Seismic Measurement of Management Accounting Innovations: Using the Scale of Innovation Intensity

By Gregory K. Laing  

The purpose of this paper is to determine the intensity of the contribution of Balanced Scorecard (BSC), Activity Based Costing (ABC), and Lean Accounting (LA) have had in the academic literature. An approach that is derived from Seismic measurement of earthquakes is adopted to produce what has been labelled the Scale of Innovation Intensity model. The three innovations were found to have measures of intensity that fall within the medium level of intensity. The findings support the arguments that the three management accounting innovations have had an influence on the direction of management accounting. This paper also provides a general overview of the application of the scale of innovation intensity and its potential for future research.

Keywords: Activity Based Costing; Balanced Scorecard; Innovation Intensity; Lean Accounting; Management Accounting Innovations

MAF Vol. 1 – Laing