A field study of user versus provider perceptions of management accounting system services

• Date: 21 September 2010
• DOI: https://doi.org/10.1108/18347641011068992
• Published date: 21 September 2010
• Pages: 252-285
• Author: Gary Fleischman,Kenton Walker,Eric Johnson
• Subject Matter: Accounting & finance

A field study of user versus

provider perceptions of

management accounting system

services

Gary Fleischman and Kenton Walker

University of Wyoming, Laramie, Wyoming, USA, and

Eric Johnson

Indiana University, Indianapolis, Indiana, USA

Abstract

Purpose – The purpose of this paper is to investigate user versus provider perceptions of

management accounting system (MAS) services using the DeLone and McLean information system

success model and the theoretical lens of social perception theory.

Design/methodology/approach – Quantitative survey data were collected and analyzed using

ordinal regression. Qualitative interview data concerning user-provider perceptions of MAS service

information quality, importance, use, and satisfaction were utilized to corroborate and explain the data

analysis.

Findings – The results suggest that there are significant perceptual differences about MAS service

quality by users versus providers. For this organization, the paper identifies what these differences

are, why they exist, and how organizations may identify and narrow identified gaps.

Research limitations/implications – The paper is based on a case study that may not be

generalizable to broader populations. It uses a cross-sectional, correlational, self-report survey,

therefore is unable to make causal or directional inferences. Future research should assess MAS

services in different organizations, industries, and cultures.

Practical implications – The paper is among the first to provide quantitative and qualitative

evidence of perceived differences in accounting service quality, approaches to uncovering sources of

differences, and steps that organizations may take to improve service quality.

Originality/value – This paper is the first to apply the DeLone and McLean information system

success model in the context of MAS service quality. The paper examines perceptions of MAS

providers and users to evaluate services and investigates perceptual differences across functions and

at different organizational levels.

Keywords Management accounting, Accounting systems,Information systems

Paper type Research paper

1. Introduction

The purpose of this study is to investigate user versus provider perceptions of

management accounting system (MAS) services in a corporate organization using the

DeLone and McLean information system success model (D&M IS success model)

(DeLone and McLean, 1992, 2003) as a research framework. The D&M IS success model,

combined with the theoretical lens of social perception theory (Ross and Fletcher, 1985;

Srull and Wyer, 1988; Schiffmann, 1990; Baron and Byrne, 1991; Jiang et al., 2000),

supports four hypotheses about perceptual differences between MAS users and

The current issue and full text archive of this journal is available at

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IJAIM

18,3

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Received 5 September 2008

Accepted 17 December 2009

International Journal of Accounting

and Information Management

Vol. 18 No. 3, 2010

pp. 252-285

qEmerald Group Publishing Limited

1834-7649

DOI 10.1108/18347641011068992

providers concerning MAS services. We collect, analyze, and triangulate quan titative

survey data as well as qualitative interview data concerning user-provider perceptions

of MAS service information quality, importance, use, and satisfaction.

We define MAS services as information, advice, and reports that managem ent

accountants (MAs) provide to MAS end-users that support user decision-making tasks.

This definition (and related analysis), which is consistent with the information systems

(IS) literature, has only been utilized in two previous user versus provider servi ce studies

(Pierce and O’Dea, 2003; Byrne and Pierce, 2007) using the accounting context. We

therefore contend that this study is exploratory. The definition implies that both users

and providers mutually agree that the end product constitutes a service. For example,

our definition of services does not include accounting techniques (e.g. activity based

costing per Shields, 1995) or a mere subset of specialized MAS knowledg e (e.g. cost

knowledge per Dearman and Shields, 2001). Furthermore, user versus provider

perceptions of MAS services need to be periodically monitored because of changes in

technology and user systems needs.

Identifying that user versus provider perceptual differences about MAS service

quality exist is not a noteworthy research agenda in and of itself. However , being able

to identify what these differences are, why they exist, and how one can narrow the

identified gaps is both pragmatically and academically useful. In sum, understanding

perceptual differences between these groups is essential for success of the system and

the services it supports. Identifying and measuring user and provider perceptions of

the MAS may help providers improve the quality of services to support the operational

needs of users (Watson et al., 1993). In addition, differences in perceptions between

users and providers may suggest the need to improve communications, implement

training activities, or other management actions.

The D&M IS success model provides a useful and relevant framework for

conducting this investigation of MAS service perceptions. We expand testing of the

D&M IS success model in three ways that significantly contributes to the MAS

literature. First, this is the only study to apply the D&M IS success model in the

context of MAS service quality. Second, this study incorporates perceptions of MAS

providers, as well as users, to evaluate services, and is only the third empirical study to

ever do so other than Pierce and O’Dea (2003) and Byrne and Pierce (2007). Third, we

investigate differences in perceptions of individuals across functions and at different

organizational levels (management and staff). Our results indicate that perceptions of

MAS services, and their ultimate success, differed between users and providers in

important ways. Management of this organization used analyses of these differences to

initiate programs for improving the quality of their MAS service activities that our

conclusions summarized.

The remainder of this manuscript is organized as follows. Section 2 discusses why

this study is important to the MAS literature. Section 3 provides the theoretical

framework and literature that supports the development of four hypotheses. Details

about the subject company and its environment appear in Section 4. In Section 5, we

discuss the research methods used in the study, followed in Section 6 by a discussion of

the quantitative questionnaire results. Section 7 is an interpretation of the qualitative

interview data that provides contextual insight. We present conclusions, implications,

and directions for future research in the final section.

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2. Importance to the MAS literature

The intangible nature of knowledge production (e.g. accounting information services),

the inputs of human insight and interpretation, and the output of knowledge

(i.e. accounting) services are “poorly abstracted and codified within accounting

systems” (Roberts, 2003) which “[p]oints to a significant agenda for research”

(Bhimani and Roberts, 2004, p. 3). Furthermore, “[d]iscussions about the relevance of

management accounting for decision making have to a large extent relied on anecdotal

evidence and intuition rather than on large-scale empirical work” ( Joseph et al., 1996,

p. 75). In short, we have a very limited understanding about the usefulness of MAS

services at the operational level (van der Veeken and Wouters, 2002). In order to

address this problem, Hopwood (1983) and Kaplan (1986) suggest researchers assess

MAS service delivery in organizational contexts. We conduct this case study research

to provide insights into how individuals inside and outside of the MAS fun ction

perceive these services.

MAS service quality is important because it may lead to increased use of such

services, higher levels of user satisfaction, and more effective decision making.

Successful service provision will likely elevate the status of the accounting discipline in

organizations, and lead to increased resource allocations. The issue of service quality is

well researched in a number of disciplines, with hundreds of articles published across

numerous organizational and service settings, including health care (Ward et al., 2005),

public administration (Callahan and Gilbert, 2005), and IS (Bharati and Berg, 2005), to

name a few. Surprisingly, few accounting studies have assessed user satisfaction with

MAS services, and only two studies have compared management accounting providers

versus user service perceptions. Therefore, little is known about:

.MAS service information quality and satisfaction that includes both user and

provider perceptions of the MAS function;

.relative importance of various MAS service offerings;

.communication misunderstandings and/or barriers to improving service

performance; and

.how organizations may adjust to improve the usefulness of these services.

This exploratory study attempts to address each of these issues.

If organizations do not identify what service(s) customers want and need, and fail to

monitor changes in user preferences, it is very likely that these internal cus tomers will

not be satisfied (Parasuraman et al., 1985; Aldhizer et al., 2002). Following this thrust is

essential for accountants to ask themselves and their service users whether each group

is collectively satisfied with communications between the groups, decision-usefulness

and quality of information they provide/receive, and the overall level of satisfaction

with service offerings. Answers to these and other questions can be instructive for

preparing service improvement and training plans.

Role theory further justifies the importance of our study of user-provider MAS

services. This theory suggests that MAS service providers (labeled as focal roles by the

theory) are significantly influenced by the service needs and expectations of MAS

users (labeled as role senders by the theory) (Kahn et al., 1964; Katz and Kahn, 1978).

Therefore, accountants should solicit and assess user needs and perceptions of

current performance. Within the accounting literature, Hopper (1980), Sathe (1982),

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