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Purpose – This study aims to examine the effects of balanced scorecard (BSC) usage on performances in the context of four contingent variables in Singaporean manufacturing firms. The results show that firms are more likely to adopt BSC if they are large in size, have products at an early product lifecycle (PLC) stage, operate in highly uncertain environments or adopt differentiation strategies. However, the adoption of BSC improves performance only in firms that are large or have products at an early PLC stage. The results suggest that contingent factors in which a firm operates can exert significant effects on the results of adopting BSC. Design/methodology/approach – Survey data are collected, then the authors check data correlations, principle components analysis, run regression analysis and ANOVA. Findings – BSC use is positively and significantly correlated with PLC stage, external environment and performance. Size and strategy are positively correlated with BSC usage, but are not statistically significant. Higher BSC use is found in large firms with products at an early PLC stage or operating in a highly uncertain environment. Companies with a cost leadership strategy are significantly associated with BSC use. Research limitations/implications – This study has small sample size and uses survey research method. The measurements to capture all aspects of BSC usage are non-exhausting. Future research can use different methodologies, such as field studies, case studies and lab experiments, to examine other industries than manufacturing. Practical implications – The authors results show the positive association between BSC use and certain firm characteristics. Firms with those characteristics should get insights about the benefit of using BSC and extract the maximum benefit from their investment on the BSC use and those firms which don’t have BSC in implication may think of implementing the BSC use. Social implications – Firms’ contingent factors affect the value of adopting BSC. With the authors research result, firms will be aware of how to extract the most value out of BSC and improve the social wealth of the manufacturing industries. Originality/value – The authors paper is the first paper to use survey method to examine the association between BSC and firms’ contingent factors in the Singaporean manufacturing firms setting.

This study investigates the causality and long-run sustainability between carbon emission and agricultural output in Japan using the long time series data and employing advanced econometric techniques of unit root test, nonlinear least-square estimation, vector error correction estimation, and Granger causality test. The results reveal that Japan's agricultural output does not Granger-cause the country's carbon emissions and its carbon emissions do not Granger-cause its agricultural output and hence the relationship between the two is proven to be not sustainable in the long run. The results also reveal that any disequilibrium between the two variables could take approximately 116 years to converge to their long-run sustainability. The adjustment rate for Japan's agricultural output is positive and quite slow at the rate of 27% per year. Since the current carbon emission in Japan vis-à-vis its agricultural output is below the long-run sustainability level, Japan's agriculture sector is expected not to face any stricter carbon emission controlling policies and regulations in the near future. Refereed/Peer-reviewed

Despite its theoretical superiority, the activity-based costing (ABC) model has had only moderate success in replacing the traditional volume-based absorption costing models in complex organizations worldwide. Even in organizations that have launched ABC projects, the implementations often do not sustain. In response to this general lack of enthusiasm worldwide for ABC, accountants developed the time-driven activity-based costing (TDABC) model as an alternative cost allocation model. This paper presents a comparison of the TDABC model with ABC, and considers if this alternative cost allocation model (1) is easier to implement from an international perspective and (2) provides comparable cost information for decision making. We use a case study in a country outside the model's country of origin to understand the similarities and differences in absorption costing systems that use ‘volume,’ ‘activities,’ and ‘time’ as the drivers of indirect cost allocations. We also use the case study to ascertain if any country‐specific factors impede ABC implementation. We conclude the following: the TDABC model has similar implementation complexities to ABC if modelling conditions are strictly adhered to; these complexities are independent of country‐specific factors; and in its simplest form, the model generates the same decision information errors of traditional costing. Refereed/Peer-reviewed

SYNOPSIS: Under various carbon emissions trading schemes proposed around the world (including the United States), organizations will need to implement carbon management schemes to meet carbon ration targets, earn revenue, and reduce costs. Emission Trading Schemes will impact the accounting profession significantly; however,discussions on how to report these transactions are in the very formative stages. So far the accounting literature has focused on the reporting of current carbon assets and liabilities in the balance sheet and the timing effects of carbon releases in the income statement. However, there has been little or no discussion as to how to value and report the underlying non-current assets (and liabilities) that produce or use carbon allowances on the balance sheet. This paper proposes a model for valuing an organization’s non-current carbon sequestration and emission capabilities. A new metric, Environmental Capability Enhancing Asset (ECEA), is introduced as the underpinning for the conversion of non-monetary CO2 emission and sequestration measures to monetary values.The process of bringing these monetized values within the boundaries of conventional (double-entry) GAAP is also demonstrated. Refereed/Peer-reviewed

PurposeIn the early 1990s, a number of controversial and radical initiatives were introduced by the Australian Government that had a compounded impact on higher education in general, and for the teaching of accounting studies in particular. The impacts of these initiatives have now lasted well over a decade. The purpose of this paper is to address this situation.Design/methodology/approachThis paper uses a case‐study approach to study the quality management objectives and strategies of an accounting department, to survive and prosper in this changing academic environment, initially as an independent entity in the period 1990‐1996, and thereafter from 1997 to 2006 as a merged entity with another accounting department in the same university that was an internal competitor in the earlier period.FindingsIt is demonstrated that the department was largely successful in climbing from a position of significant under‐achievement amongst its peers in 1990, to one of strength in terms of both research performance and entrepreneurship by 1994. However, continual re‐structuring of the department by the university has resulted in a loss of synergy and a decline in the latter periods of the study.Practical implicationsThis case is of particular interest to educators who are coping with the issues of “balance” between teaching and research, and to those interested in seeing how a department implemented a comprehensive quality management programme largely in keeping with the framework provided by the Higher Education Council.Originality/valueThe value of the paper is that it provides many useful insights on many diverse issues to those universities and their departments which wish to operate in a globalised environment.

PurposeThe purpose of this paper is to demonstrate that the decision facilitation and decision influencing roles for management information are concomitant in organizations, and therefore must be analysed concurrently.Design/methodology/approachA two‐stage regression procedure for testing the moderating and intervening relationships among the variables of interest was adopted. First, the interaction of individual level controls (administrative and professional) on broad scope management accounting system (MAS) was tested, then the intervening relationship between broad scope MAS, job‐relevant information (JRI), and performance was analysed.FindingsTests of the moderating relationship between the control environment, broad scope MAS, JRI, and performance revealed a significant interaction term for JRI, but not for performance.Research limitations/implicationsThe usual measurement and implementation errors associated with survey methodology attach to this study. Furthermore, the sample was not randomly selected, which undermines the external validity of the findings. External validity will be further compromised by the relatively small sample size. Hence, caution is recommended in generalising the results to a wider population.Practical implicationsThe study provides evidence on the relationship between broad scope MAS, individual level control mechanisms and the outcome variable of JRI.Originality/valueThe paper seeks to use a controlled setting, established measures, and methods of analysis to suggest that when existing theory explains the empirical relationship among the variables of interest in more than one way, it may be necessary to comprehensively examine the relationships theoretically and empirically at more than one level to enable a better explanation of the linkage between theory and the empirical tests.

Aims to identify the motivational factors for investing in information technology (IT), the impediments to IT investments and the outcomes of the planning and implementation of IT projects by chartered accountants in Australia. The results indicate that firms are motivated to invest in IT primarily for five reasons. IT investments face a number of challenges, the most prominent being the need to keep up with technology, which is likely to worsen as the technology cycles continue to shorten. Identifies resource procurement, lack of appropriate development tools, lack of proper planning or project management and user resistance to change as the four main problems encountered in implementation of IT projects. Many IT projects were undertaken for the purpose of improving efficiency within the organisation and reducing costs, rather than more strategic usage such as providing a flexible IT infrastructure or aligning IT with corporate strategy. The results suggest that firms have largely only utilised IT in their internal operations, rather than for strategic reasons.

The concentrations of greenhouse gases in the atmosphere have risen dramatically leading to the possibility of costly disruption from rapid climate change. This calls for greater attention and precautionary measures to be put in place, both globally and locally. Governments, business entities and consumers would be impacted by the extent to which such precautionary measures are incorporated in their decision making process. Business entities need to consider issues such as trading in carbon allowances (or permits), investment in low- CO2 emission technologies, counting the costs of carbon regularity compliance and passing on the increased cost of carbon regulation to consumers through higher prices. Such considerations require information for informed decision making. This paper reports on a qualitative research study undertaken to consider the impact of the Kyoto protocol mechanisms on the changing information paradigms of cost and managerial accounting. It is demonstrated that the information from strategic cost management systems will be particularly useful in this new carbon-economy, especially in evaluating the ‘whole-of-life’ costs of products and services in terms of carbon emissions. Similarly, the study discusses how strategic management accounting information would facilitate decisions on business policy, human resource management, marketing, supply chain management and finance strategies and the resultant evaluation of performance. Under various carbon emissions trading schemes proposed around the world (including the United States), organizations will need to implement carbon management schemes to meet carbon ration targets, earn revenue and reduce costs. Emission Trading Schemes will impact the accounting profession significantly; however, discussions on how to report these transactions are in the very formative stages. So far the accounting literature has focused on the reporting of current carbon assets and liabilities in the balance sheet and the timing effects of carbon releases in the income statement. However, there has been little or no discussion as to how to value and report the underlying non-current assets (and liabilities) that produce or use carbon allowances on the balance sheet. This paper summarizes the ongoing dialogue in this area.

PurposeThe key purpose of this paper is to examine the causality and long‐run relationship between CO2 emission and agricultural output for an agriculture‐dependent developing country, namely Bangladesh.Design/methodology/approachIn order to attain the objective, this study has used long‐time series data and employed advanced econometric techniques of unit root test, nonlinear least square estimation, Vector Error Correction estimation and Granger causality test.FindingsThe empirical results of the study reveal that Bangladesh agricultural output is not a Granger causal for Bangladesh CO2 emission, but the country's CO2 emission is a Granger causal for its agricultural output. The results also reveal for Bangladesh that any disequilibrium between CO2 emissions and agricultural output could take approximately 17 years to converge to the long‐run equilibrium. The results further reveal that the adjustment rate for Bangladesh agricultural output is positive and quite fast at the rate of 69 percent a year. So any disequilibrium will be corrected mostly by the adjustment in Bangladesh agricultural output.Practical implicationsThe current CO2 emission in Bangladesh is still below the equilibrium level, which is considered to be an advantage for the country, particularly its agriculture sector which will reasonably not face any stricter CO2 emissions controlling policies and regulations in the near future.Originality/valueThe originality of this study lies on the extent to which an agriculture‐dependent developing country such as Bangladesh does not have greater concern about the CO2 emission for now and the near future. The originality does also lie on the fact that no other study has yet examined this issue.

This study contributes to understandings of the construction of the carbon economy (termed carbonomics) and its effects on the evolution of the contemporary industrial landscape. Starting from a supranational level, this paper demonstrates how neo-institutional theory provides insights to understand the ways by which countries can craft their carbonomics policy architectures. In particular, this paper broadens the application of the neo-institutional theory of organisational practices to a country-level analysis in order to understand their attempts to reduce global atmospheric pollution. By summarising the carbon policy and regulations of major developed and developing countries which together have contributed more than 75% of global emissions, this study aims to explore how they incorporate the global carbonomics institutions in their carbon policy architectures. Three selected countries are studied to reveal different roadmaps, albeit with some considerable degrees of similarity, for designing and implementing their climate policies to curb emissions. The case studies also shed light on which highly polluting industry sectors have been affected by the carbon policies in various jurisdictions. Because each policy and its supporting regulation entail compliance costs and promulgate certain rules to be followed, the impact of carbon policies must be taken into consideration into future research examining contemporary industrial organisation as the world moves into a low carbon economy. Refereed/Peer-reviewed

This study examines the act of product tampering and the possible public policy and marketing implications. Because product tampering could be easily used to endanger the health of the public, we argue that from the public policy viewpoint, the federal government must treat the design of tampering-resistant packaging as a public good and lead the way in conducting research in this area instead of leaving it to the industry. Furthermore, the federal government needs to increase the penalty available for product tampering under the FATA (Federal Anti-Tampering Act) to achieve a deterrence effect. Marketing could play a vital role in providing guidance on how to treat tampering incidents and in the dissemination of information Refereed/Peer-reviewed

Refereed/Peer-reviewed

There are numerous financial metrics available in the academic and commercial world to estimate real estate value. Appraisers often use such metrics when advising on the purchase or sale of real estate at a point in time. The first part of this paper proposes a new metric, based on the capability approach, to make an ex-post single period valuation. Further, appraisers often give advice to their clients on actions to take in order to enhance the value of their real estate. This area of value enhancement has received scant attention in the academic literature. In practice, this advice is often based ad-hoc, anecdotal recommendations. The second part of the paper develops seven real estate strengths that can be targeted, and provides an ex-ante approach to building real estate value. The valuation model presented in this paper is a pragmatic approach to enhancing both the values of tangible and intangible capabilities of a property by utilizing Expense Leveraged Value Indexes (ELVI).

This paper seeks to establish if top management (the board) of a firm should extend its overview of the governance process to the execution of strategy (i.e., strategic governance) and, if so, does the management accounting information system (MAIS) have a role in facilitating this strategy execution process. This study investigated the role of the board and MAIS in strategic governance by examining a company with a public record of both successful governance and integrated strategic management accounting processes in a high-risk industry. The analysis demonstrates that boards should go beyond the minimum conformance (compliance) requirements of the governance-regulatory legislation and assume ultimate responsibility for strategy execution and enterprise performance. However,while management accounting techniques, processes and reports were found to be used extensively in strategic governance to integrate the policy-management interface in numerous conformance–performance domains, the traditional role of the management accountant was found to be limited in terms of their role in such governance. The study demonstrates that a more strategic governance role offers the management accountant a way back into senior management by using the routines of management accounting to socialize the board and curb any opportunism that may arise. Refereed/Peer-reviewed

Maintenance and its management has now reached the level of strategic importance in most medium to large organisations. Due to ever increasing pressures from customers companies can no longer simply rely on a ‘repair as required’ philosophy and hope to be successful in the long run. A strategic approach is needed to determine which maintenance model or system will best suit the organisation. A recent review of maintenance literature found that Total Productive Maintenance (TPM), Reliability-Centred Maintenance (RCM), and Condition-Based Maintenance (CBM) were the most popular maintenance management models discussed in academic journals. In this paper a comprehensive review of these three models is undertaken to identify empirical ‘real world’ examples of each model being used in industry. Further analysis is provided in the form of author’s origin, research method, study country, sector and industry. The paper provides practitioners with a breakdown of the practical applications for each model in industry today, and academics, a point-of-reference for further empirical research efforts. For practitioners seeking to expand their knowledge of a particular model or how a maintenance management model may fit an organisation, listed references have been chosen for their practical links to present day organisations. In regards to the energy sector the review identified a number of power plants with RCM being the dominate maintenance model. In addition, the paper provides readers with a detailed description of the three models reviewed.

The intensity of competition in an industry is of relevance to all its stakeholders. Managers and owners of individual firms, industry associations, analysts, consumers and suppliers, and various bodies of governments are constantly concerned about competition. A widely accepted industry competition model is the "five forces model" postulated by Michael Porter, which offers qualitative assessments of the factors that shape competition. The Porterian model is attractive because of its simplicity, adaptability and flexibility, and yet managers find it hard to operationalise because it lacks quantification as to how competitive factors are to be measured. This paper presents a multivariate approach, referred to as the ICM framework, which is unique in that it is the first quantitative operationalisation of the Porter five forces model, both at a firm and industry level. The framework quantifies the degree of industry competition with reference to a hypothetical "average" state of competition. The degree of competition is thus seen from a comparative perspective rather than fixed in reference to either a perfectly competitive or monopolistic (i.e. "non-competitive") state. The study then demonstrates the applicability of the ICM Framework by examining the competitive positions of 19 selected Australian industries. The results obtained indicate that the degree of competition varies widely amongst Australian industries and is characterised by high intensity of rivalry, low bargaining power of buyers, minimal bargaining power of suppliers, high threat of new entrants and wide-ranging threat of substitutes.

Transparent Costing (TC) is a framework for determining the full indirect costs and therebythe full costs (FC) of Australian Competitive Grant (ACG) research projects; with the objectiveof ensuring the full funding of these projects by the government, so that they couldbe sustained in the long-run, and preventing their cross-subsidisation from other revenuesources. If a university wishes to be fully funded for its AGC research projects, it is mandatoryto undertake a TC exercise and allocate the indirect costs of research activities. It wasfound in this study that whilst the objectives of FC appear worthwhile, FC may not preventthe practice of cross subsidisation. Also whilst it was found that Time-Driven Activity-BasedCosting (TDABC) is preferable to ABC in the TC modelling of 'research only' departments andinstitutes; both approaches do not provide accurate information in 'teaching and research'departments. In these departments more accurate estimations could be obtained fromstudying the workload allocation methods and conducting direct interviews of the staffundertaking research on ACG and other externally funded grants.Crown Copyright 2010 Published by Elsevier Ltd. All rights reserved. Refereed/Peer-reviewed

The concentrations of greenhouse gases in the atmosphere have risen dramatically, leading to the possibility of costly disruption from rapid climate change. This calls for greater attention and precautionary measures to be put in place, both globally and locally. Governments, business entities and consumers would be affected by the extent to which such precautionary measures are incorporated in their decision-making process. Business entities need to consider such issues as trading in carbon allowances (or permits), investing in low-carbon dioxide (CO2) emission technologies, counting the costs of carbon regularity compliance, and passing on the increased cost of carbon regulation to consumers through higher prices. Such considerations require information for informed decision making. This paper reports on a qualitative research study undertaken to consider the impact of the Kyoto Protocol mechanisms on the changing information paradigms of cost and managerial accounting. It is demonstrated that the information from strategic cost management systems will be particularly useful in this new carbon economy, especially in evaluating the “whole-of-life” costs of products and services in terms of carbon emissions. Similarly, the study discusses how strategic management accounting information would facilitate decisions on business policy, human resource management, marketing, supply chain management, and finance strategies and the resultant evaluation of performance. Refereed/Peer-reviewed

There are numerous financial metrics available in the academic and commercial world to estimate brand value. In the context of mergers and acquisitions, managers often use such metrics when purchasing or selling brands. However, the measurement of brand equity in a going-concern has received scant attention in the academic literature. The well-known Interbrand™ approach is an ex-post calculation of brand value. This paper extends Interbrand's brand strength valuation model by developing an ex-ante approach to guide managers in their budgeting and strategic decision-making processes geared towards building brand value. It then empirically tests the model in a company with an internationally recognized brand. Crown Copyright 2008 Published by Elsevier Inc. All rights reserved.

The Kyoto Protocol is the first step towards stabilising global emissions of carbon dioxide (CO2). But what is carbon trading and is the accounting profession ready to provide the decision information required to limit the enhanced greenhouse effect? This paper considers the impact of the Kyoto protocol on countries, business entities and individuals, and if the accounting profession is ready to meet the challenges brought about as countries enact carbon trading legislation. An inconvenient truth is that the measurement, reporting and assurance frameworks developed in financial accounting and auditing actually hinders the role the profession can play in reducing global warming. Management accounting reporting has no such constraints.

New types of “measurements” are needed for both tradable and non-tradable assets in order for organisations to meet the challenges present at the corporate, national and international levels, especially in the areas of strategic decision-making and valuation. The focus of attention in recent studies has been on the valuation of intangibles. This paper argues that it is the combination of both tangible and intangible assets that provide an organisation a “capability” that ultimately drives its economic value. The paper then reports on a research study conducted to value organisational capabilities for a strategic military unit (SMU), and a reporting framework comprising a strategic balanced sheet and strategic income statement that was developed for this purpose. The valuation approach is basically to calculate the Capability Economic Value of Intangible and Tangible Assets (CEVITA TM ) of an organisation by leveraging its capability-enhancing expenses to economic values by using specific Expense Leveraged Value Indexes (ELVI TM ). 2 This paper illustrates a technique that will not only make these strategic valuations more relevant, but also show how to report these tangible and intangible asset combinations in an organisation’s financial statements. Even if generally accepted accounting principles cannot accommodate such value-creating information for external reporting, it is argued that, we need to develop them for internal reporting that is less constrained. © 2003 Elsevier Ltd. All rights reserved.