Competitive Strategy, Product Life Cycle and the Use of Broad Scope Mas

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Competitive Strategy, Product Life Cycle and the Use of Broad Scope MAS Information: Evidence from Thailand

Sirilak Bangchokdee * Lokman Mia, Lanita Winata Department of Accounting, Finance and Economics, Griffith University, Australia

Sirilak Bangchokdee is a PhD student in the Department of Accounting, Finance and Economics, Griffith University, Australia. Ph: +61 (07) 55528719 Fax: +61 (07) 55528068, email: s.bangchokdee@griffith.edu.au. Lokman Mia and Lanita Winata are staff members within the department

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2 Competitive Strategy, Product Life Cycle and the Use of Broad Scope MAS Information: Evidence from Thailand

Abstract Due to today’s intensified competition, broad scope MAS (management accounting system) information becomes more important for managers in making an appropriate decision to respond to such competition. Empirical evidence on the use of broad scope MAS information under different competitive strategies and stages of product life cycle (PLC) has been limited. This paper reports the results of a study which offers an explanation for relationships between (1) competitive strategy and the use of broad scope MAS information, and (2) stage of PLC and the use of broad scope MAS information. The respondents were 108 general managers in companies within foodprocessing and electronics industries in Thailand. The managers’ responses to a questionnaire survey were analysed by multiple regression. The results reveal that the more a company employs a differentiation strategy and has products at the early stages of PLC, the greater is its use of broad scope MAS information.

Key words: Competitive strategy; Product life cycle; Broad scope MAS information

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Introduction
Today’s business organisations face a highly competitive market (Drucker et al., 1997) due to changes in manufacturing technology such as JIT and CAD/CAM; and changes in business environment such as removal of trade barrier and deregulation of economy (Mia and Clarke, 1999). Broad scope MAS information, which refers to internal and external, financial and non-financial as well as ex-post (historical) and ex-ante (futurerelated) information, becomes more important in such competitive environment. This is because broad scope MAS information can help managers in environmental scanning (Chenhall and Morris, 1986), and this may then help them to properly respond to opportunities or threats in competitive environment (Mia and Clarke, 1999). Previous studies suggest that broad scope MAS information can assist managers in making more appropriate decisions, particularly in more competitive or uncertain environment (see Chenhall and Morris, 1986; Mia and Chenhall, 1994; Mia and Clarke, 1999).

Existing studies have investigated relationships between contextual variables, such as organisational structure and perceived environmental uncertainty (PEU), and broad scope MAS information (Chenhall and Morris, 1986; Gordon and Narayanan, 1984; Gul and Chia, 1994; Mia, 1993). However, there has been limited empirical research examining the effects of competitive strategy and stages of PLC on the use of broad scope MAS information. The current study thus investigated the relationships between (1) competitive strategy and the use of broad scope MAS information, and (2) stages of PLC and the use of broad scope MAS information. Figure 1 presents the model of the study. Insert Figure 1 here

4 The rest of this paper is organised as follows. Section two provides a review literature and hypothesis development. Section three describes research method. Section four presents results of the study. The summary and conclusion are presented in Section five.

2. Theoretical background and hypothesis development 2.1 Competitive Strategy Competitive strategy is concerned with how organisations compete within their industries and the way they position themselves in relation to their competitors (Langfield-Smith, 1997). The extant literature contains...
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