ORGANIC DECISION AND COMMUNICATION PROCESSES AND MANAGEMENT ACCOUNTING SYSTEMS IN ENTREPRENEURIAL AND CONSERVATIVE BUSINESS ORGANIZATIONS

This study examines the combined effect of organic decision and commun ication processes (organic processes) and management accounting system s (MAS) on performance. A model based on 'effective paradoxes' is deve loped which suggests that the interaction of organic processes with us e of MAS is more closely associated with superior performance in organ izations pursuing entrepreneurial as opposed to conservative strategie s. This hypothesized relationship was supported by evidence from a stu dy of managers from 72 firms. The interaction was significant for entr epreneurial organizations but not for conservative entities. Moreover, in entrepreneurial entities performance was significantly associated with organic decision processes for organizations using MAS extensivel y, but not when MAS was used less extensively.