The proposed research framework aims to contribute to the management control
systems literature that can be used to fill the empirical gap that exists within developing
countries. To date, very little research has empirically examined the relationship between
contextual variables and Management accounting system and their impact on organizational or managers’
performancewithin the hospital industry (Abernethy and Brownell, 1999;Abernethy and
Lillis, 2001; Cardinaels et al., 2004; Counte and Glandon, 1988; Devaraj and Kohli, 2000;
Hill, 2000; Hill and Johns, 1994; Kim, 1988; Lawrence, 1990; Pizzini, 2006). In particular,
Pizzini (2006) specifically mentioned that hospital industry provides an ideal setting
to investigate the performance effects of cost system-design as it also represents complex
organizations and contributes significantly to the gross domestic product .