The closer cooperation and proximity to managers and other departments influence MAs identities, because MAs work within organizations with a distinguishable identity and, at the same time, within workgroups with a certain understanding of their identities. Identity is linked with image and perceived role changes; furthermore, the image of MAs within the organization influences their identification with the organization and profession. (2013), An institutional perspective on the changes in management accountants professional role, Management Accounting Research, Vol. 3-25. 1234567891011 V. Peer Evaluation Form: Please truly evaluate the performance of all group members (including yourself) based on the contributions inconducting the case study. 4, pp. 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. One of the definitions of Management accounting says that it is the application of professional skills and knowledge in the preparation of financial and accounting information in a manner in which it will assist the internal management in the formulation of policies, planning, and control of the operations of the firm. Organizations are the general context, but subgroups such as financial managers specify the platform for career ambitions. and Burke, P.J. Byrne and Pierce (2007) as well as Suhaimi et al. 41-63. 1-27. *Yazdifar, H. and Tsamenyi, M. (2005), Management accounting change and the changing roles of management accountants: a comparative analysis between dependent and independent organizations, Journal of Accounting and Organizational Change, Vol. 6 No. 4, pp. To identify relevant literature, we conducted a keyword search within seven databases (EBSCO, ProQuest, ScienceDirect, Scopus, Springer Link, Web of Science and Wiley Online Library). Accountancy tends to refer to the profession or practice of managing financial accounts, while accounting is more commonly used to describe the . Burns, J. and Scapens, R.W. Management accounting is considered as inherently contextual, and thus contingency factors might have an effect on the identity of MAs (Morales, 2019; Goretzki and Messner, 2019). (2007), Towards a more comprehensive understanding of the roles of management accountants, European Accounting Review, Vol. *Hartmann, F.G.H. 3, pp. 517-554. The process generally involvescomputing the overhead charges and assessment of direct costs associated with cost of goods sold. 942-967. Moderate impact of ERPS on management accounting: a lag or permanent outcome? 83-93. 1 No. and Nord, W.R. (Eds), The Sage Handbook of Organization Studies, Sage Publications, Thousand Oaks, pp. 4, pp. It primarily deals withthebenefits of increased production. Burke, P.J. MAs do not only reflect about their current identity but also about desired and ideal identities, thereby recognizing the divergences and striving for more concordance between these identities. There are implications especially for the working relationships in multinational companies where MAs work together and are influenced by different professional associations and educational institutions. Management accountants role in dependent and independent companies: does ownership matter? *Emsley, D. and Chung, L.H. Management accounting research on farms: what is known and what needs knowing? FMVAFinancial Modeling & Valuation Analyst CBCAAdvertiser Banking & Credit Commentator CMSAFunds Markets & Security Analyst BIDABusiness Intelligence & Input Analyzer FPWMFinance Planning & Wealth Management Specialty. 11 No. For example, you can categorise purchase of different items period-wise, supplier-wise and territory wise. Our literature sample displays that business orientation requires changes in competencies, and thus MAs sometimes perceive all the requested competencies as incompatible. 363-384. *Caglio, A. 283-303. 50 No. Upon completion, you should be able to read and interpret financial statements for business diagnosis and decision-making. 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. (2019b), The role of the controller in strategic Capital investment projects: bridging the gap of multiple topoi, Journal of Management and Governance, Vol. Marginal analysis:This assesses profits against various types of costs. 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). However, in line with Kubek and Machek (2018, p. 967), we did not limit the results to any particular preselected class of journals to include findings from journals, which are not listed within a journal ranking (Academic Journal Guide (AJG), 2018). 330-356. (2004), Changing dimensions of accountants role and skill requirements in organisations: findings from the corporate sector in Bahrain, International Journal of Accounting, Auditing and Performance Evaluation, Vol. *Joshi, P.L. 4, pp. 1, pp. Role changes imply identity reconstructions as they do not only require an external legitimacy, but professionals have to internalize a new role script. 235-262. For this reason, the paper analyzes and synthesizes the extant literature on MAs by conducting a systematic literature review following the methodology proposed by Tranfield et al. 5, pp. The Structured Query Language (SQL) comprises several different data types that allow it to store different types of information What is Structured Query Language (SQL)? *Ahrens, T. and Chapman, C.S. Business orientation is presented as increasing MAs value and standing in organizations, and thus it can be regarded as a desired or ideal identity (Goretzki and Messner, 2019; Graham et al., 2012). 2, pp. In addition to external role expectations, internal self-views and internalized beliefs might be discussed with applicants during the staffing process in management accounting. *Granlund, M. and Lukka, K. (1997), From bean-counters to change agents: the Finnish management accounting culture in transition, Liiketaloudellinen Aikakauskirja LTA Finnish Journal of Business Economics, Vol. (2006), On the edge of identity: boundary dynamics at the interface of individual and organizational identities, Human Relations, Vol. However, reflecting on the research question and the conceptual framework, various fresh insights can be gained. *Lambert, C. and Sponem, S. (2012), Roles, authority and involvement of the management accounting function: a multiple case-study, European Accounting Review, Vol. Therefore, this paper aims to contribute to a comprehensive understanding of the ongoing changes concerning MAs by focusing on their identities, to deliver a structured overview of the current state of research, to identify research gaps, to provide new perspectives on identity and role changes of MAs, to show possible implications for research, practice as well as education and thus to motivate scholars to contribute to this field of research. 3, pp. Given the wide range of articles and variety of themes, it is challenging to draw overall conclusions. 259-272. Notwithstanding the influences of contingency factors, it is remarkable that papers concerning identity emphasize that MAs present in their statements a very coherent and homogeneous discourse about their occupation, values and general orientation (Ahrens and Chapman, 2000; Goretzki and Messner, 2019; Morales, 2019). However, these relationships are not inherently peaceful, stable and relaxed. and Robson, K. (2006), Accounting, professions and regulation: locating the sites of professionalization, accounting, Organizations and Society, Vol. Risk management and compliance have developed into fundamental aspects of the daily work of MAs (de Loo et al., 2011). Visit emeraldpublishing.com/platformupdate to discover the latest news and updates, Answers to the most commonly asked questions here. and Stets, J.E. 2, pp. Published by Emerald Publishing Limited. As there are just a few studies about identity in detail, numerous implications for future research exist. Public images, as described in the previous section, influence how professionals are esteemed within the organization (Jrvinen, 2009; Taylor and Scapens, 2016). 6, pp. 2020, Tanja Wolf, Michael Kuttner, Birgit Feldbauer-Durstmller and Christine Mitter. Publications also show a great heterogeneity because of sample size as well as sample choice. 401-411. (1997), Activity-based techniques and the death of the beancounter, European Accounting Review, Vol. Furthermore, identities are social products as individuals exist within the context of social structures and they are shaped through interactions with others (Burke and Reitzes, 1981; Burke and Stets, 2009). *Vaivio, J. *Oesterreich, T.D. 2, pp. and de Araujo Wanderley, C. (2018), Identity conflict and the paradox of embedded agency in the management accounting profession: adding a new piece to the theoretical jigsaw, Management Accounting Research, Vol. Most of the literature implicitly suggests that the change to business orientation is a positive development, but the commitment of MAs to meet such requirements can cause identity conflicts when they are not able to fulfil the perceived expectations. Our conceptual framework systematizes the focus areas of the literature for delivering a comprehensive overview of the existing knowledge and a foundation for synthesis and further discussion. The external description of a role is likely to affect the way people think about the role, whereas a persons identity influences the way one enacts this role. Several authors (Byrne and Pierce, 2007; Morales and Lambert, 2013; Taylor and Scapens, 2016) discuss the links between identity and image, and that a change in image can cause a change in identity. 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]. 4, pp. Along their self-declared aims and interests, the vast majority of the journals (19) are accounting journals. 8, pp. and Lyne, S.R. *Morales, J. This is possible because the company can afford the price of installing a system in place and even hire professionals to make the best of it to prevent the company from future meltdowns. (2001), The beancounter stereotype: towards a general model of stereotype generation, Critical Perspectives on Accounting, Vol. It involvescalculating thebreak-even point, which requires knowing the contribution marginon the companys sales mix. The term management accountant does not necessarily signify a common mind-set. We also analyzed the sample publications in relation to how far a theoretical background or theory explained the findings. (2008), Beyond constraint: how institutions enable identities, in Greenwood, R., Oliver, C., Suddaby, R. and Sahlin, K. (Eds), Handbook of Organizational Institutionalism, Sage Publications, London, pp. 58-86. Considering identity as a relational phenomenon because individuals come to know who they are through their interactions with others leads to patterns of interaction (Ahrens and Chapman, 2000; Burke and Stets, 2009). Identity includes how the role occupant interprets and makes sense of a role. Despite the popular template of the business partner, there is still a discussion about the influence of increased legislation and compliance regulation on MAs (Byrne and Pierce, 2007; de Loo et al., 2011). Cost and management accounting in early Victorian Britain: a chandleresque analysis? A lot of people think it 's just numbers but it 's really a lot more than that. 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. Hiller et al. As outlined in the framework, we concentrate on external, organizational and individual aspects of changing identities. Horton and de Araujo Wanderley (2018) predict that changes in management accounting practices will affect MAs identities. Different disciplines, such as psychology, anthropology, sociology and other social sciences, are discussing these two concepts. Managerialaccountinguses easy-to-understand techniques such as standard costing, marginal costing, project appraisal, and control accounting. Moreover, their identity is shaped in a broader context by different types of interactions and their perception of whether people, who are important to MAs, appreciate or disapprove a certain behavior (Goretzki and Messner, 2019). Capital budgeting:This is an analysis of informationin orderto make decisions related to capital expenditures. Ashforth, B.E., Harrison, S.H. The first articles about roles from the 1980s start with role conflicts (Hopper, 1980; Sathe, 1983). 2, pp. Morales and Lambert (2013) illustrate discrepancies between existing and ideal identities in a French organization where they scrutinize MAs who could not become fully business-oriented, which generates tensions in their self-identity. (1980), Role conflicts of management accountants and their position within organisation structures, Accounting Organizations and Society, Vol. However, most of the younger publications in high-ranked journals refer to a theory (Baldvinsdottir et al., 2009; Taylor and Scapens, 2016). and Reitzes, D.C. (1981), The link between identity and role performance, Social Psychology Quarterly, Vol. 1, pp. 2, pp. (2000), Occupational identity of management accountants in britain and Germany, European Accounting Review, Vol. 477-498. Help. There are a lot of areas outside of numbers that need to be looked at processes and procedures what the tone of the company is. This paper systematically reviews the literature on the changing role of MAs from an identity perspective, based on a conclusive sample of 64 articles. Management accounting, with the help of different techniques, formats the future course of action. Their location in different departments leads to a nested identity implying that MAs rather identify with their workgroup than with their professional groups in the organization. At an early stage of research, identity of MAs has emerged as a separate research field (Morales, 2019) with very diverse topics and concepts of identity. Managerial accounting (also known as cost accounting or management accounting) is a branch of accounting that is concerned with the identification, measurement, analysis, and interpretation of accounting information so that it can be used to help managers make informed operational decisions. By using more prestigious titles for the work of MAs, it is possible to disguise those activities which are perceived by MAs as low-prestige and thus demonstrate their added value. *Friedman, A.L. Financial management is guided by several principles that the managers should adhere to in ensuring that the finances of a company are appropriately invested. Managerial accounting is used for forecasting. Clear identities and a transition from one identity to another may be too simplistic, and thus future research should avoid simple classifications and concentrate more on the complexity. 19 No. Goretzki et al. (Eds), Handbook of Identity Theory and Research, Springer, New York, NY, pp. (1991), Modernity and Self-Identity: self and Society in the Lade Modern Age, Stanford University Press, Stanford, CA. 15 No. Management accounting is the practice of identifying, measuring, analysing & interpreting financial information to managers. MAs), European division of a large US multinational, 2 firms from the construction and property development sector, 33 interviews with 25 store managers, system analysts, and accountants, 1 leading UK-based department store retailer, 77 different organization with at least 50 employees from different sectors, Theory of organizational knowledge creation and learning, 6 Finnish companies in different industries, 43 managers and MAs from different countries, 1 German manufacturing firm, present in 34 countries, 117 independent and 162 dependent organizations, mainly in manufacturing industry, Professional associations and educational institutions, occupy different positions in various countries which results in low or high recognition as a profession, influence identity and statements of MAs, are essential for identity reconstruction, support the diffusion of the business partner which has developed as a legitimate template for MAs, improve purposively the status of professionals in order to distance modern MAs from bean counters, influence MAs orientation and daily work, are less discussed but can hinder change of MAs, may not work with the business partner model, may raise conflicts between management support on the one hand and compliance and control orientation on the other hand, is changing positively (from a historical viewpoint), focuses on the bean counter stereotype as a dominant representation of MAs, is influenced by negative descriptions of the bean counter image, of the business partner appears attractive, influences the image of MAs within organizations, and stereotypes influence identity, role change and self-concept, is low when MAs are compared to other professionals, influences MAs identification with the organization and the profession, Company size determines the scope of MAs profession, Other factors such as capital market orientation, ownership, industries, organizational level of MA function, contextual uncertainty and the use of the budgetary system, do not preclude very homogeneous discourse of MAs about their occupation, values and general orientation, Financial distress of organizations can increase importance of MAs, are actively developed and implemented by MAs, effect changes in MAs roles, identities and interactions styles, can lead to devaluation of MAs if relied on too intensively, between MAs and managers are especially decisive, would benefit from a mutual understanding of business partnering but is impaired by different attributed meanings, influence values and interactions, thus identity or role, make MAs identify stronger with their workgroups than with occupational group, are represented by diverse foci, interests, and time dimensions, as manifestation of the involvement-independence dilemma, caused by conflicting, ambiguous, over- and underloaded expectations of managers, despite or as a result of the idea of business partnering, getting more important (especially social competencies), of MAs are influenced by technological progress, of MAs reflect skill gaps (e.g., business analytics), that are requested are perceived as incompatible by MAs, manifests itself in business partnering, may conflict with current and day-to-day identity, is threatened by perceived low-prestige activities. It takes into accountqualitative information which cannot be measured in terms of money. Financial analysis helps the users of the financial statements to understand the complicated matter in simplified manner. Our literature search was limited to journal articles in English-language on MAs identity or role. Managementcanuse this type of accounting to set objectives, format plans to meet them, and compare the performance of various departments. 1, pp. While managers expect primarily support and advice, MAs regard themselves as partners, who do not help managers, but challenge and influence them (Goretzki and Messner, 2019; Morales, 2019). They aim to provide detailed information regarding the companys operations by analyzing each individual line of products, operating activity, facility, etc. (2009) scrutinize the images of MAs represented in advertisements in the CIMA journal. If the students are unable to do so, they can seek help from academic portals offering timely conclusion of accounting assignment. 767-801. 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). Management accounting is concerned with the future. 15 No. (2003) and Massaro et al. Theoretical background . *Bougen, P.D. Industry cycles, strength of research and development are some of the examples qualitative information that a business can collect using special surveys. 3, pp. 36-41. This systematic literature review focuses on professional identities of MAs, including their characteristics, experiences, motivations, goals, values, beliefs, internal norms and interaction styles (Ashforth, 2001; Ashforth et al., 2008; Chreim et al., 2007). ), Differentiation between Social Groups: Studies in the Social Psychology of Intergroup Relations, Academic Press, London, pp. Conclusion Having a management accounting department within an organization is optional, but the importance of management accounting should never be dismissed if a business wants to stay competitive and reap the benefits of both short-term and long-term income. 1515-1539. Besides the current identity, also the desired future identity frames the interpretations of MAs (Taylor and Scapens, 2016; Morales, 2019). 1, pp. Solabomi Ajibolade. *Endenich, C., Trapp, R. and Brandau, M. (2017), Management accounting networks in corporate processes a cross-national study, Journal of Accounting and Organizational Change, Vol. Despite the differences between these two concepts, identity is closely interconnected with the enactment of roles. 2. 319-335. Managerial accounting is primarily used for internal purposes. 15 No. and Luyckx, K. (2011), Introduction: toward an integrative view of identity, in Schwartz, S.J., Luyckx, K. and Vignoles, V.L. In countries with a low degree of professionalization, the education is dominated by a very diverging academic education at universities or by private institutions with more practice-oriented training. The existence of such external images influences how a group of professionals is regarded within the organization (Jrvinen, 2009; Morales and Lambert, 2013). The conclusion summarizes the findings and presents implications for research, practice and education as well as the limitations of the paper. *Brandau, M., Hoffjan, A. and Wmpener, A. Keeps a record of business transactions. Miller, P., Kurunmki, L. and OLeary, T. (2008), Accounting, hybrids and the management of risk, accounting, Organizations and Society, Vol. (2019), Management accounting research on farms: what is known and what needs knowing?, Journal of Accounting and Organizational Change, Vol. 30-45. (2017), The impact of role conflict and role ambiguity on accountants' performance: the moderating effect of emotional quotient, European Research Studies Journal, Vol. *Lambert, C. and Pezet, E. (2011), The making of the management accountant becoming the producer of truthful knowledge, accounting, Organizations and Society, Vol. Byrne and Pierce (2018) still mention MAs conflict between supporting management processes and maintaining loyalty to financial compliance structures. (2009), Shifting NPM agendas and management accountants occupational identities, Accounting, Auditing and Accountability Journal, Vol. In the past two years, more complex issues were scrutinized such as multiple identities and identity conflicts (Horton and de Araujo Wanderley, 2018), and the discussion was extended by introducing symbolic categorizations and narratives (Morales, 2019) or clarifying the identity of MAs in a broader interaction context (Goretzki and Messner, 2019). Because of criticisms concerning their presumable obsession with costs, their low value-contribution to the organization and their suppression of innovation and creativity, MAs sometimes struggle with a low image in comparison to other professional groups in the organization (Emsley, 2005; Friedman and Lyne, 2001; Pierce and ODea, 2003). 16 No. 10-30. 14 No. Pratt, M.G., Rockmann, K.W. Many findings underline difficulties for MAs in interpreting the expectations of managers and coping with tensions arising from situations where managers may not want such involvement (Amilin, 2017; Morales and Lambert, 2013; ten Rouwelaar et al., 2018). Most of the studies examine large firms (Aver and Cadez, 2009; Joshi and Bremser, 2004) and suggest that company size determines the scope of MAs profession. 314-337. 12 No. 442-464. article type, data collection, time frame, sample information) is summarized in Table 2. Furthermore, the links between identity and image (Hiller et al., 2014; Taylor and Scapens, 2016) or the impact of IT systems on the identities of MAs (Heinzelmann, 2018) were studied. Within the vast majority of the studies, no theory (34) was explicitly mentioned, which could be an indicator for the missing theoretical substantiation of the research field. Nested identity may be a concern within companies, because of the possibility that MAs identify more with their close work colleagues than with their profession in the organization. 2, pp. Several authors (Albu et al., 2011; Baldvinsdottir et al., 2009; Suhaimi et al., 2016) regard especially IT systems as important change drivers. Inventory valuation involves the identification and analysis of the actual costs associated with the companys products and inventory. *Sathe, V. (1983), The controllers role in management, Organizational Dynamics, Vol. The identity of professionals depends on their situation vis--vis other occupations, and professionals consequently strive for the most prestigious occupation. 14 No. Conclusion. Following Massaro et al. 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. 3, pp. 44 No. (Ed. 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. 2, pp. 22 No. The conclusion summarizes the findings and presents implications for research, practice and education as well as the limitations of the paper. Management Accounting: Magazine for Chartered Management Accountants: 1: 1: Management Accounting Research: 3: A: 4,044: 3: 2: 1: 1: 7: Pacific Accounting Review: 1: 1: 1: *Mouritsen, J. According to Biddle (1986, 2013), role theorists primarily refer to external norms, outward behavior expectations and descriptions for explaining the term role. Thus, roles are induced by shared expectations of other organization members. 2, pp. 61, pp. Finally, more research would be interesting regarding the desired identities of MAs. Finally, we have to mention the limitations of our systematic literature review. While in small firms the traditional role pictures prevail (Joshi and Bremser, 2004; de Loo et al., 2011; Mistry et al., 2014), new role terms emerge in large firms, such as the data scientist, a management accounting specialist for IT issues (Oesterreich and Teuteberg, 2019). 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). Change and its prospects are likely to initiate concerns about identity (Jenkins, 2014). Jrvenp (2007) describes necessary organizational processes for the business orientation of MAs, among others image construction, introduction of new information systems and decentralization. Many authors talk about role identities, self-perception or self-conceptualization of MAs, and, consequently, they indirectly consider identity. (2015), Management accounting and management control in family businesses: past accomplishments and future opportunities, Journal of Accounting and Organizational Change, Vol. Later, it tells about the progress of the plans and the roles of different parties to implement it. 251-264. 83-92. We comprehend that different foci and interests in organizations cause multiple identities. 1, pp. 1-20. and Kabst, R. (2015), Controllers as business partners in managerial decision-making: attitude, subjective norm, and internal improvements, Journal of Accounting and Organizational Change, Vol. I hate Accounting. As we have only a few preliminary suggestions about the influence of professional and educational institutions (Goretzki et al., 2013), scholars might scrutinize this institutional influence more intensely. In the remaining four studies, a mixed-method research approach was applied. Due to this, the strength or weakness of accounting decisions made depends solely on the quality of basic records. 21 No. and Mael, F. (1989), Social identity theory and the organization, Academy of Management Review, Vol. (2016) and Tranfield et al. 38 No. Anglo-Saxon countries refer to a more integrated approach, and thus in the English-speaking literature, the explicit differentiation between financial accountants and MAs is often lacking. 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.
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