Accessing the Impact of New Integrated Information System on Firms with respect to Management Control Change as an intervening variable: A Study of Small and Medium Enterprise.
– How is management control change affected by the process of implementing the new integrated information system?
– What kind of impact does the new integrated technology have over old control methods, systems, practices, tasks, organization, and responsibility?
With the rapid growth of technology, there is a need to access how businesses are adjusting to this change.This research investigates the process of change and to examine in more depth the nature of the changes in management control which comes together with the adoption of the new information technologies within small and medium enterprises.Most especially, acknowledging that management control change is a continuous organizational process rather than an outcome, the trajectory of which is shaped by a relentless interplay of several effects.This research aims to explore how the implementation of a new integrated information technology contributes to this process.
To solve this issue, the current research combines theoretical and empirical insights. After having reviewed the literature on the main topics and produced a theoretical understanding to highlight the nature of the preceding changes, the research focuses on illustrative case study concerning several small and medium enterprises in Sweden.
In the last few years some experimental, field and analytical research has explored the effects of the new ICT systems on management accounting and management accountant’s work (for example see: Fahy and Lynch, 1999; Maria, 2010; Maccarone, 2000; Booth et al., 2000; Caglio, 2003; Hyvönen, 2003, Scapens and Jazayery, 2003). Yet, these studies are mainly focused on management control, especially in SMEs: the effects of the adoption of the new integrated information technology (mainly enterprise resource planning systems – ERPs) are mostly studied within among organizations or large companies at least (Caglio, 2003, provides a longitudinal case study of a medium-sized company which explores the change in accountants’ expertise and role). On the other hand, there is an evidence that only large firms have experience of these technologies for a relatively long time period: few SMEs have adopted a new integrated information technology and majority of the implementation projects are still ongoing. This way I felt now is the right time to study these issues, as the physical developments in the firms can be observed.
The study aims to investigate the particular role played by the two-way relationship between Information system and management control. Through the obtained analysis and result from these SMEs,I will have had the opportunity to go into the nature of these processes of transformation and to explore them in more depth, and as a result, I would be able to develop an institutional framework to interpret how and why infomation system and management control change evolve across time.
1. Fahy MJ, Lynch R (1999) Enterprise Resource Planning (ERP) systems and strategic management accounting. Paper presented at the EAA 22nd Annual Congress, Bordeaux, France, 5–7 May.
2. Maccarone P (2000) The impact of ERPs on management accounting and control systems and the changing role of controllers. Paper presented at the EAA 23rd Annual Congress, Munich,Germany, 29–31 March.
3. Booth P,Matolcsy Z,Wieder B (2000) Integrated information systems (ERP-systems) and accounting practices – the Australian experience. Paper presented at the 3rd European Conference on Accounting Information Systems, Munich, Germany, 27–28 March.
4. Maria Pia Maraghini(2010), New Integrated Information Systems and Management Control Change in Small and Medium Enterprises.
5. Hyvönen T (2003) Management accounting and information systems: ERP versus BoB. Eur Account Rev 12(1):155–173.
6. Scapens RW, Jazavery M (2003) ERP systems and management accounting change: opportunitiesor impacts? A research note. Eur Account Rev 12(1):201–233.