JAMAR Summer 2012

THE JOURNAL OF APPLIED MANAGEMENT ACCOUNTING RESEARCH

JAMAR Information

Table of Contents


Ivory Towers and Legal Powers: Attitudes and Behaviour of Town and Gown to the Accounting Research-Practice Gap

This paper explores the perceived gap between accounting research and practice by, both 'attitudinally' and 'behaviourally', determining if accounting research: (1) has failed to lead practice in contrast to medical research; (2) lacks innovation; (3) has failed to arrive at solutions to the fundamental issues in accounting practice; and (4) has no demand outside of the university context.

The results of five interrelated studies presented in this paper support the overall finding of an ever growing gap, especially in financial accounting and auditing. This is in stark contrast to the healthy relationship found between academia and practice in the medical profession. The gap appears to be less in management accounting.

Steps provided to bridge the gap are that accounting academics should (1) be rewarded for writing case studies; (2) be recognised for writing in professional journals; (3) be encouraged by universities to do more consulting-based research; and (4) be provided opportunities to engage more with practitioners.

Janek Ratnatunga

 

 

1

Management Accounting Research: An Analysis of Recent Themes and Directions for the Future

This paper reviews some of the most recent published literature in the field of management accounting. 138 articles were examined on management accounting taken from four key journals in order to analyse leading issues and themes in recent management accounting research. The articles were published between 2008 and 2010. This paper contributes to the literature in several ways.

First, it provides a focused analysis of management accounting research published in recent years, allowing researchers to gain a better understanding of the direction of the contemporary management accounting research.

Second, it highlights the emergence of intellectual resource management as a major area of management accounting research. Third, it draws attention to key emerging research themes in the literature including trust, leadership, and organisational justice. Finally, it notes a growing focus on applied research and signs of a narrowing of the gap between accounting research and practice.

Jason Harris

Chris Durden

 

 

 

21

 

The Measurement and Management of Unused Capacity in a Time Driven Activity Based Costing System

Companies rendering continuous 24 hours a day service may encounter difficulties in determining their unused capacity. In addressing this issue, managers can consider using a Time Driven Activity Based Costing (TDABC) System. In the measurement of unused capacity, managers should consider two new concepts, real and compulsory unused capacities. The aim of this paper is, to enhance the efficiency of the TDABC System by clarifying and explaining the real and compulsory unused capacities per shift.

The principal result of the study is that the number of employees to be dismissed or directed to other productive areas should be determined on the basis of each shift, rather than considering the total amount of unused capacity in a day/month for the whole of the company. Finally, the study concludes that the management of unused capacity will only be effective when the real and compulsory unused capacities per shift are considered.

Veyis Naci Tanış

Hasan Özyapıcı

 

43

The Impact of Performance Measures on Employee Fairness Perceptions, Job Satisfaction and Organisational Commitment

This research examines how the use of nonfinancial performance measures for employee performance evaluation affects three employee outcomes – procedural fairness, job satisfaction and organisational commitment.

The results, based on a sample of 130 managers supported our expectations. They indicate the following. First, nonfinancial measures have a significant direct effect on procedural fairness. Second, the effects of nonfinancial measures on employee job satisfaction and organisational commitment are indirect through procedural fairness. Finally, the results for the nonfinancial measures model are similar to those of the financial measures model. These results may have important theoretical and practical implications on the choice of performance measures for performance measurement and evaluation.

The Impact of Performance Measures on Employee Fairness Perceptions, Job Satisfaction and Organisational Commitment
This research examines how the use of nonfinancial performance measures for employee performance evaluation affects three employee outcomes – procedural fairness, job satisfaction and organisational commitment.
The results, based on a sample of 130 managers supported our expectations. They indicate the following. First, nonfinancial measures have a significant direct effect on procedural fairness. Second, the effects of nonfinancial measures on employee job satisfaction and organisational commitment are indirect through procedural fairness. Finally, the results for the nonfinancial measures model are similar to those of the financial measures model. These results may have important theoretical and practical implications on the choice of performance measures for performance measurement and evaluation.

Sharon L.C. Tan

Chong M. Lau**

57

Ceremonial Budgeting: Public Participation in Development Planning at an Indonesian Local Government Authority

The purpose of this case study is to explain how public participation (Musrenbang) in development planning was practiced at the Local Government level in East Java, Indonesia. Public participation is a process of planning development in which citizens are involved in proposing and planning development projects to ensure fruitful implementation.

The research is based on an interpretive paradigm, using the technique of phenomenology analysis to explore the effect of participation on local government budgeting. It was found that although most participation mechanisms followed existing policies and regulations in terms of 'form' the 'substance' of the regulation was lacking. It was seen that that participation in local government budgeting is still assumed to be merely a formality, done as part of a required ceremony to fulfil certain local government obligations. The budgetary process is mostly ceremonial because only certain members of the public can access information about the purpose of the program, i.e. there is low socialisation by the wider community of stakeholders.

Ana Sopanah

73