Barriers to the Adoption of Management Accounting (MA) Processes in Enterprise Resource Planning (ERP) Environments

Coupling of information technologies with management accounting (MA) processes is a proven method of exploiting their full potential. In spite of that, adoption of these processes embedded in enterprise resource planning (ERP) systems is limited. This study, using a cross-sectional field study conducted across four case study organizations, investigates the barriers to the adoption of MA processes in ERP environment and identifies challenges. Poor reporting capabilities of ES and ineffective upgrades and customization are some of the perceived technology related barriers, the study found. In addition, lack of resources and skills, work-a rounds´, uncontrolled excel use and accountants´ generic preference to use excel are other organizational related barriers limiting the adoption. Either, because of the constrained resources for adoption or because of individual managerial preferences to use ´work-a rounds´ and/or inadequate ERP skills, managements do not attempt to exploit the full potential, the study observed.