This thesis explored the dynamics of cost accounting systems (CAS). It focused on particular situations in which CAS can become institutionalised, embodying settled patterns of action and thought common to an organisation (Burns & Scapens, 2000). In such context, it is argued that the greater the degree of institutionalisation of CAS, the more difficult they are to change, and vice versa. This thesis has investigated the conditions and processes through which CAS can change and/or persist (i.e., remain relatively unchanged) through time. Exploring when, how and why institutional change and/or resistance may occur in CAS, is the specific motivation of this thesis. The following investigates CAS at a large oil refining organisation operating in Libya (RefCo). RefCo was undertaken as an interpretive case study, involving data collected through interviews, archives, internal company documentation and general (formal and informal) observations. The CAS in RefCo was subject to two change initiatives in a relatively short space of time. The first source of change was a requirement of its parent company to shift from a traditional production-orientation to a more commercial-orientation. With minimal resistance, the highly institutionalised CAS of RefCo evolved to become much more geared towards commercial decision-making. The second source of change originated in the recommendations of an external consulting organisation, who recommended that RefCo changed its CAS to take on more ‘best-practice’ principles, but also as part of a wider initiative of implementing Enterprise Resource Planning systems (ERPs). However, this particular change initiative faced significant resistance. Analysis of the case was informed by institutional theory using, in particular, the concepts of deinstitutionalisation (Oliver, 1992), institutionalisation (Burns & Scapens, 2000), and politics and power mobilisation (Hardy, 1996). In contrast to the more conventional view that institutionalised practices (e.g., CAS in RefCo.) are difficult to change, this thesis has shown how such practices can be destabilised and changed through the configuration of a complex and dynamic process of costing system change. It suggests an institutional interdependence that underpins the interrelation between various components of the organisational system, and exemplifies an intertwining between CAS and operation control. While CAS change processes were shaped by ongoing changes in operation control, the outcomes of the former provided an institutional basis from which to make sense of the operational activities (Scapens, 1994). This interdependence helps sustain day-to-day organisational life in RefCo and contributes to our understanding of both change (processes) and resistance in relation to institutionalised practices. Moreover, we observed that a great deal of such change and/or resistance could be understood and explained in terms of politics and power mobilisation.

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This research explores whether Environmental Management Accounting can be applied to assist an Australian cogeneration company in improving both its financial performance as well as its environmental performance. Cogeneration or 'combined heat and power', in this particular case, involves the simultaneous production of heat and electricity using a single fuel, that is, natural gas. The heat generated is then used to produce steam to meet the customers' requirements as well as boost the production of electricity. Therefore, cogeneration provides greater efficiencies compared to traditional electricity generation methods because it utilizes heat that would otherwise be wasted. In addition, greenhouse gases emissions can be reduced substantially. The approach taken in this research is to assess whether an improvement in the energy efficiency of the cogeneration plant can lead to a reduction in greenhouse gases emissions. An improvement in energy efficiency means that either: • less gas is consumed, thus leading to cost savings; or • more electricity is generated for the same quantity of gas consumed, which leads to an increase in income and consequently profit. Therefore, an improvement in energy efficiency means an improvement in the financial performance. In addition, a reduction in the quantity of gas consumed or generating as much electricity as possible from a given quantity of gas can lead to a reduction in greenhouse gases emissions which means an improvement in the company's environmental performance. A case study method, which involves an Australian cogeneration company, is adopted because this would provide valuable in-depth practical insight into the operations and mechanisms of a company that is involved in combined heat and power generation. A review of the literature and the evidence collected indicated that a cogeneration plant's efficiency can be improved at least back to near the plant's designed efficiency. And, further improvements may be achieved by utilizing the latest technology although this involves capital investment. It is also established that an improvement in plant efficiency can reduce greenhouse gases emissions. This research then concludes that Environmental Management Accounting can help the case study company improve its financial and environmental performances. An Environmental Management Accounting system can provide the physical information that is not available in the existing management accounting system. Physical information such as the physical quantities of gas consumed, electricity and steam produced, and greenhouse gases emitted, can help the company in decision-making relating to improving plant efficiency as well as reducing greenhouse gases emissions.

In the 1960’s, the Japanese car manufacturer Toyota developed target costing – a management accounting model that reduces the risk of releasing unprofitable products. The method eventually spread to Swedish firms. The study starts by summing recent previous research on target costing in Sweden (full description of these studies is available in Appendix I). Looking at this research, it is noted that there is an inconsistency with regards to what principles of target costing are used, and which are not. It is also noted that some firms are claimed to be used target costing and some firms are claimed not to be using it. No study, however, has tried to find an explanation to why some principles are implemented and why some are not. This is also the theoretical contribution of this thesis. More specifically, the research problems are therefore: (1) is target costing really implemented in a different way in Sweden as compared to Japan and (2), if so, why are there differences? It is further assumed that ideology could be a good explaining variable for the possible differences in implementation. In answering the first question, target costing is firstly described according to well-known books and articles on the subject. Following normative description, a presentation is made how target costing has been employed in Sweden. Secondary data based on three quantative studies is used here. These two descriptions are then contrasted against each other and it is found that target costing is implemented in a different way as compared to normative Japanese literature. Next, the second question is answered by constructing a theoretical framework based on ideological- and managerial assumptions of Japan and Sweden, respectively. This framework is then used to try to explain the differences mentioned above. Through the analysis it is observed that the Swedes’ lower priority of financial goal as well as their orientation towards the future are often used to explain the differences. These two aspects are also two of the main differences between Swedish and Japanese ideologies. It is therefore concluded that the differences might be explained using ideological assumptions, although there are probably other important factors as well. An implication of the result is that it is questionable whether target costing even will reach popularity in Sweden. Finally, it is also concluded that Likert-scales are not usefil when measuring target costing implementation

<p>In the 1960’s, the Japanese car manufacturer Toyota developed target costing – a management accounting model that reduces the risk of releasing unprofitable products. The method eventually spread to Swedish firms.</p><p>The study starts by summing recent previous research on target costing in Sweden (full description of these studies is available in Appendix I). Looking at this research, it is noted that there is an inconsistency with regards to what principles of target costing are used, and which are not. It is also noted that some firms are claimed to be used target costing and some firms are claimed not to be using it. No study, however, has tried to find an explanation to why some principles are implemented and why some are not. This is also the theoretical contribution of this thesis.</p><p>More specifically, the research problems are therefore: (1) is target costing really implemented in a different way in Sweden as compared to Japan and (2), if so, why are there differences? It is further assumed that ideology could be a good explaining variable for the possible differences in implementation.</p><p>In answering the first question, target costing is firstly described according to well-known books and articles on the subject. Following normative description, a presentation is made how target costing has been employed in Sweden. Secondary data based on three quantative studies is used here. These two descriptions are then contrasted against each other and it is found that target costing is implemented in a different way as compared to normative Japanese literature.</p><p>Next, the second question is answered by constructing a theoretical framework based on ideological- and managerial assumptions of Japan and Sweden, respectively. This framework is then used to try to explain the differences mentioned above. Through the analysis it is observed that the Swedes’ lower priority of financial goal as well as their orientation towards the future are often used to explain the differences. These two aspects are also two of the main differences between Swedish and Japanese ideologies.</p><p>It is therefore concluded that the differences might be explained using ideological assumptions, although there are probably other important factors as well. An implication of the result is that it is questionable whether target costing even will reach popularity in Sweden. Finally, it is also concluded that Likert-scales are not usefil when measuring target costing implementation</p>

Thesis (doctoral)--Universität St. Gallen, 1994.

The extant management accounting literature shows that there is little consensus on why and how change in management accounting systems (MAS) evolves within organisations over time (Burns and Vaivio, 2001) and especially how the change process can be conceptualised into a theoretical model (Burns and Scapens, 2000). Although Amat et al. (1994) have provided a better understanding of MAS change over time and successfully conceptualised the process into a model using the notion of dualism, they noted that the evidence of a single case study is not enough. However, there has been no further study to extend Amat et al.'s (1994) findings. This thesis resembles Amat et al.'s (1994) study, analysing the progressive formalisation of MAS in a Chinese company: Shanghai Light Industry Machinery Stock Company Limited, during periods of change at both the social and organisational levels. It was found that three outer, social factors (socio-economic condition, competition and socio-culture) and three inner, organisational ones (autonomy, profitability and authority) have greatly impacted on the progressive formalisation of the MAS in the Chinese company during the period studied. Also, the internal effects on the MAS change differ from the external ones, mostly reflecting the increasingly specialised managers in the company having exercised a set of proactive or intentional changes in the MAS within the corporate boundary.

Primarily, this research provides insight on a management accounting change in a Chinese state-owned enterprise (SOE) from institutional perspective. Comprising a qualitative field study, the research examines and explains how and why a management accounting change occurred in the SOE, which is the oldest and largest beer producer in China. The study focuses on the introduction and usage of a Balanced Scorecard (BSC), at both the headquarters and the factory level of the organization. The framework of institutionalization proposed by Burns and Scapens (2000) is utilized as the theoretical framework for this research. The major findings take the form of a comparison between the usage of the BSCs at the headquarters and at the factories. It is found that higher resistance to change occurred in the factories than at headquarters and resulted in the rules required by these management accounting practices to be only loosely coupled with routines embedded in everyday working activities, as the factories carried on brewing their beer. In contrast, behaviors at headquarters were more tightly coupled with the rules of the revised accounting practices. This diversity in the effect of the change process may be explained by the new management accounting practices entailing rules that fit better with the activities and routines carried out at headquarters, and so being more easily institutionalized. In contrast, institutionalization has not had much success in the factories primarily because of a lack of fit between complying with the new rules and maintaining the success of brewing operations, and because of historical circumstances that the factories have had some independence in operational matters, although part of an organizational hierarchy. Given the location of this study in a Chinese setting, the findings may contribute that, despite its Western roots, institutional theory may explain the low success rate of the implementation of the BSC in China.