analysis and conclusion

Abstract Assignment-2

Abstract Assignment

Abstract Assignment-2

Venkatesh Karri

University of Cumberlands

Abstract 7:

Bibliographic Citation

Allawi, K. M., Mijbil, S. H., & Salloomi, R. K. (2019). THE COMPATIBILITY BETWEEN LEAN ACCOUNTING AND CLEANER PRODUCTION FOR ACHIEVING COMPETITIVE ADVANTAGE. Polish Journal of Management Studies, 20(2), 73–82. https://doi.org/10.17512/pjms.2019.20.2.06

Authors

Allawi K.M, Mijbil S.H. Salloomi R.K.

Research Concern

In order to survive international market competition a lot of industries are now adapting modern changes which will facilitate restructuring manufacturing processes, producing more products and information at lower costs. Lean accounting is one of those changes which can help companies achieve this kind of competitive advantage. There is a lack of administrative awareness and poor understanding about the compatibility of lean accounting and cleaner manufacturing technologies and how this can help industries achieve competitive advantage.

Purpose

The main purpose of this study to demonstrate the compatibility of lean accounting and cleaner manufacturing technology, as well as their contribution to increased productivity.

Precedent Literature

According to Fraser & Fraser, 2009; Lean manufacturing is a method of continuous improvement that has lately gained popularity in the corporate sector. Lean methods have been developed and utilized by a number of well-known companies. Kocamiş (2015) defines lean accounting as “modern business management style based on lean principles and methods that focus on financial information reporting to support lean production and focus on activities that add value and eliminate the loss of the accounting system”. According to Lewis, 2000; organizations can gain a competitive edge by using a lean production and accounting system.

Research Methodology

The authors selected 500 manufacturing companies and 960 questionnaires were distributed to the managers of these 500 manufacturing companies over a period of one month. For each response a five-point Licker's scale was utilized to answer the questionnaire. PLS-SEM method was used to analyze the data. The understudy variables for dependent variable- competitive advantage and mediating variable – cleaner production were derived from previous studies done on this topic. In addition to these two lean accounting variables are used as independent variables.

Instrumentation

A questionnaire used for data collection in this study and this questionnaire were given to managers of the accounts and production department, and they were placed on a 5-point Resin Likert scale.

Findings

The validity of the data was verified using composite reliability and Average variance extracted. Based on the results from the study CR and Alpha of the analysis is greater than 0.7 and alpha is greater than 0.05 we can confirm the validity of the data. Fornell Larcker and HTMT were used to confirm the reliability of the data. As all the values form this analysis is less than 0.9 we can say that the data is not highly correlated. Based on the hypothesis testing results from SEM since the beta is positive we can say that lean accounting has positive relationship with competitive advantage and since the p value is less than 0.05 the relationship with competitive advantage and lean accounting is significant.

Conclusions

Based on the results from this study we can conclude that cleaner production has positive relationship with lean accounting and competitive advantage. Therefore, we can conclude that lean accounting increases cleaner production and cleaner production increase competitive advantage of the industry.

Suggestions for Further Research

The author made some suggestions for future research- more factors can be added to predict competitive advantage of industries in addition to lean accounting, cleaner production can be used as moderation in future studies and results from other countries can also be considered and analyzed in future studies.

Abstract 8

Bibliographic Citation

Lean Accounting System: Importance and Successful Implementation. (2021). Journal of Contemporary Issues in Business and Government, 27(3). https://doi.org/10.47750/cibg.2021.27.03.293

Authors

Syed Babar Ali, Zeba Shariff Khan, Zubair A Shah, Muhammad Ahmad

Research Concern

The author states that lean accounting is a complex subject and successful implementation of lean accounting depends on several factors. Many companies have tried and failed many times to implement and maintain lean accounting.

Research Purpose Statement

The purpose of the research in this article is to learn the importance of lean accounting system and the factors that contribute to its success of lean accounting.

Precedent Literature

According to Kapanowski, 2017; Many successful firms around the world have recognized the value of lean management and are working to apply creative lean tactics in order to enhance their economies and profits. Maskell, Baggaley, & Grasso, 2012 says that collaborative lean accounting is sometimes sidelined and misconceived by many organizations. Kaynak, 2003 also adds that in order to implement lean strategies successfully top management commitment and investment in training are necessary.

Methodology

In this research paper the author used several research papers to determine the importance of lean accounting and the potential reasons behind successfully implementing lean accounting. The author tried to answer five research questions using findings from previous literature. The author reviewed about 50 articles/books for this research study.

Instrumentation

The authors used previously published articles and books to determine the importance of lean accounting and reasons behind successful implementation of lean accounting.

Findings

The author gives several reasons on why lean manufacturing system is not complete without lean accounting, standard costing methods are inappropriate and are only suitable for mass production and promote production without customer demand. The author also states that commitment of top management is important for implementing lean accounting. According to the author activity based costing and value stream costing are the best lean accounting techniques for lean manufacturing systems. Accountant’s understanding towards lean and considering transition towards lean are two important factors required for effective lean accounting implementation.

Conclusions

Based on the findings from this study we can conclude that lean accounting system is a critical component of a lean manufacturing system, which cannot work efficiently without it. The author also concludes that top management content, accountants understanding of lean philosophy, cooperation with value stream teams and implementing value stream costing methods are four important reasons for successful implantations of lean accounting.

Suggestions for Further Research

The authors suggest that this study is only limited to manufacturing industries, further research can be done to determine the importance and lean accounting and reasons behind its successful implementation in service industries.