEMENT ACCOUNTING  part 3 1000w

Burns (1999) suggest that many organisations have routines in place and new changes introduced will lead to the change of the nature of the organisation. In the early 1980s a project, called the Production Cost Control Project was set up to improve the flow of acc info in Omega Plc. The project had failed because the operating managers saw the business in terms of producing-based meanings and routines. The divisional accountants viewed the business as financial term and regarded PCCP as a means of introducing accounting-based routines.

Sulaiman and Mitchell (2005) carried out study on management accounting change in Malaysian manufacturing companies. After gathering all information a four types of change had occurred. The two types occurred due to new technique introduction and two concerned existing management accounting modification. The research found that management accountant classified the level of management accounting change into five generalised components.

3.3 Institutional theory

3.3.1 Institution