The contingency effects of supply chain integration on management control system design and operational performance of hospitals in Ghana
No Thumbnail Available
Date
2020-05-10
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Accounting in Emerging Economies
Abstract
Purpose – This paper extends prior contingency-based management accounting research by building and
empirically testing a theoretical model of contingency effects of supply chain integration (SCI) on the
dimensions of management control system (MCS) and supply chain operational performance (SCOP) of
hospitals in Ghana.
Design/methodology/approach – The paper uses factorial and structural path analysis of survey responses
collected from 237 hospital accountants to model these relationships.
Findings – The results show that under strong SCI, the association between the MCS dimensions and hospital
operational performance namely, cost effectiveness, flexibility and quality will be strengthened. In other words,
the installation of MCS is more likely to provide a broad range of performance benefits for hospitals that align
the four dimensions of the MCS with the dimensions of SCI (internal and external).
Research limitations/implications –Alimitation of this study would be its limited scope, as it focused only
on hospitals in one developing country. Therefore, the results as indicated here may have limited
generalizability to other industries and countries.
Practical implications – We theorize that using optimal amounts of the MCS, a high level of SCI is likely to
reduce supply chain (SC) cost, improve speed, flexibility and quality of the SC among healthcare institutions in
Ghana. Also, based on the direct impact on performance exhibited by the MCS dimensions, effective
implementation of SCI decisions requires the use of optimal amounts of MCS for high performance.
Originality/value – The paper contributes to contingency-based management accounting research and
provides theory-driven and empirically proven explanations for hospital managers in recognizing the
importance of aligning the dimensions of SCI and MCS.
Description
Research Article
Keywords
Hospitals, Supply chain integration, Management control systems, Supply chain operational performance
Citation
Nartey, E., Aboagye-Otchere, F.K. and Yaw Simpson, S.N. (2020), "The contingency effects of supply chain integration on management control system design and operational performance of hospitals in Ghana", Journal of Accounting in Emerging Economies, Vol. 10 No. 2, pp. 207-241. https://doi.org/10.1108/JAEE-10-2018-0111