Another, perhaps complementary, interpretation is that the financial information is used in a way that is qualitatively different from that often assumed in MAS research, namely performance evaluation. For example, Hopwood (1980) and
Chapman (1997) argue that accounting information may well be useful in uncertain contexts, but the systems are used as ‘‘learning machines’’ rather than as ‘‘answer machines’’. In the same vein, Macintosh (1994, p. 117) concluded: ‘‘[I]t is not
surprising that managers are less satisfied with controls than they are in programmable technologies.
Budgets, however, can be valuable for inducing managers to coordinate with other departments and to speculate about future prospects.
Control may also be used for coordination and planning.’’ Williams et al. (1990) and Otley (1994) also argue in this direction. Consequently, it can be expected that management in these decentralized departments also need problem-solving oriented information aggregated around objects other than organizational units (Bouwens & Abernethy, 2000; Chenhall & Morris, 1986; Gul & Chia, 1994). The frequent issue of detailed product-cost reports characterizing the Traditional MAS indicates that this may be the case.