A trail of unintended consequences: Management accounting information in a volatile environment

Abstract

Purpose – This article highlights the unintended consequences that resulted from the (abuse/use) use of management accounting information in a large automobile corporation in Zimbabwe.

Methodology – The article uses a case study and draws on Giddens’ structuration theory to help us understand how management accounting practices are produced and reproduced through interactions in organizations.

Findings – It reveals how the use of management accounting information can lead to the domination of other employees in organizations and result in unintended consequences such as redundancies.

Originality – The article lays emphasis on the unintended consequences resulting from actions of different players in the motor industry and their impact on workers and wider society. It also brings to the fore the dialectic of control which allows subordinates to mobilize resources and act otherwise. It concludes that management accounting practices are “situated practices” which reflect the dominant discourses and can be harnessed to liberate or enslave other players in organizations. The article suggests that adopting structuration theory helps us analyze the role(s) of accounting information and illuminate possible unintended consequences associated with accounting-based decisions.

Practical implications – Accountants should guard against misuse of accounting information, to justify political decisions made by managers.

Research limitations – The political and economic volatility of the environment obscured the interactions between engineers and accountants because the central focus shifted to survival beyond the crisis.

Citation

Ndiweni, E. (2010), "A trail of unintended consequences: Management accounting information in a volatile environment", Tsamenyi, M. and Uddin, S. (Ed.) Research in Accounting in Emerging Economies (Research in Accounting in Emerging Economies, Vol. 10), Emerald Group Publishing Limited, Leeds, pp. 1-27. https://doi.org/10.1108/S1479-3563(2010)0000010006