Management Accounting in a Military-Business Conglomerate: A Critical Realist Perspective

Abstract

TThe study investigated the use and design of management accounting in a conglomerate business that produces both military and civilian products. Data were collected from interviews, video and document archives, and analyzed using a critical realist thematic approach with the assistance of MAXQDA software. The findings revealed that the organizational structure was largely symbolic, and budgeting and costing were not effectively utilized, with limited expression of plans in financial terms. Performance measurement was a combination of military, ideological, and business logic, with military discipline logic taking precedence over business efficiency and effectiveness in measuring performance. The focus was on output rather than process, with little considerations to financial performance measures. This suggests that management accounting is not a neutral tool for achieving organizational goals, but rather is used interchangeably with state ideology and military logic to balance ideological and political interests with business objective.