This paper reports on a survey of manufacturing companies, and uses structural equation modeling to examine the
relationships between the changing competitive environment, and a range of organizational variables as antecedents to
management accounting change. The results indicate that an increasingly competitive environment has resulted in an
increased focus on differentiation strategies. This, in turn, has influenced changes in organizational design, advanced
manufacturing technology and advanced management accounting practices. These three changes have led to a greater
reliance on non-financial accounting information which has led to improved organizational performance.
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