Acquiring Sustainable Competitiveness through Management Accounting Innovation

Abstract

This paper aims to explain the slump economy of last ten and more years in Japan. Though many discussions about this problem focus on external environment of the firms, the paper puts an attention to the failure of management control and change process management among Japanese companies. Performance-based incentive systems and 'pure' divisional management systems are the topics to be discussed. The lack of discussion from management accounting perspective is described. The paper is concluded with the assertion that utilization of outcomes from management accounting research efforts is inevitable to vitalize the Japanese economy.