Sensemaking and Strategic Decisions: The Role of Management Accountants

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School of Business | Bachelor's thesis
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Date

2023

Department

Laskentatoimen laitos

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Mcode

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Laskentatoimi

Language

en

Pages

28 + 5

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Abstract

This study provides insights into the emerging role of management accountants by exploring the role of management accountants in strategic management. The study relies on the core phenomenon of sensemaking. The theory of this study is drawn from the theoretical framework for sensemaking developed by Tillmann and Goddard (2008). The study shows that the business controllers in the case company undertake sensemaking activities to understand and to help management understand the strategic complexities better. Strategic decision-making was found to involve a certain amount of uncertainty and ambiguity. Sensemaking provides a conceptual framework for examining decision-making under these circumstances (Vaara, 2003). Thus, relying on sensemaking provides insights into the contribution of management accounting to strategic decisions. A single-case study approach allowed the exploration of social dynamics surrounding strategic decision-making. Accounting information can be seen as an essential tool for sense-making as it not only mirrors but also converts organizational reality (Roberts and Scapens, 1985) and thus can contribute to relevant insights into the sense-making process of management (Puhakka, 2017). Through sensemaking activities management accountants seem to increase an understanding of the issue being addressed in organizations, especially on strategic matters.

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Thesis advisor

Vaivio, Juhani

Keywords

management accounting, sensemaking, strategic management, controller

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https://urn.fi/URN:NBN:fi:aalto-202402042299

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[kand] Kauppakorkeakoulu / BIZ (Open Access)