EFFECTS OF CHANGES IN ORGANIZATIONAL STRATEGY AND ORGANIZATIONAL STRUCTURE ON MANAGEMENT ACCOUNTING APPLICATIONS: A RESEARCH ON THE MANUFACTURING COMPANIES LISTED IN BORSA ISTANBUL

Abstract

Fierce conditions in business environment recently led the companies to strive for sustaining their survival and
profitability. Especially the increased competition caused by globalization, tendencies towards benefiting from economies
of scale, developments in production technologies and management techniques are forcing the companies to update their
systems and structures continuously. Management accounting tools and applications play critical roles in providing
information to the managers in order to be used to support managerial decisions. In this respect management accounting
applications are considered to be subject to change and are affected by some factors intensely. Major aim of this study is
to probe the effects of changes in organizational strategy and organizational structure on management accounting
applications. Sampling of the research is constituted of manufacturing companies which are large in scale and using
management accounting tools widespread. A research questionnaire is prepared and sent to nearly 200 companies listed
in Borsa Istanbul (formerly known as Istanbul Stock Exchange). Valid responses gathered from 72 companies are
analyzed and findings revealed that changes in organizational structure and organizational strategy are positively effective
on management accounting applications of manufacturing companies.