Organic decision and communication processes and management accounting systems in entrepreneurial and conservative business organizations

This study examines the combined effect of organic decision and communication processes (organic processes) and management accounting systems (MAS) on performance. A model based on ‘effective paradoxes’ is developed which suggests that the interaction of organic processes with use of MAS is more closely associated with superior performance in organizations pursuing entrepreneurial as opposed to conservative strategies. This hypothesized relationship was supported by evidence from a study of managers from 72 firms. The interaction was significant for entrepreneurial organizations but not for conservative entities. Moreover, in entrepreneurial entities performance was significantly associated with organic decision processes for organizations using MAS extensively, but not when MAS was used less extensively.