Dr Ranjith Appuhami

This study explores whether strategic performance measurement systems (SPMSs) are linked to managers' creativity through two mediating variables¿organisational learning and psychological empowerment. Using data collected from 92 senior production managers in Australian manufacturing organisations, the study tests these links using a partial least squares structural model. The results from the structural model indicate that SPMSs are indirectly related to the managers' creativity through organisational learning and psychological empowerment. The study also finds that organisational learning is both directly related to creativity, and indirectly related to psychological empowerment. Further, the potential implications for empirical research are discussed.

Purpose: The purpose of this paper is to examine the association between the belief-based factors (attitude, subjective norm (SN) and perceived behavioural control (PBC)) and environmental management accounting (EMA) practices. Design/methodology/approach: Drawing on the theory of planned behaviour (TPB), the study develops a structural model and uses partial least squares (PLS) technique to analyse data collected based on a survey of the Australian cotton farmers. Findings: The findings indicate that while attitude and PBC significantly influence farmers¿ intention to adopt EMA practices, SN has a significant indirect influence on EMA practices through farmers¿ attitude and PBC. Further, the study reveals that while the intention of more environmentally friendly farmers is largely influenced by attitude and SN, the intention of less environmentally friendly farmers is primarily driven by PBC. Practical implications: The study provides important insights into the role of attitude, SN and PBC in motivating farmers towards adopting EMA practices. Such insights could also help farmers in designing effective EMA practices. Originality/value: This study contributes to very limited EMA literature on TPB by integrating three belief-based factors namely attitude, SN and PBC.

Purpose: This study aims to examine the role of organisational dynamic capabilities (strategic flexibility and employee empowerment) in mediating the relationship between management control systems (MCSs), in particular the interactive and diagnostic approaches to using controls, with organisational change and performance. Design/methodology/approach: Data were collected based on a mail survey of public sector organisations in Australia and analysed using structural equation modelling (SEM). Findings: The findings indicate that strategic flexibility and employee empowerment mediate the association between the interactive approach to MCSs with organisational performance, and strategic flexibility mediates the relationship between the interactive approach to MCSs with organisational change. Practical implications: The study¿s findings inform public sector practitioners as to how to enact change within and enhance the performance of public sector organisations. Specifically, managers are advised to focus on the use of interactive controls and the development of two dynamic organisational capabilities, strategic flexibility and employee empowerment. Originality/value: The study provides an initial empirical insight into the relation between controls and dynamic capabilities and their role in enacting change and performance within the public sector. The findings suggest that the achievement of new public management ideals is reliant upon the organisational environment, with change and performance facilitated by the interactive use of controls and strategic flexibility and employee empowerment.

Purpose: The purpose of this study is to examine whether audit committee characteristics influence the cost of equity capital. Design/methodology/approach: Drawing on signalling theory, this study hypothesises that the presence of an AC with adequate characteristics serves as a market ¿signal¿ of the credibility of the effective monitoring process and hence affects the perception of capital providers on the cost of equity capital. The study uses a multiple regression analysis on data collected from a sample of top Australian listed firms. Findings: The study finds that audit committee characteristics such as size, meeting frequency and independence are significantly and negatively associated with the cost of equity capital. However, there is no significant evidence that the financial qualifications of audit committee directors are associated with the cost of equity capital. Originality/value: While there have been several studies examining the cost of equity capital, there is very limited research on the cost of capital in Australian firms. The study aims to fill this gap, in part, and contribute to the literature on corporate governance and signalling theory.

This study examines the extent to which enabling and controlling uses of management control systems (MCS) moderate the relationship between environmental innovation strategy and organizational performance. Partial least squares structural equation modeling is used to analyze survey data collected from top managers in 175 manufacturing and services sectors representing multinational and local organizations operating in Sri Lanka. We find that while the enabling use of MCS positively moderates the relationship between environmental innovation strategy and organizational performance, in contrast, the controlling use of MCS negatively moderates the relationship. We compare the results for the manufacturing and services sectors. As predicted, we find a significant positive moderating impact of the enabling use of MCS in both manufacturing and services sectors. However, contrary to our expectations, we find no significant moderating impact for both sectors for the controlling use of MCS. We conclude that environmental innovation strategy per se does not lead to performance improvements; however, the extent to which organizations use enabling and controlling MCS determines the relationship. We provide theoretical insights and practical implications concerning the importance of strategic alignment between managerial controls, environmental innovation strategy, and organizational performance.

This study examines the influence of audit committee (AC) characteristics on voluntary corporate social responsibility (CSR) disclosure in the corporate annual reports of Australian listed firms. It develops hypotheses about the relationship between voluntary CSR disclosure and AC characteristics such as size, frequency of meetings, independence, independent chair, financial expertise and gender diversity. Using multiple regression analysis on data collected from the corporate annual reports of 300 listed firms, the study finds that AC characteristics such as size, frequency of meetings, committee independence and gender diversity have a significant positive influence on the level of CSR disclosure. However, there is no evidence that AC characteristics such as independent chair and members¿ financial expertise affect CSR disclosure in Australian firms. Based on an additional analysis, the study also sheds some light on the effect of AC characteristics on environmental disclosure. The findings of this study may be of particular interest to regulators, shareholders, investment analysts and managers in assessing CSR disclosure in annual reports, and in strengthening the monitoring and oversight role of ACs.

Purpose: The purpose of this paper is to examine the association between the interactive and diagnostic use of MCSs with the extent of adoption of contemporary management accounting practices, and the subsequent impact on the success of such practices in the public sector. Design/methodology/approach: Data were collected through the distribution of a mail survey of 740 questionnaires to public sector organisations in Australia, and analysed using structural equation modelling. Findings: The study found that both the interactive and diagnostic approaches to using MCSs exhibit a positive association with the adoption of contemporary management accounting practices, both as a package and individually. In addition, while the level of success of contemporary management accounting practices was moderate, it was found that the extent of adoption of the practices enhanced their success. Practical implications: The findings suggest that by intensifying the use of MCSs in a more interactive and diagnostic manner, public sector organisations are more likely to adopt contemporary management to a greater extent, with the subsequent increase in the extent of adoption of such practices to exacerbate their success. Originality/value: The study contributes to the MCS contingency-based research by highlighting the interrelationship between two aspects of MCSs, the use of controls and the adoption and success of management accounting practices.

Purpose: The purpose of the study is to examine the use of management controls by a public partner to minimise risks associated with a public-private partnership (PPP) in a developing country. Design/methodology/approach: Using case study method, management controls used in a power project formed as a PPP are examined based on data gathered from semi-structured interviews and documentary analysis. Findings: The study reveals that the public partner of the PPP used multiple controls depending on the nature of risks in different phases of the project. While bureaucratic control was the predominantly used control pattern throughout the three phases (namely, selecting, building and operating) of the PPP, trust-based controls also played an important role. Market controls on the other hand played, somewhat, a nominal role, particularly in the selecting phase of the project. The study also highlights the problematic nature of forming PPPs in developing countries despite the various benefits associated with such organisational arrangements. Additionally, the study provides insights into how certain contextual features of developing countries affect the way in which controls are applied. Practical implications: The insights provided in this paper would be beneficialto policy makers, in developing countries in particular, when making decisions in relation to implementation, management and risk control of PPPs. Originality/value: This study makes an original contribution to the existing literature on PPPs by examining the way in which management controls are used to minimise risk in a PPP in a developing country.

Purpose - This study examines the association between the use of a package of contemporary and a package of traditional management accounting practices with organizational change and organizational performance. Methodology/approach - Data were collected based on a mail survey distributed to a sample of 740 public sector organizations. Findings - The findings indicate that while the prevalence of traditional practices is still dominant, such practices were not associated with organizational change or performance. Rather, those organizations that use contemporary management accounting practices to a greater extent experienced greater change and stronger performance. Practical implications - The findings suggest that contemporary management accounting practices can assist public sector practitioners in improving performance and promoting organizational change. Originality/value - The study provides an empirical insight into the use and effectiveness of management accounting practices in the public sector. The study provides the first empirical analysis of the effect of using a package of management accounting practices in the public sector.