The Effect of Management Style and Management Accounting System Design on Performance

JAMAR
Vol. 4 · Number 1 · 2006


The Effect of
Introduction
Management Style and
In order to become more efficient,
organisations are adopting forms which
Management Accounting
encourage participation, communication
System Design on
and coordination within all of its levels.
CEOs have to adopt a new style of
Performance
managing organisations, which demands a

broad range of information. This enables
David Naranjo-Gil*
CEOs to adopt a more flexible and
Marcel van Rinsum**
interactive style of managing their business

enterprises (Simons, 1995; Brownell,
Abstract
1983).


This study focuses on the relationship
The management accounting system can be
between the design of the management
conceptualised as one of the most important
accounting system, management style and
parts of an organisation’s formal planning
the effects on organisational performance.
and control system, which is designed for
This paper analyses the links between these
providing information that is useful to
variables based on a contingency approach.
managers inside it (Chenhall and Morris,
It contributes to the existing literature by
1986; Chenhall, 2003). The contingency
providing additional evidence on the
approach maintains that organisational
relationships between these variables
performance depends on the extent of fit or
within the public healthcare sector. The
alignment between its various
study distinguishes between innovative vs.
organisational components, such as control
traditional management accounting system
systems, technology or management style
designs and proactive vs. reactive
(Van de Ven and Drazin, 1985; Donaldson,
management style. Data is collected from
2001). Management Style and the
CEOs in public hospitals. A two-fold
Management Accounting System (MAS)
analysis involving interviews and a
and the effect of these variables on
questionnaire was adopted thus enabling a
performance have been the subject of
systematic and comprehensive analysis.
studies within the contingency approach

(Chenhall, 2003). Some of these studies

have resulted in confusing and
Keywords
contradictory conclusions. For example,

Brownell (1983) found that budgetary
Management Accounting System
participation had strong positive effects on
Performance Measurement
performance under certain opposite
leadership styles (e.g. supervisory and
Management Style
participative). Much of the instability and
Contingency fit
confusion in management research using a

contingency approach arises from the lack

of explicit and careful development of the

underlying concept of fit (Van de Ven and

Drazin, 1985; Gerdin and Greve, 2004). In

general, the assertion is that if the

components “fit well”, then the organisation

will function effectively, if they “fit

poorly”, it will not.


* Pablo de Olavide University at Sevilla
The authors would like to thank the logistic and
** RSM Erasmus University, Rotterdam
financial support of this research by Spanish
Ministry of Education and Science (project PB
98-1358), Foundation of Caja Madrid and
Management School of Nijmegen, The
Netherlands.

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However, not many researchers have
variables and by exploring the role of the
studied how the degree of fit (or misfit)
variables in detail. This paper obtains
between components of fit is actually (as
insights into the interrelationship between
opposed to supposedly) related to the level
MAS and Management Style through in-
of efficiency or effectiveness attained (see
depth interviews. By also using a
Chenhall, 2003 and Gerdin and Greve,
questionnaire, reliability of results is
2004).
enhanced by triangulation, consistent with

calls for the use of multiple methods
In this study, the contingency approach is
(Birnberg et al., 1990).
used to analyse the fit between management
The results of this research show the
style and the MAS and the effect on
importance of a certain MAS design
organisational performance. Following
(innovative versus traditional) and
Chenhall and Morris (1986), the MAS is
management style (proactive versus
studied in terms of general information
reactive), the combination thereof and the
characteristics, distinguishing four
influence of these choices on performance
dimensions: scope, integration, aggregation
in public health care organisations.
and timeliness. Based on these

characteristics, two different MAS designs
The remainder of this paper is structured as
are distinguished: innovative and
follows. Section 2 reviews the relevant
traditional. Management style is studied
literatures and develops a proposition about
based on the decision, planning and control
the relationship between the MAS,
processes (Dean and Sharfman, 1996), and
management style and performance.
is classified as proactive or reactive
Section 3 describes the design of the
(Simons, 1995; Larson et al., 1986)
empirical study. Section 4 presents the
This study was undertaken in public
results. Finally, section 5 presents the
hospitals in Andalusia (the largest region in
discussion and conclusions of this study.
Spain), where the institutional environment

is very suitable to answer the questions
Theoretical development and
posed. The Andalusian public hospital
proposition
sector has been exposed to significant
Contingency-based research has assumed
turbulence in recent years. The public
extensively that if certain structures are
hospital environment has changed since
more common than others in a given
1997 when there was no competition to a
situation, these structures would also lead to
more competitive environment where
higher performance (Gerdin and Greve,
hospitals have to operate efficiently to
2004; Donaldson, 2001). Contingency-
improve performance. A two-fold analysis
based research in management intends to
involving interviews and a questionnaire
demonstrate an appropriate fit between
was adopted, thus enabling a systematic and
specific aspects of the organisation (internal
comprehensive analysis. Data were
and/or external). However, the meaning of
collected from Chief Executive Officers
fit is ambiguous; and different methods of
(CEOs) of public hospitals throughout
analysing fit express different
Andalusia. The interviews were used in
interpretations of it (see for example,
order to provide a rich understanding of the
Gerdin and Greve, 2004; Van de Ven and
variables and phenomena of interest, while
Drazin, 1985; Donaldson, 2001). In this
the questionnaire enhanced generalisability.
study, therefore, the concept of fit is
The questionnaire had a very satisfactory
defined as the degree to which the needs,
response rate of 76.67 % (23 useful
objectives and/or structure of one
questionnaires). A total of 17 interviews
component are consistent with the needs,
were also performed in the 30 hospitals
objectives and/or structure of another
(56.67%).
component (Donaldson, 2001).


This study contributes to the extant
Management style is a contingency variable
literature in several ways. It provides
that indicates much about the degree of
additional evidence within the contingency
formality of the organisation, the
approach, by analysing the fit between both

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management control process, the
expected to be dependent on or interrelated
appropriate motivation process, the degree
with the MAS in place.
of participation, and the level at which

decisions are made (Daft, 1988; Larson et
There is a large body of research on the
al., 1986). Management style affects the
design of MAS within the contingency
attainment of organisational goals through
approach (see Chenhall, 2003). The basic
organising, leading, and controlling
assertion is that there is no universally
organisational resources (Daft, 1988;
appropriate MAS that can be applied to
Simons, 1995). Organising is concerned
every situation, since the effectiveness and
with how managers will accomplish its
usefulness of MAS is contingent on certain
organisational plan, that is, deciding how
external organisational circumstances (e.g.
best to achieve organisational goals. It
market and environment) and internal
includes assigning tasks and allocating
factors (e.g. technology and management
resources to departments. Leading is the use
style). Chenhall and Morris (1986)
of managerial influence to motivate
described the MAS according to the
employees to achieve the organisational
perceived usefulness of four information
goals. Controlling is concerned with
attributes, namely timeliness, scope,
monitoring the organisation’s progress
aggregation, and integration. Timeliness
toward goal attainment against the
refers to the speedy provision of requested
objectives and standards derived during
information and the frequency of reporting
planning (Daft, 1988).
collected information. Scope refers to the

extent to which information generated by
Following Larson et al. (1986) and Simons
the MAS reflects external versus internal
(1995) management style is classified as
events, future-oriented versus historical
proactive or reactive. A proactive
data and qualitative versus quantitative
management style is defined as a
data. Aggregation refers to the summation
participative, democratic style, oriented
of temporal and functional information
towards the future and the external
(e.g., cost centre, marketing departments).
environment, including a broad planning,
Finally, Integration refers to the
with managers looking for possibilities for
coordination of the various segments within
coordination and synergy between
a sub-unit. The MAS can be categorised as
departments and re-evaluating
more traditional or innovative based on the
organisational goals. However, a reactive
score on these four dimensions. An
management style is more autocratic,
innovative MAS, as opposite to a
focuses more on individual objectives and
traditional, supplies information more
expectations than on organisational goals,
focused on the external environment,
and focuses more on controlling the
reports information quantified in both
quantitatively measurable events inside the
monetary and non-monetary terms, is more
organisation.
long term orientated, and relates to future

data more frequently. An innovative MAS
An important issue related to the
also supplies information aggregated by
management style is the extent to which
time period and functional area to a greater
managers are involved with the collection
extent, and specifies related services or
of relevant information for optimising their
programs (Chenhall, 2003; Chenhall and
decision making (Dean and Sharfman,
Morris, 1986).
1996). One of the most significant

information sources is the MAS, which can
This study analyses the interrelationship
be conceptualised as an important part of
between management style and MAS
the organisation’s formal planning and
information, and the effect on
control system which is designed to provide
organisational performance of both
information to managers that can help them
variables. Since the accounting system is
in the decision making process
intended to transmit information to the
(Govindarajan and Gupta, 1985). The
decision makers, it can influence the
management style employed by
orientation, direction and formality of the
management or its efficiency can thus be
decision making style. A proactive

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management style would require an
was thus expected that a fit is required
innovative MAS design to cope with the
between the design of the MAS and the
uncertainty and to optimise decision
management style (MS) for optimal
making (Simons, 1995; Otley and Pierce,
organisational performance. Figure One
1995). CEOs using a more proactive
below shows the general model regarding
management style would be more inclined
the relationship between management style,
to use broader accounting information, in
MAS and performance. The following
order to encourage participation and task
general proposition is formulated:
coordination (Abernethy and Brownell,

1999). In contrast, it is expected that
P1: Organisations with a fit between the
reactive management styles are linked to a
MAS and management style (innovative
traditional MAS rather than an innovative
MAS/proactive MS or traditional
MAS design. A traditional MAS provides
MAS/reactive MS) will have higher
information which is very suitable for
organisational performance than those
managing routine, regular and
using different combinations.
programmable activities, which are

characteristics of a reactive management

style (Larson et al., 1986; Simons, 1995). It
Figure One: The General Model

Management Style

Organisational

Performance

MAS design



Empirical Study
disease prevention, health promotion, and
Data were collected through a questionnaire
primary care (Errasti, 1997; Cuervo, 1996).
of CEOs in public hospitals in Andalucia.

This setting was selected for several
The changes in the health care system
reasons. First, the public hospital sector has
encouraged hospitals to control the costs of
been the object of some recent studies
service while increasing flexibility and
exploring the effect of management
quality, with the ultimate objective to
accounting systems on performance
enhance both hospital efficiency and
(Abernethy and Brownell, 1999), which
effectiveness. To achieve these objectives,
enhances comparability of results. Second,
CEOs would have to change their
a single sector was focused on for purposes
management style so that the patients are
of reducing the noise in the measures and
treated like customers, their hospitals
controlling for variables of no theoretical
strategy is adapted to the disciplines of a
interest. Third, the Andalusian health care
competitive market and the use of
authorities have introduced competition in
information is enhanced.
the public hospital sector.


The questionnaire was constructed based on
CEOs are encouraged to improve
prior literature, archival data and interviews
performance and change from a hospital-
with three CEOs in the field. These
centered, disease-focused model to one of
procedures were undertaken to ensure that

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the variables of interest in this study were
two descriptions of management style
relevant to this industry and that the
(proactive and reactive).
questions used to measure each variable

captured the constructs of interest in the
The proactive management style was
right way. The questionnaire was
described as follows:
administrated to the CEOs of the public

hospitals in Andalusia (a total of 30). A
The hospital is managed according to the
satisfactory response rate was achieved
strategy designed by the top manager with
with 23 useful questionnaires returned
participation from lower levels. The top
(76.67%). In order to obtain additional
manager actively initiates action, seeks out
evidence, 17 CEOs were interviewed. A
others, relies on a continual challenge and
semi-structured interview was designed in
formal and informal debate of underlying
order to provide important evidence about
data, assumptions and action plans. The top
the different variables used and how these
manager looks for synergy between
variables were related inside the hospital.
departments, focusing on controlling
The interviews of approximately one hour
deviations before they appear.
each were conducted with the CEOs of 2

Regional Hospitals (large hospitals), 6
The reactive management style was
Speciality Hospitals and 9 Rural Hospitals
described as follows:
(smaller hospitals)1.


The hospital is managed according to the
Measurement of Variables
strategy designed exclusively by the top
The design of the management accounting
manager. The top manager responds to
system was measured using the Chenhall
initiations and requests from others. The
and Morris (1986) MAS dimensions, which
top manager uses hierarchical reporting
consider MAS design in terms of four broad
procedures and tends to be involved in
information characteristics: (1) Scope, (2)
debates of underlying data infrequently and
Timeliness, (3) Aggregation and (4)
on an exception basis. The top manager
Integration. CEOs were asked to indicate
focuses on monitoring and controlling
where they would place their hospital
deviations after they appear.
regarding these information characteristics

on a Likert scale, with anchors of “very
CEOs had to indicate the extent to which
low” and “very high” (see questionnaire in
their style corresponded to either of the
appendix, after the references). The answers
descriptions on a five-point scale, with
were given values of 1 to 4 (from low to
anchors of “Reactive Style”(=1) and
high) for the data analysis. Following Gul
“Proactive Style”(=5). So, the higher score
(1991), all information characteristics were
on this scale, the more proactive the
treated as complementary to construct the
management style is.
variable MAS design by averaging the

scores for all items. The Cronbach alpha for
Organisational Performance was measured
the overall scale was 0.74, exceeding the
using CEOs’ self-rated performance.
recommended minimum level (Nunnally,
Performance was captured as a relative
1978). A higher score corresponds to a
rather than an absolute measure (Abernethy
more highly innovative MAS design.
and Brownell, 1999; Govindarajan and

Gupta, 1985). This overcomes some of the
The measurement scale for
measurement difficulties associated with a
management
cross-sectional sample where organisational
style was based on Simons (1995) and
Larson et al
performance may be affected by other
. (1986). CEOs were presented
factors (Abernethy and Brownell, 1999, p.

197). This study captured the multi-
1 The Regional Hospitals have more beds and
dimensional nature of hospital performance
also they can treat a broader range of diseases
in terms of efficiency, effectiveness and
than Rural Hospitals. Specialty Hospitals are
focused on certain types of diseases and
quality. The items measuring performance
treatment. The latter hospitals have a medium
were based on statements from several
size in terms of numbers of beds.
CEOs during a pilot study. A total of 18

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items measured performance in terms of
analysis. The correlation between the MAS
costs compared to other hospitals, the use of
and performance is positive and significant
health care resources (e.g. beds, theatre
at the 0.05 level of significance. Table
rooms, etc.), reputation of medical
Three also shows that the correlation
programs, investment in research, and
between management style and
quality of care (Abernethy and Brownell,
performance is positive and significant but
1999). CEOs were asked to indicate their
at the 0.1 level of significance.
hospital’s performance, relative to other
hospitals of the same category on a five-
Table Three: Pearson correlation
point Likert-type scale, anchored at the
coefficients (p-value, N=23)
poles by “well below average” (=1) and
MAS
Management
“well above average” (=5). The average of
design
style
the 18 items was used as the performance
MAS design
1
–
variable.
Management
0.14
1

Style
Results
Performance 0.27a 0.19b
The response by type of hospital is shown
a Significant at 0.05 level (two tailed)
in Table One, where the responses obtained
b Significant at 0.1 level (two tailed.
are compared with the total population by

every type of hospital. Table One shows
In order to evaluate the effect of both
that each type of hospitals was
variables (MAS and management style) on
proportionally represented in the sample,
performance, the following regression
with the largest number of responses from
equation was tested:
the largest hospitals. Descriptive statistics

for our sample are shown in Table Two.
Y= ß0 + ß1 X1 + ß2 X2 + ß3 X1 X2 + μ


Where Y denotes organisational
performance, X1 denotes MAS design
Table One: Responses by Type of
(higher values indicate a more innovative
Hospital
design) and X2 denotes management style
(higher values indicate a more proactive
Type of
Total pop-
Response (%)
style).
Hospital ulation (%)

Regional 5 (16.67%)
3 (10 %)
Since the focus is the contingency fit, only
Specialty 9 (30%)
7 (23.33 %)
the regression coefficient ß
Rural
16 (53.33%)
13 (43.33 %)
3 is of interest.
Consistent with our proposition, a positive
Total
30 (100%)
23 (76.66 %)
ß3 indicates that a more innovative MAS
design has a greater impact on performance
Table Two: Descriptive Statistics
when the management style is more
Mean
SD
Median
proactive. The main effects cannot be
MAS design
2.28
0.09
2.21
interpreted, since the effect of one variable
Management
3.04 0.21 2.98
is conditional on the other (Hartmann and
Style (MS)
Moers, 1999). The results in Table Four do
Performance 3.26 0.28
3.29
not provide support for the proposition

since the regression coefficient ß3 is

positive but not significant. This means it
An analysis was undertaken to determine if
was not possible to statistically support the
MAS design and management style are
proposition that a fit between MAS design
correlated to performance. That is, it was
and management style affects performance.
investigated to ascertain whether
The correlation between organisational
performance was higher for a more
performance and hospital size was not
innovative MAS or a more proactive
significant, which suggests that size was not
management style. Table Three shows the
a confounding variable (Gul, 1991).
results of the zero-order correlation

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Table Four: Regression Analysis (N=23)
Variables Coefficients
(p-value)
Constant
3.66 (0.00)
MAS (innovative) (ß1)
0.13 (0.04)
Management Style (proactive) (ß2)
0.08 (0.12)
MAS design x Management style (ß3)
0.05 (0.14)

Adj. R2=0.058

F = 6.751 (0.00)
Dependent variable = Organisational performance.


To add some intuitive appeal and extend the
Table Five: ANOVA Results: Mean
results of the regression analysis a two-way
Performance Scores
ANOVA was run for analysing the effect
Innovator
Traditional
on performance of the fit between
MAS
MAS
management style and MAS design.
Proactive
3.19
2.86
Management style was split on the basis of
Management
n=8
n=2
the median scores to create two groups:
Style
Proactive Style (above median) and
Reactive
2.98
3.08
Reactive Style (below median). MAS
Management
n=2
n=11
design was also split at the median to create
Style
two groups: Innovative MAS (above

median) and Traditional MAS (below

median). Since ANOVA assumes equality
“The information system reported to me,
of variance between groups, a check of
aggregated and “fast” information from all
variance using the Levene test was
services and levels within the hospital,
conducted. The significance value of the
which allows me to have meetings and to
Levene statistic was higher than 0.05,
have discussions with other directors
indicating homogeneity of variance. The
involved about how the hospital is
mean scores for performance shown in
performing”
Table Five indicate that performance is

highest when an innovative MAS is
Most CEOs seemed to have adapted the
matched with a proactive management
management style to the existing MAS
style. Table Five also shows that
design, thus indicating that the MAS may
performance is lowest when an innovative
be dominating in determining the type of
MAS is combined with a reactive
fit. The following excerpt from an
management style (mismatch). These
interview serves as an example of this,
results support the central contention of
showing how a CEO adopted a reactive
contingency approach, which is that all
management style based on the existing
components of an organisation must fit well
MAS:
with each other or friction is created that

prevents it from performing optimally
“I receive information on how services are
(Donaldson, 2001).
going on (e.g. patients infected in the

surgery rooms, number of re-admissions…),
The interviews provide additional evidence
but this information is reported once a
on the fit between management style and
month …I know that other CEOs can get
the MAS. Below are shown some
the same information once a week… thus I
representative excerpts. The interview data
have to focus on managing the hospital
suggested that there was congruence
simply by analysing the deviations from the
between MAS design and management
monthly planning to keep organisational
style, as illustrated by the following remark
targets on track”
from a CEO:



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Another CEO asserted that his proactive

management style was enabled by the
Table Six shows descriptive statistics of the
information reported by the MAS.
interviews. Although the table admittedly

contains some subjectivity in rating the
“I quit my job in another hospital because
interviews, one can note from it that most
the management information was too late
CEOs interviewed appeared to be in a
and aggregated for decision making. In this
situation with a fit between management
hospital I feel comfortable discussing the
style and MAS design (10 of 17). The right
information on the service process with
column of Table Six also shows the
other directors almost every day. As in
proportion of CEO’s in that particular
other hospitals, our information system
situation that perceive that a fit between
reports the main clinical and economic
management style and MAS design (a
indicators per service and department… but
combination from one of the first two rows
the most important thing is that I have the
of the table) affects or would affect
data almost instantly…which facilitates me
organisational performance positively (11
in making fast and flexible management
of 17).
decisions.”

Table Six: Interviews statistics
Interviews
indicating
Performance enhanced by
fit/misfit (%)
fit (%)
Proactive Management Style –
6 (35.30%)
4 (66.67%)
Innovative MAS
Reactive Management Style –
4 (23.53%)
3 (75%)
Traditional MAS
Proactive Management Style –
4 (23.53%)
2 (50%)
Traditional MAS
Reactive Management Style –
3 (17.64%)
2 (66.67%)
Innovative MAS
Total
17 (100%)
11 (64.70%)



Discussion and Conclusions

The objective of this paper was to analyse
The findings of both questionnaires and
the relationship between MAS design and
interviews support our general proposition
management style and its effect on
that organisations can improve performance
performance. This objective was in line
with a fit or alignment between the MAS
with Chenhall’s (2003) call for further
and management style. In other words, in
research about the use of the MAS to
the case of non-congruent fit or misfit, the
facilitate and support management styles
organisation will perform worse than its
and processes. Specifically, this research
competitors. These results are consistent
has examined a general proposition, by
with Abernethy and Brownell (1999), who
attempting to answer two related questions:
found that the interaction between strategic

change and a participative style of using
•
budgets had a positive effect on
What is the relationship between the
MAS and management style and its
organisational performance. The CEO
effect on performance?
interviews provided additional insight into

the relationship between the MAS and the
•
adoption of a certain management style.
How is a fit more likely to be achieved;
i.e. do CEOs adapt their management
Based on the interviews, it was concluded
style to the existing MAS design or is it
that a fit is mostly achieved by adapting the
the other way around?
management style to the MAS in place.




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Many studies have analysed types of fit
proper balance with the management
involving external variables. This paper
information from the MAS. In sum, what
extends the previous literature by analysing
this research has shown is that the MAS
the role of two internal variables
design is a critical feature for organisations
(management style and management
that want to improve their performance.
accounting system) in a fit affecting
Organisational practitioners involved in the
organisational performance. Also, this
training and hiring of CEOs need to focus
paper extends the management literature in
more on the information system design
the public sector. The issues of
when evaluating the management style of
management effectiveness and
CEOs.
organisational performance are critical

problems confronting managers in public
Limitations and Future Research
organisations (Connors, 1990). This paper
Several limitations of this study must be
concludes that governmental authorities
acknowledged. The small sample size is a
have to design the MAS to provide suitable
probable cause for the lack of statistical
information to healthcare managers. In
significance. Second, this paper relies on
doing so, managers can improve
works with contradictory findings and
organisational performance and also they
studies with different methods to measure
can face the challenge of creating a
the same variables, which have not been
healthier system that balances and
replicated and refined (see Chenhall, 2003).
coordinates patient, physician, financial and
Regarding MAS design, the Chenhall and
community needs (Connors, 1990).
Morris (1986) information characteristics

have been used in different ways, with
A further practical implication is that
some researchers focusing on the usefulness
managers can be made aware of the type of
of the information, the availability of the
performance information that has to be
information and the use of information by
provided by management control
managers (see, Gul, 1991, Bouwens and
techniques, such as the Balanced Scorecard,
Abernethy, 2000, and Chenhall, 2003).
in order to optimise organisational
Furthermore, some authors have retained
effectiveness. To be effective, management
the information dimensions of the original
control techniques may have to include
construct (Bouwens and Abernethy, 2000),
performance indicators reflecting external
whilst others have focused only on some
environment and more long term and future
dimensions (Mia and Chenhall, 1994). Still
oriented data, quantified in both monetary
others have grouped all the items to create a
and non-monetary terms. However, not
new construct (Gul, 1991).
only do the appropriate information

characteristics matter; the alignment
Further work is therefore needed to
between MAS design and management
integrate the research measuring MAS
style is also required for organisations to be
design based on information characteristics
able to drive more value from the top to the
differently (Chenhall, 2003). Management
bottom line (Simons, 1995). Similarly,
style has also been measured differently,
encouraging a management style that
using items related to evaluation style,
emphasises delegation and flexibility to
leadership style or style of using
face a dynamic environment does not
management control systems (Hartmann,
automatically enhance organisational
2000; Simons, 1995). Again, this lack of
effectiveness. Organisations have to
consistent use of measurement of the same
encourage a certain management style
variables across studies is disadvantageous
which corresponds to the MAS design in
from the perspective of comparing results.
order to optimise their performance. Thus,

the study concludes as a further practical
Organisational performance is a complex
implication that boards of directors of
and multidimensional variable, involving
hospitals, being responsible for appointing
different objectives and strategic goals,
the hospital CEOs, will require more
which can create a problem when
detailed, factual information on their
comparing findings among different studies
management style to determine if there is a

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JAMAR
Vol. 4 · Number 1 · 2006


(Galunic and Eisenhardt, 1994).
contingency-based research and directions
Furthermore, organisational performance
for the future”, Accounting, Organisations
has been measured using both a self-rated
and Society, 28, pp.127-168.
managerial performance instrument and

hard performance data (e.g. ROI and sales),
Chenhall, R.H. and Morris, D. (1986), “The
again detracting from comparability. In
impact of Structure, Environment, and
sum, the concerns outlined above limit the
Interdependence on the Perceived
comparability of our study to previous
Usefulness of Management Accounting
work.
Systems”, The Accounting Review, 61, pp.

16-35.
Another limitation of this paper is that the

methods used do not permit an assessment
Connors, E.J. (1990), “Reflections on
of the cause and effect relationships among
Leadership in Health Care”, Hospital and
the analysed variables. This limitation can
Health Services Administration, 35, pp.
be partially solved by interview data but
309-320.
additional research could help clarify the

cause/effect relationship. Clearly, empirical
Cuervo, J.L. (1996), “Hospital y cambio
testing of the proposition in a different
organizativo: un equilibrio entre
industrial setting may provide more insight
descentralización de la gestión,
into the external validity of the results.
participación de los profesionales y costes
Future research could also examine the
asistenciales”, Todo Hospital, 125, pp. 45-
effect on performance of other
48.
characteristics of MAS (e.g. techniques,

uses etc.) and management styles (e.g.
Daft, R.L. (1988), Management, The
cognitive biases of CEOs).
Dryden Press: Chicago, IL.


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