A Functional Elaboration Theory Perspective on Management Accounting in Small Firms
DOI:
https://doi.org/10.33423/jaf.v20i1.2745Keywords:
Accounting, Finance, small-firm management accounting, functional elaboration of management accounting, underfit, overfit, qualitative functional elaboration, ManagementAbstract
We note a lack of theoretical explanations in a recent review of small-firm management accounting research and draw on recent organizational research (functional elaboration theory and theory of asymmetric effects of misfit, specifically) that may further illuminate findings in some small-firm management accounting studies. After briefly discussing how the functional elaboration process model in Wilkerson and Seers (2019) may be adapted to small-firm management accounting research, we offer recommendations for questionnaire measures of management accounting’s qualitative functional elaboration and underfit in small firms. Finally, we discuss implications for practice and entrepreneurship education.