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Accounting Assignment Question
- You are required to analyze the literature review (section 2) and explain why Emsley (2005) is emphasizing on Theory Development (section 3) in the framework for management accounting innovation.
- Emsley (2005) suggests that acceptance of innovations by business unit managers (section 3.3.2) and incentives to innovate (section 3.3.3) are some of the keys features of role involvement’s effect on innovativeness. Do you agree/not agree with Emsley (2005) suggestions? Explain your reasons.
- Do you think the Method (section 4) that Emsley (2005) has adopted for his study is adequate/not adequate for the research in terms of strengths or weakness of the study, and how it can be made better?
ANALYSIS OF LITERATURE REVIEW AND REASON FOR EMPHASIS ON THEORY DEVELOPMENT
ANALYSIS OF THE LITERATURE REVIEW
Management accounting innovation has become a serious topic of discussion and research since few decades as the importance of innovative ways of accounting gains importance. The research paper focuses on the same theme analyzing the factors impacting management accounting innovations. The literature helps in explaining the importance and reasons behind both supply and demand side perspective of innovations. It emphasized the reality of supply side perspective of innovations emphasizing how it helps in creating new consulting opportunities. The article also focused on explaining the various processes of development of innovations. Examples of theories like actor-network theories were also cited. The article then explained splitting of the process of innovation into the diffusion of innovation research and organization innovation research. Diffusion of innovation research focuses on the dispersal of a single innovation across the organization. On the contrary in organization innovation research, the focus is on the explanatory variables which describe the acceptance of innovation in organizations. The article also talks about the inherent characteristic of the management accounting system which by its very nature opposes the adoption of innovative processes.
EMPHASIS ON THEORY DEVELOPMENT
The emphasis on theory development is a critical part of this research report. This emphasis better describes the process and importance of management accounting research for the following reasons:
- It explains the very definition of innovation and describes how in management accounting perspective, innovation is not just finding new accounting systems but also the changes to work practices.
- The theory also explains the difference in the degree of radicalness in innovations when done by accountants with a functional orientation to those with a business orientation. This emphasizes the importance of business orientation of management accountants…………
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