In this paper we use a simpler typology and distinguish between lean accounting practices and lean control systems.
Accounting practices specifically refer to transactional processing, such as accounts payable, payroll, and product
costing and are similar to what Chenhall calls MA. We use the term accounting practices to more explicitly
describe these as processes within accounting. These transactional processes gather and aggregate data in a meaningful
manner that produces information that can then feed reports that motivate and align behavior outside of accounting.
These informational reports (Chenhall would call these MAS) can become part of the lean control system as
an output control. The lean control system also includes other operational controls. Banker et al. (2002) investigate
the effects of discontinuing an accounting practice. They conclude that employee productivity decreases when
firms change their accounting practices to shift reliance away from direct labor variance reporting. Nicolaou (2003)
uses a moderated Cartesian model and finds that a firm’s accounting practices provide information to support decisions
and its design must be consistent with the chosen manufacturing strategy. Baines and Langfield-Smith (2003)
use a mediated Cartesian model and posit that advanced manufacturing practices will directly influence accounting
practices.4568789
Most of the literatures examining the effects of lean manufacturing initiatives investigate the effect on various
control components. Research shows that firms rely more on nonfinancial information when they engage in TQM
or JIT (Baines and Langfield-Smith, 2003; Fullerton and McWatters, 2002; Ittner and Larcker, 1995). For example,
in a bivariate correlation Cartesian study Banker et al. (1993) find evidence of a relation between the provision of
nonfinancial, quality, and productivity information to the shop floor workers and the use of advanced manufacturing
techniques. Perera et al. (1997) use a moderated Cartesian model and find that firms rely more on nonfinancial measures
related to their strategy than they do on financial measures (e.g., profitability and return-on-investment). Abernethy
and Lillis (1995) employ a moderated contingency model and find that higher performing firms that follow a flexible
manufacturing strategy rely less on efficiency-based measures. Baines and Langfield-Smith (2003) use a mediated
Cartesian model and find that an organizational change to team-based work leads to higher reliance on nonfinancial
performance measures.