BIG DATA ANALYTICS AND ITS INFLUENCE ON MANAGEMENT ACCOUNTING: EVIDENCE FROM SOUTHERN AFRICA
DOI:
https://doi.org/10.24193/subbnegotia.2025.1.01Keywords:
Big data, big data analytics, management accounting practice, decision making, qualitative research, Southern AfricaAbstract
Article History: Received: 8 October 2024; Reviewed: 30 January 2025;
Accepted: 28 February 2025; Available online: 26 March 2025.
This paper explores the influence of big data and big data analytics on management accounting practices and decision making in southern Africa. We collected qualitative data from 24 management accountants in three countries using an online questionnaire with open-ended questions. The results indicate that big data analytics have changed management accounting practices, leading to better decision making. There has been a shift away from manual processing of information to automation, ensuring heightened accuracy and timely decision making. It was found that big data supported organisational strategy through improved customer service, targeted marketing and cost management. The need for management accountants to gain expertise in data analytics was identified. The results offer unique insight from a southern African perspective of the change in management accounting practices and how big data influences decision making. The findings contribute by reporting how big data can impact corporate strategy and its use in decision making.
JEL classification: M15, M41
References
Abdelhalim, A.M. (2024). How management accounting practices integrate with big data analytics and its impact on corporate sustainability. Journal of Financial Reporting and Accounting, 22(2), 416-432. https://doi.org/10.1108/JFRA-01-2023-0053
Alsharari, N.M. (2019). Management accounting and organizational change: alternative perspectives. International Journal of Organizational Analysis, 27(4), 1124-1147. https://doi.org/10.1108/IJOA-03-2018-1394
Appelbaum, D., Kogan, A., Vasarhelyi, M. & Yan, Z. (2017). Impact of business analytics and enterprise systems on managerial accounting. International Journal of Accounting Information Systems, 25, 29-44. https://doi.org/10.1016/j.accinf.2017.03.003
Betti, N. & Sarens, G. (2021). Understanding the internal audit function in a digitalised business environment. Journal of Accounting & Organizational Change, 17(2), 197-216. https://doi.org/10.1108/JAOC-11-2019-0114
Bhimani, A. & Willcocks, L. (2014). Digitisation, ‘Big Data’ and the transformation of accounting information. Accounting and Business Research, 44(4), 469-490. https://doi.org/10.1080/00014788.2014.910051
Bhimani, A. (2015). Exploring big data’s strategic consequences. Journal of Information Technology, 30(1), 66-69. https://doi.org/10.1057/jit.2014.29
Bhimani, A. (2020). Digital data and management accounting: why we need to rethink research methods. Journal of Management Control, 31, 9-23. https://doi.org/10.1007/s00187-020-00295-z
Charles, V. & Gherman, T. (2013). Achieving competitive advantage through big data: Strategic implications. Middle-East Journal of Scientific Research, 16(8), 1069-1074. https://doi.org/10.5829/idosi.mejsr.2013.16.08.11811
CIMA (2018). The changing shape of the finance function. Available at: https://www.cimaglobal.com/Research--Insight/The-changing-shape-of-the-finance-function/
Clayton, P.R. & Clopton, J. (2019). Business curriculum redesign: Integrating data analytics. Journal of Education for Business, 94(1), 57-63. https://doi.org/10.1080/08832323.2018.1502142
De Villiers, C., Dumay, J. & Maroun, W. (2019). Qualitative accounting research: dispelling myths and developing a new research agenda. Accounting and Finance, 59(3), 1459-1487. https://doi.org/10.1111/acfi.12487
Durodolu, O.O. & Mojapelo, S.M. (2020). Contextualisation of the Information Literacy Environment in the South African Education Sector. Electronic Journal of e-Learning (EJEL), 18(1), 57-68. https://doi.org/10.34190/EJEL.20.18.1.005
Duan, L. & Xiong, Y. (2015). Big data analytics and business analytics. Journal of Management Analytics, 2(1), 1-21. https://doi.org/10.1080/23270012.2015.1020891
Etikan, I., Alkassim, R. & Abubakar, S. (2016). Comparison of snowball sampling and sequential sampling technique. Biometrics and Biostatistics International Journal, 3(1), 6-7. https://doi.org/10.15406/bbij.2016.03.00055
Gartner, B. & Hiebl, M.R. (2018). Issues with big data. In Quinn, M. & Strauß, E. (Eds.). The Routledge Companion to Accounting Information Systems, Routledge, New York, 161-172. https://doi.org/10.4324/9781315647210-13
Ghauri, P.N. & Grønhaug, K. (2005). Research methods in business studies, 3rd edition, Prentice Hall, London.
Grover, V., Chiang, R.H., Liang, T.P. & Zhang, D. (2018). Creating strategic business value from big data analytics: A research framework, Journal of Management Information Systems, 35(2), 388-423. https://doi.org/10.1080/07421222.2018.1451951
Heckathorn, D.D. (2011). Comment: Snowball versus respondent-driven sampling. Sociological Methodology, 41(1), 355-366. Available at: https://www.jstor.org/stable/41336927
Inoubli, W., Aridhi, S., Mezni, H., Maddouri, M. & Nguifo, E.M. (2018). An experimental survey on big data frameworks. Future Generation Computer Systems, 86, 546-564. https://doi.org/10.1016/j.future.2018.04.032
Janse van Rensburg, A., Matheri, N. & Meyer, J. (2019). Bridging the Digital Divide in an African Smart City, in 2019 IEEE International Smart Cities Conference (ISC2), Casablanca, Morocco, 2019, IEEE, 518-526. Available at: https://core.ac.uk/download/245881282.pdf
Janvrin, D.J. & Watson, M.W. (2017). Big Data: A new twist to accounting. Journal of Accounting Education, 38, 3-8. https://doi.org/10.1016/j.jaccedu.2016.12.009
Johnson, H.T. & Kaplan, R.S. (1987). The rise and fall of management accounting [2]. Management Accounting, 68(7), 22.
Joshi, P.L. & Marthandan, G. (2020). Continuous internal auditing: can big data analytics help?, International Journal of Accounting, Auditing and Performance Evaluation, 16(1), 25–42. https://doi.org/10.1504/IJAAPE.2020.106766
Kaplan, R.S. (1984). The evolution of management accounting. The Accounting Review, 59(3), 390-418. Available at: https://coin.wne.uw.edu.pl/~pmodzelewski/The%20Evolution%20of%20Management%20Accounting.pdf
Kitchens, B., Dobolyi, D., Li, J. & Abbasi, A. (2018). Advanced customer analytics: Strategic value through integration of relationship-oriented big data. Journal of Management Information Systems, 35(2), 540-574. https://doi.org/10.1080/07421222.2018.1451957
Korhonen, T., Selos, E., Laine, T. & Suomala, P. (2021). Exploring the programmability of management accounting work for increasing automation: an interventionist case study. Accounting, Auditing and Accountability Journal, 34(2), 253-280. https://doi.org/10.1108/AAAJ-12-2016-2809
Kristandl, G., Quinn, M. & Strauss, E. (2014). Management accounting and management control – Cloud technology effects and a research agenda, Paper presented at the 11th Annual Conference of Management Accounting Research (ACMAR), 13-14 March, Vallendar, Germany. Available at: https://gala.gre.ac.uk/id/eprint/14919/
Maisiri, W., Darwish, H. & van Dyk, L. (2019). An investigation of industry 4.0 skills requirements. South African Journal of Industrial Engineering, 30(3), 90-115. https://doi.org/10.7166/30-3-2230
Masuke, R. (2021). Exploring the use of big data analytics by management accountants in decision-making. (Master’s dissertation, North-West University, South Africa), available at:https://repository.nwu.ac.za/bitstream/handle/10394/37424/Masuke_R.pdf?isAllowed=y&sequence=1
Moll, J. & Yigitbasioglu, O. (2019). The role of internet-related technologies in shaping the work of accountants: New directions for accounting research. The British Accounting Review, 51(6), 100833. https://doi.org/10.1016/j.bar.2019.04.002
Möller, K., Schäffer, U. & Verbeeten, F. (2020). Digitalization in management accounting and control: an editorial. Journal of Management Control, 31, 1-8. https://doi.org/10.1007/s00187-020-00300-5
Molinari, M. & De Villiers, C. (2021). Qualitative accounting research in the time of COVID-19–changes, challenges and opportunities. Pacific Accounting Review, 33(5), 568-577. https://doi.org/10.1108/PAR-09-2020-0176
Nielsen, S. (2018). Reflections on the applicability of business analytics for management accounting – and future perspectives for the accountant. Journal of Accounting and Organizational Change, 14(2), 167-187. https://doi.org/10.1108/JAOC-11-2014-0056
Oesterreich, T.D. & Teuteberg, F. (2019). The role of business analytics in the controllers and management accountants’ competence profiles. Journal of Accounting and Organizational Change, 15(2), 330-356. https://doi.org/10.1108/JAOC-10-2018-0097
Oesterreich, T.D., Teuteberg, F., Bensberg, F. & Buscher, G. (2019). The controlling profession in the digital age: Understanding the impact of digitisation on the controller’s job roles, skills and competences. International Journal of Accounting Information Systems, 35, 100432. https://doi.org/10.1016/j.accinf.2019.100432
Ongbali, S.O., Afolalu, S.A. & Udo, M.O. (2019). Factors causing youth unemployment problem in Nigeria: A review. International Journal of Mechanical Engineering and Technology, 10(1), 1874-1879. Available at: https://iaeme.com/MasterAdmin/Journal_uploads/IJMET/VOLUME_10_ISSUE_1/IJMET_10_01_185.pdf
Patrizio, A. (2018). Big data vs. Artificial Intelligence, available at: https://www.datamation.com/big-data/big-data-vs-artificial-intelligence/
Phillips-Wren, G. & Hoskisson, A. (2015). An analytical journey towards big data. Journal of Decision Systems, 24(1), 87-102. https://doi.org/10.1080/12460125.2015.994333
Power, D.J. (2014). Using ‘Big Data’ for analytics and decision support. Journal of Decision Systems, 23(2), 222-228. https://doi.org/10.1080/12460125.2014.888848
Quattrone, P. (2016). Management accounting goes digital: Will the move make it wiser?. Management Accounting Research, 31, 118-122. https://doi.org/10.1016/j.mar.2016.01.003
Rachinger, M., Rauter, R., Müller, C., Vorraber, W. & Schirgi, E. (2019). Digitalisation and its influence on business model innovation. Journal of Manufacturing Technology Management, 30(8), 1143-1160. https://doi.org/10.1108/JMTM-01-2018-0020
Raguseo, E. (2018). Big data technologies: An empirical investigation on their adoption, benefits and risks for companies. International Journal of Information Management, 38(1), 187-195. https://doi.org/10.1016/j.ijinfomgt.2017.07.008
Rikhardsson, P. & Yigibasioglu, O. (2018). Business intelligence and analytics in management accounting research: status and future focus. International Journal of Accounting Information Systems, 29, 37-58. https://doi.org/10.1016/j.accinf.2018.03.001
Saldana, J. (2015). The coding manual for qualitative researchers. Sage, London, UK.
Saleh, I., Marei, Y., Ayoush, M. & Afifa, M.M.A. (2023), Big data analytics and financial reporting quality: qualitative evidence from Canada. Journal of Financial Reporting and Accounting, 21(1), 83-104. https://doi.org/10.1108/JFRA-12-2021-0489
Saunders, M.N.K., Lewis, P. & Thornhill, A. (2016). Research methods for business students, 7th edition, Pearson, Harlow.
Schmidt, P.J., Church, K.S. & Riley, J. (2020). Clinging to Excel as a security blanket: Investigating accountants’ resistance to emerging data analytics technology. Journal of Emerging Technologies in Accounting, 17(1), 33-39. https://doi.org/10.2308/jeta-52645
Short, G.S. (2021). Exploring institutional isomorphism at professional accounting programmes (Master’s dissertation, North-West University, South Africa). Available at: https://repository.nwu.ac.za/handle/10394/37447
South African Government (2020), Republic of South Africa Government Gazette Vol. 662 No. 43621. Call for public comments on the draft national list of occupations in high demand: 2020”, available at: https://www.dhet.gov.za/SiteAssets/Gazettes/2020/43621_17-8_HighEduTrain.pdf
Spraakman, G., Sanchez-Rodriguez, C. & Tuck-Riggs, C.A. (2021). Data analytics by management accountants. Qualitative Research in Accounting and Management, 18(1), 127-147. https://doi.org/10.1108/QRAM-11-2019-0122
Talha, M., Raja, J.B. & Seetharaman, A. (2010). A new look at management accounting. Journal of Applied Business Research, 26(4), 83-96. https://doi.org/10.19030/jabr.v26i4.309
Ter Bogt, H.J. & Scapens, R.W. (2019). Institutions, situated rationality and agency in management accounting: Extending the Burns and Scapens framework. Accounting, Auditing and Accountability Journal, 32(6), 1801-1825. https://doi.org/10.1108/AAAJ-05-2016-2578
Tiron-Tudor, A. & Deliu, D. (2021). Big data’s disruptive effect on job profiles: Management accountants’ case study. Journal of Risk and Financial Management, 14(8), 376. https://doi.org/10.3390/jrfm14080376
Van der Stede, W.A. (2017). “Global” management accounting research: Some reflections. Journal of International Accounting Research, 16(2), 1-8. https://doi.org/10.2308/jiar-51678
Wamba, S.F., Gunasekaran, A., Akter, S., Ren, S.J.F., Dubey, R. & Childe, S.J. (2017), Big data analytics and firm performance: Effects of dynamic capabilities. Journal of Business Research, 70, 356-365. https://doi.org/10.1016/j.jbusres.2016.08.009
WEF (2023). World Economic Forum: The Future of Jobs 2023. Available at: https://www.weforum.org/reports/the-future-of-jobs-report-2023
Zainuddin, Z.N. & Sulaiman, S. (2016). Challenges faced by management accountants in the 21st century. Procedia Economics and Finance, 37, 466-470. https://doi.org/10.1016/S2212-5671(16)30153-8
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Studia Universitatis Babeș-Bolyai Negotia
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
