This study investigates the mechanisms that link strategic orientation to choices regarding the purposes of cost information use. We do so by examining whether costing system design choices regarding complexity and diversity mediate the relationships between an exploitation or exploration orientation and cost information usage for decision making and control. Using survey data collected from 191 business units of medium- and large-sized Thai manufacturing and service firms, structural equation modelling demonstrates different patterns of results between an exploitation and an exploration context. As predicted, we find that costing system design choices are mediating mechanisms only in the context of exploration. By providing insight into antecedents and consequences of costing system design choices, our study complements prior costing research as well as studies on management control practices across different innovation modes.

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Reference: Daowadueng, P., Hoozée, S., Jorissen, A., & Maussen, S. Forthcoming. Do costing system design choices mediate the link between strategic orientation and cost information usage for decision making and control? Management Accounting Research: 100854.

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