Use of Management Accounting Methods in Finnish NGOs’ Strategy Processes – a field study
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Bachelor's thesis
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Date
2023
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Laskentatoimi
Language
en
Pages
29
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Abstract
This thesis examines what kind of management accounting methods Finnish non-governmental organizations (NGOs) use to support their strategy processes. It also seeks to identify the motivations behind the adoption and utilization of these methods in their strategy processes. This study reviews existing literature on strategic management and management accounting methods in the NGO context and compares it with the empirical research conducted for this thesis. The study employs a qualitative field study as its methodological approach to explore these topics. The data was collected from three key representatives of different Finnish NGOs including two Chief Executive Officers and one Development Coordinator. The NGOs examined in this study provide social welfare services, especially for adults with mental health problems and people in need of psychosocial support. The key findings of this study show that these Finnish NGOs have adopted three significant management accounting methods to support their strategy processes: budgeting, the Balanced Scorecard, and impact evaluation. These methods were utilized across different phases of the strategy including planning, implementation, and assessment. In addition, the study found that the motives driving the implementation and utilization of these methods were multifaceted. One of the fundamental reasons for adopting these methods is to inform the organization’s activities and thereby guide their strategic work. However, this study also demonstrated other reasons for adopting these methods related to external pressures faced by NGOs. These external pressures included the demands of institutional funders and the urge to professionalize as well as align their activities with for-profit counterparts.Description
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Mättö, ToniKeywords
management accounting, strategic management, non-governmental organizations, NGOs