Outsouring, Organisational Structure Change And The New Development Of Management Accounting

Over the last decade, the management environment for companies have been changed greatly, as the development of IT technology and the acceleration of globalization process, including the diversification of global market, the shortening of life cycle of product and the speed up of technological innovation. All these mean a challenge for companies to be more responsive, more flexible and more adaptable. It's highly difficult for a single company to use its own resources to survive in the absolutely competed market; therefore, more and more companies come to noticing and using outsourcing as a tool to keep a firm's strategy advantages. In these surroundings, what're the factors for a company to use outsourcing? And how will outsourcing activities affect on a company's organization structure? What's more, will outsourcing activities affect on management accounting?Therefore, through using a questionnaire we'd like to gather relevant information to find the results of these puzzles. This article organized in this way: first we reviewed the previous study in the fields including outsourcing, organizing structure and the development path of management accounting. Based on these theories, then we proposed our propositions, including H1: outsourcing is expected to lead to cost savings, to improve the service of an activity, to allow the organizational to focus more clearly on its core business and to share the advantages of process reengineering; H2:change of organizational form is related to an increased use of outsourcing;H3:outsourcing promotes change in management accounting. Statistical support is found for each of our three propositions, then we use Spearman rank correlations to examine those propositions mentioned above.Overall, we concluded that: first, the reasons for outsourcing in our country mainly at leading to cost saving and share the advantages of process reengineering, reasons for improve the service of an activity, to allow the organizational to focus more clearly on its core business are not remarkable. Second, the propositions"change of organizational form is related to an increased use of outsourcing"is not totally remarkable, but is remarkable in some detail outsourcing activities. This phenomenon implies that change of organizational form is affected by other factors besides outsourcing, but some outsourcing activities indeed influenced the setting of organizational form, such as a removal of layers and a reduction in divisions. Finally , the proposition"outsourcing promotes change in management accounting"is totally remarkable,showing that outsourcing is playing an important role at management accounting. In detail, taking manufacturing as an example, the correlationρbetween outsourcing and the sub- proposition"we see our outsourced suppliers as on-going partners"is 0.521(0.000), completely showing that management accounting has appeared new management functions after the use of outsourcing.Then, through an example of an internal firm, we further supported our propositions. At the end of this article, some suggestions are proposed for outsourcing decision and the development of management accounting, as a reference for practice activities.