The influence of Organisational Culture on the Adoption of MAPs among Companies Operating in Libya: Contingency Perspective

كتبت بتاريخ :

Aldrogi, Mohamed*,Alasfour, Fadi** - Leeds Beckett University

and Algeru Osama*** - Zawia University

 

*Email: aldrogi10@yahoo.com

**Email: asfour.80@hotmail.com

***Email: oalgeru@gmail.com

 

Abstract

Purpose: This study investigated the effect of organisational culture represented by Innovation, outcome orientation and tight vs. loose control on the adoption of management accounting practices (MAPs) in terms of product cost practices, budgeting practices, performance measures practices and decision support practices among companies operating in Libya, using selection and interaction approaches of the contingency theory.

Methodology: data was collected from 107 companies operating in Libya using a self-administrated questionnaire survey. The data analysed using various statistical advanced methods in which simple regression analysis used to test researcher Hypotheses related to the selection approach and MACRO sobel test adopted to test Hypotheses related to interaction approach.

Findings: the findings of the hypotheses related to the selection approach revealed that organisational culture as an overall and in terms of innovation, outcome orientation and tight vs. loose control individually are statistically significant in predicting the adoption of all individual groups of MAPs and  the adoption of MAPs as an overall at p value < .01 and <.05. However, there is only fit between budgeting practices group and innovation dimension at p value < .10; while, the relationship was not significant at p value < .01 and <.05. Furthermore, the findings of the hypotheses related to the interaction approach which concern to examine the intervening effect of organisational culture and the adoption of MAPs on the organisational performance indicated that MAPs play partial mediation role as individual groups and as an overall on the relationship between organisational culture and organisational performance. This implies that organisational culture has influence on the organisational performance through the adoption level of MAPs, however, it is not fully mediated (i.e. the relationship between organisational culture is still existed even if the effect of MAPs is controlled.

Research limitations/implications – this study relied on data collected from different industries sectors in Libya which might significantly affect the adoption of MAPs particularly between services and manufacturing companies. Furthermore, since this study was completely relied on a questionnaire survey as the only data collection instrument (numerical data), and then the data were statistically analysed using quantitative methods; therefore, the advantage of applying mixed method for collecting and analysing the data has been missed and added to the limitations of the current research. And also the sample size might be relatively small; however, statistically is considered to be adequate and sufficient for this research.

 

Originality: the vast majority of the previous studies mainly concerned on examining the influence of organisational culture on MCS represented by a small number of MCS or specific MAPs such as activity-based management, budgeting participation, job related attitude, ABC and performance measurement characteristics. Therefore, this study provides significant contributions towards the understanding oftheorganisational culture influence on the adoption of broad range of MAPs,and indicates the intervening effect between these two factors on the organisational performance using two approaches of contingency theory.

 

Keywords:MAPs: product cost practices; budgeting practices; performance measurement practices; decision support practices; organisational culture; organisational performance.