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The Impact of Product innovation on Performance: The Influence of Uncertainty and Managerial Accounting Information Systems

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  • Tsai, Ming-Hsiu
  • Chang, Jung-Hsin
  • Lin, Yuan-Sheng
  • Cheng, Kuo-Chih

Abstract

This paper reports on a survey of Taiwanese high-tech firms, using a path analysis to examine the effects of managerial accounting information systems (MAIS) on the relationship between product innovation and organizational performance. Two of the major characteristics suggested by Chenhall and Morris (1986), broad scope and timeliness, are systematically related to the subject matter of this study, thus, employing these two characteristics to explore the connection between MAIS, product innovation and organizational performance. We find that product innovation has a positive effect on organizational performance through the use of MAIS, and find the extent of this positive effect is more significant in business environments marked by high levels of uncertainty. This study provides evidence to understand whether product innovation requires more extensive use of MAIS in highly uncertain environments and whether the use of MAIS can improve organizational performance. The results also help practicing managers realize the importance of MAIS in modern organizations and the benefits of using MAIS to the organization. Finally, we remind managers engaging in product innovation practices that they should place importance on the use of MAIS, because traditional cost control systems no longer help in solving the problems that are specific to the current, modern business environment.

Suggested Citation

  • Tsai, Ming-Hsiu & Chang, Jung-Hsin & Lin, Yuan-Sheng & Cheng, Kuo-Chih, 2020. "The Impact of Product innovation on Performance: The Influence of Uncertainty and Managerial Accounting Information Systems," MPRA Paper 102898, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:102898
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Information Systems; Managerial Accounting;

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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