Theorizing Strategy in Management Accounting - Coursework Example

Strategic Management Accounting Name School or Institution Name Why are the authors theorizing strategy in management accounting? The strategic management accounting is more likely an accepted tool within the literature on what constitutes the contemporary portfolio of management accounting techniques. This occurred despite the enormous study done over the past few years that challenged the existence of Strategic Management Accounting. The strategy was theorized for a couple of reasons; since the authors needed to prove that Strategic Management Accounting existed then, they had to theorize the whole SMA (Cooper, Ezzamel & Qu, 2016). However, much of the early research on SMA has sought to build on a particular concept of strategy---the concept that these scholars have also aligned ideas of management accounting in SMA. Despite the fact that there are critics in the strategy literature that question the merits of developing a rationalistic, objective tradition which views strategy as essentially a top-down action in which practice flows from strategic policy based strategy (Tsoukas, 2016). An alternative perspective has recognized that strategy has indeed developed other ways, say new, for instance, the SAP (Strategy-as-practice), whose approach is based on concrete and situated activities. Additionally, the SAP comrades decenter the reoccupation on the organization of traditional strategic management. The researchers also focused on what strategy does in an organization, hence the need of theorizing the whole SMA (Lukka & Vinnari, 2014). This is a position that can be seen as an arrangement of administration that works: at a large scale level of national and universal society, country and economy; at the smaller scale level of association; and pervades the individual level where bookkeeping constitutes both guidelines and assets for activity. It envelops a monetary measurement (figuring of the creation, dissemination and utilization of significant worth), a political measurement (control and responsibility), and an ideological measurement (types of bookkeeping reflexivity. This was also done to facilitate the study of the Strategy -as- practice. In the study of Strategy as practice, there is a caution against focus about what is described (especially when it comes to what is described by the top management) as strategic and instead advocate the study of the practices and rituals by which strategic behavior is determined (Lukka & Vinnari, 2014). Observation of the capacity for change might be needed in this, and also the significance of silent voices and omissions potentially. In the strategies, there are important facets of practice they include; symbols, artifacts, and language. There is also space for multiple actors to perform up to and including middle managers who are seen as operational rather than strategic traditionally, in this strategy (Messner, 2016). Theorizing the strategy, therefore, adds to our knowledge of the potential for Strategy Management Accounting, it also improves the effectiveness of different configurationally archetypes of strategy. Also, the strategy is theorized as it challenges conventional SMA thinking from the perspective of strategy-as-practice (Lukka & Vinnari, 2014). Critically analyze the research design that is used in the study and if it is adequate. In the paper, research is done in a different setting, the West End Musicals. Which is a perfect example of a cultural and experience-based good? This study focuses on two cities and the experiences of musical theater in the cities (Messner, 2016). On the research methodology, the author succinctly provides thesis statement for the research identifying gaps in previous studies. From the onset, the study uses the methodology to give readers overview of how it is going to build on strategic management accounting and the tools that will be required in accomplishing the task. Importantly, the research uses the methodology to introduce to its readers existing strategic management accounting based methods that if adopted will provide another level of innovative strategic management accounting. The paper uses a Case study and an inter-disciplinary perspective to identify the intermediates and the mechanisms that underlie the process of strategy as a practice, the use of multiple methods in this research is consistent with the SAP cohort of strategy researchers. The research type used is descriptive research type, well this is demonstrated by the availability or rather the fact that the authors did mention a case study, that that challenges SMA thinking on a certain strategical perspective. Like the research suggests the abstract answers a couple of "why" questions. For instance, it does answer the question one above (Messner, 2016). “Why is the strategy of management accounting theorized?” the study is partially adequate. This is because it uses an approach that collects a large amount of data for detailed analysis. It is also often used as a precursor to a more detailed research designs with the general overview issuing some pointers that are valuable and worth testing quantitatively finally, descriptive research yield rich data that can be used for important recommendations in the study. It demonstrated from the abstract, the findings indicated that the strategy is a complex practice and is an inherently social process, this, therefore, implies that the data collected from the research can be used widely to identify the permanent processes in the community or socially (Lukka & Vinnari, 2014). It also is inadequate because; a. The descriptive function of research is heavily dependent on instruments used in observation and measurement, thus be there one small error in the measurement or the observations being taken then the results of the entire research might be compromised. b. Results of this method of research cannot be replicated because of the method of data collection, observation (Lukka & Vinnari, 2014). c. A definite answer cannot be discovered; neither can a hypothesis be disproved from the results of a descriptive search. Going back to the question then yes, this method of research was adequate for the authors’ intentions. Explain the important findings that the authors have reported in their study and its implications for the management accounting innovations Lukka & Vinnari (2014) did come up with important findings before mentioning the findings that they did come up with, the findings stated that strategy is a complex practice and that it is inherently a social process. There are three particular sources of information in this study: publicly available documents, attendance at trade events and interviews with key informants. This study has focused on the launch of new commercial theatrical productions, West End Musicals. Furthermore, the theater is an experience-based good, and the decision to adopt thus carries a risk for the consumer. The findings on the social organization of strategy as practice presented above suggest that to be successful at bringing novel-culture- content intensive products to the market, producers not only focus on product development but also try to shape market development. The process by which new products emerge and then at disembarking on new product strategies presented a very distinct model of strategy as practice in the world of theater management, one in which the role of accounting is both export and limited. This perspective is also confirmed by the views of leading industry experts, who relegate return on investment. And a preoccupation with the bottom line at the end of year reviews process, so that costs and costing are not intrusive in the creative process. This is contrary to the established literature on SMA which contrives to locate management accounting practices into rather dated and instrumental concepts of what constitute strategic thinking with strategic costing, strategic planning, and strategic pricing a preoccupation with existing accounting models rather than strategic practices (Schaltegger et al., 2016). These findings relate to the very specific context of popular theater. There is scope for investigations of the existence or otherwise of strategic management accounting in other spheres of popular culture. In particular, where popular culture has creative industries which operate within market settings, there is a case for further research into the manner and shape of such markets and the role of accounting within them and the distinctive nature of the customer in such markets. Furthermore, from a practice perspective, the findings of this paper on the multiplicity of actors engaged in strategizing the cross-organizational interactions and the variety of extra organizational activities in which strategic actions occur, offers a challenging insight into a strategy as a practice for would be strategic management accountants engaging in this field. This can be seen as presenting an opportunity for a fresh approach to SMA (Schaltegger et al., 2016). Most importantly, regardinofg practice, if management accountants in theater l and are to act strategically, they need to connect with the wider social and institutional setting. In conclusion, the following findings were from the extensive research conducted by the authors on the relevance of strategic management accounting to popular culture. From which we get the implication that SMA is best theorized so as to be able to be studied better. We also get that theater products negotiate a route to the market that is mediated by validating intermediary organizations that contribute and communicate the reputation of new cultural products and thereby support the strategic process (Schaltegger et al., 2016). This process also examines its development from a strategy perspective. References Cooper, D. J., Ezzamel, M., & Qu, S. (2016). Popularizing a management accounting idea: The case of the balanced scorecard. Lukka, K., & Vinnari, E. (2014). Domain theory and method theory in management accounting research. Accounting, Auditing & Accountability Journal, 27(8), 1308-1338. Messner, M. (2016). Does industry matter? How industry context shapes management accounting practice. Management Accounting Research, 31, 103-111. Schaltegger, S., Hansen, E. G., & Lüdeke-Freund, F. (2016). Business models for sustainability: Origins, present research, and future avenues. Tsoukas, H. (2016). Don't simplify, complexify: from disjunctive to conjunctive theorizing in organization and management studies. Journal of Management Studies. Read More