Despite anecdotal evidence questioning the relevance of management accounting in firms pursuing new manufacturing strategies, the exact nature and role of accounting information for controlling manufacturing activities has received little empirical at...
Despite anecdotal evidence questioning the relevance of management accounting in firms pursuing new manufacturing strategies, the exact nature and role of accounting information for controlling manufacturing activities has received little empirical attention. This study I examine the implications of flexibility on the design of management control systems. In particular, I examine the implications of flexibility on the use of efficiency-based performance measurement systems and use of integrative coordination devices. I collected data, through semi-structured survey, from general managers of listed companies in korea. Exploratory analysis of the data indicates that integrative coordination devices are a critical form of control in managing the implementation of flexible manufacturing strategies. However, the role of accounting or other efficiency-based performance measures declines in those with a commitment to manufacturing flexibility.