Assessing the interaction effect of cost control systems and information technology integration on manufacturing plant financial performance
2014 (English)In: The British Accounting Review, ISSN 0890-8389, E-ISSN 1095-8347, Vol. 46, no 1, 77-90 p.Article in journal (Refereed) Published
The interface between management control and information technology is an under-developed research area with a knowledge gap concerning its implications for financial performance. This study contributes to bridging this gap by investigating the interaction effect of cost control systems and information technology integration on manufacturing plant financial performance. We surveyed a sample of 518 managers of U.S. manufacturing plants, approximately evenly distributed between those using activity-based costing and volume-based costing. Using hierarchical regression analyses, results indicate that while information technology integration and cost control systems do not provide significant independent effects on plant financial performance, they do interact to positively impact manufacturing plant financial performance. Thus, our findings suggest that manufacturing plants will reap the greatest financial performance benefits from investments in activity-based cost control systems when combined with information technology integration.
Place, publisher, year, edition, pages
2014. Vol. 46, no 1, 77-90 p.
Business / Economics - Business studies
Ekonomi - Företagsekonomi
Research subject Accounting and Control
IdentifiersURN: urn:nbn:se:ltu:diva-14647DOI: 10.1016/j.bar.2013.10.001Local ID: e100ed2c-2ace-4af0-9362-d2f9c3aab9ccOAI: oai:DiVA.org:ltu-14647DiVA: diva2:987620
Validerad; 2014; 20131008 (andersn)2016-09-292016-09-29Bibliographically approved