Organizational lifecycle and strategic management accounting

What is it about?

Firms use strategic management accounting systems to steer their business in a competitive environment. These systems deliver the greatest value when they fit to the lifecycle of a firm. Each lifecycle stage presumes different demands for such systems. This paper shows that if the design of the strategic management accounting systems does not fit to the lifecycle stage, then performance is diminished. This effect, however, is only observable for firms that have an underdeveloped design of strategic management accounting systems, compared to a benchmark. If a firm has an overdeveloped design of strategic management accounting systems, then performance is not reduced.

Featured Image