The Network of Actors in Management Accounting innovations and Corporate Financial performance: Western and Eastern Perspectives

Objective According to the literature on management accounting, various constructs influence the financial performance of companies. One of these constructs is the evolution and transformations within the network of actors driving innovations in management accounting, which continuously occur in the commercial environment surrounding companies. The primary objective of this research is to examine the impact of these actor networks related to management accounting innovations on the financial performance of companies, considering both Eastern and Western perspectives. This study aims to identify the most effective approach to management accounting innovations in both the West and the East for enhancing performance. It does so by analyzing the evolution of management accounting across different periods and examining the methods implemented in various years to apply management accounting. Methods The statistical population of this study consists of companies listed on the Tehran Stock Exchange and the Iran over-the-counter (OTC) market during the financial period from 2011 to 2022. Based on the mentioned criteria, 215 companies (2,580 company-years) were selected over a 10-year period, and data analysis was conducted using structural equation modeling. Results The network of actors involved in management accounting innovation has a positive and significant impact on the performance of companies from both Western and Eastern perspectives. Given that there is no significant difference between the coefficients determining the dependent variable in both the Western and Eastern models, it is evident that companies active in the Iranian capital market use both Western and Eastern perspectives almost equally. Additionally, the results of the Fisher test showed that there is no statistically significant difference in the relationship between the network of actors in management accounting and company performance in both Western and Eastern models. In other words, the network of actors in management accounting generally has a similar impact in both models, and no significant difference in their influence is observed. These results suggest that other factors influencing the performance differences between Western and Eastern models should be investigated further. Conclusion The findings of this study indicate that networks of actors involved in management accounting innovations significantly improve the financial performance of companies, regardless of cultural boundaries. These results emphasize that management accounting innovations can be considered as a global factor capable of enhancing financial efficiency internationally. Furthermore, since there is no significant difference between the relationship of the network of management accounting actors and company performance in both Western and Eastern models, the analyses show that these positive effects are consistent irrespective of the cultural differences between Western and Eastern perspectives. This suggests the potential for integrating management accounting strategies globally and highlights the importance of a deeper understanding of the role of culture in the development and implementation of these innovations. In addition, the impact of "human" management accounting actors on company performance is stronger in the Eastern perspective compared to the Western perspective, indicating that in many Eastern countries, organizational culture may be based on greater human values and interactions. This could include emphasis on cooperation, social cohesion, and the importance of human relationships in the workplace.