literature review of management accounting

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A structured literature review about the role of management accountants in sustainability accounting and reporting.

1. Introduction

2. research method.

• Write a literature review protocol;
• Define the questions that the literature review is setting out to answer;
• Determine the type of studies to include and carry out a comprehensive literature search;
• Measure article impact;
• Define an analytical framework;
• Establish literature review reliability;
• Test literature review validity;
• Code data using the developed framework;
• Develop insights and critique through dataset analysis;
• Develop future research paths and questions.

3. The Structured Literature Review

3.1. the literature review protocol, 3.2. the research questions, 3.3. type of studies and literature search, 3.4. publication impact, 3.5. the analytical framework, 3.6. the coding of the publications and its reliability, 3.7. the literature review validity, 4. findings, 4.1. author type, 4.2. location, 4.3. jurisdiction, 4.4. organizational focus, 4.5. research method, 4.6. sustainability definition, 4.7. sustainability accounting and reporting focus, 4.8. management accountants’ current involvement in sustainability accounting and reporting, 4.9. management accountants’ future/potential involvement in sustainability accounting and reporting, 4.10. management accountants’ role in sustainability accounting and reporting, 5. discussion, future research directions, and conclusions, 5.1. management accountants’ involvement in sustainability accounting and reporting, 5.2. the role of management accountants in sustainability accounting and reporting, 5.3. management accountants and the harmonization of sustainability information, 5.4. management accountants, sustainability and accounting education, author contributions, institutional review board statement, informed consent statement, data availability statement, conflicts of interest, appendix a. publications reviewed in chronological order.

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Share and Cite

Ascani, I.; Ciccola, R.; Chiucchi, M.S. A Structured Literature Review about the Role of Management Accountants in Sustainability Accounting and Reporting. Sustainability 2021 , 13 , 2357. https://doi.org/10.3390/su13042357

Ascani I, Ciccola R, Chiucchi MS. A Structured Literature Review about the Role of Management Accountants in Sustainability Accounting and Reporting. Sustainability . 2021; 13(4):2357. https://doi.org/10.3390/su13042357

Ascani, Ilenia, Roberta Ciccola, and Maria Serena Chiucchi. 2021. "A Structured Literature Review about the Role of Management Accountants in Sustainability Accounting and Reporting" Sustainability 13, no. 4: 2357. https://doi.org/10.3390/su13042357

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Strategic management accounting and performance implications: a literature review and research agenda

1 School of Management, Swansea University, Swansea, UK

Abdullah Promise Opute

2 GPROM Academic and Management Solutions, Paderborn, Germany

3 University of Wales Trinity Saint David, Lampeter, UK

Mohammad Mobarak Alsolmi

4 Jeddah City, Saudi Arabia

Associated Data

This study is based on the review of literature.

The important role that management accounting plays in driving organisational performance has been reiterated in the literature. In line with that importance, the call for more effort to enhance knowledge on strategic management accounting has increased over the years. Responding to that call, this study utilised a qualitative approach that involved a systematic review to synthesise existing literature towards understanding the strategic management accounting foundation, contingency factors, and organisational performance impact. Based on the evidence in reviewed literature, we flag key directions for advancing this theoretical premise towards providing further insights that would enable practitioners strategically align their strategic management accounting practices for optimal organisational performance. The limitations of this study have been acknowledged.

Introduction

Successful managerial decisions enable organisational profitability and accounting aids effective managerial decisions [ 75 ]. Aimed at optimising the decision-enabling substance of accounting, management was criticised in 1980s as being too focused on internal operational issues that offer little to management from the point of strategy formulation and sustaining competitive advantage (CIMA Report 1 ). Recognising the importance for a broader impact of accounting on managerial decision-making, Simmonds [ 82 , p. 26] introduced and defined strategic management accounting (SMA) as “the provision and analysis of management accounting data about a business and its competitors, for use in developing and monitoring business strategy” .

Subsequently there has been increasing efforts that stress the importance for organisations to embrace strategic management accounting theory towards boosting strategic decision-making and organisational performance (e.g. [ 4 , 8 , 9 , 17 , 23 , 53 , 58 , 86 , 90 , 48 ], amongst others). As rightly noted by Turner et al. [ 86 ], organisations that aim to enhance their competitiveness and performance, must not only develop but also “implement internal policies and procedures such as strategic management accounting that are consistent with their business strategies and account for changing competitive demands” (p. 33). Doing that will enable the strategic management accounting tool to be effectively used to drive corporate success. This is the underlying argument in this study.

The task of profitably satisfying customers is becoming more challenging [ 61 , 65 , 67 ]. Meeting that challenge requires that organisations recognise the importance for effective decision-making. Accountants play a significant role in enabling effective decision-making in organisations (e.g. [ 21 , 23 , 27 ]). Accounting information enables the organisation determine the going concern [ 6 , 36 ]. Accounting provides the management with relevant information for ensuring and sustaining growth and profitability. The strategic management accounting foundation emphasises that in order to fully fulfil its management decision-making enabling function, accounting practices must not only focus on the internal but also on the external components relating to the organisation's operations. In other words, accounting should embrace a much broader and market-oriented approach and focus on costing (e.g. [ 8 , 17 , 58 , 78 ]); planning, control and performance measurement (e.g. [ 17 , 58 ]), strategic decision-making (e.g. [ 8 , 58 ]), customer accounting (e.g. [ 58 , 86 ]) and competitor accounting (e.g. [ 17 , 58 , 86 ]).

Given the importance of strategic management accounting to effective management decision-making and corporate success, there remains a growing interest in understanding the topic. Little wonder therefore that the advocacy for more research towards a better understanding of what strategic management accounting practices organisations adopt and what motivates their preference for one technique over the other (e.g. [ 4 , 53 , 58 , 86 , 90 ]) remains current. While embracing strategic management accounting is a critical path for enabling effective managerial decision-making and boosting organisational performance (e.g. [ 3 , 9 , 58 ]), the enablement outcome of strategic management accounting practice would hinge on the effectiveness of the organisation in tailoring its strategic management accounting practices to its strategy and environment [ 9 , 11 , 58 ].

Following that contingency logic, this research is a response to the aforementioned call and the aim in this study is to contribute to strategic management accounting discourse by critically analysing the body of knowledge towards enhancing the understanding of how knowledge has evolved in this theoretical domain and also to contribute to knowledge by flagging directions for further knowledge development. To achieve the aim of this study, the theoretical focus in this study is premised along three questions:

• What strategic management accounting techniques can organisations use towards driving organisational performance?
• What factors would influence strategic management accounting techniques usage and performance association? and
• What future research gaps exist based on the explored literature?

Literature review

This study follows the theoretical foundation that strategic management accounting would aid effective management decision-making, and ultimately boost organisational performance. In line with the aim of this study, relevant literature is reviewed to explain the theoretical premise of this study. The literature review is organised along three core themes in strategic management accounting discourse, namely, strategic management accounting techniques, contingency factors of strategic management accounting usage, and the impact of strategic management accounting on organisational performance.

Strategic management accounting: definition and techniques

Management accounting is noted to involve the “generation, communication, and use of financial and non-financial information for managerial decision-making and control activities” ([ 28 ] p. 3). One major criticism of accounting in the 1980s relates to the fact that accountants have hardly taken a proactive role in the strategic management process [ 7 , 8 ]. According to Nixon and Burns [ 55 , p. 229], although strategic management has been variously defined, there is “broad consensus that the key activities are (1) development of a grand strategy, purpose or sense of direction, (2) formulation of strategic goals and plans to achieve them, (3) implementation of plans, and (4) monitoring, evaluation and corrective action”. The role of management accounting is to enable effective decision-making, and it involves typically information gathering and analysis, identifying options, implementation, monitoring and evaluation [ 16 ]. Thus, the focus in strategic management accounting, rephrased also as accounting for strategic positioning [ 73 , 74 ], is to embrace a broader approach that incorporates a strategic management focus into its dynamics towards effectively enabling management decision-making and organisational performance [ 8 , 80 ]).

Since the first attempt by Simmonds [ 82 , p. 26] who defined strategic management accounting as “the provision and analysis of management accounting data about a business and its competitors, for use in developing and monitoring business strategy” , there have been numerous attempts to enhance that definition and identify core techniques of strategic management accounting. For example, CIMA [ 16 ] describes strategic management accounting as a management accounting form that emphasises focusing on information relating to external factor of the entity and also on non-financial information as well as information that is generated internally. In a much earlier contribution, Bromwich [ 7 , p. 28] offers a description of strategic management accounting as involving “the provision and analysis of financial information on the organisation’s product markets and competitors’ costs and cost structures and the monitoring of the organisation’s strategies and those of its competitors in the market over a number of periods” (Cited in [ 56 , p. 14]).

In their 2008 study, Cadez and Guilding asked the question “what is strategic management accounting?” (p. 838). In that same study, they conclude, based on evidence from reviewed literature, that there are two perspectives of strategic management accounting. While one perspective focuses on strategically oriented accounting techniques, the other focuses on the actual involvement of accountants in the strategic decision-making process. Following the former perspective (e.g. [ 8 , 9 , 17 , 58 ]), existing literature distils sixteen (16) strategic management accounting techniques that are categorised under five SMA themes (e.g. [ 9 , 11 , 58 ]):

• Strategic costing;
• Strategic planning, control and performance measurement;
• Strategic decision-making;
• Competitor accounting; and
• Customer accounting.

Strategic costing

According to literature (e.g. [ 8 , 11 , 23 ]), strategic and marketing information-based cost data can be leveraged by organisations to ensure effective strategies for achieving sustainable competitive advantage. Thus, organisations must recognise the importance of integrating cost strategies and undertake multiple strategic cost analyses. Literature distils five key costing techniques: attribute costing (e.g. Roslender and Hart 2003), life-cycle costing (e.g. [ 8 , 17 ]), quality costing (e.g. [ 17 ]), target costing (e.g. [ 8 , 17 ]) and value chain costing (e.g. [ 8 ]).

Strategic planning, control and performance measurement

Literature has also underlined the need for organisations to give due attention to planning, control and performance measurement features of the strategic management accounting, as doing that is important in the pro-active market orientation approach for competing effectively in the marketplace (e.g. [ 8 , 58 ], Chenhall 2005). Core components under the strategic planning, control and performance measurement tool includes benchmarking (e.g. [ 8 , 17 ]) and integrated performance management (Balanced Scorecard) (e.g. [ 8 , 17 ]).

Strategic decision-making

As a strategic management accounting tool, strategic decision-making is a critical tool for supporting strategic choice [ 11 ]. Core strategic decision-making options include strategic costing (e.g. [ 58 ]), strategic pricing (e.g. [ 11 , 58 ]) and brand valuation (e.g. [ 11 , 58 ]).

The importance of addressing strategic costing as a key strategic decision-making element has been emphasised in the literature (e.g. [ 58 , 78 , 79 ]). In this discourse, it is underlined that effectively driving competitive advantage requires cost analysis that explicitly considers strategic issues. In line with that viewpoint, Cadez and Guilding [ 8 ] note that strategic costing involves “the use of cost data based on strategic and marketing information to develop and identify superior strategies that will produce a sustainable competitive advantage” (p. 27).

In the literature too, strategic pricing is underlined as another core element the strategic decision-making typology of strategic management accounting (e.g. [ 8 , 58 ], Simmonds 1982). According to scholars, understanding market competition level, which as noted by Guilding et al. [ 29 , p. 120] entails the appraisal of the following factors: “competitor price reaction, price elasticity; projected market growth; and economies of scale and experience”, is important (e.g. [ 8 , 11 , 58 ]).

Within the strategic management accounting literature, brand valuation is the third element of the strategic decision-making technique. The brand valuation component “involves combining projected brand earnings (an accounting-orientated measure) with a multiple derived from the brand’s strength on strategic factors such as the nature of the brand’s market, its position in that market and its level of marketing support” [ 29 , p. 118]. In the view of Cescon et al. [ 11 ], brand valuation enables organisations to understand market reputation trends over time and potential implications for marketing executives and strategic accounting. Cescon et al. [ 11 ] contend that organisations would achieve a variable brand valuation that would provide a potential measure of marketing achievement when perceived quality and branded products are considered, while Guilding et al. [ 29 ] remind that achievable impact of brand valuation would hinge, amongst others, on the valuation method used.

Competitor accounting

According to Porter [ 72 ], strategy involves developing appropriate tools that enable a firm to analyse and determine its position in a competitive market. Thus, a firm selects suitable strategies that enables it compete more effectively over its rivals. To effectively do that, a firm needs to collect competitor accounting information. The importance of giving due attention to competitor accounting has been underlined in the literature (e.g. [ 11 , 17 , 58 ]). Three forms of competitor accounting tools are described in the literature, namely, competitor cost assessment (e.g. [ 11 , 17 , 58 ]), competitor position monitoring (e.g. [ 11 , 58 ]) and competitor performance appraisal (e.g. [ 11 , 17 , 58 ]).

Customer accounting

The fifth cluster of strategic management accounting techniques described in the literature relates to customer accounting (e.g. [ 49 , 58 ]). Customer accounting concerns practices aimed at appraising profit, sales or costs related to customers or customer segments [ 58 ]. Core customer accounting techniques include customer profitability analysis (e.g. [ 30 , 58 ]), lifetime customer profitability analysis (e.g. [ 58 ]) and valuation of customers as assets (e.g. [ 30 , 58 ]).

The contingency factors of strategic management accounting

According to management accounting discourse, when organisations carefully embrace appropriate strategic management accounting practices, they would ensure successful managerial decisions that would ultimately lead to optimising organisational performance (e.g. [ 48 , 53 , 56 , 58 ]). Thus, the extent of improved performance that an organisation would achieve would depend on its careful utilisation of appropriate strategic management techniques. As noted by Roslender and Hart (2003), p. 4 and further supported by subsequent literature (e.g. [ 34 , 58 ]), “the adoption of strategically oriented management accounting techniques and accountants’ participation in strategic management processes”, is a core research premise. In line with the carefulness notion mentioned above, the contingency perspective has been widely utilised in the effort to understand strategic management accounting practices and performance impact (e.g. [ 8 , 12 , 30 , 34 , 58 ]). The underlying foundation in the contingency perspective is based on the notion “that an organisation maximises its efficiency by matching between structure and environment” [ 22 , p. 49]. According to Otley [ 68 ]:

The contingency approach to management is based on the premise that there is no universally appropriate accounting system that applies equally to all organisations in all circumstances. Rather, it is suggested that particular features of an appropriate accounting system will depend on the specific circumstances in which an organisation finds itself. Thus, a contingency theory must identify specific aspects of an accounting system which are associated with certain defined circumstances and demonstrate an appropriate matching (p. 413).

Thus, the central foundation in the contingency perspective is that no one single accounting system is universally fit for all organisation in all circumstances (e.g. [ 41 ]). No one accounting control system can be seen as “best” for all situations; rather, the appropriateness of any control system would depend on the organisation's ability to adapt effectively to the environment surrounding its operations [ 41 , 58 , 86 ].

From reviewed literature, numerous researchers have flagged key contingency factors that should be considered in relation to strategic management accounting practice. Four factors were identified as critical contingency factors in the strategic management accounting systems design in Cadez and Guilding's [ 8 ] study, namely: business strategy, strategy formulation pattern, market orientation and firm size. On their part, Islam and Hu [ 41 ] identify core organisational effectiveness factors to include technology, environmental volatility, organisational structure, information system and size of the organisation.

Analysed together, the conceptualisation in the aforementioned studies [ 8 , 41 ] reflect perspectives that have been recognised in the 1980s. For example, Merchant [ 50 ] describe contingency factors to include firm size, product diversity, extent of decentralisation and budgetary information use. In their study of accounting information systems, Gordon and Narayanan [ 26 ] classify three core contingency factors to include perceived environmental uncertainty, information characteristics and organisational structure. Based on a study that examined the extent to which accountants were involved in the strategic management process, CIMA 2 reports three key contingency factors: “organisational influences, accountant led influences and practicalities” (p. 12). Exploring strategic management accounting practices in the Palestinian context, Ojra [ 58 ] conceptualised a comprehensive contingency perspective that considered (1) organisational structure (involving formalisation and decentralisation), (2) organisational size, (3) technology and (4) organisational strategy. In more recent literature, Pavlatos [ 70 ] suggests seven factors that affect strategic management accounting usage in the hospitality industry (hotels) in Greece, namely, “perceived environmental uncertainty, structure, quality of information systems, organisational life cycle stage, historical performance, strategy and size” (p. 756).

The contingency framing in this study draws from the theoretical guideline which suggests that both the internal and external environments of organisations should be considered in the effort to advance strategic management accounting literature (e.g. [ 58 , 70 ]). The conceptual framing in this study includes two external (perceived environmental uncertainty—competitive intensity, and market turbulence) and three internal (organisational structure—formalisation, and decentralisation, and organisational strategy) factors.

Perceived environmental uncertainty and strategic management accounting usage

From the perceptual lens, the environment could be viewed as certain or uncertain only to the extent that decision makers perceive it to be (e.g. [ 1 , 11 ]). Perceived environmental uncertainty is described as the absence of information relating to organisations, activities and happenings in the environment [ 20 ]. According to Cescon et al. [ 11 ], organisations must give due attention to their operational environment because engaging with environmental uncertainty factors would enable them identify key change drivers.

Prior literature has documented that perceived uncertainty significantly influences the extent to which firms would embrace strategic management accounting practices (e.g. [ 49 , 58 , 70 ]). According to that foundation, how firms respond from the point of strategic management accounting practices that they would endorse would depend on the nature of environmental uncertainties that surround their operational activities.

Studying the hotel property setting, Pavlatos [ 70 ] documents a positive correlation between the degree of environmental uncertainty and the use of strategic management accounting tools. In other words, the higher the perceived environmental uncertainty, the higher the need for use of strategic management accounting tools. Intensified use of strategic management accounting tools is essential because that will enable the hotels to manage the uncertainties, and be more effective in managerial decision-making, and ultimately improves organisational performance [ 70 ]. The notion of a significant influence of environmental uncertainty on strategic management accounting practices is supported by prior literature (e.g. [ 15 ]). According to them, managers who operate in highly uncertain environments would require information that is timely, current and frequent. Other scholars have also argued that environmental uncertainty would be associated with more pro-active and externally focused accounting systems (e.g. [ 32 , 38 ]).

In their study of Italian manufacturing companies, Cescon et al. [ 11 ] found a positive association of perceived environmental uncertainty and strategic pricing usage as a feature of the strategic decision-making SMA technique. In other words, the more the perceived environmental uncertainty, the higher the usage of the strategic pricing feature of the strategic decision-making SMA component.

In the perceived environmental uncertainty literature, two core dimensions have been distilled, namely competitive intensity and market turbulence (e.g. [ 30 , 58 ]). Market turbulence—a subset of environmental turbulence [ 47 ], is defined by Calantone et al. [ 10 ] as characterised by continuous changes in customers’ preference/demands, in price/cost structures and in the composition of competitors. In settings where there is high market turbulence, organizations would need to modify their products and approaches to the market more frequently [ 44 ]. On the other hand, the notion of competitive intensity relates to the logic that organisations compete for numerous resources, such as raw materials, selling and distribution channels, as well as quality, variety and price of products [ 26 , 46 ]. Achieving organisation-environment alignment in highly competitive environments requires that organisations have the capacity to effectively detect environmental signals and timely communicate environmental information (e.g. [ 88 ]).

Exploring Australian hospitality industry, McManus [ 49 ] examined the association of competition intensity and perceived environmental uncertainty on customer accounting techniques usage. The study suggests that competition intensity positively associates with customer accounting practices but also found that higher perceived environmental uncertainty would not lead to greater usage of customer accounting techniques in the explored hotels. In a much similar conceptualisation, Cescon et al. [ 11 ] examined the association of environmental uncertainty and competitive forces on strategic management accounting techniques usage in large Italian manufacturing firms. Empirically, that study found that external factors (environmental uncertainty and competitive forces) positively associate with SMA usage (strategic pricing, balanced scorecard, risk analysis, target costing, life-cycle costing). Based on the two-dimensional conceptualisation, Ojra [ 58 ] examined the relationship between perceived environmental uncertainty and SMA usage in Palestinian firms. Ojra [ 58 ] hypothesised a positive correlation of perceived environmental uncertainty (conceptualised to include competition intensity and market turbulence) but found no support. To the contrary, Ojra [ 58 ] documents a potential for negative influence of perceived environmental uncertainty on strategic management accounting techniques usage, however only significant for the market turbulence dimension. In other words, Ojra [ 58 ] suggests that market turbulence associates negatively with strategic management accounting techniques usage in medium Palestine firms.

Organisational structure (formalisation) and strategic management accounting usage

Across the various streams of management, formalisation has been mentioned as a key contingency factor in understanding the operational dynamics of organisations (e.g. [ 58 , 63 , 64 ]). With regard to strategic management accounting discourse, this notion has been numerously supported (e.g. [ 26 , 58 , 85 ]).

Studying the influence of formalisation in the functional relationship between the accounting and marketing departments, Opute et al. [ 64 ] suggest a positive association. In other words, they argue that the more formalised the processes in the firm, the higher the achieved integration between both functional areas. However, Opute et al. [ 64 ] note that whether this positive association is achieved would depend on the integration component (information sharing, unified effort and involvement) considered.

In the strategic management accounting domain, there is mixed evidence of the association of organisational structure on strategic management accounting usage. For example, Ojra [ 58 ] hypothesised that less formalised organisational structure would lead to higher use of strategic management accounting techniques in Palestinian firms but found no support for that hypothesis. In that study, no support was found for the notion that less formalised structures would lead to higher use of strategic management accounting techniques, both for total SMA as well as for all the dimensions of SMA. Thus, that study concludes that formalisation has no significant influence on strategic management accounting techniques usage in Palestinian firms. That conclusion supports the findings in Gordon and Narayanan [ 26 ], but contrast the view in Tuan Mat’s [ 85 ] exploration of management accounting practices.

Organisational structure (decentralisation) and strategic management accounting usage

Similar to formalisation, management scholars have noted decentralisation as a core organisational structure factor that should be given due attention in the drive to enhance the understanding of contingency theory (e.g. [ 58 , 62 , 63 ]). Organisational structure has been noted to influence the strategic management accounting practices of a firm (e.g. [ 58 , 70 ]). Within that foundation, decentralisation (or its opposite) has been flagged as a major factor. A contention that has been underlined numerously in the discourse is that strategic management accounting usage would be higher in organisations that embrace decentralised structure. Following that foundation, Pavlatos [ 70 ] hypothesised that SMA usage is higher in decentralised hotels than in centralised hotels in Greece. The results support the hypothesis: there is higher need for strategic management accounting practices in decentralised firms, as lower-level managers require more information to aid decision-making.

The above conclusion supports as well as contrasts prior literature, namely Chenhall [ 14 ] and Verbeeten [ 87 ], respectively. According to Chenhall [ 14 , p. 525], “strategic management accounting has characteristics related to aspects of horizontal organisation as they aim to connect strategy to the value chain and link activities across the organisation…”. Chenhall [ 14 ] adds that a typical approach in horizontal organisation is identifying customer-oriented strategic priorities and then exploiting process efficiency, continuous improvements, flattened structures and team empowerment, to initiate change, a conclusion that suggests that higher use of strategic management accounting practices would seem ideal in such decentralised organisational structure. The reason for that outcome is that in decentralised structure, lower-level managers can adapt their MACS as necessary to meet requirements [ 52 ], a logic that finds support in McManus [ 49 ] who found that customer accounting usage is higher in Australian hotels that are decentralised than those that are centralised. In contrast to that logic, Verbeeten [ 87 ] found decentralisation to associate negatively with major changes in the decision-influencing components of MACS.

Insight about the less developed context, namely about Palestinian firms lend support to, as well as contrast past literature. According to Ojra [ 58 ], decentralisation has a tendency to associate negatively with strategic management accounting usage. Therefore, although statistically insignificant, the results indicate that explored Palestinian firms that endorse decentralised decision-making process would seemingly have lesser need for strategic management accounting practices. On the evidence that decentralisation may have a negative influence on strategic management accounting usage, Ojra [ 58 ] supports Verbeeten [ 87 ] but contrasts Pavlatos [ 70 ].

Organisational strategy and strategic management accounting usage

An internal organisational factor that has been considered important in the understanding of contingency perspective of management accounting relates to organisational strategy (e.g. [ 8 , 17 , 58 ]). Hambrick [ 33 ] defined strategy as:

A pattern of important decisions that guides the organisation in its relationship with its environment; affects the internal structure and processes of the organisation; and centrally affects the organisation’s performance (p.567).

In the strategic management accounting discourse, organisational strategy has been mentioned as one of the key factors that would condition strategic management accounting practices of a firm (e.g. [ 9 , 58 , 70 , 86 ]). For example, Turner et al. [ 86 ] note that in hotel property setting, strategic management accounting use would hinge on the market orientation business strategy of the firm. Given the notion that strategic management accounting would aid management decision-making and lead ultimately to improved organisational performance, there is some legitimacy in expecting that organisations that align their strategic management accounting practices to the strategic orientation of the firm would achieve a higher organisational performance.

Following Miles and Snow’s [ 51 ] strategy typology (prospector, defender, analyser, and reactor), efforts to understand the association of strategy to strategic management accounting tools usage have also tried to understand how the various strategy typologies play out in this association. For example, Cadez and Guilding [ 9 ] considered the prospector, defender and analyser typologies in the Slovenian context, while Ojra [ 58 ] considered the prospector and defender typologies in the Palestinian contexts.

Cadez and Guilding [ 9 ] report that companies that endorse the analyser strategy, which is a deliberate strategy formulation approach, are not highly market oriented, but tend to show high usage of SMA techniques, except for competitor accounting technique. Further, they report that prospector strategy-oriented companies also pursue a deliberate strategy formulation approach, but are highly market oriented, and SMA techniques usage is fairly high (for competitor accounting) and averagely high (for strategic costing). For very high prospector-oriented companies, they are highly market oriented, have a strong strategy drive and a very high SMA techniques usage. For the defender strategy-type companies, they suggest that such companies are not only average in their market orientation, but also in their usage of SMA techniques.

In the study of Palestinian companies, Ojra [ 58 ] offers insights that resonate relatively with the findings in Cadez and Guilding [ 9 ]. Ojra [ 58 ] suggests that prospector companies have a higher usage of SMA techniques than defender-type companies. So, SMA technique usage is positively associated to prospector strategy (see also [ 8 ]. Elaborating the findings, Ojra [ 58 ] reports that prospector-type companies focused more on four SMA techniques (mean values reported), namely SMAU-Planning, Control and Performance Measurement (4.601), SMAU-Strategic Decision Making (4.712), SMAU-Competitor Accounting (4.689) and SMAU-Customer Accounting (4.734), statistical results that are significantly higher than the results for 'defender'-type companies. Cinquini and Tenucci [ 17 ] lend support to Ojra [ 58 ]: 'defender'-type companies give more attention to the Costing dimension of SMA.

Without emphasising the strategy typologies, Pavlakos (2015) comments that organisational strategy affects SMA usage in the Greek hotel industry.

Strategic management accounting and organisational performance

A central tenet in the strategic management accounting foundation is that management accounting would significantly aid organisations to achieve sustained competitiveness [ 7 , 82 ]. Implicitly, these scholars argue that in order to stay competitive in the marketplace, organisations should not only focus on cost-volume-profit issues, but rather embrace a broad externally focused management accounting approach that is strategically driven and provides financial information that enables management to effectively formulate and monitor the organisation's strategy. Thus, management accounting should also focus on competitor information as that will enable management effectively organise the firm's strategic structure.

Over the years, there is growing recognition of the importance of strategic management accounting to organisations, leading therefore to increasing research attention. One area that has received attention in the strategic management accounting discourse relates to the organisational performance enhancement notion (e.g. [ 23 , 56 , 58 , 77 , 86 ]).

Insights from Malaysia also add to the discourse on the impact of strategic management accounting usage on organisational performance. In their study of Malaysian electrical and electronic firms, Noordin et al. [ 56 ] examined the extent of usage of strategic management accounting and influence on the performance of the participating firms. The study found that in explored Malaysian companies, the extent of strategic management accounting usage was significantly related to organisation’s performance. That conclusion supports Cadez and Guilding [ 8 ] who contend that there is a positive association between strategic management accounting usage and organisational performance.

In a performance perspective that considers the ISO 9000 Quality Management System (QMS) aspect, Sedevich-Fons [ 77 ] examined the connection between strategic management accounting and quality management systems performance. The findings show that strategic management accounting and quality management are complementary and their effective implementation would enhance overall performance. Sedevich-Fons [ 77 ] notes further that when both are used in conjunction that would spread SMA techniques and enable full exploitation of Quality Management Systems.

Insights from the less developed economy context also associate organisational performance to the implementation of strategic management accounting practices (e.g. [ 3 , 57 , 58 ]). In a conceptual approach that aimed to address one major gap in previous literature, Ojra [ 58 ] examined both the financial and non-financial dimensions of organisational performance. According to Ojra [ 58 ], strategic management accounting usage does not impact the financial dimension of organisational performance but exerts significant positive impact on non-financial performance. That finding resonates with Perera et al. [ 71 ] conclusion that various forms of management accounting associate positively with the use of non-financial measures.

On their part, Oboh and Ajibolade [ 57 ], in their investigation of the association between strategic management accounting practices and strategic decision-making in Nigerian banks, found that explored Nigerian banks “practice SMA not as a concept, but as a principle of operation, and that SMA contributes significantly to strategic decision-making in the area of competitive advantage and increased market share” (p.119).

Alabdullah [ 3 ] offers evidence that adds support to the insights in the aforementioned studies [ 57 , 58 ]. In a study that explored the Jordanian service sector, Alabdullah [ 3 ] found that strategic management accounting enables performance in the service sector in Jordan. If strategic management accounting is effectively implemented, that will enable optimal strategic decision-making and ultimately improve organisational performance.

Research methodology

Research design.

Qualitative research method [ 18 , 76 ] is used in this study to achieve the objectives of this research. Following the methodological approach, as well as responding to the research call, in a past study on the contingency perspective of strategic management accounting [ 41 ], a study which was literature review-based, literature review-based qualitative research approach was deemed fit in this study.

A systematic review approach (e.g. [ 5 , 39 , 81 ]) is used in this research on the topic of strategic management accounting. Using the systematic review approach in this study is appropriate because it enables a systematic and transparent approach in identifying, selecting, and evaluating relevant published literature on a specific topic or question [ 42 , 83 ]. Furthermore, systematic review approach was deemed appropriate for this study as it has been documented to aid core research gaps identification and steering future research (e.g. [ 40 , 59 , 66 ]).

Alves et al. [ 5 ] forward a two-stage guideline for systematic review of literature: planning the review and conducting the review and analysis. As they noted, researchers should describe how the systematic approach was planned (in the former) and also describe the phases of the review and selection of literature (in the latter). In this research, effort was made to combine the best evidence: careful planning was used to determine literatures for inclusion or exclusion (e.g. [ 5 , 65 , 67 ]). The planning was focused at identifying relevant publications in various academic journals on the topic of strategic management accounting. First, the theoretical themes to be considered in the conceptual premise of this study were confirmed and academic resource for tracking relevant publications determined [ 5 , 66 , 83 ].

In the preliminary stage of the literature review, electronic search was carried out to identify relevant literature relating to strategic management accounting. Three steps were taken in the systematic review: we searched the literature, analysed and synthesised the literature, and wrote the review. Several databases were scanned using key search terms to capture relevant literature [ 81 ]. Core search terms were used, such as strategic management accounting, historical aspects of strategic management accounting, contingencies of strategic management accounting practices, strategic management accounting and organisational strategy, strategic management accounting and organisational performance, amongst others. Relevant publications were also found using data extraction tools such as Google Scholar, Emerald Insight and Research Gate.

Using the aforementioned methodological approach, a collection of relevant articles published in academic journals was identified. Identifying the relevant literature in this study followed methodological guideline [ 69 ]: criteria of language, relevance and type of research to identify relevant studies were embraced, and articles that contained non-English contents and also articles that did not fit closely to the thematic premise of this study were excluded. It is important to emphasise here that this study recognises that not all publications relating to the topic of strategic management accounting may have been considered in this research. However, for the scope of this piece of research, the body of literature covered in this study was deemed adequate for the conceptual framing.

Table ​ Table1 1 shows a sample of selected literature covered in this piece of research, pinpointing clearly the focus, context of the studies and findings from the studies.

A sample of selected studies reviewed in this research

Content analysis in this study followed the inductive lens [ 84 ]. This involved thorough reading of the selected studies to capture the state of knowledge in the domain of this study (e.g. [ 65 ]). To ensure that knowledge is captured accurately, an iterative approach that involved reading the text back and forth was used (e.g. [ 65 ]). Analysing the relevant literature, we focused on identifying the core thematic threads in the discourse (see Table ​ Table1) 1 ) in each selected paper. In concordance with the central aim of this review, data abstracted were in the form, effect and findings, and conceptualisation of ideas or theoretical perspectives [ 83 ]

The analysis

The interpretive approach of analysis was followed in processing the qualitative data to achieve reliable meaning in this study (e.g. [ 59 , 65 , 67 , 84 ]). Following that precedence, an iterative approach that involved reading reviewed literature back and forth, was used in this study. Using that approach, a synthesis of literature was undertaken to capture the core threads, debates and themes in the literature (e.g. [ 65 , 67 ]). Guided also by that methodological approach, relevant directions for future research have been flagged towards enhancing the knowledge about strategic management accounting and performance association.

Subjectivity is a major concern in qualitative researches (e.g. [ 18 , 76 ]). To address that concern, steps taken in this research to validate the articles incorporated into this research include rigor of conduct and strength of evidence by cross-referencing, as well as undertaking a duplicate check (e.g. [ 76 , 81 ]).

The findings

Prompted by the central threads that emerged from the analysis of the selected literature, the findings from this study are organised along three core themes: strategic management accounting techniques, contingencies of strategic management accounting techniques usage and the organisational performance implications of strategic management accounting usage.

The importance of management accounting, and in particular the strategic management accounting element as a tool for enabling top management to make effective decisions that enable organisation compete effectively in the marketplace, is gaining increasing mention in management discourse. In that discourse, five core categorisations of SMA techniques: strategic costing; strategic planning, control and performance measurement; strategic decision-making; competitor accounting; and customer accounting. While literature distils numerous forms of strategic management accounting techniques that organisations may embrace towards enabling effective management decision-making and organisational performance, evidence was found in reviewed literature that in some organisations, practitioners do not believe that strategic management accounting as a separate concept is a notion they subscribe to (e.g. CIMA 3 ; [ 48 , 55 ]). For example, CIMA 4 documents that participants unanimously do not subscribe to the notion, a conclusion which lends support to prior literature [ 48 , 55 ] that notes that strategic management accounting as a term, did not exist in the lexicon of accounting practitioners.

Grounded on the substance that effective use of the SMA techniques would improve organisational performance, immense research effort has focused on how organisations can effectively align the SMA usage towards achieving desired performance improvement. Premised in that theoretical domain, this study examined existing literature on the contingency factors of competitive intensity, market turbulence, formalisation, decentralisation and organisational strategy and SMA usage. Cumulative evidence obtained from the review of literature reinforces the need for organisations to pay particular attention to their operational environment in their use of SMA techniques. Reinforcing the fit principle, the cummulative evidence underlines that optimising the benefits of the strategic management accounting techniques in enabling effective customer orientation and boosting organisational performance is dependent on the organisation's ability to effectively align strategic management accounting practices to its operational environment. In other words, what works for an organisation would depend on the organisational dynamics, internal, as well as external. For example, formalisation may work for some but not for some, as decentralisation could work for some but not for some. Similarly, the utility of SMA techniques would hinge on the competitive intensity and market turbulence features of an organisation. Thus, aligning SMA practices to the internal and external features of an organisation is essential to enable them adapt effectively to their circumstances, make rational decisions and optimise their performance. So, alignment is critical because there is no one-size fits all approach for achieving customer orientation and organisational performance goals.

The third focal point of this study relates to the association of SMA techniques usage to organisational performance. Reviewed literature shows that organisations are achieving higher performance through the use of SMA techniques. In other words, effective use of SMA techniques would improve organisational performance. The plausibility in that performance outcome lies in the fact that organisations are able to utilise appropriate SMA measures to ensure effective, customer, competitor, strategic decision-making, costing, and planning and control orientation in their operational activities. Further on the performance point, literature also suggests that management control systems (MCS)–performance relationship is mediated by business strategy (e.g. [ 2 ]). Also, that study documents that the impacts (both indirect and total) of MCS on performance are stronger for family businesses than non-family businesses.

Conclusions

Conclusions and implications.

One of the major challenges that organisations are facing in today's dynamic marketplace is to steer their organisations in a way that they can stay competitive. In the contemporary world, where globalisation and technological evolution have expanded the options that customers have (e.g. [ 31 , 61 , 65 , 67 ]), organisations must strive hard to win the loyalty of customers. For organisations wishing to achieve that, strategic management accounting practices offer a strategic pathway. Organisations must embrace strategic management accounting practices that would enable them understand the market, their competitors, and the customers and leverage the intelligence from that knowledge to organise their operations towards profitably satisfying the customer. To effectively do that, organisations must avoid the mistake of focusing only on the internal issues; rather, their effort must be tailored towards embracing strategic management accounting practices that would enable them to be fully informed of the market trends, customer dynamics and competitor trends. Thus, organisations must ensure that good costing, planning, control and performance measurement; strategic decision-making, customer accounting and competitor accounting measures are embraced to enable them compete effectively.

Furthermore, in that drive to compete effectively in the market and profitably satisfy customers, organisations would not only need to embrace appropriate strategic management accounting techniques but also do that bearing in mind the environments that surround the operational activities. In other words, organisations must give due attention to the contingencies of their operational setting. Organisations must ensure a good blend of critical factors that would enable their optimal operation. Due attention must be given to organisational structure (centralisation or decentralisation of decision-making process), external environment (dynamism and turbulence), technological development, strategic approach, size of the organisation, amongst others. Doing that is critical for corporate success because there is no one size fits all approach—the outcome achieved would depend significantly on the dynamics surrounding the operational activities of the firm.

Thirty-three months on after Covid 19 was documented, 5 the pandemic is still ever present and has remained a daunting global challenge. Competing effectively in the dynamic marketplace is a major challenge for organisations, and with the Corona pandemic exerting unprecedent effects on organisations globally, most organisations are facing a more daunting challenge to survive (e.g. [ 65 , 67 ]). Organisations must strive to strategically orientate their management accounting practices to enable them find ways to effectively navigate the daunting challenges they face in this Corona era.

Implications of this study

The implications of this study are organised along managerial and theoretical implications.

Managerial Implications —Managers are reminded that optimal use of strategic management accounting techniques would boost organisational performance. Achieving high levels of organisational performance would however hinge on an organisation's ability to effectively align its SMA techniques usage to its internal and external dynamics. In other words, managers must bear in mind that there is no one-size fits all approach; therefore, they should endorse SMA techniques usage that fits their operational dynamics.

Theoretical Implications —In line with the central objective of this paper to sensitise the need for enhancing the understanding of the contingency perspective of strategic management accounting, the theoretical implications of this study are tailored towards specifying core gaps in the reviewed literature.

Overall, evidence from reviewed literature underlines the criticality of SMA techniques usage to organisational performance. Thus, if organisations strategically align SMA techniques usage to their operational setting, this would positively impact organisational performance. Within the goal of enhancing the literature on how to optimise the performance impact, much gaps still exist from the point off illuminating how differences in marketing and national culture differentiate SMA acceptance, usage, contingencies and performance impact.

Finally, on the point of performance, reviewed literature documents an obvious gap in the literature from the point of illuminating SMA techniques usage impact along the performance dimensions. As noted by Ojra [ 58 ], for some societies (especially ones that are Islamic cultured), non-financial performance is of central importance. Theoretical development from the point of SMA techniques usage, contingencies and non-financial performance impact is scanty.

Limitations of the study

Based on systematic review approach, this study aimed to drive further knowledge development on the contingency perspective of strategic management accounting, drawing on the evidence from reviewed literature to understand the core debates in the literature and pinpoint directions for future research. Two core limitations of this research relate to the conceptual framework and volume of literature reviewed.

The conceptual framing of this study embraced only three themes in the SMA discourse, namely perceived environmental uncertainty, organisational structure and organisational strategy. Elaborated, the contingency premise considered in this study relates to perceived environmental uncertainty (competitive intensity, and market turbulence), organisational structure (formalisation and decentralisation), and organisational strategy. This study recognises that there are other contingencies of strategic management accounting practices that have not been included in the conceptual framing of this study.

To capture the central debates in the SMA discourse, extant literature was reviewed. It is however important to acknowledge that this study may have ignored some literature relevant to the conceptual premise of this study. Finally, although efforts were made by the researchers to ensure validity in this research by adopting an analytical approach that involved thorough reading of literature to ensure valid meaning in the interpretation, it must be reminded that subjectivity is a concern in every qualitative research.

Future research directions

In explaining the theoretical implications of this study, core gaps in the literature were underlined (Section “ Implications of this study ”), while the limitations of this study were acknowledged in Section “ Limitations of the study ”. Building on these, this Section “ Future research directions ” extends the contribution of this study by specifying core directions for further knowledge development on the contingency perspective of strategic management accounting.

No doubt, this study has limitations, amongst which are the conceptual framework and the literature review scope. In their study, Naranjo-Gil et al. [ 54 , p. 688] note that “future research is needed to examine other factors to add a more comprehensive view of management accounting”. Given the conceptual limitation of this study, this study reinforces the research call by Naranjo-Gil et al. [ 54 ]. Future research could expand the work done in this research and knowledge development by incorporating contingency factors that have not been considered in the conceptual framing of this study. More research is required in that regard, both from the point of a systematic literature review approach, as well as from the point of empirical investigations that seek to illuminate the contextual (industrial sectors and geographical settings) differentiators to the contingency impacts on the use of strategic management accounting techniques.

Furthermore, more research effort is required from the point of gaining deeper understanding of the various strategic management accounting techniques. Marketing dynamics (e.g. [ 62 ]) and national culture [ 35 , 60 ] differ from one setting to another, therefore exploring the nature of strategic management accounting techniques that organisations endorse and why are core premises for research.

As flagged in the findings, there is a growing support of the notion that accounting practitioners do not subscribe to the use of the term strategic management accounting (e.g. CIMA 6 ; [ 48 , 55 ]). Further research could help to shed more light not only on why practitioners may not subscribe to the use of the term strategic management accounting, but also on the understanding of how practitioners would prefer to describe the management accounting practices that they embrace, and also why the specific practices are prioritised.

Furthermore, on the point of the content of strategic management accounting, researchers have also noted that not much effort is given to highlighting clearly the accounting information that organisations should give much attention to towards boosting organisational performance (e.g. [ 53 , 89 ]). Future research should aim to fill this gap. Doing that is critical to fully optimising the performance benefits of strategic management accounting [ 56 ].

Reviewed literature has documented that the extent to which strategic management accounting practices would aid management decision-making and organisational performance would depend on the contingency dynamics of the organisation (e.g. [ 11 , 58 ]). Understanding the contingency premise of strategic management accounting utility in driving effective management decision-making and organisational performance is a critical research premise, and future research should aim to shed more light on that. No one size fits all approach that works for all organisations in all contexts. Therefore, future research should seek to enhance the 'fit' foundation of strategic management accounting relevance and performance outcome. In that regard, future research should seek to illuminate further how perceived environmental uncertainty, decentralisation, formalisation, strategy and other contingency factors not considered in this study, would influence strategic management accounting techniques usage and organisational performance impact. In the particular case of perceived environmental uncertainty, more research is not only required from the point of understanding the influence of the construct, but also clarifying the competitive intensity and market turbulence associations.

An insight that emerged from the reviewed literature relates to the fact that majority of efforts to improve strategic management accounting discourse have considered mainly financial aspects of organisational performance (e.g. [ 58 , 86 ]). Focusing only on financial performance is inadequate as the customer perspective of performance is neglected [ 45 , 58 ]. The importance of focusing on customer performance has been re-echoed in further literature: organisational-level customer satisfaction associates positively to financial performance (e.g. [ 24 , 86 ]), and customer performance enables business strategy and an organisation's ability to deliver value to its shareholders as well as customers [ 25 ]. Supporting prior research (e.g. [ 49 , 58 , 86 ]), this study underlines the need for more studies that illuminate non-financial performance aspects and strategic management accounting association.

Finally, the Corona pandemic, which remains a global crisis, has exerted unprecedent global economic damage. Organisations are facing daunting challenges as a result of the Corona pandemic and are still seeking ways to successfully navigate these challenges. Future research should illuminate what strategic management accounting practices organisations are endorsing in the effort to effectively navigate the Corona-crisis-induced challenges.

Acknowledgements

Not applicable.

Abbreviations

Authors’ contributions

OJ—the lead author—has made substantial contributions in the design of this study, in the design of the methodological approach and analysis of data, as well as in writing up the conclusions for this study. OA—the corresponding author—has made substantial contributions in the design of this study, the review of literature, the methodological approach and analysis of data, as well as in writing up the conclusions for this study. AM has contributed substantially to the design of this study, review of literature, methodological approach, as well as in writing up the conclusions for this study. All authors read and approved the final manuscript.

No external funding was obtained.

Availability of data and materials

Declarations.

There are no competing interests.

1 Management Accounting in support of the strategic management process. https://www.cimaglobal.com/Documents/Thought_leadership_docs/Management%20and%20financial%20accounting/Academic-Research-Report-Strategic-Management-Process.pdf .

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5 January 9—WHO Announces Mysterious Coronavirus-Related Pneumonia in Wuhan, China.

6 Management Accounting in support of the strategic management process. https://www.cimaglobal.com/Documents/Thought_leadership_docs/Management%20and%20financial%20accounting/Academic-Research-Report-Strategic-Management-Process.pdf .

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Exploring the interface between management accounting and marketing: a literature review of customer accounting

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• Published: 17 April 2020
• Volume 31 , pages 157–208, ( 2020 )

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• Kohsuke Matsuoka   ORCID: orcid.org/0000-0003-3486-3632 1  

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The availability of customer data has been enhanced in the digital economy, which can be used to measure the performance of marketing activities. Accounting techniques using customer data are collectively called customer accounting (CA). To seek the interface between management accounting and marketing, this study first discusses the three accounting weaknesses (the lack of revenue milepost information, revenue sustainability measurements, and intangibles capitalization) and relate them to marketing concepts (customer journey, customer acquisition and retention, and customer assets). Next, this study reviews literature on CA. Revenue accounting (RA), which focuses on revenue in an accounting period, and aims at the planning and control of marketing. Customer profitability analysis (CPA) has developed in the stream of strategic management accounting. The central focus of CPA is the allocation of selling, general and administrative expenses to individual customers through activity-based costing. Customer lifetime value and customer equity (CLV and CE) focus on the present value of cash flow from customer acquisition and retention. While RA and CPA respectively focus on revenues and costs in an accounting period, CLV and CE take cash flows in all future periods into consideration. Finally, links of each CA tool to the three marketing concepts are discussed to seek further development of CA.

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Although the proponents discuss RA in terms of both financial and management accounting, the following discussion focuses only on issues regarding management accounting.

Glover and Ijiri ( 2002 ) name their other candidate for their new accounting concept as customer accounting (p. 67). This name can capture a wider range of marketing activities, because it includes nonfinancial customer data. Glover and Ijiri, however, adopt the name of revenue accounting because they want to highlight the financial nature of their proposed accounting.

B-10. Although it is slightly beyond the scope of this study, resource allocation between customers or customer prioritization are also debated in marketing literatures as customer profitability and/or CLV are different among customers due to their heterogeneity. Homburg et al. ( 2008 ) show that offering differentiated marketing programs to top-tier customers (customer prioritization) improves customer profitability. Ryals ( 2005 ) and Balboni and Terho ( 2016 ) conducted case studies of customer strategies including customer divestment. Marketing programs for customer divestment, however, entail a risk of revenge from angry customers over the long-term (e.g., Haenel et al. 2019 ; Wagner et al. 2009 ).

Ijiri and Lin ( 2006 ) illustrate that a Markov chain model in RA can also be used to analyze an agency problem that a manager’s decision making aimed at the maximization of short-term profitability does not always lead to the best long-term profitability.

Although the proponents of RA do not explain clearly why they make this assumption, it is convincing. Ijiri (1999), for example, analyzes Amazon.com that spends most of its capital outlay in customer acquisition that results in losses.

Strategic cost management is another term used mainly in United States (e.g., Shank and Govindarajan 1993 ), but this study adopts strategic management accounting as a comprehensive term to explicitly incorporate RA.

Guilding et al. ( 2001 ) is an exception, because they show an illustrative case of customer revenues from multiple departments in the hotel industry.

Two papers are excluded from the table because they do not specify which costs are assigned to customers (Cambra-Fierro et al. 2018 ; Csikósová et al. 2016 ).

Bonacchi et al. ( 2015 ) is an accounting research that estimates CE based on public data, but it is published in Contemporary Accounting Research , which is not listed in Table 1

To analyze customer experience throughout the customer journey, qualitative tools such as text analysis would be useful, because it informs raw customer voices which cannot be understood through qualitative financial data (Roslender and Hart 2010 ; Boyce 2000 ).

Customer asset stock and flow statements are called CE stock and flow statements in the study of Wiesel et al. ( 2008 ) because they use the term CE as the total CLV of current customers.

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Matsuoka, K. Exploring the interface between management accounting and marketing: a literature review of customer accounting. J Manag Control 31 , 157–208 (2020). https://doi.org/10.1007/s00187-020-00299-9

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The Wisdom of Electronic Employee Crowds -Employee Reviews as a Data Source in Finance, Accounting, Economics and Management Research: Systematic Literature Review

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This study explores the wealth of information inherent in online employee reviews as an emerging resource in academic research. The focus is on the fields of finance, accounting, economics, and management, with an emphasis on how employee reviews contribute to our understanding of these areas. A systematic literature review of 74 high-quality articles highlights the diverse insights gleaned from employee reviews: insider perspectives, employee satisfaction, workplace culture insights, and linguistic analyses. Such information from employee insights is pivotal in explaining and predicting firm performance, predicting and understanding the performance and satisfaction of specific employee groups, and CSR-and ESG-related research. Significant findings of this study are the predominant use of Glassdoor as a data source and a focus on US markets. Moreover, employee review data are often linked to traditional finance and accounting databases to offer a multifaceted view of organizational dynamics. The study concludes by proposing five potential avenues for future research, paving the way for a deeper understanding of the interplay between employee reviews (information) and organizational dynamics.

Keywords: Employee reviews, employee satisfaction, job satisfaction, employer rating, employer rating platform, wisdom of crowds, alternative data

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What we know about management accountants’ changing identities and roles – a systematic literature review

Journal of Accounting & Organizational Change

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Academic interest in role changes of management accountants (MAs) has increased during the past two decades. Role changes imply identity reconstructions as they do not only require an external legitimacy, but professionals have to internalize a new role script. Thus, this paper aims to contribute to a comprehensive understanding of the ongoing changes concerning MAs by providing an identity perspective.

Design/methodology/approach

This paper systematically reviews the literature on the changing role of MAs from an identity perspective, based on a conclusive sample of 64 articles.

This review identified several external factors such as professional associations and educational institutions as well as organizational and individual factors that impact MAs’ identity and act as change drivers. MAs’ identity is linked with their image in the public and within the organization and is challenged by increasing demands, conflicting expectations and technological progress. Hence, the literature sample illustrates a fragmented and contradictory picture regarding the changes of MAs’ identities and roles and displays that the idea of a simple movement from one identity to another is misleading. Furthermore, the identity perspective offers new issues for management accounting research, practice and education such as nested identity, multiple or desired identities.

Originality/value

To the best of the authors’ knowledge, this study is the first to review the literature of MAs’ changing identities and roles from an identity perspective. This perspective enables a novel focus on internal views, perceptions and internalized meanings of MAs connected with their role instead of exclusively debating changed external behavior expectations.

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Wolf, T. , Kuttner, M. , Feldbauer-Durstmüller, B. and Mitter, C. (2020), "What we know about management accountants’ changing identities and roles – a systematic literature review", Journal of Accounting & Organizational Change , Vol. 16 No. 3, pp. 311-347. https://doi.org/10.1108/JAOC-02-2019-0025

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Copyright © 2020, Tanja Wolf, Michael Kuttner, Birgit Feldbauer-Durstmüller and Christine Mitter.

Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

1. Introduction

Various developments, such as advancing globalization, increasing worldwide business networking, novelties in information technology (IT), the growing influence of professional organizations, the academization of the profession and, above all, the intensive use of management accounting in business practice are responsible for continuous changes of management accounting. However, these developments affect not only management accounting but also its task carrier, the management accountant (MA). Nowadays, there is a lively scientific discourse about the MA; for instance, an extensive number of publications deal with the changing role of MAs from the so-called bean counter to the business partner ( Baldvinsdottir et al. , 2009 ; Byrne and Pierce, 2007 ; Järvenpää, 2007 ). When role changes are propagated, there is not only an external legitimacy needed, but the professionals have to internalize a new role script ( Goretzki et al. , 2013 ; Järvenpää, 2001 ; Windeck et al. , 2015 ; Yazdifar and Tsamenyi, 2005 ), which refers to the identity concept. Identities and roles can be considered as two sides of the same coin: identity looks inward to one’s self-definition and encompasses the internalized meanings and internal expectations connected with a role, whereas role looks outward to the interaction arrangement in an organizational setting and focuses on external behavior expectations related to a social position ( Barley, 1989 ; Chreim et al. , 2007 ; Goretzki et al. , 2013 ; Stryker and Burke, 2000 ).

Just a few articles directly mention the identity concept, thereby covering heterogeneous topics. Ahrens and Chapman (2000) compare the identities of MAs in Britain and Germany, whereas Järvinen (2009) focuses on identities of MAs in the public sector in Finland. Case studies explicate the link between role changes and reconstruction of identities as described by Goretzki et al. (2013) or discuss the tensions between existing and idealized identities as presented by Morales and Lambert (2013) . Taylor and Scapens (2016) as well as Hiller et al. (2014) link identity with the image of MAs. Heinzelmann (2018) investigates the impact of IT systems on the identities of MAs, whereas Horton and de Araujo Wanderley (2018) examine multiple identities and identity conflicts. Goretzki and Messner (2019) explain the identity project of MAs as business partners in a broader interaction context, whereas Morales (2019) describes the shaping of a common identity of MAs by symbolic categorizations. Further articles explain that changes in the roles came along with changes in the perceptions of MAs themselves. Therefore, they indirectly consider identity, although they do not directly mention this concept ( Burns and Baldvinsdottir, 2005 ; Endenich et al. , 2017 ; Hopper, 1980 ).

Particularly in change situations, identities of MAs are to be continuously reformed ( Ahrens and Chapman, 2000 ; Alvesson and Willmott, 2002 ; Giddens, 1991 ; Järvinen, 2009 ). Therefore, this paper aims to contribute to a comprehensive understanding of the ongoing changes concerning MAs by focusing on their identities, to deliver a structured overview of the current state of research, to identify research gaps, to provide new perspectives on identity and role changes of MAs, to show possible implications for research, practice as well as education and thus to motivate scholars to contribute to this field of research. For this reason, the paper analyzes and synthesizes the extant literature on MAs by conducting a systematic literature review following the methodology proposed by Tranfield et al. (2003) and Massaro et al. (2016) . The search was guided by the research question “What is known about changing identities and roles of management accountants?” Scrutinizing the papers from an identity perspective implies that we concentrate on internal, cognitive processes of MAs, their characteristics, experiences, motivations, goals, values, beliefs, norms and interaction styles ( Ashforth, 2001 ; Oyserman et al. , 2012 ). Focus areas of the literature are aggregated into a conceptual framework, which provides a comprehensive overview of the existing knowledge in the literature as well as a foundation for synthesis and further discussion. Acknowledging that identity is only partially formed in workplaces ( Ashforth et al. , 2008 ; Brewer and Gardner, 1996 ; Järvinen, 2009 ; Postmes and Jetten, 2006 ), this systematic literature review focuses on professional identities.

Our paper is structured as follows. In Section 2, we discuss management accounting and MAs, the theoretical bases of identity, the main differences and relations between identity and role as well as our conceptual framework. Section 3 explains the methodology, followed by characteristics of the reviewed articles in Section 4. Section 5 provides a profound discussion of the findings of our literature review. The conclusion summarizes the findings and presents implications for research, practice and education as well as the limitations of the paper.

2. Theoretical background

2.1 management accounting and management accountants.

A broad and commonly used definition of management accounting is stated by the Institute of Management Accountants (IMA) (2008 , p. 1), arguing that management accounting:

[…] involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization’s strategy.

An MA is understood as the task carrier of management accounting practices and, especially in the past two decades, it is propagated that MAs have developed from traditional bean counters to business partners ( Granlund and Lukka, 1997 ; Järvenpää, 2007 ; Sorensen, 2009 ).

Our literature sample presents country-specific differences in the historical and theoretical development of management accounting concepts, which is displayed in diverse terms, approaches and institutional contexts. In some European countries, the MA is labeled as “controller” and the interchangeable use of these two terms is commonly found in the analyzed literature ( Ahrens and Chapman, 2000 ; de Loo et al. , 2011 ; Oesterreich and Teuteberg, 2019 ; Verstegen et al. , 2007 ). A further noteworthy difference is the separation of financial and management accounting in several European countries, which results in processes organized into two separate cycles. Anglo-Saxon countries refer to a more integrated approach, and thus in the English-speaking literature, the explicit differentiation between financial accountants and MAs is often lacking. In studies from Germany, France or Italy, management accounting focuses more on supporting decision-making, whereas financial accounting is primarily responsible for meeting the statutory requirements ( Albu et al. , 2011 ; Caglio, 2003 ). Regarding the institutional context, there are strong professional bodies in the UK and the USA, whereas in countries such as Germany or France, there is a low degree of professionalization. In these countries, an MA does not require a certificate by a professional association and thus the recognition as a profession is relatively low ( Ahrens and Chapman, 2000 ; Goretzki et al. , 2013 ; Goretzki and Messner, 2019 ; Lambert and Pezet, 2011 ).

2.2 Identity and role

As role theory is elaborated in many management accounting papers ( Byrne and Pierce, 2007 ; Byrne and Pierce, 2018 ; Goretzki et al. , 2013 ), we concentrate on identity theory but aim to explain the differences and relations between identity and role. Different disciplines, such as psychology, anthropology, sociology and other social sciences, are discussing these two concepts. Additionally, within each of these disciplines, different research streams have developed and there is a wide range of how identity can be conceptualized ( Biddle, 2013 ; Kreiner et al. , 2006 ; Stryker and Burke, 2000 ; Schwartz et al. , 2011 ; Vignoles et al. , 2011 ).

There are different bases of identity deriving from the membership of a social group ( Hogg and Abrams, 1988 ; Stryker and Burke, 2000 ; Tajfel, 1978 ; Tajfel and Turner, 1979 ) or the occupation of a role ( Burke and Tully, 1977 ; Stets and Burke, 2000 ; Stryker and Burke, 2000 ; Thoits, 1983 , 1986 ). Furthermore, the concept can be defined at an individual, collective or relational level. As identity basically encompasses one’s response to the question “Who are you?” this “you” can be singular or plural and therefore identity can refer to the self-definitions of individuals or groups ( Ashforth et al. , 2008 ; Vignoles et al. , 2011 ). All these different approaches are not necessarily incompatible. A complete theory considers the group and the role bases of identity as well as the bases in the person itself ( Stets and Burke, 2000 ). Consequently, Burke and Stets (2009) define identity as a set of meanings describing an individual as an occupant of a role or as a member of a group, or claiming particular characteristics to identify one as a unique person. Furthermore, identities are social products as individuals exist within the context of social structures and they are shaped through interactions with others ( Burke and Reitzes, 1981 ; Burke and Stets, 2009 ). Identity is formed during an individual’s lifespan through the interplay of processes of self-discovery and personal interpretations as well as of social interactions. As the concept can be explained at an individual, collective or relational level, identity consists of self-chosen personal characteristics and beliefs about oneself, one’s membership in groups as well as roles in relation to significant others ( Vignoles et al. , 2011 ).

The term “role” is discussed in modern science since the work of Linton (1936) , who defines role as a set of behaviors linked to the inhabited status. According to Biddle (1986 , 2013 ), role theorists primarily refer to external norms, outward behavior expectations and descriptions for explaining the term “role.” Thus, roles are induced by shared expectations of other organization members. Management accounting literature discusses these outside expectations ( Byrne and Pierce, 2018 ); however, the term “role” mainly relates to different functions and tasks of MAs ( Rieg, 2018 ; Jack and Kholeif, 2008 ; Oesterreich and Teuteberg, 2019 ). Figure 1 displays the main differences between identity and role: identity is internal and focuses on inner dynamics, internalized meanings and internal expectations, whereas a role is external and linked to positions within social structures ( Stryker and Burke, 2000 ).

Despite the differences between these two concepts, identity is closely interconnected with the enactment of roles. Identity includes how the role occupant interprets and makes sense of a role. The external description of a role is likely to affect the way people think about the role, whereas a person’s identity influences the way one enacts this role. Consequently, role and identity evolve interactively and thus the terms are often used interchangeably in the literature ( Ashforth, 2001 ; Barley, 1989 ; Chreim et al. , 2007 ; Pratt et al. , 2006 ).

From a management perspective, identity is essential as it influences people’s attitudes and behaviors ( Ashforth and Mael, 1989 ; Haslam and Ellemers, 2011 ). Professional identity is regarded as a major element of identity and means one’s perception of work-related interests, abilities, goals and values ( Kielhofner, 2002 ; Schwartz et al. , 2011 ; Skorikov and Vondracek, 2011 ). This systematic literature review focuses on professional identities of MAs, including their characteristics, experiences, motivations, goals, values, beliefs, internal norms and interaction styles ( Ashforth, 2001 ; Ashforth et al. , 2008 ; Chreim et al. , 2007 ).

2.3 Conceptual framework of identity changes

Our conceptual framework systematizes the focus areas of the literature for delivering a comprehensive overview of the existing knowledge and a foundation for synthesis and further discussion. The framework integrates previous studies about the identity of MAs, thereby considering diverse research streams of identity theory. Thus, we concurrently take into account the linkages of social structures with identities as well as the internal dynamics of individuals ( Stryker and Burke, 2000 ). External and organizational aspects represent the influence of social structures and are closely linked. Furthermore, several organizational aspects are intertwined with individual ones and classifying some factors as either organizational or individual involves a certain level of arbitrariness ( Chreim et al. , 2007 ).

External aspects include professional associations and educational institutions, legislation and compliance as well as the public image of MAs. Professional associations and educational institutions can confine or support the understanding of identities. While legislation specifies what a professional should accomplish, professional associations reinforce changes by providing fundamental or alternative templates determining what constitutes professionalism ( Chreim et al. , 2007 ; Cooper and Robson, 2006 ). Despite the popular template of the business partner, there is still a discussion about the influence of increased legislation and compliance regulation on MAs ( Byrne and Pierce, 2007 ; de Loo et al. , 2011 ). Social identity theory indicates clear connections between the identity and image of group members ( Dutton and Dukerich, 1991 ; Gioia and Thomas, 1996 ; Taylor and Scapens, 2016 ).

Organizational arrangements, for instance, the decision whether management accounting is centralized or decentralized, enable new constellations of interactions, and identity changes require an organizational embeddedness ( Chreim et al. , 2007 ; Goretzki et al. , 2013 ; Wolf et al. , 2015 ). Järvenpää (2007) describes necessary organizational processes for the business orientation of MAs, among others image construction, introduction of new information systems and decentralization. MAs’ perceived image within organizations influences their self-concepts and identification with the profession and organization ( Hiller et al. , 2014 ; Taylor and Scapens, 2016 ). Implications of information systems and digitalization as decisive issues are intensively debated in the literature sample ( Järvenpää, 2007 ; Oesterreich and Teuteberg, 2019 ). Furthermore, the literature sample focuses on decentralization as crucial for the proximity of managers and MAs. This might result in a nested identity, meaning that MAs identify more with their colleagues onsite than with their profession in the organization ( Granlund and Lukka, 1998 ; Horton and de Araujo Wanderley, 2018 ; Vaivio, 2004 ). Considering identity as a relational phenomenon – because individuals come to know who they are through their interactions with others – leads to patterns of interaction ( Ahrens and Chapman, 2000 ; Burke and Stets, 2009 ). Management accounting is considered as inherently contextual, and thus contingency factors might have an effect on the identity of MAs ( Morales, 2019 ; Goretzki and Messner, 2019 ). Consequently, organizational aspects comprise image within the organization, contingency factors, information systems and digitalization, patterns of interaction as well as decentralization and nested identity.

Especially in change situations, the continuous rethinking of identities by MAs is necessary, and such processes depend on their competencies and characteristics ( Ahrens and Chapman, 2000 ; Alvesson and Willmott, 2002 ; Giddens, 1991 ; Järvinen, 2009 ). Bearing in mind that individuals occupy as many identities as relationships in which they fulfil roles, multiple identities and identity conflicts might evolve ( Brewer, 1999 ; Burke and Stets, 2009 ; Horton and de Araujo Wanderley, 2018 ). Regarding possible identity conflicts, individuals do not passively follow social pressures, but rather actively position themselves within conflicting identity options. Consequently, professionals might support those changes which are consistent with their desired identity ( Horton and de Araujo Wanderley, 2018 ; Morales and Lambert, 2013 ; Oyserman and James, 2011 ). Thus, individual aspects encompass multiple identities, identity conflicts, competencies and characteristics, as well as desired and ideal identity. Figure 2 illustrates our conceptual framework.

3. Methodology

For conducting this systematic literature review, we followed the methodology suggested by Tranfield et al. (2003) and Massaro et al. (2016) , alongside other reviews within the research field of management accounting ( Ndemewah et al. , 2019 ; Nguyen et al. , 2018 ; Senftlechner and Hiebl, 2015 ). Following Massaro et al. (2016 , p. 767), systematic literature reviews are a suitable “method for studying a corpus of scholarly literature, to develop insights, critical reflections, future research paths and research questions.”

To identify relevant literature, we conducted a keyword search within seven databases (EBSCO, ProQuest, ScienceDirect, Scopus, Springer Link, Web of Science and Wiley Online Library). Our literature search was limited to journal articles in English-language on MAs’ identity or role. However, in line with Kubíček and Machek (2018 , p. 967), we “did not limit the results to any particular preselected class of journals” to include findings from journals, which are not listed within a journal ranking (Academic Journal Guide (AJG), 2018). To be considered within the sample, only a review-process within the journal was required. Furthermore, we placed no restrictions concerning the time of publications. Consequently, all matching articles were considered until the end of our literature search in August 2019. We searched within title, abstract and keywords for two different groups of keywords combined with an “AND” conjunction. The first group of keywords refers to management accounting and synonyms (according to Chenhall (2003) , terms such as management accounting, management control and managerial accounting are often used interchangeably) and the second keyword group contained identity and role: [(“management account*” OR “managerial account*” OR “management control*” OR “cost account*”) AND (“identity” OR “role”)]. Moreover, a spreadsheet was prepared to document the search and data extraction process, to ensure the academic quality and reproducibility of this systematic literature search.

The initial search process resulted in 2,829 hits. In the next step, we excluded all duplicates (816) and publications (1,882) containing no information about MAs’ changing identities and roles within the abstract. For the remaining 131 publications, full texts were analyzed, whereby 48 publications remained for our systematic literature review. Furthermore, we scanned the references of the 48 publications to identify additional studies and used Google Scholar [ 1 ] to search for additional articles by the identified authors. We identified 16 additional articles, resulting in a final sample of 64 peer-reviewed journal articles ( Figure 3 summarizes the search process).

After determining the final sample, we started to analyze the publications as suggested by Massaro et al. (2016) and Tranfield et al. (2003) . Similar to prior reviews in the field of business and management ( Senftlechner and Hiebl, 2015 ), studies that contain “more” information regarding our research focus were regarded as “richer” and are more often cited.

4. Characteristics of the reviewed articles

4.1 journals, rankings and timeline of the reviewed articles.

Table 1 summarizes all journals, rankings and the timeline of publications. Sample publications are spread over 30 different journals. Along their self-declared aims and interests, the vast majority of the journals (19) are accounting journals. In total, 50 articles were published in peer-reviewed accounting journals, and only 14 within journals of other research fields (e.g. business and management journals), which may indicate a lack of interdisciplinary studies within the research field and/or a lack of general interest in this topic.

The majority (24) of the journals are ranked within the AJG 2018 [ 2 ] and/or VHB JQ3 [ 3 ] and/or possess a JIF 2018 [ 4 ]. The number of sample articles within the journals counts between one and four, except the European Accounting Review (10), Management Accounting Research (7) and Accounting, Organizations and Society (7). Furthermore, the vast majority of our sample publications were published since 2000 (51). The oldest publication is by Hopper (1980) and is one of six publications published before 1996. From 2016 onwards, 15 publications about MAs’ identities or roles were published, which could indicate an increasing interest within academia.

4.2 Descriptive information of the reviewed articles

Descriptive information of the 64 sample publications (e.g. article type, data collection, time frame, sample information) is summarized in Table 2 . In total, our sample involves 7 conceptual theoretical publications, 15 empirical-quantitative and 38 empirical-qualitative studies. In the remaining four studies, a mixed-method research approach was applied.

Authors mainly collected data through interviews (38), surveys (17) or analyzed secondary data (24), for instance, job advertisements ( Azan and Bollecker, 2011 ). Secondary data were often used to complement and enrich findings. Lambert and Sponem (2012) , for instance, used archival materials in addition to interviews within their study. Regarding the time span of investigation, most of our empirical sample articles contain cross-sectional studies (46), and only in 12 cases, a longitudinal investigation was carried out. Only Erhart et al. (2017) conducted a cross-sectional and a longitudinal study.

Publications also show a great heterogeneity because of sample size as well as sample choice. Authors investigated MAs in one company or more, with the greatest quantity being up to several hundred companies of different size and industry, with strong focus on large companies. Furthermore, in most cases, research was conducted within Europe; studies from North America or Asia are sparse within our sample publications.

We also analyzed the sample publications in relation to how far a theoretical background or theory explained the findings. Within the vast majority of the studies, no theory (34) was explicitly mentioned, which could be an indicator for the missing theoretical substantiation of the research field. However, most of the younger publications in high-ranked journals refer to a theory ( Baldvinsdottir et al. , 2009 ; Taylor and Scapens, 2016 ). Applied theories show a broad range, for instance, institutional theory ( Granlund and Lukka, 1997 ; Burns and Baldvinsdottir, 2005 ), social identity theory ( Horton and de Araujo Wanderley, 2018 ) and role theory ( Byrne and Pierce, 2007 ).

4.3 Temporal development of management accountants’ identities and roles

The first articles about roles from the 1980s start with role conflicts ( Hopper, 1980 ; Sathe, 1983 ). Remarkably, role and identity conflicts are still discussed nearly 40 years later ( Amilin, 2017 ; Byrne and Pierce, 2018 ; Horton and de Araujo Wanderley, 2018 ). Already in the 1980s, the active role of MAs in the development and implementation of IT is a topic ( Kaye, 1988 ), a theme which is much more intensively discussed in the 2000s ( Caglio, 2003 ; Jack and Kholeif, 2008 ; Scapens and Jazayeri, 2003 ; Suhaimi et al. , 2016 ). In the 1990s, there are some historical considerations about MAs ( Boyns and Edwards, 1997 ; Carmona et al. , 1997 ; Edwards et al. , 1995 ). Furthermore, the discussion about stereotypes such as the bean counter ( Bougen, 1994 ; Friedman and Lyne, 1997 ) and the increasing business orientation of MAs commences ( Cooper, 1996 ; Granlund and Lukka, 1997 , 1998 ). While the debates on bean counter stereotypes are interestingly still a topic in the 2000s ( Friedman and Lyne, 2001 ; Vaivio and Kokko, 2006 ), business partnering started to dominate the role discussion within academic literature ( Byrne and Pierce, 2007 ; Järvenpää, 2007 ; Lambert and Sponem, 2012 ; Rieg, 2018 ; Windeck et al. , 2015 ). Furthermore, hybrid roles of MAs, who are concomitantly involved in bean counting and business partnering activities, are discussed ( Karlsson et al. , 2019a ; Rieg, 2018 ; Yazdifar et al. , 2008 ). While in small firms the traditional role pictures prevail ( Joshi and Bremser, 2004 ; de Loo et al. , 2011 ; Mistry et al. , 2014 ), new role terms emerge in large firms, such as the “data scientist,” a management accounting specialist for IT issues ( Oesterreich and Teuteberg, 2019 ).

While roles are intensively discussed within academic literature, little is known about identity. Ahrens and Chapman (2000) were the first to explicitly mention the identity of MAs, followed by Järvinen (2009) . In the following years, very diverse identity topics such as the link between role changes and identity reconstructions ( Goretzki et al. , 2013 ) or the tensions between existing and idealized identities ( Morales and Lambert, 2013 ) were examined. Furthermore, the links between identity and image ( Hiller et al. , 2014 ; Taylor and Scapens, 2016 ) or the impact of IT systems on the identities of MAs ( Heinzelmann, 2018 ) were studied. In the past two years, more complex issues were scrutinized such as multiple identities and identity conflicts ( Horton and de Araujo Wanderley, 2018 ), and the discussion was extended by introducing symbolic categorizations and narratives ( Morales, 2019 ) or clarifying the identity of MAs in a broader interaction context ( Goretzki and Messner, 2019 ).

5. Findings of the reviewed articles

Only ten of the analyzed 64 publications explain the identity concept in detail ( Ahrens and Chapman, 2000 ; Goretzki et al. , 2013 ; Goretzki and Messner, 2019 ; Heinzelmann, 2018 ; Hiller et al. , 2014 ; Horton and de Araujo Wanderley, 2018 ; Järvinen, 2009 ; Morales, 2019 ; Morales and Lambert, 2013 ; Taylor and Scapens, 2016 ). As identities and roles evolve interactively ( Barley, 1989 ; Chreim et al. , 2007 ), it is challenging to differentiate between these two concepts. Many authors talk about role identities, self-perception or self-conceptualization of MAs, and, consequently, they indirectly consider identity. Reflecting on the underlying drivers of identity presented in the theoretical background, we refer to articles if they discuss identity aspects such as characteristics, experiences, motivations, goals, values, beliefs, internal norms and interaction styles of MAs. As outlined in the framework, we concentrate on external, organizational and individual aspects of changing identities.

5.1 External aspects of the changing identities

5.1.1 professional associations and educational institutions..

The literature regards professionalization, university research and education as drivers of the change of MAs ( Byrne and Pierce, 2007 ; Granlund and Malmi, 2002 ; Vaivio and Kokko, 2006 ). The analyzed literature displays country-specific differences regarding the institutional environment and vocational training ( Ahrens and Chapman, 2000 ; Brandau et al. , 2014 ). In the UK and USA, the institutional context of MAs is based on professional associations whose members pass examinations and complete a minimum period of practical experience which qualify them as professionals ( Ahrens and Chapman, 2000 ). This Anglo-Saxon approach influences English-speaking countries, but there are European countries where no professional associations exist, such as Germany or France. Consequently, there is a relatively low recognition of MAs as a profession ( Goretzki et al. , 2013 ; Goretzki and Messner, 2019 ; Lambert and Pezet, 2011 ), which results in a limited status and requires MAs to undergo a more complex process of socialization and work on the self ( Lambert and Pezet, 2011 ). In countries with a low degree of professionalization, the education is dominated by a very diverging academic education at universities or by private institutions with more practice-oriented training. As there is no certificated training, the vocational training depends more on the managerial expectations or the individual motivation of MAs ( Ahrens and Chapman, 2000 ; Goretzki et al. , 2013 ; Goretzki and Messner, 2019 ).

Ahrens and Chapman (2000) scrutinize the identity of British and German MAs and state that it is striking how their statements closely resemble the ideas that they received from their institutional context – the CIMA in the UK and German organizations such as the Controller Academy and the International Association of Controllers. Goretzki et al. (2013) describe in their case study that for the reconstruction of identity, the link with an institutional environment is necessary. They mention similar courses at the Controller Academy supporting the adaption of identities, as professionals are encouraged there to act as business partners.

Analyzing the institutional environment of MAs, it is recognizable that members of professional associations, academics, consultants and influential professionals propagate the role of an active business partner. Therefore, the business partner has developed into a legitimate template for MAs ( Goretzki et al. , 2013 ). As a result of this external template, MAs tend to perceive their identity in this propagated way, more or less independent from what they really do ( Rieg, 2018 ). Identities are products of purposive actions of professionals who are keen to improve the status of a professional group ( Goretzki et al. , 2013 ), and are a clear attempt to distance modern MAs from bean counters ( Friedman and Lyne, 2001 ).

5.1.2 Legislation and compliance.

Amendments to the legislation, such as the implementation of the Sarbanes–Oxley act or the tightening of external reporting rules through IFRS, lead to significant changes for MAs. Increased governance regulations influence MAs as they produce more of a control orientation instead of supporting strategic decision-making and business partnering ( Byrne and Pierce, 2007 ; de Loo et al. , 2011 ). Research pays less attention to these control aspects ( Emsley and Chung, 2010 ) but reporting and compliance are gaining importance for MAs ( Byrne and Pierce, 2007 ). Furthermore, the introduction or adaption of risk management is mentioned. Requirements for an efficient risk management increase not only because of legal changes but are also the result of growing risks and external uncertainties. Risk management and compliance have developed into fundamental aspects of the daily work of MAs ( de Loo et al. , 2011 ). Therefore, it is questioned how the compliance model can work with the business partner model ( Byrne and Pierce, 2007 ) or how change is hindered by these conflicting priorities ( Emsley and Chung, 2010 ).

Interestingly, as early as the 1980s, Hopper (1980) and Sathe (1983) highlighted possible conflicts caused, on the one hand, by the contribution to business decisions and involvement, and, on the other hand, by control and independence. If MAs become too involved in the business decision-making process, they lose independence, which is required for internal control responsibilities. Byrne and Pierce (2018) still mention MAs’ conflict between supporting management processes and maintaining loyalty to financial compliance structures.

5.1.3 Public image.

While identity describes how professionals define themselves, image illustrates how professionals suppose that other people define them. Several authors ( Byrne and Pierce, 2007 ; Morales and Lambert, 2013 ; Taylor and Scapens, 2016 ) discuss the links between identity and image, and that a change in image can cause a change in identity. Regarding these images, we have to be aware about the lacking differentiation between financial accountants and MAs in the English-speaking literature.

Baldvinsdottir et al. (2009) scrutinize the images of MAs represented in advertisements in the CIMA journal. They display that the image has changed from responsible, rational MAs pictured in the 1970s and 1980s to a more adventurous, and powerful image created in the 1990s. For the 1990s, Granlund and Lukka (1997) likewise discovered an increasing business orientation of MAs although the traditional bean counter model yet has a foothold in Finland. Interestingly, Friedman and Lyne (2001) state that the bean counter stereotype is not disappearing and still is a prevailing representation of MAs in the mind of the public. The bean counter stereotype as boring, preoccupied with costs, and attentive to details is often linked with a negative image ( Bougen, 1994 ; Granlund and Lukka, 1998 ; Friedman and Lyne, 2001 ), whereas the business partner is presented as an attractive position and ideal among MAs themselves ( Järvinen, 2009 ; Karlsson et al. , 2019a ). The existence of such external images influences how a group of professionals is regarded within the organization ( Järvinen, 2009 ; Morales and Lambert, 2013 ).

5.1.4 Concluding remarks concerning external aspects.

External aspects such as professionalization, university education and research, legislation and compliance as well as the public image drive identity change. The analyzed literature shows first indications of the influence of professional associations and educational institutions promoting actively the change to business partners. Concerning legislation and compliance, the question arises how the business partner model can work for MAs in case of increased control orientation because of legislation and compliance requirements. It is noteworthy that regardless of propagating the change to business partners, the negative image of the MA is still a topic within the sample publications. Table 3 summarizes the main findings of the sample regarding external aspects of the changing identities.

5.2 Organizational aspects of the changing identities

5.2.1 image within the organization..

Public images, as described in the previous section, influence how professionals are esteemed within the organization ( Järvinen, 2009 ; Taylor and Scapens, 2016 ). Because of criticisms concerning their presumable obsession with costs, their low value-contribution to the organization and their suppression of innovation and creativity, MAs sometimes struggle with a low image in comparison to other professional groups in the organization ( Emsley, 2005 ; Friedman and Lyne, 2001 ; Pierce and O’Dea, 2003 ). Thus, professional associations are not the only ones who should care about the image of MAs, this is also a topic within the organizations.

According to Järvinen (2009) , the identity of MAs in organizations is associated with their image and perceived role change. Comparably, the case study of Taylor and Scapens (2016) displays a clear relationship between group image, identity and the self-concepts of group members. Positive image and group identity can support individual self-concepts, whereas negative image and group identity can lead to low self-concepts. Hiller et al. (2014) illustrate that MAs’ perceived image within organizations influences their identification with the organization and the profession. MAs regard high image as a source of self-esteem and think that they are more accepted by managers. Thus, because of a high image, they may identify more intensely with the organization and its predominant values and norms. Nevertheless, high image may concurrently engender MAs who identify more with their profession, thereby emphasizing high professional standards, transparency and ethical orientation ( Hiller et al. , 2014 ). Consequently, if MAs perceive the production of fair and truthful knowledge as constitutive of their identity ( Lambert and Pezet, 2011 ) and if there are incompatibilities between professional and organizational demands, they could become unwilling to compromise for the sake of the organization ( Hiller et al. , 2014 ).

5.2.2 Contingency factors.

Structuring the literature sample regarding the analyzed organizational contingency factors, it is apparent that the empirical studies within our sample show great differences. Although company size ( de Loo et al. , 2011 ; Joshi and Bremser, 2004 ), industry ( Aver and Cadez, 2009 ), capital market orientation ( de Loo et al. , 2011 ; Joshi and Bremser, 2004 ) and/or ownership structure ( Yazdifar et al. , 2008 ) are mentioned within the sample literature, just a few authors ( Aver and Cadez, 2009 ; de Loo et al. , 2011 ; Yazdifar et al. , 2008 ) discuss these factors more intensively. Most of the studies examine large firms ( Aver and Cadez, 2009 ; Joshi and Bremser, 2004 ) and suggest that company size determines the scope of MAs’ profession. Several studies ( de Loo et al. , 2011 ; Mistry et al. , 2014 ; Oesterreich and Teuteberg, 2019 ) indicate that bean counting aspects are still essential for MAs operating in smaller sized firms. Notwithstanding the influences of contingency factors, it is remarkable that papers concerning identity emphasize that MAs present in their statements a very coherent and homogeneous discourse about their occupation, values and general orientation ( Ahrens and Chapman, 2000 ; Goretzki and Messner, 2019 ; Morales, 2019 ).

MAs can hold a pivotal position in helping organizations to overcome a company crisis; thus, the financial status of an organization is regarded as a specific contingency factor ( de Loo et al. , 2011 ; Endenich, 2014 ). A financial crisis of the company can increase the importance of MAs, when critical situations result in intensified interactions with managers and other departments, as well as in more participation within the decision-making processes. Such critical situations might result in a more influential position and acceptance of MAs ( Cooper, 1996 ; Endenich, 2014 ). Nonetheless, these consequences have to be considered carefully, as an increased focus on cost reductions in critical financial situations also implies the risk of negative views on MAs ( Endenich, 2014 ).

5.2.3 Information systems and digitalization.

MAs are not only affected by IT, but have taken an active part during introduction and development of information systems ( Kaye, 1988 ). Horton and de Araujo Wanderley (2018) predict that changes in management accounting practices will affect MAs’ identities. Several authors ( Albu et al. , 2011 ; Baldvinsdottir et al. , 2009 ; Suhaimi et al. , 2016 ) regard especially IT systems as important change drivers.

However, there are contradictory findings regarding IT systems. Byrne and Pierce (2007) as well as Suhaimi et al. (2016) argue that developments in IT systems enable MAs to move to a higher analytical level. The case study of Caglio (2003) claims that because of the new IT system, MAs can use their time and expertise more for business management initiatives. This is in contradiction to the studies of Jack and Kholeif (2008) and Heinzelmann (2018) , which reveal that the implementation of an IT system does not inevitably direct MAs toward more business orientation. Jack and Kholeif (2008) display that MAs are reduced to traditional information collector and provider. Likewise, Heinzelmann (2018) found that the identities of MAs can be devaluated because of relying too strongly on a new IT system, thus limiting their professional judgment, the choice of tools for analyses and their business insight. Further studies ( Granlund and Malmi, 2002 ; Järvenpää, 2007 ; Scapens and Jazayeri, 2003 ) claim that a new IT system can only offer an opportunity for change but is not solely decisive for a role or identity change. Additional factors such as system complexity, time and money ( Granlund and Malmi, 2002 ) or system integration, standardization and routinization ( Scapens and Jazayeri, 2003 ) have to be considered.

The development of IT systems has changed interpersonal relations when communication takes place through integrated tools with less face-to-face interaction ( Azan and Bollecker, 2011 ). Digitalization and the accompanying data increase will intensify these changes. Big data and new data analysis techniques are available with consequences for reporting, analysis and decision-making which will modify how MAs work. Interaction styles of MAs will change because of real-time analyses and decisions ( Oesterreich and Teuteberg, 2019 ).

5.2.4 Patterns of interaction.

The interaction with managers and other departments is sharpening the occupational identity ( Ahrens and Chapman, 2000 ; Goretzki and Messner, 2019 ). The consequences of more business orientation might be far-reaching as it could mean a conversion from a distant, critical and objective outsider toward an active MA contributing to relations between organizational members ( Baldvinsdottir, 2009 ). Many studies ( Byrne and Pierce, 2018 ; Lambert and Sponem, 2012 ; Windeck et al. , 2015 ) regard the relationship between managers and MAs as decisive.

Business partnering depends on intense interactions between MAs and managers. However, these relationships are not inherently peaceful, stable and relaxed. Many findings underline difficulties for MAs in interpreting the expectations of managers and coping with tensions arising from situations where managers may not want such involvement ( Amilin, 2017 ; Morales and Lambert, 2013 ; ten Rouwelaar et al. , 2018 ). Greater involvement of MAs requires a common perspective of MAs and managers, but the business partner model still lacks this common understanding ( Byrne and Pierce, 2007 ; Lambert and Sponem, 2012 ; Karlsson et al. , 2019b ).

Accordingly, case field studies show contradictory understandings between MAs and managers what business partnering means. While managers expect primarily support and advice, MAs regard themselves as partners, who do not help managers, but challenge and influence them ( Goretzki and Messner, 2019 ; Morales, 2019 ). The understanding of MAs’ identity is not restricted to the relationships to managers. Moreover, their identity is shaped in a broader context by different types of interactions and their perception of whether people, who are important to MAs, appreciate or disapprove a certain behavior ( Goretzki and Messner, 2019 ).

5.2.5 Decentralization and nested identity.

Decentralization of MAs is regarded as a key element for business orientation, because increased proximity changes the values, attitudes and interactions of MAs ( Järvenpää, 2007 ; Pierce and O’Dea, 2003 ; Vaivio, 2004 ). The closer cooperation and proximity to managers and other departments influence MAs’ identities, because MAs work within organizations with a distinguishable identity and, at the same time, within workgroups with a certain understanding of their identities. Thus, members of professional groups may identify stronger with their workgroup than with similar professional groups. Therefore, workplace identities are regarded as nested identities ( Horton and de Araujo Wanderley, 2018 ).

The case study of Taylor and Scapens (2016) shows different identities of accountants “inside” and “outside” an accounting department. The term “management accountant” does not necessarily signify a common mind-set. Recognizing that workgroups can be distinct entities with their own separate identity, the ways of acting of MAs in different parts of an organization or in different locations might be closer to their local managerial colleagues than to other MAs in the organization ( Lambert and Sponem, 2012 ; Taylor and Scapens, 2016 ).

5.2.6 Concluding remarks concerning organizational aspects.

Identity is linked with image and perceived role changes; furthermore, the image of MAs within the organization influences their identification with the organization and profession. A closer analysis of the contingency factors in the literature sample displays that we rely mainly on findings of large organizations concerning the changing roles and identities of MAs. Moreover, the consequences of the financial situation of an organization for MAs are to be assessed carefully. Ambiguous results are accessible concerning IT systems, which can provide more time for business partnering, but MAs can concurrently feel restricted by IT systems. In addition, digitalization and the accompanying data increase influence MAs and their interaction styles. Concerning patterns of interaction, there is a focus on the relationship to managers but a broader interaction context is relevant for the changing identity of MAs. Decentralization is proposed as the most promising way to change values, attitudes and interactions of MAs. Their location in different departments leads to a nested identity implying that MAs rather identify with their workgroup than with their professional groups in the organization. Table 4 offers a synthesis of findings from the identified articles on organizational aspects of the changing identities.

5.3 Individual aspects of the changing identities

5.3.1 multiple identities..

Multiple identities imply that MAs refer to a variety of different identities at their workplaces. Diverse foci, interests and time dimensions represent these multiple identities. Different identities may stand for different levels of analysis; for instance, an individual’s perception as an MA compared with the organization’s collective consideration of MAs. Organizations are the general context, but subgroups such as financial managers specify the platform for career ambitions. Identities of MAs are recurrently interconnected with managers’ or external institutions’ ideas of MAs. Furthermore, individuals may embrace different notions of identities which they desire for the future ( Horton and de Araujo Wanderley, 2018 ).

The literature illustrates a fragmented and contradictory picture of the MA. Despite the popular template of the business partner, there are hybrid MAs who are concurrently involved in bean counting and business partnering ( Burns and Baldvinsdottir, 2005 ; Vaivio and Kokko, 2006 ), indicating multiple identities. Main drivers for hybrid MAs are among others accounting regulations, internal performance monitoring policies, financial control systems as well as MAs’ individual preferences, personality and initiative ( Byrne and Pierce, 2007 ; Karlsson et al. , 2019a ).

5.3.2 Identity conflicts.

Nowadays, MAs are esteemed because of their participation in decision-making processes, although they have concurrently internal control responsibilities. Thus, possible conflicts – already discussed in the 1980s – are still emphasized, in particular the independence-involvement problem ( Byrne and Pierce, 2007 ; Lambert and Sponem, 2012 ; Pierce and O’Dea, 2003 ). However, recent findings of Byrne and Pierce (2018) extend the work on conflicts beyond the independence–involvement dilemma and display a broad range of conflicts caused by conflicting, ambiguous, over- and underloaded expectations of managers perceived by MAs. Likewise, Goretzki and Messner (2019) display that regardless of the rather positive discussion about business partnering, such changes are not free of conflicts. Despite the creation of job profiles or organizational units to provide possibilities for MAs to become business partners, this aspirational identity remains fragile and leaves MAs with a continuing insecure feeling of “still not being there.”

On the one hand, identity conflicts are important because they show the need for change. Horton and de Araujo Wanderley (2018) provide a process model of identity conflicts by beginning with exploring multiple identities characterizing MAs, explaining the potential conflicts between these different identities and displaying behavioral responses of MAs to conflicts to diminish the perceived discrepancies. On the other hand, conflicts indicate that the idea of business partnering is still ambiguous and uncertain ( Byrne and Pierce, 2007 ) because some MAs might shape themselves with the business partner model, a more exciting identity to fulfil their personal interests. Other MAs might have valid reasons to evade positioning themselves as business partners ( Burns and Baldvinsdottir, 2005 ; Granlund and Lukka, 1998 ).

5.3.3 Competencies and characteristics.

Business orientation leads to an increasing emphasis on new competencies without a reduction of the old ones. Social competencies are gaining significance, as MAs depend on functioning networks to communicate their information and to convey their ideas. Cooperation, intuitions and understanding the business are essential for the future development of MAs ( Endenich et al. , 2017 ; Järvenpää, 2001 ; Pierce and O’Dea, 2003 ).

Regarding IT-competencies, Azan and Bollecker (2011) demonstrate the need for MAs to be able to use IT-systems competently. Technological progress broadens their competencies, as it demands, for instance, programming and algorithmic skills. Oesterreich and Teuteberg (2019) show that digitalization requests further new competencies concerning business analytics and IT. They refer to professional associations such as IMA, which try to incorporate these new competencies by updating their competence frameworks. However, they clearly state that the current competence profiles of MAs do not comply with the latest requirements concerning business analytics competencies. Regarding all the requested competencies, MAs might perceive some of these as incompatible. Ahrens and Chapman (2000) have already presented in their comparison of MAs that the persons interviewed experienced incompatible characteristics, such as being assertive and co-operative, theoretical and commercially minded, objective and intuitive.

5.3.4 Desired and ideal identity.

Besides the current identity, also the desired future identity frames the interpretations of MAs ( Taylor and Scapens, 2016 ; Morales, 2019 ). Business orientation is presented as increasing MAs’ value and standing in organizations, and thus it can be regarded as a desired or ideal identity ( Goretzki and Messner, 2019 ; Graham et al. , 2012 ). MAs aspire an identity in line with their values and standards, but frequently recognize some misalignment between what the profession currently stands for and how it should be in the future. Differences between current and desired identities indicate a threat of self-esteem, when the ideals of a desired identity seem too incompatible with the real identity. These incompatibilities are connected with negative conclusions, but concurrently represent a stimulus for change, as professionals try to increase self-esteem by pursuing more consistent and esteemed identities ( Heinzelmann, 2018 ; Horton and de Araujo Wanderley, 2018 ).

The case study of Taylor and Scapens (2016) shows, for instance, that an unsatisfying identity can motivate individuals to promote changes toward a desired future identity. Morales (2019) emphasizes the importance of symbolic categorizations and narratives through which MAs build a bridge between what they do, who they are and an ideal identity. By using more prestigious titles for the work of MAs, it is possible to disguise those activities which are perceived by MAs as low-prestige and thus demonstrate their added value. Morales and Lambert (2013) illustrate discrepancies between existing and ideal identities in a French organization where they scrutinize MAs who could not become “fully” business-oriented, which generates tensions in their self-identity. MAs acting more as bookkeepers may judge this as a personal failure undermining their self. The identity of professionals depends on their situation vis-à-vis other occupations, and professionals consequently strive for the most prestigious occupation. An identity may be destabilized or continue to be vulnerable when the self-view is obviously incompatible with the desired identity. This is interpreted by the MAs as demeaning and diminishing the construction of a valuable identity as business partners.

5.3.5 Concluding remarks concerning individual aspects.

Because of different foci, interests and time dimensions, multiple identities can evolve during change processes and the debate about the hybrid MA refers directly to multiple identities. Most of the literature implicitly suggests that the change to business orientation is a positive development, but the commitment of MAs to meet such requirements can cause identity conflicts when they are not able to fulfil the perceived expectations. Our literature sample displays that business orientation requires changes in competencies, and thus MAs sometimes perceive all the requested competencies as incompatible. MAs do not only reflect about their current identity but also about desired and ideal identities, thereby recognizing the divergences and striving for more concordance between these identities. Table 5 presents findings on individual aspects of the changing identities within the sample articles.

6. Summary, conclusion, implications and limitations

6.1 summary and conclusion.

Our literature sample illustrates a fragmented and contradictory picture regarding the changing identities and roles of MAs. Furthermore, the review displays how identity is closely interconnected with the enactment of roles; thus, it is challenging to separate these two concepts in the analysis as the papers use these terms interchangeably. Although we analyze the changes of MAs, some topics have remained the same for several years or decades. The sample starts with conflicts between independence and involvement of MAs ( Hopper, 1980 ) and conflicts are still being discussed 40 years later ( Amilin, 2017 ; Byrne and Pierce, 2018 ; Horton and de Araujo Wanderley, 2018 ). Hybrid MAs are mentioned first by Caglio (2003) and are still themed by Karlsson et al. (2019b) . A possible reason for this hybrid picture can be that management accounting itself can be regarded as a hybrid as it was formed at the margins and out of a range of practices from other disciplines ( Miller et al. , 2008 ).

This paper contributes to the existing literature by providing the first systematic overview from an identity perspective based on a sample of 64 publications. Although identity is closely connected with the implementation of new roles ( Chreim et al. , 2007 ; Goretzki et al. , 2013 ), the review displays that only a few publications explain the identity concept in detail. At an early stage of research, identity of MAs has emerged as a separate research field ( Morales, 2019 ) with very diverse topics and concepts of identity. Given the wide range of articles and variety of themes, it is challenging to draw overall conclusions. However, reflecting on the research question and the conceptual framework, various fresh insights can be gained.

Change and its prospects are likely to initiate concerns about identity ( Jenkins, 2014 ). Therefore, the paper aims, at first, to provide a comprehensive understanding of the ongoing changes concerning MAs by focusing on an identity perspective. It clearly displays that the idea of a simple movement from one optimal identity to another is ambiguous and misleading ( Burns and Scapens, 2000 ; Karlsson et al. , 2019a ). Second, the review contributes to existing research by displaying first indications of the influence of professional associations and educational institutions on change processes of MAs by providing prevalent templates. Moreover, findings indicate that the promoted business partner model challenges MAs if legislation and compliance require a higher level of control orientation. It is remarkable that regardless of propagating the change to business partners, the negative public image of the MA is still a topic. Concerning organizational aspects, the close link between perceived image, identity and role changes is emphasized. The analysis of organizational contingency factors reveals that we rely mainly on findings of large firms, which accounts for a very small selection of the variety of organizations. The review identifies ambiguous results regarding the impacts of the financial situation of an organization, contradictory findings regarding the change driver “IT systems” and uncertainties how digitalization will affect MAs’ identities and roles. The patterns of interaction illustrate that managers can be simultaneously a source of stability and fragility for MAs’ changing identities. Additionally, to managers as their focal audience, there is the relevance of a broader interaction context for MAs’ identities. Decentralization is regarded as a key element for business orientation but may lead to a nested identity, implying that MAs identify more with their workgroups than with similar professional groups within the organization. We comprehend that different foci and interests in organizations cause multiple identities. Most of the literature implicitly indicates that the change to business orientation is positive and that MAs wish to be business-oriented, but their commitment to fulfil such normative demands can cause tensions. Thus, identity conflicts show the need for change, but indicate concurrently that the idea of business partnering is still not straightforward. Concerning the changing competencies of MAs, our sample shows that business orientation leads to increasing new competencies without reducing the old ones. Therefore, the description of the business partner becomes more a narrative of an omnipotent thought leader who is able to combine incompatible requirements. Not only the current identity, but also the desired identity frames the interpretations of MAs and they may support those changes, which are consistent with their desired identities.

What is especially novel because of the identity perspective is the focus on MAs and their internal views, perceptions and internalized meanings connected with their role instead of debating exclusively external behavior expectations. These perceptions are particularly recognizable within the discussion of the individual aspects, for instance, their struggle with multiple identities, inner conflicts, incompatible competencies, multiple and desired identities.

6.2 Implications for research, practice and education

As there are just a few studies about identity in detail, numerous implications for future research exist. Clear identities and a transition from one identity to another may be too simplistic, and thus future research should avoid simple classifications and concentrate more on the complexity. It would be interesting to explore how some professionals succeed in creating a picture of homogeneity, which in practice might be a fragile compromise but one that allows emphasizing a legitimate picture of a profession ( Morales and Lambert, 2013 ).

As we have only a few preliminary suggestions about the influence of professional and educational institutions ( Goretzki et al. , 2013 ), scholars might scrutinize this institutional influence more intensely. Regarding legislation and compliance, more studies are needed to explain how business partnering can work with compliance and control requirements. As most of the analyses concentrate on larger companies, more studies could focus on small and middle-sized companies to comply with the variety of organizations. Furthermore, more research about additional contingency factors would broaden our knowledge.

Because of contradictory findings regarding IT systems, we agree completely with Caglio (2003) and propose that more interpretive case studies about IT systems are required to identify their complex impacts. Our sample included just one paper discussing digitalization as a new challenge ( Oesterreich and Teuteberg, 2019 ) and this calls for further research regarding the impacts of digitalization on the identities of MAs, e.g. concerning the impacts on interaction styles of MAs or their orientation toward the challenge of transforming data to knowledge ( Bhimani and Willcocks, 2014 ). The subjects of decentralization and nested identities need more research to illustrate under which conditions MAs might identify more with their workgroups than with similar professional groups within the organization.

In addition to nested identity, the identity perspective delivers new subjects for management accounting research such as multiple or desired identities. Little is still known about the individual aspects of MAs’ identities; thus, we follow Horton and de Araujo Wanderley (2018) and call for more efforts to understand multiple identities and identity conflicts. The hybridization of MAs would need further research. Burns and Baldvinsdottir (2005) describe the hybridization of MAs in their case study as relatively unproblematic, but call for case studies that allow investigating possible tensions and conflicts more in-depth. Finally, more research would be interesting regarding the desired identities of MAs. Not much research has been accomplished on the challenge that MAs as business partners expand their profession, which may be regarded as threatening by management and other departments ( Burns et al. , 2014 ; Lambert and Sponem, 2012 ; Rieg, 2018 ).

The results of this review are of high practical relevance for daily interactions in companies. As business partners, MAs develop intensive relationships with managers and members of other departments which might be easier if MAs are aware of their identities. Business partnering goes along with a more prestigious perception and a higher level of involvement by MAs, which may not be welcomed by all organizational members and thus cause tensions. There are implications especially for the working relationships in multinational companies where MAs work together and are influenced by different professional associations and educational institutions. Nested identity may be a concern within companies, because of the possibility that MAs identify more with their close work colleagues than with their profession in the organization. Moreover, findings may also change recruitment practices. In addition to external role expectations, internal self-views and internalized beliefs might be discussed with applicants during the staffing process in management accounting.

Furthermore, there are implications for education as management accounting students can be encouraged to occupy themselves with their identity, self-view, characteristics and values instead of exclusively discussing external expectations of their potential future profession. Regarding the new generation Z with its focus on personal fulfillment, the identity perspective enables students to reflect their personal and possible appropriate professional identities. In addition, management accounting students should become aware how developments in legislation and compliance, IT and digitalization or organizational and personal characteristics shape MAs’ work, orientation and interaction styles and thus their identities. The identity concept offers a broad range of novel topics for courses at educational institutions such as nested identity, multiple or desired identities.

6.3 Limitations

Finally, we have to mention the limitations of our systematic literature review. Our sample is restricted to English-language journal publications. However, other languages, non-peer-reviewed and/or practitioner journals as well as other publication modes (e.g. books, conference papers, working papers) could also provide useful findings about MAs’ changing identities. Moreover, the nature of the search process, the choice of the specific keywords and the exclusion process, which is based on subjective valuations, involve the risk of having not identified all relevant publications. Although we conducted all stages of the search process with great care and accuracy, the search process could be criticized. Furthermore, we are aware that the identity concept is generated out of diverse disciplines such as psychology, anthropology, sociology and other social sciences and that our explanations show just a small selection of this comprehensive research area.

Differences between identity and role

Framework of identity changes

Selection process

Bibliographical information of the reviewed publications

Characteristics of the sample articles

External aspects of the changing identities

Organizational aspects of the changing identities

Individual aspects of the changing identities

Google Scholar is a search engine mainly for scholarly publications, and available online at https://scholar.google.com

The Academic Journal Guide (AJG) 2018 published by the Chartered Association of Business Schools (CABS) can be found at https://charteredabs.org/academic-journal-guide-2018/

The JOURQUAL3 (JQ3) ranking from the German Academic Association for Business Research (VHB) is available at https://vhbonline.org/vhb4you/jourqual/vhb-jourqual-3/gesamtliste/

We refer to Journal Impact Factors (JIF) found in InCites Journal Citation Reports from Thomson Reuters, located at https://jcr.incites.thomsonreuters.com/

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Acknowledgements

The authors would like to thank Johannes Thaller for his assistance during the literature search and Nadine Bachmann for proofreading our manuscript. Moreover, the authors appreciate the encouraging comments, helpful notes and suggestions from the reviewers and the participants of the Annual Congress of the European Accounting Association (EAA) in Cyprus 2019.

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