Essays on Adoption of Management Accounting Innovations by Ax and Greve Assignment

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The paper "Adoption of Management Accounting Innovations by Ax and Greve " is a good example of a management assignment.   Ax and Greve (2017) are emphasising the role of compatibility as a link between organisational culture and management innovations because organisational culture is the cornerstone of all activities that organisations undertake, including innovations. Therefore, in order for an organisation to have management innovations, it must have a culture that supports creativity and innovations. In other words, the culture of an organisation must be compatible with innovativeness in order for the organisation to support management innovations. To illustrate the points stated above, there is a need to look at how Ax and Greve (2017) have described organisational culture and linked the concept to the issue of innovation.

The authors note that organisational culture has a significant impact on the manner in which the members of an organisation interpret social practices and objects, the goals to be developed, and the strategies that the members of an organisation adopt to create a linkage between the practices and objects and the goals to be achieved.

In another study, Chongruksut (2009) defined organisational culture as the expectations and beliefs that are espoused in an organisation, which bring about norms that significantly shape the behaviour of individuals and groups in the organisation. Thus, it can be said that organisational culture is all about the beliefs and values that an organisation champions for. Ax and Greve (2017) emphasise that the notion of organisational culture is linked to management innovation. This point is illustrated in the authors’ assertion that innovation is said to be attuned to an organisation’ s culture when the beliefs and values that are required in order to effectively use the innovation are comparable to the shared beliefs and values of the members of the organisation.

In this regard, compatibility refers to a connection between an organisation and an innovation and not merely an attribute of the firm alone. Specifically, Ax and Greve (2017) define compatible organisations as those firms whose organisational culture is similar to or related to the beliefs and values that are entrenched in the innovation that they intend to use or come up with.

That is to say that for an organisation to be said to be compatible, its organisational culture and any innovation that it produces or uses must be closely related and playing a complementary role. This view is supported by Lai, Lin and Ong (2015), who argue for instance that when an organisation has an innovative organisational culture, the firm can visualise the business environment as well as customer needs. Further, Lai et al. (2015) suggest that an innovative culture can enable an organisation to establish the capabilities that are necessary to make it more competitive both at the present time and in the future. Ax and Greve (2017) also emphasise the significance of the compatibility between organisational culture and management innovations by noting that implementation of new practices occurs more easily and is more successful when an organisation has a culture that fits with the beliefs and values that are entrenched in administrative innovations.

That is, for any innovation to be successful and to be easily adopted, it needs to be compatible with the beliefs and values that are entrenched in the entire organisation.

References

Ax, C., & Greve, J. (2017). Adoption of management accounting innovations: Organizational culture compatibility and perceived outcomes. Management Accounting Research, 34, 59–74.

Chongruksut, W. (2009). Organizational culture and the use of management accounting innovations in Thailand. RU International Journal, 3(1), 113-126.

Fitzgerald, L. (2007). Performance measurement. In Issues in management accounting (3rd Ed.). (pp. 223-244). Essex, England: Pearson Education Limited.

Lai, J-Y., Lin, C-T., & Ong, C-S. (2015). Factors driving value creation in online B2B banking. In Banking, finance, and accounting: Concepts, methodologies, tools, and applications (pp. 159-179). Hershey, PA: Business Science Reference.

Scott, S. D., Plotnikoff, R. C., Karunamuni, N., Bize, R., & Rodgers, W. (2008). Factors influencing the adoption of an innovation: An examination of the uptake of the Canadian Heart Health Kit (HHK). Implementation Science, 3(41). Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2567341/pdf/1748-5908-3-41.pdf

von Hippel, E. (2017). Free innovation. Cambridge, Massachusetts: The MIT Press.

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