The diffusion of technological and management accounting innovation: Malaysian evidence

Abstract

Purpose: The study aims to examine the scope and extent of technological and management accounting innovation in Malaysia by identifying the stage of development of practice in industrial companies. Further, it seeks to investigate the factors determining their adoption of technological and management accounting innovations.Design/methodology/approach: A questionnaire‐based study is conducted within a tightly defined industrial area in the Klang Valley, so permitting personal follow‐up of individual companies.Findings: The study confirms the dominance of financial accounting for the purposes of management control, with minimal adoption of innovative management accounting tools, even for large companies.Originality/value: The Akira model for management accounting development is applied in recognition that it will fit developing South East Asian countries better than western equivalents, because of relatively low levels of automation.