The Role of Innovation in Management Accounting and its Impact on Business Performance

Running head: APPLIED BUSINESS RESEARCH
Applied business research
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1APPLIED BUSINESS RESEARCH
Table of Contents
Brief summary............................................................................................................................3
Common themes.........................................................................................................................5
Different themes.........................................................................................................................6
Managerial implications.............................................................................................................7
Study limitations and future research direction.........................................................................7

2APPLIED BUSINESS RESEARCH
Brief summary
Chenhall, R.H. and Moers, F., 2015. The role of innovation in the evolution of
management accounting and its integration into management control. Accounting,
Organizations and Society, 47, pp.1-13.
According to Chenhall and Moers (2015), the role innovation on accounting is
immense and it has positively created an impact on both the organisational, social and
behavioural aspects of accounting and finance. The management accounting practices have
evolved over time and it has transformed into a more complex and management control
system, which includes formal and informal input along with processes and output controls
required to accomplish the organisational goals and objectives with ease and effectiveness
(Chenhall and Moers 2015). The management accounting has been innovated, which has
helped in using a single loop feedback and allow for comparing the actual outcomes with the
budget, furthermore implement any changes and undertake corrective actions during the
management of budgets. The management control system also enables managing the budget
for the purpose of product planning and control, furthermore link the budget with the
complimentary ways of managing control as well (Otley and Emmanuel 2013). This includes
systems for capital investments, operational controls, and management of financial and non-
financial data along with the evaluation of incentive systems integrated with the objective,
subjective measures and informal personal control too.
Eilifsen, A. and Messier Jr, W.F., 2014. Materiality guidance of the major public
accounting firms. Auditing: A Journal of Practice & Theory, 34(2), pp.3-26.
According to Eilifsen and Messier Jr (2014), the materiality theory or concept is an
important aspect of innovation in accounting that not only maintained high consistency level,
but also has favoured the providing of guidance for group audits along with creation of