The Integration Between
Academic Research and
Practices: My Experience
Anne Wu
National Chengchi University
March 25, 2014
1
Presentation Outline
I.
The Value Chain of Academic Research, Teaching, and
Practices
II. The Blueprint of Managerial Accounting Research--My
Experience
III. The Academic Value Chain of Integrative Strategic
Value Management System (ISVMS)
IV. Field Empirical Research: Balanced Scorecard and
Compensation Management as an Examples
V. Field Empirical Research: ABC as an Example
VI. Conclusions
VII. Q&A
2
I. The Value Chain of Academic
Research, Teaching, and Practices
3
Academic Research: Managerial Accounting
Teaching: Managerial Accounting
Practices: Implementation
EMBA Students:
Practical Implementation Models
The Blueprint of Future Research
The First Stage: Master Thesis Testing
International Journals
The Second Stage: Ph D. Dissertation Testing
The Third Stage: Multiple-Period NSC Projects
Research Results
Figure 1: The Value Chain of Academic Research, Teaching, and Practices
International
Conferences
4
II. The Blueprint of Managerial
Accounting Research--My
Experience
5
5.Strategy Value
Creation System
Patent: 2010
Firm Vision and Goals
1.Strategy
System
SWOT Scorecard
Strategic
Intellectual
Capital:
Customer
Capital
Process
Innovation
Capital
Human, IT and
Organizational
Capital
IT system:
2007
Strategy
Balanced Scorecard
Financial
Perspective
Customer
Perspective
Internal
Process
Perspective
Learning and
Growth
Perspective
Value Chain
R&D
Process
Analysis
Design
Production
Marketing and
Distribution
Customer
Services
2.Strategy
Implementation
System
3.Fundamental
System:
ActivityOriented
Activity Management and Analysis
Strategic Value Management Information
Strategic Value Management Techniques
Figure 2: The Blueprint of Managerial Accounting Research (The Integrative
Stage): Integrative Strategic Value Management System (including 5 sub-systems)
4.Strategic
Value
Management
System
IT system:
2014
6
III. The Academic Value Chain of
Integrative Strategic Value
Management System(ISVMS)
(Trademark: Taiwan, China, and
U.S.A)
7
Integrative Strategic Value Management System (Brand)
1. Field
Empirical Study:
Academic
Research
2. Field Study:
Practical
Papers
3. Case Study:
Harvard and
Ivey Teaching
Cases
4. IT System for
Implementation
5. Books
Product 1
Product 2
Product 3
Product 4
Product 5
Figure 3: The Academic Value Chain of Integrative Strategic Value Management System
8
Finding “Research Issues”
Practices
Academic Research
Asian Cases
Strengthening “Research Method”
Teaching
Figure 4: The Integration of Academic Research, Practices, and Teaching: Case Focus
9
10. Doing
Case
Teaching
1. Doing Case
and Field
Research
9. Helping
Industrial
Policy
Making
8. Enhancing
International
Academic and
Industrial
Cooperation
7. Doing
Industry
Analyses
Case
Platform
2. Doing Field
Empirical
Research
3. Establishing
Research
Database
4. Developing
Empirical
Research
Hypotheses
6. Conducting
Industrial
Analyses and
Sharing
Knowledge
5. Finding
Research
Issues
Figure 5: The Framework of Multi-Purpose Case-Focused Research
10
Industries
Electronic
Case, Field, or Field Empirical Studies
Banking
Others
ABC
BSC
IC
ISVMS
Managerial
Accounting
Techniques
Figure 6: The Life Time Planning of Academic Career
11
Case, Field,
Field Empirical
Studies
Unique
Phenomenon
&
Story
Key
issues
Unique
Institutional or
Governance
Features
Large Scale
Empirical
Studies
What are the
theoretical foundations?
Figure 7: Doing Managerial Accounting Research in Asian Countries
12
VI. Field Empirical Research: Balanced
Scorecard and Compensation
Management as an Examples
13
H. Kuang Chuan:
Teaching Case
(TMCC) (Product 3)
I. 3L Electronic Corp:
Teaching Case (Ivey)
(Product 3)
Strategy
Organization
Vision & Goal
Profit
Organization
Non-Profit
Organization
G. Mitsubishi
Motors: Teaching
Case (TMCC)
(Product 3)
BSC
Strategy
Financial
Theme
Perspective (FP)Strategy
Theme(ST)
(ST)
Customer
Perspective (CP)
ST
Internal Process
Perspective (IPP)
J. BSC: IT
System
(Product 4)
Strategy
Goal
Strategy
(SG)
Goal
(SG)
Theoretical
Development
Strategy
Measurement
(SM)
ST
SG
SG
SM
ST
SG
SM
ST
Growth and
Learning
Perspective (GLP)
K. Book
(Product 5)
SG
ST
Organizational Performance
SG
SM
Information Usefulness
Figure 8: The Formation of BSC Research Framework
14
Users:
Strategy
BSC
FP
CP
IPP
GLP
Managers and
Employees
B. Ho, Wu
and Wu
Paper
(Product 1)
SM
E. Kelly: Teaching
Case (TMCC)
(Product 3)
SM
A. Ho, Lee and
Wu Paper
(Product 1)
F. Fortune Motors:
Teaching Case (Ivey)
(Product 3)
Performance Evaluation
Financial
Measurement
Common
Measurement
C. Chang, Kuo
and Wu Paper
(Product 2)
SM
SM
Rewarding
NonFinancial
Measurement
D. Chang, Kuo
and Wu Paper
(Product 2)
Firm Market
Value
Figure 9: The Formation of BSC, Performance Evaluation, and Rewarding Research Framework
15
A: Product 1
How Changes in Compensation Plans Affect
Employee Performance, Recruitment and
Retention and Firm Performance-An
Empirical Study of A Car Dealership
Joanna Ho
University of California , U.S.A
Ling-Chu Lee
National Pingtung Institute of Commerce, Taiwan
Anne Wu
National Chengchi University, Taiwan
(Contemporary Accounting Research, 2009)
16
I.

Practice: Labor Law Changes
The Taiwanese Labor Law

Objective: protect workers’ interests and rights.

Requirement: base salary.

Deadline: Dec. 31th, 1998.
Before Change
After Change
Base Salary
+
Commission
Scheme
CommissionBased
Scheme
Improvement of Low
performance Plan
July 1st, 1998
17
II. Practice: Research Site

The largest car dealership in Taiwan.

18 percent of the market share over the past five
years.

Changed the compensation scheme in July 1998.
18
III. Research Issues: From Practice

The possible impact of a switch to a less
performance-sensitive incentive scheme on
individual productivity and
on company
performance.

How the plan change affects overall employee
retention and recruiting.
19
IV. Practice: Data

Data covered by the 56-month period from
January 1996 to April 2001.

Individual Level
--97,541 person-months of data.

Branch Level
--5,121 branch-months of data.
20
V. Research: Research Results
Average compensation per salesman
3,500
Before
Average Compensation (US)
3,000
After
2,500
2,000
1,500
1,000
500
0
-30
-27
-24
-21
-18
-15
-12
-9
-6
-3
1
4
7
10
13
16
19
22
25
28
31
34
Month before (-30 to -1) / After PLAN (1 to 34)
21
VI. The Implications of the Research
Results to Practices

A switch to a less performance-sensitive compensation
scheme hurts employees individual sales productivity.

The research results make implications to teaching and
practices.

The study suggested the company to handle the side
effect of compensation change.

The company took our suggestion to change the
compensation system from individual-based to teambased and high performance-sensitive schemes.
22
B: Product 1
Performance Measures, Consensus on
Strategy Implementation, and Performance:
Evidence from the Operational-level of
Organizations
Joanna Ho
University of California, U.S.A
Anne Wu
National Chengchi University, Taiwan
Steve Wu
The University of Hong Kong, Hong Kong
(Accounting, Organizations and Society, 2014)
23
I.
Practice: Research Site

A Taiwanese financial service company currently have 49
branches serving 530,000 customers.

The company stresses high quality service and high customer
satisfaction as its strategy.

Sales people’s formula bonus is mainly based on their annual
revenue generation. Yet, the branch manager has discretion to
adjust bonus or decide promotion candidates based on nonfinancial and/or subjective measures.
24
II. Practice: SPMS Implementation
Strategy
Strategic
Implementation
1. Organizational Level
2. Six Drivers
(1) CEO
(2) Branches
(3) Departments
(4) Employees
(5) Customers
(1) Reasonable price
(2) Professional services
(3) Profitable investment advice
(4) Friendly service attitude
(5) Complete product line
(6) Convenient location
25
III. Research Issues: From Practice

How does strategic consensus at the operational
level influence strategic performance in
employees’ performance evaluation?

How does strategic consensus influence the
incentive effect of strategic measures on strategic
performance?
26
IV. Practice: Data

The study worked with the top management team, including the
CEO, CFO, CIO, Chief Strategy Officer, and VP-Sales to conduct
a large-scale customer satisfaction survey of approximately 7,000
customers.

The study interviewed the top managers to understand the
customer-oriented strategy and six customer value drivers for the
company. The study then developed the survey questions in
accordance with the interview information.

The study formed survey sample, each branch contacted at least
10 of its top 50 customers and randomly chose frequent
customers.

The study sample consists of responses from 1,395 customers,
395 salespeople and 40 branch managers.
27
V. The Implication of the Research Results
to Practices

Strategic consensus at lower level managers/employees
has significant impact on the implementation of strategy
and the performance of an organization.

The important insights to practitioners who are using
the Balanced Scorecard or other SPMSs.

The study suggests the company to improve the SPMSs
only consider controllable factors but not uncontrollable
factors (such as location, and price).
28
C: Product 2
Strategy Alignment and Performance
Evaluation for Shared Service Centers: A
Longitudinal Study on the Role of Balanced
Scorecard.
Janie Chang
San Diego State University, U.S.A
Tsuilin Kuo
Fu-Jen Catholic University, Taiwan
Anne Wu
National Chengchi University, Taiwan
(Working Paper)
29
I.
Research Issues: From Practice

This study aims to explore how an organization
could make existing SSCs more successful in
serving both internal and external customers.

We investigate two issues:

Whether using BSC can assist the employees of SSCs
to better understand and achieve the strategies of other
operating units and those of the headquarters (i.e.
serving internal customers)?

Whether using BSC can better measure the
performance of SSCs and reveal the value of SSCs
(when serving both internal and external customers)?
30
II. The Implication of the Research Results
to Practices

The implementation of the BSC is a lengthy process, especially
for SSCs. This study provides illustrations of the implementation
and impact of BSC on SSCs from 2002 until 2011.

The findings of this study strongly support the notion that using
BSC will align strategies. Most employees in SSCs can sense the
effects and changes BSC brings to them, especially in the areas
of understanding towards organization’s strategies, making
contributions to the organization, and providing high value
service to business units.

Although adopting a scorecard system can help SSCs to
transform into a strategic unit and facilitate SSCs to create
benefits, SSC employees are not in agreement with the
developed measurement for performance.
31
D: Product 2
The Successes in Long-Term
Implementation of Balanced Scorecard: A
Healthcare Organization Study
Wen-Cheng Chang
Taiwan Buddhist Tzu Chi Foundation, Taiwan
Tsuilin Kuo
Fu-Jen Catholic University, Taiwan
Anne Wu
National Chengchi University, Taiwan
(Working Paper)
32
I.
Research Issues: From Practice

This study examines the question of how to reflect
the successive phases in the evolution of BSC
implementation.

This study illustrations on how a healthcare
organization can successfully undertake BSC
scorecard development and implementation
process.

The case has three phases in implementing the
BSC from 2001 to 2008 which are: planning and
designing stage, weighting and evaluation stage,
and alignment stge.
33
II. The Implication of the Research Results
to Practices

We illustrate how to overcome key challenges faced
by the healthcare organization and how to maximize
chances of achieving longitudinal success from BSC.

This study elaborates of monitoring and guiding
organizational success toward a long-term
realization of the BSC, while exploring managerial
guidance for similar implementations.

We suggest that the BSC framework be designed to
help organizations to constantly examine
themselves and improve for continuing success in
the long-run.
34
E: Product 3
Teaching Case：Kelly (TMCC)

The issues of teaching case (恆光企業)
To fill a void in the
existing teaching case of
Balanced Scorecard (BSC)
Strategy
Kelly
BSC
Employees：Salesperson
Compensation
Plan
(Rewarding)
Figure 10：The Framework of Teaching Case
35
F: Product 3
Teaching Case：Fortune Motors (Ivey)
Using Balanced Scorecard
to implement new
innovation strategy.
New
Innovation
Strategy
BSC
Figure 11：The Framework of Teaching Case
36
G: Product 3
Teaching Case：Mitsubishi Motors
(TMCC)
BSC:
SBU
SSU
6 Steps:
1. The matching for demand and supply.
2. Service agreement.
3. SSU BSC.
4. The transfer pricing for SBU and SSU.
5. Income statement for SSU.
6. The feedback from SBU to SSU in the end of
the year.
37
H: Product 3
Teaching Case：Kuang Chuan
(TMCC)

The issues of teaching case



The reasons of the implement Balanced Scorecard.
The processes of the implement Balanced Scorecard.
The problems of the implement Balanced Scorecard.
38
E: Product 3
Teaching Case：3L Electronic Corp
(Ivey)
Strategy
BSC
The strategic reward system has been an
integral part of the implementation of
scorecards, and why it has not been
influencing the behavior of people at 3L.
Strategic
Reward
System
Figure 12：The Framework of Teaching Case
39
J: Product 4
BSC：IT System
(Cooperation with Data Systems Company)
40
K: Product 5
BSC Book
(Working Process)
41
V. Field Empirical Research: ABC
as an Example
42
Q. HTC: Teaching
Case (ACRC)
(Product 3)
T. Book
(Product 5)
S. ABC: IT
System
(Product 4)
ABC
R. PQI: Teaching
Case (ACRC)
(Product 3)
N. Gupta,
Randall and
Wu Paper
(Product 1)
ABM
Manufacturing
Efficiency
Resources
ABC
(4)
Information
Resources
(1)
Government
(5)
Drivers
Activity or
Regulation
(11)
(10)
Cost
Activity Center
Activities Drivers
(2)
Management
Environmental
Users
Drivers
Uses
Cost Object:
Factors
Product, and
(13)
(12)
(3)
Customers
Success or
(6)
Strategic Operational
Failure
Decision Decision
Cost
O. O'Connor,
Makings Makings (9)
Kacobs and Wu
(Product 1)
P. O'Connor, Wu
and Anderson
(Product 1)
(7)
Customers
(8)
Shareholders
L. Eldenburg,
Soderstrom,
Willis and Wu
Paper (Product 1)
Figure 13: The Formation of ABC & ABM Research Framework
M. Yu and
Wu Paper
(Product 1)
43
L: Product 1
Behavioral Changes Following the
Collaborative Development of an
Accounting Information System
Leslie Eldenburg
University of Arizona, U.S.A
Naomi Soderstrom
University of Colorado at Boulder, U.S.A
Veronda Willis
University of Colorado at Boulder, U.S.A
Anne Wu
National Chengchi University, Taiwan
(Accounting, Organizations and Society, 2010)
44
I.
Practice: Research Site

The largest hospitals in Taiwan provide monthly
department-level income statements or cost reports
(primarily for cost centers) to department heads.

The hospital provides salaries for its physicians, with
bonuses based on total charges incurred by their patients.
That works well under a cost based system, but is not
efficient under a flat-fee per diagnosis system.

Physicians could increase their bonuses by increasing the
treatment provided, thus increasing gross charges per
patient, but at some point, the hospital would begin to lose
money as physicians over-used resources.
45
II. Practice: ABC Implementation
Before
Implementation
After
Implementation
ABCM
Comparing the Before and After ABCM Implementation
Figure 14：The Comparing Before and After ABCM Implementation
46
II. Practice: ABC Implementation
Impact
Physicians’ Behavior
The Impact
After
Implementing
ABCM
Impact
Organizational Performance
Figure 15：The Impact Before and After ABCM Implementation
47
III. Research Issues: From Practice

Whether non-accountant participation in the
development of the information system influences
the participants’ resource allocation decisions after
system implementation.

Accounting information (such as ABC) tends to be
ignored by decision makers as non-accountant
allocate resources.
48
IV. Practice: Data


Sample selection

One of the largest hospitals in Taiwan which implemented ABC in the
Ophthalmology department in January 2001.

Patient-level data for inpatients and outpatients being treated for
cataracts from July 1, 2000 to August 30, 2001.

Include information on severity of illness, gender, age, procedures
employed, disease codes, charges, and hospital reimbursement.
Patient Charges and Use of Resources

For patient billing, hospital accountants assign a specific charge for
each resource used by individual patients based on guidelines provided
by the Federal government.

Charges increase as the use of resources increase. Hence, we use
hospital charges as a proxy for resources used.
49
V. The Implication of the Research Results
to Practices

After implementation of ABC, physicians reduce
resource utilization for inpatients and perform more
procedures on an outpatient basis.

It has improved financial performance after
implementation through both increased revenues and
decreased costs.

We provide the evidence that participation in
developing an ABC information system results in postimplementation improvement in resource utilization.

The hospital takes the research results as the direction
for implementing ABC in different departments.
50
M: Product 1
The Benefits of ABC Implementation in a
Complex Manufacturing Environment: A
Field Study
Sui-Hua Yu
National Chung Hsing University, Taiwan
Anne Wu
National Chengchi University, Taiwan
(Working Paper)
51
N: Product 1
The Economic Impact of Congestion and
Capacity Utilization: An Empirical
Examination
Mahendra Gupta
Washington University, U.S.A
Taylor Randall
University of Utah, U.S.A
Anne Wu
National Chengchi University, Taiwan
(Working Paper)
52
O: Product 1
Resource-based Sources of Bargaining
Power and Management Control Concerns
in Inter-firm Relationships:
An Exploratory Study of Technology Firms
Neale G. O’Connor
National University of Singapore, Singapore
Kerry Jacobs
UNSW Canberra, Australia
Anne Wu
National Chengchi University, Taiwan
(Working Paper)
53
P: Product 1
Relative Performance Evaluation in Supply
Chain Management
Neale G. O’Connor
National University of Singapore, Singapore
Anne Wu
National Chengchi University, Taiwan
Shannon W. Anderson
University of California, U.S.A
(Working Paper)
54
Q: Product 3
Strategic Performance Measurement of
Suppliers at HTC
Neale G. O’Connor
National University of Singapore, Singapore
Anne Wu
National Chengchi University, Taiwan
Shannon W. Anderson
University of California, U.S.A
Yu Chen
The Hong Kong University, Hong Kong
(Teaching Case, Asia Case Research Centre )
55
R: Product 3
PQI: Management of Suppliers
Neale G. O’Connor
National University of Singapore, Singapore
Anne Wu
National Chengchi University, Taiwan
Shannon W. Anderson
University of California, U.S.A
Grace Loo
The Hong Kong University, Hong Kong
(Teaching Case, Asia Case Research Centre )
56
S: Product 4
ABC: IT System
4 Modules
1. Resource Module
2. Activity Center Module
3. Activity Module
4. Value Object Module
(Cooperation with InfoFab company, Dec. 2014 finished)
57
T: Product 5
ABC Book
(Working Process)
58
VI. Conclusions
59
A Good Field Case
How to Find a Good Field
Case to Integrate MA
Practice and Research
Managerial Accounting
Techniques
Implementation
Deep Integration
Managerial Accounting
Research
Figure 16: A Good Field Case is the Key Role for Managerial Accounting Research & Practice
60
Practice: Cases
Feedback
Practice: Research
Issues
Developing
Research: Research
Hypotheses
Analyzing
Feedback
Research: Research
Results
Finding
Research Methods:
1. Practice: Data
2. The Integration
Between Practice and
Research: Variable
Measurement
3. Research: Data Analyses
Figure 17: The Integration between Practices and Research
61
1.
Research issue is the first and significant stage of the research.
The relevant issues of research are always come from
practices.
2.
The integration among practices, research issues, theoretical
foundation, and research methods.
3.
Research is life time planning task.
4.
Research is a continuous improvement job.
5.
A researcher is like a director of a movie to direct the whole
film and to create the highest value for the movie.
6.
The highest value of the research is to create “global
“ contributions to the academic and practitioner societies.
62
VII. Q&A
63
Thank you very much!!
64