Using an Accounting-based Management Control System for Cultural Change

Abstract

Implementation of Continuous Improvement (CI) management has had a high failure rate (Jazayeri & Hopper 1999). Cultural resistance (Irani et al. 2003) based on insufficient trust (Chenhall and Langfield- Smith 2003) is a key factor. When employment contracts fail, employees resist changes perceived to threaten their welfare. This paper uses an innovative action research approach to design and implement a Management Control System (MCS) that will reduce this problem. Supported by several theoretical bases, this research merges and applies an MCS with a Continuous Improvement Accounting Information System (CI-AIS) to an American factory.