THE USE OF HIERARCHIHCAL-BASED REWARD SYSTEMS IN MODERATING THE RELATIONSHIP BETWEEN MANAGEMENT ACCOUNTING SYSTEM AND ORGANISATIONAL LEARNING

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Wee Shu Hui Foong Soon Yau

Abstract

This study empirically investigates the relationship between management accounting systems (MAS) and organizational learning and also explores the effect of decentralization on this relationship based on a cross-sectional sample of 262 Malaysian companies. Questionnaires were sent to managers of Malaysian companies. It is hypothesized that there is a positive relationship between MAS and organizational learning and secondly, hierarchical-based reward systems moderate this relationship. MAS was designed in terms of its informational characteristics (timeliness, scope, level of aggregation and integration) and its use in improving learning, focusing attention, score keeping and improving understanding. This paper contributes to an understanding of the relationship between MAS and organizational learning which is defined as process of knowledge acquisition, information distribution, information interpretation and organisation memory. It is expected that a hierarchical-based system promotes a greater use of MAS information resulting in greater organizational learning. This paper highlights the importance of MAS as an important tool in promoting organisational learning. MAS as a primary source of information in an organisation can be proactively used to facilitate organizational learning. The results indicate support for a positive relationship between MAS and organizational learning and the moderating effect of hierachical-based reward system on this relationship.

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How to Cite
SHU HUI, Wee; YAU, Foong Soon. THE USE OF HIERARCHIHCAL-BASED REWARD SYSTEMS IN MODERATING THE RELATIONSHIP BETWEEN MANAGEMENT ACCOUNTING SYSTEM AND ORGANISATIONAL LEARNING. Management & Accounting Review (MAR), [S.l.], v. 3, n. 1, p. 137-148, june 2004. ISSN 2550-1895. Available at: <http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/527>. Date accessed: 17 jan. 2018.
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