Title: An empirical study of the drivers of management accounting innovation: a UAE perspective

Authors: Sawsan Saadi Halbouni; Mohamed Abdalla Nour

Addresses: Department of Accounting, College of Business Administration, University of Sharjah, P.O. Box 27272, Room 135 – W5 Building, UAE ' Department of Management Information Systems, College of Business Administration, University of Sharjah, P.O. Box 27272, Sharjah, UAE

Abstract: This paper investigated management accounting innovation in the UAE to add to the current literature on external and contextual factors influencing management accounting sophistication in a developing country context. The paper conducted a survey of 138 practicing management accounts in the United Arab Emirates (UAE) to determine from their perspectives factors that drive innovation in management accounting. The study indicates that traditional management accounting techniques are more practiced than innovative ones. The findings also indicate that globalisation, information technology, and firm size have a significant influence on management accounting innovation, while other factors such as market forces and employee qualifications do not have significant influence. The finding that information technology is one of the key drivers of management accounting innovation suggests more investments in information technologies to update management accounting systems and practices, and more information technology training to equip management accountants with advanced skills necessary to implement innovative techniques.

Keywords: management accounting innovation; information technology; IT; globalisation; management accounting change; United Arab Emirates; UAE; accounting information systems; AIS; economic forces; traditional management accounting.

DOI: 10.1504/IJMFA.2014.060512

International Journal of Managerial and Financial Accounting, 2014 Vol.6 No.1, pp.60 - 86

Published online: 02 Jul 2014 *

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