International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

"Designing a Digital Accounting Model in Value-Based Management Based on Momentum Theory Using an Integrated Approach of DEMATEL and Interpretive Structural Modeling (ISM)"

Document Type : Original Article

Authors
Roya Tavanaei Ahoei 1
Fraydoon Rahnamay Roodposhti 2
Hamidreza Vakilifard 2
Ghodratollah Talebnia 2
1 Department of Accounting, Science and research Branch, Islamic Azad University, Tehran, Iran
2 Department of Accounting , Science and research Branch, Islamic Azad University, Tehran, Iran
10.22034/ijfma.2025.78570.2273
Abstract
The aim of the present study was to design a digital accounting model in value-based management based on momentum theory. The method used in this study is a combined method that includes the historical method and the survey method . The population and statistical sample of this study are experts familiar with digital accounting concepts. The sampling method is purposive. The methods used in this study are DEMATEL techniques and interpretive structural model. The software used was EXCEL and MICMAC.9 indicators were identified. These indicators include: digital technologies and accounting transformation, data management and information security, momentum analysis and financial forecasting, value measurement and management, transparent and timely reporting, automation of accounting processes, compliance with regulations and legal changes, support for strategic decision-making based on momentum analysis, and digital learning and training of employees. The model designed in this study, by combining technological, analytical, managerial, and human components, provides a practical model for organizations, financial institutions, and the accounting industry. This model can not only help promote transparency and financial accountability, but also provide a strategic tool for long-term value creation through data-driven and analytical decision-making. Also, from a policy perspective, the findings of this study can be a basis for designing digital transformation strategies in the country's financial system and reviewing accounting education. Finally, this research, while expanding the boundaries of knowledge in the field of digital accounting, provides practical solutions to increase the resilience of organizations to economic fluctuations and environmental changes.
Keywords
Digital accounting
value-based management
momentum theory
  1. Abobaker, E.A. (2014). Management Accounting in the New Economy. University Bulletin, 2(16), 131-150.
  2. Alathamneh, M. (2020). The impact of accounting information systems reliability on enhancing the requirements of planning process at Jordanian commercial banks. Management Science Letters, 10(5), 1043-1050.
  3. Al-Khasawneh, S. M., Endut, W. A., & Rashid, N. M. N. N. M. (2020). Factors Affecting Usage of Modern Management Accounting Techniques in Industrial Companies Listed in Amman Stock Exchange. International Journal of Research In Commerce and Management Studies (ISSN: 2582- 2292), 2(3), 14-36.
  4. Andreassen, R. I. (2020). Digital technology and changing roles: a management accountant’s dream or nightmare?. Journal of Management Control, 31(3), 209-238. https://doi.org/10.1007/s00187-020-00303-2
  5. Aripin, S. N., Hadinata, H., & Kurnia, D. (2023). Dampak Akuntansi Manajemen dari Digitalisasi. ADI Bisnis Digital Interdisiplin Jurnal, 4(2), 109-115.
  6. Azizi, Farhad; Rahnamay Rood, Pushti Fereydoun; Khan Mohammadi, Mohammad Hamed; and Khodaei & Lahzaqard, Mohammad (2020). Proposing a Model of the Effect of Accounting Information System Characteristics on the Performance of the System Based on the Moderating Role of Job Uncertainty. Research in Financial Accounting and Auditing, 12(47), 31-54.
  7. Babajani, J., Ghorbanizadeh, V., & Khonkha, A. (2019). The future research of management accounting: from the perspective of education and research. Experimental researches of accounting, 9(35), 77-96.
  8. Bhimani, A. Digital data and management accounting: why we need to rethink research methods. J Manag Control 31, 9–23 (2020). https://doi.org/10.1007/s00187-020-00295-z
  9. Bhimani, A., & Willcocks, L. (2014). Digitisation, ‘Big Data’and the transformation of accounting information. Accounting and Business Research, 44(4), 469-490.
  10. Blaschke, M., Riss, U., Haki, K. et al. Design principles for digital value co-creation networks: a service-dominant logic perspective. Electron Markets 29, 443–472 (2019). https://doi.org/10.1007/s12525-019-00356-9
  11. Cici Rosmala 2024. Digital Transformation in Management Accounting: Towards Efficiency and Competitive Advantage. JFBA : Journal of Financial Behavioural Accounting (1) 2024, 1-8.
  12. Cockcroft, S., & Russell, M. (2018). Big data opportunities for accounting and finance practice and research. Australian Accounting Review, 28(3), 323-333.
  13. Cosa, M., Torelli, R. Digital Transformation and Flexible Performance Management: A Systematic Literature Review of the Evolution of Performance Measurement Systems. Glob J Flex Syst Manag 25, 445–466 (2024). https://doi.org/10.1007/s40171-024-00409-9
  14. D’Angelo, S., Cavallo, A., Ghezzi, A. et al. Understanding corporate entrepreneurship in the digital age: a review and research agenda. Rev Manag Sci (2024). https://doi.org/10.1007/s11846-024-00730-8
  15. Dinesh, N., Juvanna, I. (2017). Dynamic auditing and deduplication with secure data deletion in Cloud. Artificial Intelligence and Evolutionary Computations in Engineering Systems. Springer, pp. 305–313.
  16. Firk S., Richter S., Wolff M. (2021). Does value based management facilitate managerial decisionmaking? An analysis of divestiture decisions, Management Accounting Research, 51 (2021) 100736.
  17. Hausberg, J. P., Liere-Netheler, K., Packmohr, S., Pakura, S., & Vogelsang, K. (2019). Research streams on digital transformation from a holistic business perspective: a systematic literature review and citation network analysis. Journal of Business Economics, 89(8), 931-963.
  18. Heubeck, Tim. (2023). Managerial capabilities as facilitators of digital transformation? Dynamic managerial capabilities as antecedents to digital business model transformation and firm performance. 3. 10.1016/j.digbus.2023.100053.
  19. Hon, M. T., & Tonks. I. (2003). Momentum in the UK stock market. Journal of ultinational Financial Management, 13(1), 43–70. 10.1016/S1042-444X(02)00022-1.
  20. Hörner, Sven and Sommer, Friedrich, Value-based management sophistication and earnings management (September 09, 2024). Available at SSRN: https://ssrn.com/abstract=4498375 or http://dx.doi.org/10.2139/ssrn.4498375
  21. Iacuzzi, S., Pauluzzo, R. Looking for missing outcomes: accounting for intellectual capital and value creation in ecosystems. J Manag Gov 28, 1117–1149 (2024).
  22. Issa, H., Sun, T., Vasarhelyi, M.A. (2016). Research ideas for artificial intelligence in auditing: the formalization of audit and workforce supplementation. J. Emerg. Technol. Account. 13 (2), 1–20
  23. Knauer, T., Silge, L., Sommer, F., (2018). The shareholder value effects of using valuebased performance measures: evidence from acquisitions and divestments. Manag. Account. Res. 41, 43–61.
  24. Krahel, J. P., & Titera, W. R. (2015). Consequences of Big data and formalization on accounting and auditing standards. Accounting Horizons,29(2), 409–422.
  25. Lakhtionova, L., Muranova, N., Bugaiov, O., Ozeran, A., & Kalabukhova, S. (2020, May). Balance Sheet (Statement of Financial Position) Transformation in the Light of New Digital Technology: Ukrainian Experience. In International Conference on Integrated Science (pp. 25-41). Springer, Cham.
  26. Lindell, M.K., Whitney, D.J., 2021. Accounting for common method variance in cross- sectional research designs. J. Appl. Psychol. 86, 114–121.
  27. Massaro, M., Spanò, R. and Kuruppu, S.C. (2023), "Accountability and the metaverse: unaccounted digital worlds between techwashing mechanisms and new emerging meanings", Accounting, Auditing & Accountability Journal, Vol. ahead-of-print No. ahead-of-print
  28. Mohammadi Noreh, Shaker, Rahimian, Nezamoddin, Ahmadi Dehrshid, Jamil (2021). Investigating the Impact of Digitalization on Independent Auditors and Audit Firms in Iran. Professional Auditing Research, 3(5), 151-176.
  29. Mohammadi S., Ghasemi R. A., and Mohammadi M. (2022). Digital Information and Management Accounting: The Need to Review Research Methods. Journal of New Research Approaches in Management and Accounting, 6(21), 1446-1461.
  30. Moll, J., & Yigitbasioglu, O. (2019). The role of internet-related technologies in shaping the work of accountants: New directions for accounting research. The British Accounting Review,51(6), 1–20.
  31. Montecalvo, M., Farneti, F., & de Villiers, C. (2018). The potential of integrated reporting to enhance sustainability reporting in the public sector. Public Money & Management, 38(5), 365–374. https://doi.org/10.1080/09540962.2018.1477675.
  32. Moumtzidis, I., Kamariotou, M., & Kitsios, F. (2022). Digital transformation strategies enabled by internet of things and big data analytics: The use-case of telecommunication companies in Greece. Information, 13(4), 196. https://doi.org/10.3390/info13040196
  33. Otley, D. (2016). The contingency theory of management accounting and control: 1980–2014. Management Accounting Research,31(2), 45–62.
  34. Quattrone, P. (2016). Management accounting goes digital: Will the move make it wiser? Management Accounting Research,31(2), 118–122.
  35. Richins, G., Stapleton, A., Stratopoulos, T., & Wong, C. (2017). Big data analytics: Opportunity or threat for the accounting profession? Journal of Information Systems,31(3), 63–79.
  36. Salijeni, G., Samsonova-Taddei, A., & Turley, S. (2019). Big data and changes in audit technology: Contemplating a research agenda. Accounting and Business Research,49(1), 95–119.
  37. Saputra, K. A. K., Subroto, B., Rahman, A. F., & Saraswati, E. (2023). Mediation role of environmental management accounting on the effect of green competitive advantage on sustainable performance. Journal of Sustainability Science and Management, 18(2), 103-115.
  38. Shirkavand, Zahra, Rostami Mazoui, Nemat (2021). The Impact of Value-Based Management on the Market Performance of Companies Listed on Tehran Stock Exchange. Management Accounting, 51(5), 55-68.
  39. Shukla, M., & Shankar, R. (2024). Impact Assessment of Smart Manufacturing System Implementation in Small and Medium Enterprises: Moderating Role of Enabling Technology and Government Support. Global Journal of Flexible Systems Management. https://doi.org/10.1007/s40171-024-00400-4
  40. Soto Setzke, D., Riasanow, T., Böhm, M., & Krcmar, H. (2023). Pathways to digital service innovation: The role of digital transformation strategies in established organizations. Information Systems Frontiers, 25(3), 1017–1037. https://doi.org/10.1007/s10796-021-10112-0
  41. Trequattrini, R., Lardo, A., Cuozzo, B., & Manfredi, S. (2022). Intangible assets management and digital transformation: Evidence from intellectual property rights-intensive industries. Meditari Accountancy Research, 30(4), 989–1006. https://doi.org/10.1108/MEDAR-03-2021-1216
  42. Troshani, I., Locke, J., & Rowbottom, N. (2019). Transformation of accounting through digital standardisation: Tracing the construction of the IFRS taxonomy. Accounting, Auditing and Accountability Journal,32(1), 133–162.
  43. Ulfani, A. (2024). Implementasi Teori Akuntansi Dalam Era Digital Dan Transformasi Bisnis. WANARGI: Jurnal Manajemen Dan Akuntansi, 1(2), 296-301
  44. Vărzaru, A. A. (2022). An empirical framework for assessment of the effects of digital technologies on sustainability accounting and reporting in the European Union. Electronics, 11(22), 3812. https://doi.org/10.3390/electronics11223812
  45. Vrontis, D., Chaudhuri, R., & Chatterjee, S. (2022). Adoption of digital technologies by SMEs for sustainability and value creation: Moderating role of entrepreneurial orientation. Sustainability, 14(13), 7949. https://doi.org/10.3390/su14137949
  46. Wadan, R., Teuteberg, F., Bensberg, F., & Buscher, G. (2019). Understanding the changing role of the management accountant in the age of industry 4.0 in Germany. In Proceedings of the 52nd Hawaii international conference on system sciences. https://hdl.handle.net/10125/60017.
  47. Yazidi, Peyman and Ahmadi, Dehrshid Jamil (2021). Application of Internet of Things (IoT) in Accounting and Auditing. Scientific Quarterly Journal of New Research Approaches in Management and Accounting, 5(53), 102-115.
  48. Yoshikuni, A.C., Dwivedi, R., Dultra-de-Lima, R.G. et al. Role of Emerging Technologies in Accounting Information Systems for Achieving Strategic Flexibility through Decision-Making Performance: An Exploratory Study Based on North American and South American Firms. Glob J Flex Syst Manag 24, 199–218 (2023). https://doi.org/10.1007/s40171-022-00334-9
  49. Zambon, S., Marasca, S., & Chiucchi, M. S. (2019). Special issue on ‘the role of Intellectual Capital and integrated reporting in management and governance: A performative perspective’. Journal of Management and Governance, 23, 291–297. https://doi.org/10.1007/s10997-019-09469
  50. Zhang, M. Ye, T. Jia, L. (2022). Implications of the “momentum” theory of digitalization in accounting: Evidence from Ash Cloud. China Journal of Accounting Research, 15.