Abstract

This study has a core research objective to investigate the interaction of key characteristics of a performance management system (PMS) and the role of the management accountant (MA). Based on case interviews with matched pairs of MAs and operative managers (OMs) in sixteen organisations, a cross-case analysis of each occupational group is performed – considering the MA and OM perspective separately, which is potentially new compared to prior management accounting literature. Whereas MAs tend to distinguish between three roles of scorekeeping, controlling and business support, OMs are mainly concerned with the value-adding and non-value-adding character of activities and thus support a dichotomy of the MA’s roles. Extant PMS characteristics are operationalised and amended to build a structure for the analysis of interactions. Based on the role episode model of Katz and Kahn, the interaction is described as a role-taking and role-making mechanism, integrating the PMS characteristics as surrounding conditions as well as developing further influential factors. This results in an updated role episode model. An original contribution to theory is the extension of Katz and Kahn’s model to the context of management accounting which integrates amended PMS characteristics. This research also adds to management control literature in that the characteristics of a PMS framework are extended and related to the role of the MA as suggested by role antecedents in prior literature. The research also reveals factors enabling or blocking the business support role of the MA as well as the impact of role consensus or role conflict. This study also depicts four PMS models of strength and coherence, and highlights the necessity for further research on the impact of other stakeholders. For practitioners, the study reveals how the characteristics of a PMS might impact on the MA’s role change towards a business support role.