In response to the foregoing arguments, the proposed research framework was
developed to focus on the hospital sector in Egypt because of the rapid growth of the
service sector in Egypt. By being the largest sector in terms of total Gross Domestic Product, the services sector plays a dominant role in the Egyptian economy.The proposed framework provides guidance for future empirical studies to be conducted in Egyptian hospitals, given the large number and complexity of hospitals in Egypt, the increase in environmental uncertainty, and presumably the lesser use of sophisticated Management accounting systems. Since the Egyptian health care industry is still going through the process of reform, Egyptian hospitals presents a suitable empirical setting whereby changes in the structural arrangements and strategic orientations can be observed, thereby contributing to the development of Management accounting systems design. Abernethy and Lillis (2001) suggested a similar view in their study on Australian hospitals.