Management Accounting Usage in Daily Organizational Routines: A Case of a Manufacturing SME in Pakistan
Abstract
This research aims to contribute to management accounting scholarship by exploring management accounting routines in a manufacturing SME. Specifically, it concentrates on unveiling how different organizational actors shape management accounting routines. Management accounting usage in daily routines, particularly in the SME context, is a phenomenon of an emerging trend that merits scholarly attention to advance the understanding in this regard. Inspired by the extended Burns and Scapens’ framework, this study is drawn upon qualitative data collected via interviews and observations in a single firm (Co. A) that was a partnership firm owned by two owners. We demonstrated the usage of management accounting systems by different actors of the case organization (Co. A). Our thematic analysis exhibited the presence of situated rationalities, travel of rationality, occurrences of contradictions, and strict controlling measures. Implicitly, experiences and historical strands of Co. A has some influence on building rationalities. Furthermore, in management accounting usage, some health-related concerns were revealed by participants. There are different logics involved in shaping management accounting routines. Understanding these logics may facilitate shaping management accounting routines that may direct an organization toward success. Further, it may assist small firms in generating such a working environment where potential tensions may be restricted from evolving due to competing logics. The main contribution of this study is that management accounting usage in daily routines is not an isolated phenomenon; rather, different organizational actors with different rationalities may generate tensions along with the probability of some health concerns.
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