Conceptualizing the Theoretical Framework of Management Accounting: A Grounded Theory Approach

The theoretical framework of management accounting encompasses the principles and concepts used to prepare and interpret financial information for managers. This framework assists accountants in preparing financial information aligned with organizational objectives and aids managers in accurately interpreting this information for effective decision-making. Additionally, it enhances the efficiency and quality of financial information and increases trust in organizations. Therefore, providing a coherent model for developing the theoretical framework of management accounting is crucial. Accordingly, this research aims to elucidate the importance of the theoretical framework of management accounting and propose an appropriate model for its development. Hence, the primary issue addressed in this study is to determine what model can be prescribed for developing the theoretical framework of management accounting.
In this research, both field and library methods were utilized to implement a grounded theory approach aimed at identifying core categories, causal conditions, contextual conditions, strategies, intervening conditions, and outcomes for developing the research model in 2023. The study population includes experts in management accounting, university professors in the field of accounting, and other scholars in management accounting from both domestic and international contexts, whose teaching and research areas closely align with the subject of this research and who have encountered it in their work. A purposive snowball sampling approach was employed for sample selection in this study. To extract the components influencing the development of the theoretical framework of management accounting, and given the lack of a coherent model in the related literature, a systematic review of theoretical foundations and semi-structured interviews with 13 experts from both domestic and international contexts were conducted. This approach aimed to address the weaknesses of existing theoretical foundations and ensure the identified categories reached a saturation stage.
The research results indicated that the research model for developing the theoretical framework of management accounting could be classified into 176 concepts and 69 components. As a result, 13 causal conditions, 14 contextual conditions, 14 strategies for model development, 10 intervening conditions, and 18 consequences for the development model of the theoretical framework of management accounting were listed.
Based on the research findings, it can be concluded that management accounting should have a theoretical framework. However, this framework is not universal; rather, each organization, due to its unique nature and functions, should use the theoretical framework of management accounting relatively, based on its informational needs. The present research contributes to the development of new concepts and principles, the improvement of existing theoretical foundations, and the enhancement of scientific knowledge in the field of management accounting from a theoretical perspective. Practically, this research leads to improved managerial decision-making, increased efficiency and quality of financial information, enhanced roles for management accountants, and facilitated organizational communications. Furthermore, the development of the theoretical framework of management accounting has multiple impacts beyond improving the comparability of accounting reports. Organizations can use the research findings to enhance their managerial decision-making, increase the quality and efficiency of financial information, and elevate the role of management accountants.