The effects of the relationship between JIT, Management Accounting Information, and Facilitators of Learning on the Performance of Firms

In an effort to cope with the competitive environment, firms implement advanced manufacturing practices (AMP) such as TQM or JIT. However, previous studies report mixed results about the effectiveness of these practices. The purpose of this study was to examine whether the complementarities between management accounting systems (MAS) and other factors affect the performance of the firm when JIT as AMP is introduced into firms. To achieve research purpose, this study analyzed data from Korean automobile part manufacturers. Results of this study show that there are positive correlations between AMP and MAS that provide information on performance goals and measures. This study has also provided considerable evidence that MAS has an influence on performance goals. These results are consistent with those of previous studies. In addition, this study has shown that complementarities in the usage levels of AMP, the features of the MAS, and the facilitators of learning have positive effects on performance. Implications of the research results can be summarized: (1) When firms adopt AMP, they must be aware that the currently established MAS alone cannot obtain information on non-financial achievements. (2) Providing only management accounting information may have limits in improving the performance of firms, other factors that can promote organizational learning within firms should also be utilized. (3) In designing and implementing MAS, complementarities between the new MAS and AMP must be maintained.