An Evaluation of Contributions of Selected Organizational and Sociological Theories to Managerial Accounting Research

Abstract

Purpose: The drive of this research work was to evaluate selected organizational and sociological theories in regard to their contribution in management accounting research with the object of recognizing the gaps and areas for further study. Methodology: The study applied integrative review/critical review approach by relying on previous publications of which 28 publications were included in the study. Content analysis was used in data analysis. Findings: Contingency theory has received wider acceptance in the field of managerial accounting research. Its application has since been evidenced based on its contingent propositions which include; technology, organization structure, and the general operating environment of the organization. However, other studies suggested that contingency method has the look of being persuasive but momentary fashion and it is principally deceptive. That is, the exact and appropriate contingent elements have remained unclarified and thus the essence of in-depth theoretical, and realistic, consideration. Thus it provides a limited insight to organizational contingent factors. Moreover, Institutional theory as much as criticized of being political; it enables the organization to view itself holistically both from the angle of the task environment (technology, firm structure and work environment) and the external environment (political influences, public expectations, professional perspectives) implying management accounting programs implemented by the firm has to be in line with the social expectations of the company external clients. Resource dependency theory have highlighted on the role of governmental language, predominantly in budgeting procedures. Labour process theory has contributed toward management accounting in the sense that with the quest to shift from the old age production system to the contemporary company production; corporations required to appropriate profits. This could only be supported through employment of trained executives with knowledge in managerial accounting and book keeping. However the model has been disparaged on the foundation that its promoters believed on the adoption of the scientific approach which is simply but one aspect of the organizational view. Implications: The findings from the many empirical studies reviewed herein are therefore helpful in addressing the research objectives with supremacy that no single revision had done. This literature review is an outstanding way to expose gaps where more research work is necessary, and also being dire component of spawning original theoretic outlines and construction of conceptual ideas. Value of the Study: It contributes to management accounting research by evaluating the theories. Besides, it helped to suggest areas for further research plus offering recommendations based on the findings.