The Implementation of Management Accounting

Innovations within the Industrial Sector: Yordanian

The Role of Supply-Side Factors
Mahmoud Nassar Friday, et al

This research was conducted by; Mahmoud Nassar Friday, Husam Al-Khadash, Saleh Al-
Okdah, Alan Sangster. This paper focuses on the diffusion of Management Accounting
Innovations (MAI) in Jordan. The purpose of this research is to determine the factors of contents
offer a decision to apply or not MAI in the industrial sector in Jordan. In addition to improving
the satisfaction of Jordan industrial companies about the role of these factors in encouraging the
diffusion of MAI.
As often we are with that 10 to 15 years with many new ideas are born or introduced in the field
of Management Accounting. Such is the case regarding the concepts of ABC, ABM, target
costing, strategic cost management and Economic Value Added (EVA), the Balanced Scorecard
(BSC) are now included in the book management accounting standards.
When this research was conducted to sound information that there has been a growing
interest in the study of the diffusion of MAI and the factors that affect the decision whether or
not to apply for two decades. In the research of Gosselin (2007) stated that most of the literature
on the study of the diffusion of MAI has focused on the relationship between the diffusion of
MAI and factor demand side (such as: top management support, training, company size,
competition, diversity of products and the internal bersumberdaya) instead of on the side of
supply (such as: consulting firm, the agency accounting, accounting research, Journal of
accounting education and accounting).
This paper keingin annual leave from researchers regarding the implementation of the
MAI in Jordan. That is by asking:
1. What is the current status of the implementation of the MAIdalam the industrial sector
in Jordan?
2. On the supplier side factors what are the main factors that encourage or implementation
of the MAI in the industrial sector in Jordan?
3. What is the level of satisfaction in the company of Jordan about the industry's role in
encouraging the implementation of supply side MAI?
4. Among the companies that have not yet implemented the MAI, what are the main
reasons for not applying the MAI terserbut?
The definition of the
According to Rogers (2003), stating that innovation is a novelty (renewal) in innovation can not
only in terms of new knowledge, but also in terms of persuasion first (first call/something new is
played), or influence to carry out the decision or to implement. Rogers (2003) diffusion is
defined as "the process by which an innovation is communicated through certain channels over
time among the members of a social system".
Empirical Research
Clarke (1999) conducted a study of MAI in Ireland. The results of the research show that ABC
was not well understood by the Ireland management accountant. This is because the
Management Accountants prefer to work passively, namely preserve work as usual from on
innovating in his work. For example, the University does not provide business enterprises with
creative problem-solving and graduates (accountant and menajer), in addition companies and
professional bodies do not demand a change in the education of accountants and managers (or
insist innovation).
Abrahamson (1996), stated that the process of the implementation of the (imitation) is
derived from professionalism. There are two important sources of imitation on prefesinalisme.
The first, formal education and the legitimacy given by the specialists of the University. Both are
power untam antuk develop organizational norms between professional managers and qualified
staff. Second, the source (build) a professional network to spread new models quickly.
Essentially, the cooperation with other companies to adopt or enforce or doing an imitation of
recruitment through the Executive Manager of the Department of finance or legal experience and
expertise enrich the level of professionalism within the company.
Accounting education and MAI in Jordan: an example for ABC
Accounting education Jordan is strongly based on the theory and practice of accounting in the
United States where most academics Jordan completed their postgraduate studies (Hutaibat,
2005). The ABC system was first known right in Jordan in the 1990s but it is just a concept and
theory there is no complete studies about the extent of its application. However, in the mid-1990s
until the early 2000s, the concept ABC started expanded and discussed in Jordan through
seminars, Conference journal.
Methods Of Data Collection
Pengempulan this data was done by way of gradual. First performed by the spread of kusioner
yangdiambil from earlier researchers after it is translated in Arabic who was assisted by
Professor from one of the universities in Jordan who have graduated b.d. in United Kingdom
profession so as not to change the meaning of the questions ditranslate in Arabic.
A detailed questionnaire was sent to Manager corporate finance industry in Jordan which is listed
on the Amman stock exchange, here there are 88 companies in late 2009. From 88 a
questionnaire spread, it turns out the questionnaire back 58 or 66% of the distributed
questionnaire. After that the researchers sent a letter to the company's 58 above that ask the
respondent's willingness to be interviewed and the interview was recorded by investigators. To
enhance the trust to the respondents, the researchers assure them with a way to keep
confidentiality. The data of the previous interview has been posted so that respondents could
prepare the answer. Here only 12 respondents or companies who agreed to be interviewed for 15
to 25 minutes.
Operational Definition
There are 7 factors that were discussed by the offerings Abrahamson (1991) and the Malmi
(1999) are:
1. Consulting Firm
 2. Accounting education at school and University, Jordan
3. The Professional Accounting Bodies in Jordan.
4. Conferences, seminars, and workshops.
5. Cooperation between universities (academics) and the company (Professional).
6. Accountant research in Jordan.
7. Research on accounting in Jordan.
Here the source is focused on Jordan: Hutaibat (2005), Al-Khadash and Feridun (2006)
and Krishnakumar dkk (2009), where it is revealed that there are 5 factors most popular recently
developed in terms of cost and MAI in the Jordan industrial sectors are:
1. Activity Based Costing (ABC) cost approach based on activities as a fundamental cost
objects. Use the cost of this activity as a basis for assigning costs to cost objects such as
products, services, or customers.
2. Activity Based Management (ABM). Use the ABC concept to facilitate identification and
reduction activities that do not add value.
3. Benchmarking. Search the industry best practices that will lead to superior performance.
4. The Balanced scorecard. A strategic performance management framework integrates the
strategic goal of translating organizations memebantu into relevant performance
measures, connects with the non financial measures with a financial perspective in the
four fields concerned with performance: financial, customer and internal process
innovation study.
5. Target Costing. A sistemb costs where the manufacture of products or the provision of
services is limited in the initial total cost assigned to the competitive price is reached.
The RESULTS of the
Classification of types of industrial enterprises in the Ministry of industry and commerce in
Jordan. Engineering Sector, covering the first 2 sectors, namely: electrical engineering and
construction industry. Second, the processing sector: chemical industry, medical, glass and
ceramics, and mining and extraction industry. Third, the sector consumer products: food and
miniman, tobacco and cigarettes, textiles, leather and clothing, paper and cardboard industry, and
printing and packaging. On the basis of the number of employees belonging to the respondents
are classified as follows:
Example of explanation.
The number of companies engaged in Engineering is the 16 companies or 27.58% of the total
sample. And the number of companies that have total employees under 100 workers by as much
as 13 companies or 22.41% of samples.
The Survey Results
1. What is the current status of the implementation of the MAIdalam the industrial sector in
Jordan?

{ 1} user ABC in this study are defined as companies that have completed the implementation of ABC and
ABC information currently used as part of their fee and/or a company has started to implement ABC systems.
6 of 15 companies of {2} is being implemented in full, while ABC 9 companies currently implement ABC.

The main results of the survey questionnaire is that 15 companies from 58 (25,86%)
using ABC and 10,34%) 6 (using the ABM. Expressed as a percentage of the 58 respondents
company and generalize across sectors, the level of implementation of the ABC in the Jordan
industrial sectors around 25.86% (10.34% has fully implemented the ABC and other 15.52% are
processed in the execution of it). The overall level of implementation of ABM is about 10,34%.
Table 1-2 shows that for those 23 companies that have implemented MAI, 91% have
implemented Benchmarking; 78.26% and has implemented a Balanced Scorecard. The overall
level of implementation of Balance scorecard in the industrial sector, Jordan was 31%. Finally,
19 companies (82,60%) have implemented target costing.
 2. On the supplier side factors what are the main factors that encourage or implementation of
the MAI in the industrial sector in Jordan?
23 the respondents have implemented the MAI was asked to give their opinion about the
level of importance of the seven factors in the decision to carry out the MAI. They were asked to
rate items on a scale of 5 points ranging from 1 = not very important to 5 = very important.
Responses are summarized in table 1-3.

It can be seen from table 1-3 that the role of accounting education and consulting firm
which is cited as the most important factors that influence the decision to apply the MAI in the
Jordan industrial sectors.
 3. What is the level of satisfaction in the company of Jordan about the industry's role in
encouraging the implementation of supply side MAI?
Table 1-4 shows the results of checking the degree of satisfaction regarding the role of
the time factor of the side deals encourage implementation of MAI: (local consultant company;
accounting education; conferences, seminars and workshops; research accounting; cooperation
between academic and corporate universities; and professional accounting bodies). Table 1-4
below shows that the majority of these factors need to be repair.
Table 1.4: The level of satisfaction regarding the role of supply side factors while
encouraging implementation of the MAI.

The results are shown in table 1-4 is supported by findings from semi-structured
interviews. According to the financial manager in a company D "there is not enough
consultants who provide education about ABC. We have to have the ABC training is more
practical. Any company would be interested in applying ABC must have a counsel to examine
and give advice ". Similarly, the financial manager at the company said that "In Jordan there is
a lack of a consulting company, which makes the company, depending entirely on costly
foreign expertise".
Financial Manager in the company F suggested that there should be more conferences
and seminars on issues of accounting in General, and the process of implementation of the MAI
in particular. He also suggested that there is a need for a journal that specializes in MAI should
be made available to the accountant and financial manager in Jordan.
4. Among the companies that have not yet implemented the MAI, what is the main reason for
not do it?
They were given a list of 7 reasons may explain why potential business units they have
not implemented MAI. The individual respondents were asked to rate items on a scale of five
points where 1 represents ' strongly disagree ' and 5 ' strongly agree '. Possible reasons are
explored by looking at the average value of each item. Responses are summarized in table 1-5.

It can be seen from Tables 1-5 that the reason most cited for not applying a MAI of lack
of cooperation between universities (academics) and the company (Professional) in Jordan
(mean score = 4.33), lack of conferences, seminars and workshops in Jordan Deficiency (average
value = 3.75)), followed by lack of local Consultanant company (mean score = 3.67).

Conclusion

Found that among 58 companies that responded, only 23 (39,65%) is to use at least one
of the five mentioned MAI. The second research question seeks to determine the factors that
pushed the MAI between industrial firms Jordan. 23 companies that implementers of the MAI
was asked to rate the importance of various factors in driving the decision to apply the MAI. The
results showed that the role of the consulting firm and the accounting education is the most
important factor that drives the decision to apply the MAI in the Jordan industrial sectors. The
results of the examination of the degree of satisfaction regarding the role of the time factor in
encouraging the implementation of supply side MAI shows that most of these factors need to be
repair. Finally, the most cited reason for not applying the MAI is the lack of cooperation between
universities (academics) and the company (Professional) in Jordan, a lack of conferences,
seminars and workshops in Jordan.

Original
Seperti yang sering kita dengan bahwa 10 sampai dengan 15 tahun terakhir ini banyak ide-ide baru yang lahir atau
diperkenalkan di bidang Manajemen Akuntansi.