Strategic Management Accounting And Performance Essay

1365 Words Jun 29th, 2015 6 Pages
In this paper, it will be argued that Cadez’s (2011) Strategy, strategic management accounting and performance: A Configurational Analysis, is an interesting but challenging piece of research. The argument will be developed through a critical review of Cadez’s paper, discussing in turn its research methods, and practical implications.

The paper reports a study of 254 of the largest Slovenian manufacturing companies although only 109 were usable. The research is concerned with manufacturing companies because Ketchen et al. recommend focusing configurational research on a single industry.

The study utilised a qualitative questionnaire research strategy to understand the relationship between management accounting and strategy. The abstract describes this as a “holistic configurational approach to examine the relationship between strategy, strategic management accounting, and performance.”

Cadez’s results/findings support the equifinality proposition that internally consistent configurations are associated with higher performance. This finding resonates with a core theme running through the article that different strategic and structural alternatives are associated with similar performance levels. It is noted by Cadez that his finding challenges much of the traditional contingency based modelling in management accounting.

Cadez notes that the literature provides empirical evidence suggesting that a dynamic prospector type strategy is associated with broad scope…

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