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Changes in the role of management accountants following the introduction of

ERP systems

Article · September 2013

DOI: 10.18374/EJM-13-3.4

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 CHANGES IN THE ROLE OF MANAGEMENT ACCOUNTANTS
FOLLOWING THE INTRODUCTION OF ERP SYSTEMS

Bernhard Gärtner, Johannes Kepler University, Linz, AUSTRIA

Birgit Feldbauer-Durstmüller, Johannes Kepler University, Linz, AUSTRIA
Christine Duller, Johannes Kepler University, Linz, AUSTRIA

ABSTRACT

In recent times ERP systems have found their way into corporate world and brought great
opportunities to improve effectiveness and efficiency of business processes. Thus ERP systems
contribute considerably to the evolving role of management accountants. Although international
research has taken up the field of ERP systems as well as of management accountants, there is still
little research on ERP systems “AND” management accountants. Therefore the present study sheds
light on the changing role of management accountants following the implementation of ERP systems.
In reference to an extended Austrian survey and the theoretical concept of social role, this quantitative
study shows that tasks of management accountants expand whereas management accounting jobs
remain unchanged following the implementation of ERP systems.

Keywords: Enterprise systems, ERP systems, management accountants, role, quantitative survey

1. INTRODUCTION

Information technology (IT) has recently become essential for management accounting, and
management accounting has become unthinkable without IT (Granlund and Mouritsen, 2003;
Sanchez-Rodriguez and Spraakman, 2012; Teittinen, Pellinen and Järvenpää, 2012). Enterprise
resource planning (ERP) systems, considered to be a major IT development, are one of the most
important drivers of change in the field of management accounting and management accountants
(Davenport, 1998; Booth, Matolcsy and Wieder, 2000; Rikhardsson and Kraemmergaard, 2006; Rom
and Rohde, 2006; Spathis, 2006; Granlund, 2007). ERP systems are corporate information systems
that support companies by providing real-time information for coordinating their resources (Bingi,
Sharma and Godla, 1999; Edwards, 2001; Themistocleous, Irani and O’Keefe, 2001; Mabert, Soni and
Venkataramanan, 2003; Grabski, Leech and Schmidt, 2011; Grote and Janssen, 2011). The
introduction of ERP systems to a firm can improve the speed of decision-making, increase customer
satisfaction, reduce costs and/or increase the effectiveness and efficiency of organizational processes
(James and Wolf, 2000; Light, Holland and Wills, 2001; Poston and Grabski, 2001; Scapens and
Jazayeri, 2003; Grabski, Leech and Schmidt, 2011). Consequently, ERP systems generally offer
solutions for various kinds of corporate problems.

The literature investigates changes in management accounting practice and function (Caglio, 2003)
and suggests that the ongoing development of integrated information systems such as those related to
ERP occur in tandem with changes in the traditional understanding of management accounting.
Through the implementation of ERP systems, the role and thus the tasks of management accountants
also extensively change. For example, the enlargement of practices and legitimate competencies
leads to a “hybridization” of management accounting activities (Caglio, 2003; Granlund, 2011). In
short, the role of a management accountant is shifting from “beancounter“ to internal business partner
(Byrne and Pierce, 2007).

Although international research on the role of management accountants has increased (Byrne and
Pierce, 2007; Hiebl, 2012; Lambert and Sponem, 2012), studies that thematize the effects of ERP
systems on the role of management accountants are scarce (Caglio, 2003; Teittinen, Pellinen and
Järvenpää, 2012). Therefore, we carried out a quantitative survey in large and medium-sized
companies in Austria in order to examine the role of management accountants and the changes in
management accounting jobs and tasks. Therefore, the present study sheds light on the question of
how far the implementation of ERP systems changes the role of management accountants.

The remainder of this paper is organized as follows. Chapter 2 provides an outline of previous findings
on how implemented ERP systems affect the role of management accountants, while Chapter 3 states
the paper’s theoretical frame work and formulates the hypotheses. In Chapter 4, the research methods
are presented. In Chapter 5, the hypotheses are tested, and in chapter 6, the results are discussed.
Finally, Chapter 7 summarizes and discusses future research areas, implications for corporate
practice as well as research limitations.

2. LITERATURE REVIEW

New IT systems such as those related to ERP are having a fundamental impact on the future of
management accounting in general and the role of corporate management accountants specifically
(Sayed, 2006; Jack and Kholeif, 2008; Azan and Bollecker, 2011). Even though the organizational
effects of ERP systems have already been thoroughly examined in the literature, the combination of
ERP systems and management accounting has not been investigated at length (Booth, Matolcsy and
Wieder, 2000; Granlund and Mouritsen, 2003; Lodh and Gaffikin, 2003; Spathis, 2006; Sutton, 2006;
Granlund, 2011; Vakalfotis, Ballantine and Wall, 2011).

With respect to the growing importance of ERP systems, Chapman and Chua (2000) criticize the lack
of publications on management accounting and ERP systems and call for further research into this
sub-field. Scapens and Jazayeri (2003) as well as Granlund (2011) identify that ERP systems have
been thoroughly investigated in IT-oriented research fields but under-examined in accounting research
journals. Similarly, Teittinen, Pellinen and Järvenpää (2012) highlight the lack of empirical results in
accounting research.

Moreover, because ERP systems now contribute considerably to the evolving role of management
accountants (Jack and Kholeif, 2008), further research in this field is necessary (Teittinen, Pellinen
and Järvenpää, 2012). Caglio (2003) emphasizes that recent studies have found no evidence for the
effects of ERP systems on management accounting or on the role of management accountants. In this
context, Chapman (2005) as well as Azan and Bollecker (2011) discover a fundamental relation
between ERP systems and the role of management accountants, while Jack and Kholeif (2008) state
that the introduction of an ERP system affects all essential management accounting activities in firms.
By contrast, the results presented by Rom and Rohde (2006) do not confirm these findings, because
they found only a minor influence of ERP systems on management accounting.

Owing to this absence of an established relation between management accounting and ERP systems
in the literature (Granlund, 2011; Vakalfotis, Ballantine and Wall, 2011; Sanchez-Rodriguez and
Spraakman, 2012; Teittinen, Pellinen and Järvenpää, 2012), there is an increased need for further
qualitative and quantitative research in this field (Granlund, 2011; Gärtner and Feldbauer-Durstmüller,
2012). Published articles on management accounting and ERP systems mainly contain descriptive
and case studies, whereas quantitative research papers are relatively rare (Booth, Matolcsy and
Wieder, 2000; Rom and Rohde, 2006). Bernroider and Koch (2001) claim the need for additional
examination into both the implementation and the use of ERP systems. Consequently, additional
investigation into the problems of the use of such systems is recommended (Vakalfotis, Ballantine and
Wall, 2011).

3. THEORETICAL FRAMEWORK AND HYPOTHESESDEVELOPMENT

3.1 Theoretical Framework

In sociology, social role is seen as a central concept of role theory, which describes a person’s
development opportunities within his or her social status and the way in which this status is applied in
a simple model. The concept of social role was first introduced in 1936 by Linton (1936); however, it
can assume different meanings depending on the prevailing context. In a business context that has
various functions, areas and needs (Hoffjan, 2003), social role can be subdivided into qualifications
and competencies. Qualifications describe certain skills that a person acquires and retains, while the
various rights and obligations that a company assigns to a person constitute his or her competencies.
Depending on the extent of the qualifications and competencies allotted, a person’s role is controlled
by the company in the sense of “person–organization fit” (Hiebl, 2012).

The theory of social role by Katz and Kahn (1978) is used to answer this paper’s research question.
Therefore, the theoretical framework is chosen to interpret the relevance of the presented results on
the role of management accountants. Katz and Kahn (1978) state in their theory of social role that
both the organizational roles and the “role senders” of a company are closely related to each other.
Organizational roles are determined by the various expectations of other organizational members (i.e.
role senders). Simultaneously, role senders are influenced by organizational factors, such as firm size,
structure and technological developments (Granlund and Malmi, 2002; Hunton, 2002; Scapens and
Jazayeri, 2003). Our study focuses specifically on the role senders factor technological developments
by examine the roles of management accountants in organizations affected by implemented ERP
systems. This theoretical lens has been drawn upon previously findings. Many management and
technological developments as well as initiatives may be influencing the roles of management
accountants (Granlund and Malmi, 2002; Scapens and Jazayeri, 2003). Indeed, an isolated view of a
specific role is impossible, as it must be understood in the context of a social group (Katz and Kahn,
1978).

Management accountants in companies are assigned multiple roles (Lambert and Sponem, 2012). In
addition to the classic task of information supplier, the role of management accountants is increasingly
altering from “beancounter” to business partner, as noted earlier (Byrne and Pierce, 2007). This
development means that the role and thus the qualifications and competencies of management
accountants have to adapt sustainably, leading to changes and shifts in management accounting jobs
and tasks. This view is also shared by Caglio (2003), who refers to a hybridization concerning role
extension and increased integration into a company’s business processes.

In this paper, role theory is used as the theoretical approach to examining the relation between
implemented ERP systems and the changing role of management accountants. On one hand, ERP
systems have to adapt to the organizational structure, while, and the other hand, the organizational
structure has to adapt to the ERP system. This is termed the “ERP system–organization fit” (Holland
and Light, 1999; Kumar and van Hillegersberg, 2000; Chen, 2001; Hong and Kim, 2002; Buonanno et
al., 2005; Rikhardsson and Kraemmergaard, 2006). The interaction (cf. Figure 1) between the “ERP
system–organization fit” and “person–organization fit” therefore is crucial for the role of management
accountants. Through the implementation of ERP systems, management accountants often require
new skills, while additional powers are delegated to them.

FIT
Role Organization

FIT

qualification competence ERP system

FIGURE 1: THEORETICAL FRAMEWORK

3.2 Hypotheses development

Management accounting as well as the role and tasks of management accountants have progressed
steadily in recent years. Management accountants were previously understood to support
management’s planning and control, whereas nowadays they are more and more entrusted with the
responsibility for the successful achievement of the firm’s objectives (Byrne and Pierce, 2007).
Moreover, additional competencies such as excellent IT skills are increasingly required by
management accountants (Lodh and Gaffikin, 2003; Sayed, 2006; Rodney, 2009; Vakalfotis,
Ballantine and Wall, 2011; Weber, Strauß and Spittler, 2012). The use of ERP systems thus provides
an opportunity to influence the evolution of corporate management accounting significantly (Brignall
and Ballantine, 2004; Chapman, 2005; Dechow and Mouritsen, 2005; Quattrone and Hopper, 2005;
Rom and Rohde, 2006; Granlund, 2007; Jack and Kholeif, 2008; Vakalfotis, Ballantine and Wall, 2011;
Chen et al., 2012). In this vein, Poston and Grabski (2001) find an employee reduction within the first
year of the use of an ERP system.

However, a positive attitude towards ERP systems is not equally shared by all corporate management
accountants (Caglio, 2003). This unease can be caused by the risk of job losses (Aladwani, 2001;
Grabski, Leech and Lu, 2001; Scapens and Jazayeri, 2003; Newman and Westrup, 2005), as some
management accountants recognize the potential for a high degree of cost savings following the
implementation of ERP systems (Scapens and Jazayeri, 2003). Anastas (1997) argues that ERP
systems reduce the number of employees in management accounting departments, while Granlund
(2001) states that many management accountants object to minor changes in management
accounting systems because of the fear for their functions (see also Teittinen, Pellinen and Järvenpää,
2012).

ERP systems also provide the opportunity for top management to review employees’ functions in
terms of their effectiveness and efficiency (Poston and Grabski, 2001). Notably, the effective use of
ERP systems and related improvements can lead to personnel savings in routine activities, especially
data preparation and reporting (Granlund and Malmi, 2002; Scapens and Jazayeri, 2003; Newman
and Westrup, 2005; Rom and Rohde, 2006; Sayed, 2006; Sangster, Leech and Grabski, 2009;
Granlund, 2011; Vakalfotis, Ballantine and Wall, 2011; Wagner, Moll and Newell, 2011; Teittinen,
Pellinen and Järvenpää, 2012). Moreover, in addition to information systems taking over the traditional
activities of management accountants, the simple shift of accounting functions to non-accountants is
also a threat to management accounting (Caglio, 2003; Dechow and Mouritsen, 2005; Quattrone and
Hopper, 2005; Sayed, 2006; Vakalfotis, Ballantine and Wall, 2011). Modern ERP systems can
generate reports at the touch of a button (O' Mahony and Doran, 2008). Sayed (2006) discusses the
importance of such changes in the role of management accountants for companies in the future.

However, since not all the activities of management accountants can be carried out by an ERP
system, the implementation of such systems may also bring about many positive changes for
management accounting and the role of management accountants (Spathis, 2006; O' Mahony and
Doran, 2008; Rodney, 2009; Sangster, Leech and Grabski, 2009). Implemented ERP systems
contribute significantly to the effective and efficient execution of management accounting activities
(Sayed, 2006; Spathis, 2006; Vakalfotis, Ballantine and Wall, 2011; Sanchez-Rodriguez and
Spraakman, 2012; Teittinen, Pellinen and Järvenpää, 2012), thereby extending the power of
management accountants in companies (Jack and Kholeif, 2008; Sanchez-Rodriguez and
Spraakman, 2012) and equipping them with new competencies (Lodh and Gaffikin, 2003). In this
context, management accountants are increasingly understood as business partners in companies
(Byrne and Pierce, 2007; Järvenpää, 2007; O' Mahony and Doran, 2008; Chen et al., 2012).

Nevertheless, ERP systems entail massive changes in the daily processes and routines of
management accountants (Aladwani, 2001; Grabski, Leech and Lu, 2001; Caglio, 2003; Dechow and
Mouritsen, 2005; Jack and Kholeif, 2008; Vakalfotis, Ballantine and Wall, 2011). Scapens and
Jazayeri (2003) describe the extensive change in management accounting tasks after the
implementation of ERP systems. For example, management accountants spend up to 30% of their
time working with the new systems (O' Mahony and Doran, 2008). In addition, Grabski, Leech and
Sangster (2009) find that the greater the success of implementation, the more ERP systems change
the role of management accountants. For instance, after implementation management accountants
are usually entrusted with solving tasks and problems that are not covered by ERP systems (Lodh and
Gaffikin, 2003; Rodney, 2009) and are usually allotted to higher skilled tasks (Chen et al., 2012).

As a consequence of the implementation of ERP systems and the lack of experience and skills in this
field, an improvement in management accountants’ abilities and skills is required (Rikhardsson and
Kraemmergaard, 2006; Sayed, 2006; Rodney, 2009; Sangster, Leech and Grabski, 2009; Cimirotic,
Feldbauer-Durstmüller and Hiebl, 2012; Teittinen, Pellinen and Järvenpää, 2012). A series of recent
research shows the enormous importance of business, IT, social and communication skills after the
implementation of ERP systems (Mohamed and McLaren, 2009; Chen et al., 2012). However,
although management accountants have to become familiar with the use of implemented ERP
systems, more importance is also attributed to social skills (Newman and Westrup, 2005). Crucially,
management accountants may be restricted in developing their skills by ERP systems, as they are
strongly limited by the system’s requirements (Sayed, 2006).

Further, top management can often obtain real-time information by themselves from ERP systems,
leaving management accountants increasingly employed for complex analytical tasks (Newman and
Westrup, 2005; Rikhardsson and Kraemmergaard, 2006; Sayed, 2006; O' Mahony and Doran, 2008;
Sangster, Leech and Grabski, 2009; Vakalfotis, Ballantine and Wall, 2011; Teittinen, Pellinen and
Järvenpää, 2012), again confirming the change in the role of management accountants from data
processers to business partners (Sayed, 2006; Byrne and Pierce, 2007; Järvenpää, 2007; Järvinen,
2009; Chen et al., 2012). This finding is also confirmed by the results of Dechow and Mouritsen
(2005), who state that all necessary information can be automatically generated by ERP systems
rather than produced in spreadsheets as before. Moreover, the central data warehouse and defined
data model have to be inspected and maintained frequently, while management accountants have to
deal with software implementation, information system design, knowledge sharing and the customizing
of ERP systems, extending their responsibilities further (Dechow and Mouritsen, 2005; Rodney, 2009;
Teittinen, Pellinen and Järvenpää, 2012; Chen et al., 2012; Weber, Strauß and Spittler, 2012). Finally,
they will also be increasingly confronted with system upgrades going forward (Grabski, Leech and Lu,
2001; Scapens and Jazayeri, 2003; Newman and Westrup, 2005).

Studies have shown the controversial effects of ERP systems on management accounting jobs and on
the role of management accountants (Granlund and Malmi, 2002; Scapens and Jazayeri, 2003;
Vakalfotis, Ballantine and Wall, 2011). Newman and Westrup (2005) predict a fundamental change in
management accounting based on the introduction of ERP systems, while Chen (2001) concludes that
ERP systems will change management accountants’ roles and activities in companies. The studies of
Sanchez-Rodriguez and Spraakman (2012) as well as Spathis and Constantinides (2004) also find a
change in management accountants’ roles because of the implementation of ERP systems. Indeed,
according to the study of Newman and Westrup (2005), 83% of respondents ascribe the positive
effects of ERP systems to management accounting. However, research on the effects of ERP systems
on management accounting cannot be regarded as concluded yet.

Dechow and Mouritsen (2005) postulate that the positive effects of an ERP system on financial
accounting do not necessarily imply positive effects on management accounting. Nevertheless, their
study does confirm that ERP systems positive influence management accounting. By contrast,
Granlund and Malmi (2002), Scapens and Jazayerias (2003) as well as Hyvönen et al. (2009) find only
a marginal change in management accounting attributable to ERP systems based on the fact that
even after the successful implementation of ERP systems, many management accounting activities
still take place in spreadsheets (Sangster, Leech and Grabski, 2009). Rom and Rohde (2006)
acknowledge the advantage in data collection; however, the study of Weber, Strauss and Splitter
(2012) can only find a small reduction in management accounting jobs and O‘Mahony and Doran
(2008) argue that ERP systems are not responsible for a reduction in management accountants. Other
research, by contrast, does not determine a change in management accounting, management
accounting jobs or the role of management accountants following the implementation of ERP systems
(Rom and Rohde, 2006; Jack and Kholeif, 2008). According to the results of Spathis (2006), for
example, the reduction in management accounting jobs even constitutes as light benefit. In light of the
foregoing, hypotheses H1 and H2 can be derived:

H1: Implemented ERP systems reduce management accounting jobs in companies.

H2: Implemented ERP systems increase the tasks of management accountants in companies.

4. METHODOLOGY

4.1 Data Collection and Analysis

Qualitative theses in the international literature are usually reviewed by means of quantitative theses
(Riesenhuber, 2007). Consequently, we used a quantitative survey of large and medium-sized
companies in Austria to derive our empirical results. [1] The required data were gathered from an
extensive management accounting survey, which consisted of several content areas. In the content
area on the implementation and use of ERP systems, 10 detailed questions were addressed to
participating companies.

Under the consideration of the theoretical framework, the following variables were gathered as a basis
for the verification of the hypotheses. Concerning the role of management accountants, survey
participants were questioned about the change in management accounting jobs and management
accountants’ tasks using a five-point Likert-scale too. The questionnaire asked respondents to indicate
whether, in their opinions, the ERP system has changed management accounting jobs and tasks on a
scale from 1 (Very increased) to 5 (Very reduced) with 3 indicating no change.

In addition to the descriptive statistics, a classic statistical test was applied for data analysis. As both
interesting variables are on ordinal scale, the Wilcoxon signed rank test with a significance level of
0.01 was brought in for a validation. Based on the five-point Likert-scale the median shows a value of
3, by which all data with a value of 3 (no change) were not considered in the Wilcoxon signed rank
test. Accordingly, a certain tendency to moderate answers of survey participants could be
counteracted.

4.2 Sample
According to the definition of the European Commission (2003), all companies with at least 50
employees were included. Data were gathered using a standardized online questionnaire that included
open and closed questions. To ensure overall intelligibility in terms of terminology, 10 pretests were
conducted in different sized companies. Change requests based on these pretests were collected and
integrated into the survey during a final discussion. Further, representativeness was tested by
comparing the first third of the data set with the last third with respect to size in order to control for
non-response bias (Leslie, 1972). There was no indication of non-response bias, as no significant
differences were detected between early and late respondents (Fowler, 2009).

In June and July 2012, a request for questionnaire responses as well as the link to the online survey
was sent by email directly to the chief financial officers (CFOs) of 5,827 Austrian companies. In July
2012, the sampled CFOs were sent an email reminder. Overall, 488 companies responded to the
questionnaire, representing a response rate of 8.4%. In total, 192 questionnaires had insufficient
information and 86 questionnaires were void because of incomplete responses to ERP system-related
issues. Finally, 210 responses proved to be evaluable, and these formed the basis for the verification
of the hypotheses.

5. FINDINGS

The findings are presented around the themes of the management accounting jobs and tasks
associated with the role of management accountants. Tables 1 and 2 summarize the descriptive
statistics on the changing role of management accountants. Table 1 illustrates that the implementation
of ERP systems influences management accounting jobs to a small degree. Only 16.2% of the
surveyed companies reported an increase in management accounting jobs, whereas 5.6% reported a
reduction. Table 2 shows that 49% of the surveyed companies indicated an increase in management
accountants’ tasks from a small to a large extent, whereas only 11.2% of respondents reported a
reduction in the number of tasks.

Effects of ERP systems on management accounting jobs

Response categories Frequency Percentage
Strongly increased 2 1.4%
Slightly increased 21 14.8%
No change 111 78.2%
Slightly reduced 6 4.2%
Strongly reduced 2 1.4%
Sum 142 100%
TABLE 1: CHANGE IN MANAGEMENT ACCOUNTING JOBS DUE TO ERP SYSTEMS

Effects of ERP systems on management accountants’ tasks

Response categories Frequency Percentage
Strongly increased 19 13.3%
Slightly increased 51 35.7%
No change 57 39.9%
Slightly reduced 14 9.8%
Strongly reduced 2 1.4%
Sum 143 100%
TABLE 2: CHANGE IN MANAGEMENT ACCOUNTANTS’ TASKS DUE TO ERP SYSTEMS

As mentioned earlier, the Wilcoxon signed rank test was used to verify H1. The analysis of the
reduction in management accounting jobs following the implementation of ERP systems did not show
a significant result (p = 0.985). Thus, no reduction in management accounting jobs through the
implementation of ERP systems could be detected and H1 was rejected. However, contrary to H1, the
Wilcoxon signed rank test for the second hypothesis showed a significant result (p = 0.000),
supporting H2. Thus, management accountants’ tasks grow following the implementation of ERP
systems.

6. DISCUSSION

The presented results show that management accounting jobs in firms are rarely reduced through the
implementation of ERP systems. According to the study’s results, no change in management
accounting jobs was detected in nearly 80% of the surveyed companies. Therefore, the results
partially validate those derived from previous research on ERP systems and changes in management
accountants’ roles (Rom and Rohde, 2006; Sayed, 2006; Jack and Kholeif, 2008). Further, our results
support those provided by Spathis (2006), whose study finds as light benefit of ERP systems in
reducing management accounting jobs. A possible explanation for the rejection of H1 could come from
the findings of Newman and Westrup (2005), who postulate that the reduction in management
accounting jobs started before the surge in the implementation of ERP systems. In addition, Wagner,
Moll and Newell (2011) argue that management accounting tasks cannot be squeezed into an ERP
system, whereupon no potential of a reduction in management accounting jobs can emerge. Based on
this study, it should be noted that management accountants are still held in high esteem in companies
and thus the implementation of ERP systems cannot be entirely responsible for job losses and the
shift of tasks to non-accountants (O' Mahony and Doran, 2008).

Consistent with other research on ERP systems and their effects on the role of management
accountants (Chen, 2001; Caglio, 2003; Spathis and Constantinides, 2004; Sanchez-Rodriguez and
Spraakman, 2012), the present study also demonstrates a significant increase (49%) in management
accountants’ tasks following the implementation of ERP systems, perhaps because of the shift in
management accounting activities from “beancounter” to business partner (Byrne and Pierce, 2007;
Järvenpää, 2007; O' Mahony and Doran, 2008; Chen et al., 2012). In this context, Caglio (2003)
suggests that hybridization subsumes the enlargement of tasks as well as the additional competencies
of management accountants. Management accountants increasingly act as internal service providers
rather than as data preparers (Caglio, 2003; Sayed, 2006; Byrne and Pierce, 2007; Järvenpää, 2007;
Järvinen, 2009; Chen et al., 2012). As internal service providers, after the implementation of ERP
systems, they are allotted to tasks that are not covered no revoked by ERP systems (Lodh and
Gaffikin, 2003; Rodney, 2009). Accordingly, management accountants now require new qualifications
and extended core competencies (Chen et al., 2012).

In reference to our survey and the theoretical concept of social role by Katz and Kahn (1978), this
quantitative study shows that tasks of management accountants expand whereas management
accounting jobs remain unchanged following the implementation of ERP systems. Thus, it can be
stated that role senders are influenced by the organizational factor technological developments.

7. CONCLUSION

This study’s aim was to shed light on the effects of the implementation of ERP systems on the role of
management accountants. In this context, it provides an unexpected result in terms of management
accounting jobs, since in four out of five of the surveyed companies such jobs remain unchanged.
These results provide another insight into the highly controversial debate about the recent changes in
management accounting jobs. Taking into account the implementation of ERP systems and
associated opportunities for companies, a reduction in management accounting jobs was expected,
but this notion was rejected (H1).

At the same time, a change in the role of management accountants was detected (H2). The study
shows that the tasks of management accountants have expanded following the implementation of
ERP systems. This finding contributes to the management accounting literature, since the change in
tasks has been investigated insufficiently thus far. Moreover, many of the assumptions made in
existing research results are supported by this result. The growth in management accountants’ tasks
can therefore be assumed to support the development to business partners and internal service
providers as well as the requirement for additional skills and competencies.

To summarize, this study found only a small change in the role of management accountants following
the implementation of ERP systems, thus supporting the findings of Granlund and Malmi (2002),
Scapens and Jazayeri (2003) as well as Hyvönen et al. (2009). Although the almost unchanged level
of management accounting jobs indicates no change in the role of management accountants, the
enlargement of management accountants’ tasks does imply an alteration in this role. Accordingly, the
initially formulated research question can be confirmed only partially. Nevertheless, this result
contributes to the existing management accounting literature.

The continuing controversy over the changing role of management accountants suggests possible
future research avenues. Apart from the need for research on the changing role of management
accountants, the combination of field ERP systems and management accountants has hardly been
considered by the research community (Gärtner and Feldbauer-Durstmüller, 2012). Therefore,
separating this area from the research field of ERP systems and management accounting has to be
regarded as highly relevant, since these need not necessarily lead to the same results. The presented
results show that the role of management accountants is subject to change (Granlund, 2007;
Sangster, Leech and Grabski, 2009). Gleich (2012), who identifies six key drivers of change in the role
of management accountants, makes similar findings. Nonetheless, profound causal analyses of the
changes in the role of management accountants combined with the field of ERP systems are lacking in
the literature. Accordingly, even more detailed investigations into the changing role of management
accountants would be of interest in the future. For example, questions focused on the effectiveness
and efficiency of management accountants in relation to handling online analytical processing, data
mining and cloud computing could be examined more precisely. The current state of research in these
areas has to be considered to be extremely low.

Another essential finding for further research as well as for corporate practice is that management
accountants must expand their skills constantly and keep them up-to-date (Azan and Bollecker, 2011).
In particular, IT knowledge and skills are emphasized, since the IT skills of management accountants
can have a critical impact on firm success. Accordingly, companies should be prepared to train their
management accounting employees constantly in the use of newer ERP systems as well as the basic
knowledge of spreadsheets and structured query language, which remains essential for management
accountants. These recommendations are also supported by the findings of Sanchez-Rodriguez and
Spraakman (2012). The increasing significance of the ERP system knowledge held by management
accountants should not be neglected by school and university education, which should pay particular
attention to this issue going forward (Azan and Bollecker, 2011).

In interpreting this study’s results, its limitations must also be considered. The results presented in this
paper relate to survey data gathered at a specific time and in a specific region (large and medium-
sized companies in Austria). Accordingly, longitudinal survey data and cross-sectional data might lead
to more significant results. Although the presented results are representative of large and medium-
sized companies in Austria, they cannot be generalized to other firm size categories and/or cultures.

Another limitation is the sample size of the study, since a larger sample ensures better statistical
analysis. It should also be noted that the change in the role of management accountants in this paper
was merely described by the number of management accounting jobs and management accountants’
tasks. The change in the number of spreadsheets could be another indicator of the changing role of
management accountants. Further, for examining the role of management accountants, the activities
mainly perceived after the implementation of ERP systems by management accountants (including
which are of minor importance) might be of interest. In addition, the new skills and competencies
required could be the subject of further investigation. In order to answer questions of this type,
quantitative research is increasingly reaching its limits and thus qualitative research designs (i.e. case
studies) may be deemed to be more appropriate.

Notes
[1] The survey data used in this study have already been used for other publications with different
research focuses (Gärtner, B., Feldbauer-Durstmüller, B. and Duller C., “Enterprise Size Impact on the
ERP System Implementation”, Working Paper, 2013).

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AUTHOR PROFILES

Bernhard Gärtner is Ph.D. student at the Institute for Management Control & Consulting at the
Johannes Kepler University in Linz.

Dr. Birgit Feldbauer-Durstmüller earned her Ph.D. at the Johannes Kepler University (JKU) of Linz,
Austria, in 1991. Currently she holds the Chair of the Institute for Management Control & Consulting at
the JKU Linz.

Dr. Christine Duller earned her Ph.D. at the Johannes Kepler University (JKU) of Linz, Austria, in
1999. Currently she is Assistant Professor of Applied Statistics at the JKU Linz.

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