Digital Transformation in Management Accounting: Shaping Corporate Strategies - A case study Based on Swedish Service-related firms

Abstract

The primary goal of the study is to comprehend how digital transformation in management accounting contributes to strategic development and competitive advantage. Using a qualitative multiple case study method with semi-structured interviews and relevant documents and a theoretical framework based on the Resource-Based View (RBV), the research looks at three Swedish enterprises that are involved in the aviation and IT industries. The findings of this study were analyzed using the inductive coding method first to apply the Resource-Based View theoretical framework. The results show important managerial insights from Company A, Company B, and Company C's experiences. Despite supplier constraints and industry standards, Company A's adoption of Fortnox (ERP system) demonstrates the strategic use of digital technologies within resource boundaries. It emphasizes the automation of repetitive operations and resource reallocation to improve strategic decision-making. Through cloud-based deployments, Company B's strategic alignment of digital activities with business goals emphasizes the improvement of decision-making, process optimization, and organizational agility, generating a competitive advantage. In the meantime, Company C's implementation of a Resource Management System (RMS) highlights how crucial digital transformation is for streamlining processes, maximizing the use of available resources in order to capture value, and promoting data-driven decision-making in a variety of operational settings. This study contributes to the management accounting area by providing significant insights into the significance of digital transformation of management accounting that can potentially assist the firm to gain possible a competitive advantage and eventually probable changes in the firms’ strategy. Another contribution is the implication of theory (RBV) considering the digital transformation of management accounting and the relation to competitive advantage and the likelihood of agreement among digital solutions and VRIN/VRIO (Valuable, Rare, Inimitable, Non-substitutable/Organization) framework’s criteria. The findings of this study demonstrate how businesses use digital technologies to improve productivity, decision-making, and strategic processes. Examples of these technologies include ERP systems, cloud-based reporting tools, AI integration, and automation of MA chores. These digital changes include a variety of activities, such as automated tasks, real-time data access, and a strategic connection with corporate goals. Companies in this study have been able to enhance their management accounting procedures, maximize resource allocation, and promote innovation by strategically utilizing these digital technologies. While it might not be costly to replicate certain parts of these digital transformations, how businesses innovate, integrate, and adapt these technologies to produce distinctive value propositions that support their strategic goals is what matters most. By improving productivity, adaptability, and creativity through strategic alignment and the efficient use of digital tools, these businesses gain a competitive advantage in the ever-changing business environment.