A revenue management perspective of management accounting practice in small businesses

Frederick Ng, Julie A. Harrison and Chris Akroyd

Meditari Accountancy Research, 2013, vol. 21, issue 2, 92-116

Abstract: Purpose - – The purpose of this paper is to develop a framework for the systematic examination of management accounting practices in small businesses using a revenue management perspective. This highlights the multi-faceted nature of size as a contextual factor and emphasises the role of management accounting in supporting profit-oriented decision-making, rather than its traditional role of co-ordination, control, and accountability. Design/methodology/approach - – The framework is theoretically derived from the management accounting, revenue management, and small business literature. An illustrative case study of a small fast-food business is presented to demonstrate the applicability of this framework to practice. Findings - – The paper identifies that various dimensions of business size have different and sometimes opposing effects on management accounting practices. Given heterogeneity is a common feature of small businesses, the framework considers alternative specifications of the size contingency variable. Research limitations/implications - – The synthesis of small business characteristics and revenue management perspective offers a more incisive understanding of what has traditionally been considered a simple practice. The case study illustrates some of the influences of small business characteristics identified in the framework. Given its narrow scope, the findings are used for theorisation rather than offering generalisable results. Further cross-sectional comparisons of small businesses are needed to confirm size influences. Practical implications - – The framework can assist practitioners to gauge the strengths and weaknesses of their management accounting practices and can help assess the value of adopting more sophisticated management accounting practices, given their particular business environment. A synthesis of these small business attributes can help practitioners identify key barriers to implementation. Originality/value - – The revenue management perspective and the inclusion of key characteristics of small businesses provide a new approach to evaluating management accounting practices in small businesses.

Keywords: Management accounting; Revenue management; Small business (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:medarp:v:21:y:2013:i:2:p:92-116

DOI: 10.1108/MEDAR-07-2012-0023

Access Statistics for this article

Meditari Accountancy Research is currently edited by Prof Charl de Villiers and Warren Maroun

More articles in Meditari Accountancy Research from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().