The Influence of Strategic Accounting, Accounting Analytics and Management Support on Value Creation Through Digital Transformation Among Firms in Liaoning Province, China

Abstract

New businesses have a whole new approach to information management, decision making, controlling processes and creating value. At the same time, the field of accounting is becoming increasingly detached from the boundaries of historical financial reporting and increasingly supplies strategic information, predictive analytics and digitally-enabled performance measures for managerial decision making. The strategic accounting and accounting analytics constitutes important organizational capabilities, and organizational capacity to mobilize financial, technological and human resources for digital transformation is determined by management support. According to the background above, this research sets forth a conceptual framework and implements it, which explains the impact strategic accounting, accounting analytics and management support has on digital transformation and the value creation for digital transformation in the firms of Liaoning Province, China. The conceptualization of the strategic accounting process is done by means of strategic costing, competitor analysis, customer profitability analysis, benchmarking and strategic performance measurement. The accounting analytics include Data integration, predictive analysis, real-time reporting, visualization and analytical decision support. Management support involves commitment from top management, resources, training of staff and strategic alignment and organizational encouragement. The digital transformation is the integration of financial efficiency, customer value, innovation, operational performance, and/or sustainable competitive outcomes through the use of digital technologies in business processes, decision systems, organization structures and business models. The proposed model is based on resource-based view, dynamic capabilities theory and information-processing theory. A hypothetical sample of 320 firms is used to illustrate the proposed statistical procedure. The results of the illustrative examples indicate positive relationships between strategic accounting and DT, accounting analytics and DT, and management support and DT (β = 0.31, p < 0.001; β = 0.38, p < 0.001; and β = 0.27, p < 0.001, respectively). As revealed from the results, there is a positive correlation between digital transformation and value creation (β = 0.49, p<0.001). The model is used to explain 61.8% of the variance in digital transformation and 52.4% of the variance in value creation. On the basis of the results, it is possible to use it as the starting point for the later research of the development contribution of accounting ability and managerial enthusiasm to value creation in the regional business environment of Liaoning Province in the assistance of digital technology.