Strategic configurations and strategic management accounting: a longitudinal case study in the credit mediation industry

Andrea Dello Sbarba

Journal of Accounting & Organizational Change, 2024, vol. 20, issue 6, 277-305

Abstract: Purpose - The purpose of this paper is to investigate the relationship between strategy, strategic management accounting (SMA) and performance. Specifically, it aims to explore how SMA alignment is achieved to support both the internal and external fit of organizational configurations and achieve superior performance. Design/methodology/approach - This study has adopted a longitudinal case study approach, focusing on a leading company in the credit mediation industry, and uses the configurational theory and a network approach to understand how an alignment between organizational configurations and SMA leads to superior performance. Findings - This study shows that the configurational fit involves interactions between environmental, strategic and structural elements and SMA. Moreover, it helps understanding the causal complexity of these interactions by showing how various organizational configurations, along with SMA, may lead to superior performance. Finally, from a longitudinal perspective, the study shows how SMA alignment continuously supports both the external and internal configuration fit. Research limitations/implications - Case studies often lack generalizability due to their detailed, context-specific nature. In addition, the study assumes that aligning SMA practices with organizational configurations leads to higher performance, although outcomes may be affected by other unobserved factors. Practical implications - This study also has practical implications for managers, as it provides a profound understanding of the role of SMA in supporting both the external and internal alignment of the organizational configuration. Managers should particularly leverage SMA to gather and analyze external environmental data, thereby enabling the organization to ensure the continuous consistency of its strategic priorities, as well as to support and reinforce both existing and emerging strategic imperatives. However, it is essential for managers to perceive SMA not as an isolated instrument, but as an integral component of the broader organizational system. Effective implementation necessitates the integration of SMA techniques with the strategic and structural elements of the organization, which complement their implementation, determining the actual contribution to external and internal fit. Originality/value - To the best of the author’s knowledge, this study has been one of the first to adopt a qualitative approach to investigate the relationships between strategy, SMA and performance through the lens of the configurational theory. It elucidates the causal mechanisms underlying the relationships between configurations and SMA from a dynamic, change-oriented perspective, showing how SMA continuously contributes to configurational fit and performance.

Keywords: Strategic management accounting; Configurational theory; Network approach; Credit mediation industry (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jaocpp:jaoc-04-2024-0118

DOI: 10.1108/JAOC-04-2024-0118

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