There are many scholars have presented variety of definitions and perspectives of strategic management accounting (SMA) during the last two decades. Anderson and Larsson (2006) stated that there is no consensus, which circumscription of the definition management control systems, has been reached. More specific, conceptual confusion about definitions and concepts of management accounting depend on which academic researcher, organisational setting and which perspective is considered. Management control system was to measuring units and cost accounting in an industrial production context, presently develop into a widely use in business management context.
Traditional management accounting was considered as an effective mean coordination and control in a company (Chapman, 2005). In order to have a efficiently use of variance analysis, standard costing and other systems, the management accounting have a effective function on it (ibid). Management accounting was defined that providing information to people who need the information from inside the organisation, which is different from the financial accounting that concerns and provides adequate information to external stakeholders who from outside the company (Drury, 2011).
Nowadays, there is a new situation that more and more dynamic and unpredictable environment appeared which has changed the management philosophy, as well as has been affected on the management control system (Atkinson, 2006). In the 1980s, Simonds set up the conception of strategic management accounting firstly. Strategic management accounting (SMA), which is business management served by effectively using accounting information undertaking management accounting methods and established on the basis of strategic management in the enterprise, appeared (Simmonds, 1981). SMA is defined preparing and analysing the indicators of management accounting both in own business and competitor which used for establish and monitor corporate strategy (ibid). Furthermore, Bromwich (1990) claimed that strategic management accounting is to analysing both financial information and non-financial information of the company and establish and monitor the strategy for both of the firm and the certain competitors. Moreover, a research of strategic management accounting from Wilson (1995), the purpose of strategic management accounting is to supporting the efforts to achieve competitive advantage in a long time, and using the performance measurement in a broad scope.
Atkinson (2006) stated that performance measures contributes in a successful strategic implementation and long term targets of strategy are destructed into short term goals. Furthermore, he commented that strategic management accounting can enable managers to understand whether they are on track and have chances to apply and revise strategies by giving information and feedback (Atkinson, 2006).
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Figure 1 Strategy and performance targets, Lewis and Slack (2002)
There is a model (figure 1) established by Lewis and Slack (2002) which showed the relationship between strategy and performance measurement. It can be seen from the table, there is a proportional relationship between the level of strategic relevance and the degree of difficulty to build an appropriate performance measure. In other word, there is appearance of a higher level of polymerisation of information, because of the higher level of strategic relevance, the more difficult to create a measure. It could be said that the basic idea of this table is presenting the detailed performance goals have to be accorded to surrounding the strategy. Four vital factors, which including mission statement, targets, operational strategies and performance measurements, are identified by Smith (2005). He pointed out that four factors need to be maintained in the same, and in the correct direction when he research the relationship between management accounting and strategy.
There is another research from Guilding et al. (2000), stated that practice of strategic management accounting are general, but accountants and managers have little appreciation with using strategic management accounting, which can used to explain managers and accountants want to support strategy development even if the consciousness of management accounting as strategic management accounting could be fractional by practicing management accounting. Moreover, management control systems need to meet the needs of the organisation (Fitzgerald, 2007). Strategic control Framework (figure 2) introduced by Goold and Quinn (1990), shows that environmental turbulence and the complexity of the goals to use strategic management accounting, and how the control system could be good to apply in a company.
Figure 2: Strategic control Framework. Goold and Quinn (1990)
Management accounting is implemented in a strategic context, traditional management accounting could be described as "providing information to people who from inside the company, in order to help them to make better decision and enhance the effectiveness and efficiency of the existing business" (Drury, 2008).
From last three decades, many researchers have been interested in to know the relationship between management accounting and the strategic context (Langfield-Smith, 2008). Therefore, strategic management accounting (SMA) has developed. However, there is no a certain definition of Strategic Management Accounting is agreed by general (Drury, 2008; Langfield-Smith, 2008; Lord, 1996; Roslender & Hart, 2003). While, there is an influential definition stated by Bromwich (1990) that in certain period, firstly, providing and analysing financial information of the company's product market and competitors' costs and cost structures, then monitoring the firm's strategies and the strategies of its competitors in this market. It can be described that in relation to management accounting, Strategic Management Accounting probably is providing information to people within the company to support them have better strategic decisions and enhance the effectiveness and efficiency of the existing operations to achieve strategic targets.
Many studies are discussed by researchers, five perspectives of Strategic Management Accounting, which including external, long-term, collaborative, improvement and selective, have been researchers by many scholars.
External perspective
According to the definition defined by Bromwich (1990), SMA is in certain period, firstly, providing and analysing financial information of the company's product market and competitors' costs and cost structures, then monitoring the firm's strategies and strategies of its competitors in this market. The information about competitors is an external perspective of SMA. Moreover, collecting information from competitors was fundamental idea of theory which firstly introduced SMA from Simmond in 1981 (Langfild-Smith, 2008). Furthermore, external perspective seems to be extended. For instance, Bromwich (1990) emphasised that it is important to do customer analysis. Then, Shank (1989) claimed that should incorporate the information relative the value chain. Thus, the external aspect of SMA involves information with competitors, customers and suppliers.
Analysis of the internal information involves the external information to sustain the development and implementation of strategy is the proposition of SMA (Govindarajan & Shank, 1992; Langgield-Smith, 2008).
Environmental analysis:
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Competitor
Customer
Supplier
Regulatory
Social/Political
Internal analysis:
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Technology know-how
Manufacturing know-how
Marketing know-how
Distribution know-how
Logistics know-how
Strengths & weaknesses
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Identify core competencies
Opportunities & threats
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Identify opportunities
Match core competencies with external opportunities
Firm's strategies
Figure 3: the strategy formulation process
It can be seen from figure 3: discussion of a firm's internal and external (environmental) information, recognising company's strengths and weaknesses from inside, as well as identification of external opportunities and threats (SWOT), then decide strategies by accordance of core competencies and external opportunities (Anthony & Govindarajan, 2007), which is described the strategy formulation process. Therefore, it would say that SWOT has been analysed connected to SMA by many people (Guilding et al, 2000).
Creative Industries
Various definitions on what activities to include in the creative industries have been suggested (DCMS, 2001)and even the name itself is a contested issue - there being significant differences and overlap between the terms 'creative industries', 'cultural industries' and 'creative economy' (Hesmondhalgh, 2002)
Lash and Urry suggest that each of the creative industries has an 'irreducible core' concerned with "the exchange of finance for rights in intellectual property," (Lash & Urry, 1994). This echoes the UK Government Department for Culture, Media and Sport (DCMS) definition which describes the creative industries as:
"those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property." (DCMS, 2001)
The current DCMS definition recognises twelve creative sectors, down from fourteen in their 2001 document. They are: Advertising, Architecture, Arts and antique markets, Crafts, Design (see also communication design),Designer Fashion, Film, video and photography, Software, computer games and electronic publishing, Music and the visual and performing arts, Publishing, Television and Radio (DCMS 2006)
To this list John Howkins would add toys and games, and also include the much broader area of research and development in science and technology (Howkins, 2001).
Hesmondhalgh reduces the list to what he terms 'the core cultural industries' of advertising and marketing, broadcasting, film, internet and music industries, print and electronic publishing, and video and computer games. His definition only includes those industries that create 'texts' or 'cultural artefacts' and which engage in some form of industrial reproduction (Hesmondhalgh, 2002).
The DCMS list has been influential, and many other nations have formally adopted it. It has also been criticised. It has been argued that the division into sectors obscures a divide between lifestyle business, non-profits, and larger businesses, and between those who receive state subsidies (e.g., film) and those who do not (e.g., computer games). The inclusion of the antiques trade is often questioned, since it does not generally involve production except of reproductions and fakes. The inclusion of all computer services has also been questioned (Hesmondhalgh, 2002).
Some nations, such as Hong Kong, have preferred to shape their policy around a tighter focus on copyright ownership in the value chain. They adopt the WIPO's classifications, which divide the Creative Industries up according to who owns the copyrights at various stages during the production & distribution of creative content.
Others have suggested a distinction between those industries that are open to mass production and distribution (film and video; videogames; broadcasting; publishing), and those that are primarily craft-based and are meant to be consumed in a particular place and moment (visual arts; performing arts; cultural heritage).
