The Influence of Using Management Accounting on Horizontal Interaction between Direct and Indirect Departments

The Exploratory Research based on the Case Study A

Abstract

This study explores how management accounting encourages employees to make lateral interaction under the situation that management accounting is not designed in order to encourage to drive lateral interaction. “Support” concept enables to reinterpret lateral interaction. This paper focuses on interaction between direct and indirect departments and encouraging indirect ones to create active support. In addition, the analytical framework includes job rotation as well as using management accounting as information infrastructure. This study found that not only interdepartmental share of knowledge and information by job rotation but also using management accounting as information infrastructure encourages indirect departments to make lateral interaction. There are two implications. First one pointed out the new role of management accounting under the situation that management accounting is not designed in order to encourage to drive lateral interaction. Second one is that support concept enables to expand interpretation of lateral interaction.