The decision-facilitating role of management accounting systems on managerial performance: the influence of locus of control and task uncertainty.

Vincent Chong, I.R.C. Eggleton

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31 Citations (Scopus)

Abstract

This study examines the three-way interaction between task uncertainty, locus of control and management accounting systems (MAS) affecting managerial performance. MAS was defined in terms of the extent to which managers use broad scope MAS information for managerial decisions. The results of this study support a three-way interaction between task uncertainty, locus of control and management accounting systems affecting managerial performance. Specifically, under low task uncertainty situations, the results reveal that the use of more broad scope MAS information by “internal” managers is detrimental to their performance, while the extent of use of broad scope MAS information has no effect on the performance level of the “external” managers. In addition, the results reveal that “internal” managers who make more use of broad scope MAS information for managerial decisions under low task uncertainty performed less well than their “external” counterparts. In contrast, under high task uncertainty situations, the results suggest that “internal” managers improve their performance when they make more use of broad scope MAS information for managerial decisions, while “external” managers are insensitive to the degree of use of broad scope MAS information for managerial decisions. In addition, the results reveal that “internal” managers who make more use of broad scope MAS information for managerial decisions in high task uncertainty situations only marginally outperform their “external” counterparts. Contrary to our expectations, this difference is not statistically significant. The theoretical and practical contributions of our findings are discussed.
Original languageEnglish
Pages (from-to)165-197
JournalAdvances in Accounting
Volume20
DOIs
Publication statusPublished - 2003

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Management accounting systems
Locus of control
Managerial performance
Task uncertainty
Managers
Managerial decisions
Interaction
Performance levels

Cite this

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title = "The decision-facilitating role of management accounting systems on managerial performance: the influence of locus of control and task uncertainty.",
abstract = "This study examines the three-way interaction between task uncertainty, locus of control and management accounting systems (MAS) affecting managerial performance. MAS was defined in terms of the extent to which managers use broad scope MAS information for managerial decisions. The results of this study support a three-way interaction between task uncertainty, locus of control and management accounting systems affecting managerial performance. Specifically, under low task uncertainty situations, the results reveal that the use of more broad scope MAS information by “internal” managers is detrimental to their performance, while the extent of use of broad scope MAS information has no effect on the performance level of the “external” managers. In addition, the results reveal that “internal” managers who make more use of broad scope MAS information for managerial decisions under low task uncertainty performed less well than their “external” counterparts. In contrast, under high task uncertainty situations, the results suggest that “internal” managers improve their performance when they make more use of broad scope MAS information for managerial decisions, while “external” managers are insensitive to the degree of use of broad scope MAS information for managerial decisions. In addition, the results reveal that “internal” managers who make more use of broad scope MAS information for managerial decisions in high task uncertainty situations only marginally outperform their “external” counterparts. Contrary to our expectations, this difference is not statistically significant. The theoretical and practical contributions of our findings are discussed.",
author = "Vincent Chong and I.R.C. Eggleton",
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