Perceptions of Value-Stream Costing and the Effect on Lean-Accounting Implementation

Perceptions of Value-Stream Costing and the Effect on Lean-Accounting Implementation by Patricia Hart Timm MS, Ferris State University, 1996 BA, Michigan State University, 1982 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Management Walden University August 2015 Abstract In response to the competitive global economy, lean manufacturing has become more prevalent in the United States. Manufacturing has changed, but cost accounting has not.In response to the competitive global economy, lean manufacturing has become more prevalent in the United States. Manufacturing has changed, but cost accounting has not. Lean manufacturing has the potential to change the U.S. manufacturing economy, resulting in positive economic social change, yet it requires lean accounting to increase successful implementations. This study addressed the problem of lack of adoption of lean-accounting techniques like value-stream costing in lean-manufacturing enterprises. The purpose of this nonexperimental explanatory study was to investigate factors that influence the adoption of lean accounting. Using the technology acceptance model (TAM), based on the theory of reasoned action and the theory of planned behavior, this study examined whether management accountants’ perceptions of the ease of use (PEOU), or perceived usefulness (PU) of value-stream costing may influence their intention (BI) to implement value-stream costing. The 2,307 attendees of the Lean Accounting Summit from 2005–2013 were invited to participate in an online survey; 70 attendees agreed to participate. Descriptive statistics, Pearson correlation coefficient, and multiple regressions were calculated. Statistically significant positive relationships emerged between PEOU, PU, and the intention to implement value-stream costing. Also, PEOU and PU for the individual accounted for 51% of the variance of BI, and PEOU and PU for the organization accounted for 49% of the variance of BI. This study added to the understanding how management accountants’ perceptions positively influence their intention to implement value-stream costing. The relationships found by this study will create positive social change when used to influence the adoption of value-stream costing in order to increase the successful implementation of lean manufacturing in the U.S. Perceptions of Value-Stream Costing and the Effect on Lean-Accounting Implementation by Patricia Hart Timm MS, Ferris State University, 1996 BA, Michigan State University, 1982 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Management Walden University August 2015 Dedication To my daughters, Katelyn and Diana, who have persevered through my adventures in higher education for approximately half their lives. Their unconditional love and support humbles me. Their dedication to their education, careers, and families is inspiring. I am blessed to be their mom. To my husband, Larry, who entered this odyssey late in the process, and became my number one cheerleader, coach, and counselor. He allowed me the freedom to pursue this dream with confidence in his love and support. To my parents and stepparents who always had encouraging words and never doubted I could accomplish whatever I dreamed. They each found special ways to let me know they loved and supported me. I am so very blessed to be loved by such wonderful people. I fully understand these blessings come from God and without His love and grace; I would not be where I am today. Acknowledgments I would like to acknowledge Dr. Jeffrey Prinster for his years of mentoring and his guidance as chair of my committee. His positive outlook, strong faith, and unfailing encouragement made this journey much more enjoyable. Dr. Godwin Igein for serving on my committee with his expertise in methodology and Dr. Robert Aubey as URR reviewer: your guidance and insight are greatly appreciated. I am very thankful to Cone Drive Operations, Inc. and Northwood University for their financial support. Dwayne Butcher and the team at Lean Frontiers were immensely helpful in providing support for my survey research. Dr. Rosemary Fullerton was very generous with her time, survey methodology and insight into lean accounting. Many thanks are due Dr. Robin Throne for her mentoring and guidance, and to Dr. Roberta Teahen and Dr. Douglas Lape for their encouragement to pursue this degree. I have numerous friends and family who supported me with encouragement, kind words, and prayers, for which words are inadequate to express my deep appreciation.