Management accounting and information technology – some empirical evidence

Abstract

The role of information technology (IT) in the business arena has continuously shifted over the last decades, and it has become an important part of how companies manage and control their resources. User satisfaction in IT usage is critical because this construct is often viewed as a surrogate for IT success. Decisions regarding the building of the technical IT architecture should be closely linked to the organizational design of the company itself. So, IT plays a crucial role in organization, especially regarding the accounting function.

The purpose of this paper is to contribute to the body of knowledge in the extent to which IT affects the ability to solve accounting tasks. We will measure the impact of IT on user satisfaction, on accounting information use and, finally, on accountants' tasks.

The relationship between IT and management accounting practices was investigated. On one hand, data from Portuguese manufacturing firms were collected using a survey and analyzed using statistical software. On the other hand, based on findings from 17 in-depth interviews, 6 case studies were built and analyzed.

The findings suggest that user satisfaction in IT usage and the use of accounting techniques and accounting information increases with new IT investments. We also find a tendency for change in the decentralization of management accounting tasks.

These study findings have significant implication for practice and research. Today accounting and IT are inseparable and accountant's uses of sophisticated management accounting techniques are clearly dependent of IT existence.

Citation

do Céu F. Gaspar Alves, M. (2010), "Management accounting and information technology – some empirical evidence", Epstein, M.J., Manzoni, J.-F. and Davila, A. (Ed.) Performance Measurement and Management Control: Innovative Concepts and Practices (Studies in Managerial and Financial Accounting, Vol. 20), Emerald Group Publishing Limited, Leeds, pp. 429-455. https://doi.org/10.1108/S1479-3512(2010)0000020018