Practices of management accounting adopted by innovative companies

Abstract

Objective of the study: This study aims at verifying the relationship between innovative characteristics of organizations and the adoption of practices of management accounting.

Methodology/approach: Through an applied research, as survey type, with quantitative approach applied to a population of 787 companies that received financial assistance to the innovations development, a sample of 79 companies was obtained and the data of the survey were submitted to descriptive and cluster analysis.

Originality/Relevance: Studies related to management accounting (MA) and innovation tend to identify how MA can influence the innovation capacity of organizations, either positively or negatively, thus, this study seeks to advance the theme, with a relationship in another sense, analyzing how Innovation can influence the adoption of practices of management accounting.

Main results: Most of the organizations have, formally constituted, a department responsible for the management accounting information, the majority of companies were small size or medium companies. Regarding to the adoption of practices of management accounting (MA), it was identified the traditional practices of second stage usage with greater intensity, as breakeven point, budgeting and product profitability analysis. There was also a differentiation in the usage levels of the practices between organizations with innovative characteristics, with the most innovative companies using more modern MA practices.

Theoretical/methodological contributions: This research contributes to the understanding that there may be a gap between the needs of the organizations and what is developed and employed by MA besides showing that innovation can be a factor which can positively influence the adoption of more recently emergent practices.

Social/management contributions: In the social perspective, it is understood that this study presents a broader view on the applicability of management accounting practices in environments involved with innovation, expanding the field of knowledge about AM, as well as innovation environments.