Performance Implications of Misalignment Among Business Strategy, Leadership Style, Organizational Culture and Management Accounting Systems

2018 ◽  
Author(s):  
Johnny Jermias ◽  
Lindawati Gani ◽  
Christina Juliana
Keyword(s):  
Organizational Culture ◽  
Leadership Style ◽  
Business Strategy ◽  
Management Accounting ◽  
Accounting Systems ◽  
Management Accounting Systems

Performance implications of misalignment among business strategy, leadership style, organizational culture and management accounting systems

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christina Juliana ◽  
Lindawati Gani ◽  
Johnny Jermias
Keyword(s):  
Organizational Culture ◽  
Financial Performance ◽  
Leadership Style ◽  
Product Differentiation ◽  
Business Strategy ◽  
Accounting Systems ◽  
Content Type ◽  
Cost Leadership ◽  
Future Studies ◽  
Management Accounting Systems

Purpose The purpose of this study is to examine the performance consequences of misalignment among business strategy, organizational configurations and management accounting systems (MAS). Design/methodology/approach The authors conducted a questionnaire survey to collect data and test the hypotheses developed in this study. The authors sent the questionnaires to the accounting and finance managers of the manufacturing companies listed on the Indonesia Stock Exchange. The authors received 259 responses from a total of 579 questionnaires sent or a 44.73% response rate. This study excludes 36 responses for further analyzes due to incomplete responses (five responses) and responses from lower-level employees (31 responses). The remaining 223 responses are used for statistical analyzes. Findings This study hypothesizes and finds that misalignments among business strategy, leadership style, organizational culture and MAS are negatively associated with both financial and non-financial performance. Research limitations/implications The study has three limitations. First, the authors intentionally collect data from the manufacturing industry to minimize the effect of data heterogeneity. To improve the generalizability of the study, future research might consider using data from other industries. Second, the study measures business strategy based on respondents’ perception of their companies’ strategy using indicators representing either product differentiation or cost leadership strategy. Future studies might use different ways of measuring business strategy using more objective empirical proxies such as research and development expenditures or premium price capability. Finally, this study conducts a survey and measures all the variables in a single period. Future studies might use a longitudinal approach to investigate the evolution of companies’ strategies and their impact on leadership styles, organizational commitment and MAS. Practical implications The results of the study will help companies in their search for senior executives, in building their organizational culture and in implementing their MAS. The study suggests that product differentiation companies should search for transformational leaders that empower their subordinates to take initiative and encourage innovative ideas in performing their tasks. In regard to MAS, the results suggest that product differentiation companies should implement broad focus MAS that emphasize the balance between financial and non-financial factors. By contrast, cost leadership companies should search for transactional leaders who emphasize on completing tasks on hand effectively and efficiently. In regard to MAS, the findings suggest that cost leadership companies will benefit more from using narrow focus MAS such as formal planning and budgeting, variance analyzes and cost-volume-profit analyzes. Social implications The findings of the study suggest that product differentiation companies should build a flexible culture that encourages subordinates to take the risk and effectively manage opportunities and challenges through changes and innovation. Furthermore, cost leadership companies should build a controlled culture that promotes adherence to policies and procedures to minimize costs and increase efficiency. Originality/value This paper introduces to the management and accounting literature the concept of fit among competitive strategy, leadership style, organizational culture and MAS and uses the two-stage method proposed by Ittner and Larcker (2001) to measure the degree of misalignment among business strategy and its contextual variables and, in turn, examines the impacts of the misalignment on financial and non-financial performance.

scholarly journals PERANAN GAYA KEPEMIMPtINAN TERHADAP KINERJA MANAJERIAL DENGAN VARIABEL MODERASI SISTEM AKUNTANSI MANAJEMEN, STRATEGI BISNIS DAN KETIDAKPASTIAN LINGKUNGAN

2018 ◽  
Vol 2 (1) ◽  
Author(s):  
Purwo Hadi Sukmana ◽  
Iman Harymawan
Keyword(s):  
Leadership Style ◽  
Business Strategy ◽  
Management Accounting ◽  
Environmental Uncertainty ◽  
Business Strategies ◽  
Accounting System ◽  
Accounting Systems ◽  
Managerial Performance ◽  
Management Accounting Systems ◽  
Management Accounting System

ABSTRACT The success of a leader can be seen from the ability of a leader to be the trigger he leads by creating conducive working conditions so as to increase progress and increase capacity which results in a positive influence on human resources led in running work in the direction of achieving organizational goals. This study uses moderating variables of management accounting systems, business strategies and environmental uncertainties that can encourage leadership styles for optimal managerial performance. This study uses hyphotheses testing study with a method of collecting data through questionnaires distributed to respondents managers at pharmaceutical distributors spread across Sidoarjo and Surabaya. This study resulted that leadership style had a significant effect on managerial performance, but for variable interactions (moderation) of business strategies, management accounting systems and environmental uncertainties did not provide a moderating effect on the relationship of leadership style to managerial performance. This is because pharmaceutical distributors are an agency that has an optimal business strategy and management accounting system. The environmental uncertainty of companies engaged in this sector also does not have a significant impact on the sustainability of the organization, because medical needs, whether medicine or medical devices, are a major need for the health unit and the Indonesian community, of course.Keywords: leadership style, business strategy, management accounting system, environmental uncertainty, managerial performance

scholarly journals PENGARUH SISTEM AKUNTANSI MANAJEMEN DAN GAYA KEPEMIMPINAN TERHADAP HUBUNGAN ANTARA TOTAL QUALITY MANAGEMENT DENGAN KEPUASAN KERJA PADA PERUSAHAAN GO PUBLIK DI BURSA EFEK JAKARTA

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Sri Suranta
Keyword(s):  
Job Satisfaction ◽  
Quality Management ◽  
Total Quality Management ◽  
Leadership Style ◽  
Management Accounting ◽  
Total Quality ◽  
Accounting Systems ◽  
Management Accounting Systems ◽  
Systems Leadership ◽  
The Relationship

The purpose of this research is to examine empirically the effect of management accounting systems and leadership style to the relationship between Total Quality Management (TQM) with job satisfaction. The hypothesis is that there are significant influence of management accounting systems and leadership style to relationship between Total Quality Management (TQM) with job satisfaction. Taken population in this research consists of companies in Indonesian Capital Market Directory (ICMD) year 2004. The samples are middle managers of manufacturing business in ICMD. The hypotheses are examined by moderated regression analysis. Therefore, data must be analyzed by classical assumption, i.e. normality, autocorrelation, and heteroscedasticity. The examination indicated that all variable are valid and reliable. The classical assumption test fulfilled the classical assumption. Results of hypothesis examination indicate that leadership style has effect to the relationship between Total Quality Management (TQM) with job satisfaction. Nevertheless, the effect of management accounting systems to relationship between Total Quality Management (TQM) with job satisfaction is not supported by the research. Keyword: Total Quality Management (TQM), Management Accounting Systems, Leadership Style, Job Satisfaction.

scholarly journals Pengaruh Sistem Akuntansi Manajemen Terhadap Kinerja Manajerial Dengan Strategi Bisnis Sebagai Variabel Pemoderasi

Owner ◽  
2022 ◽  
Vol 6 (1) ◽  
pp. 369-378
Author(s):  
Rizki Fitri Amalia
Keyword(s):  
Business Strategy ◽  
Management Accounting ◽  
Accounting System ◽  
Analysis Method ◽  
Accounting Systems ◽  
Managerial Performance ◽  
Management Accounting Systems ◽  
Sample Technique ◽  
The Relationship ◽  
The City

This study aims to determine the effect of the management accounting system on managerial performance with business strategy as a moderating variable. The type of research in this study is causal associative. The population in this study is a hotel in the city of Palembang. The sample selected is 3 to 5 star hotels. The sample technique used in this study is purposive sampling and the samples used in this study were 63 samples. Hypothesis testing was carried out using the moderation regression analysis method with the help of SPSS ver 26. The results obtained showed that business strategy was not able to strengthen the relationship between management accounting systems and managerial performance.

scholarly journals Management Accounting Systems, Top Management Teams, and Sustainable Knowledge Acquisition: Effects on Performance

2020 ◽  
Vol 12 (5) ◽  
pp. 2132
Author(s):  
Andrés F. Ugalde Vásquez ◽  
David Naranjo-Gil
Keyword(s):  
Firm Performance ◽  
Knowledge Acquisition ◽  
Management Accounting ◽  
Top Management Teams ◽  
Management Teams ◽  
Mediating Effect ◽  
Top Management ◽  
Accounting Systems ◽  
Management Accounting Systems ◽  
Acquisition Processes

Organizations are increasingly aware of the importance of managing the acquisition processes of new and sustainable knowledge, which allows them to increase performance. These knowledge-acquisition processes require top management teams to focus on the external environment to search for sustainable opportunities and initiatives. This spurs top teams to make strategic decisions that require more comprehensive managerial information, which is provided by management accounting systems. Our research analyzes how top management team composition facilitates the acquisition of new knowledge. Our management accounting paper also analyzes the mediating effect of the interactive use of management accounting systems (MASs) and their impact on sustainable firm performance. A survey was conducted among the main manufacturer firms in the Republic of Ecuador. Results were analyzed by using the partial least squares methodology, and they showed a positive effect for the interactive use of management accounting systems on sustainable knowledge-acquisition processes. Results also showed that knowledge acquisition increased firm performance through an interactive use of MASs.

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