An empirical study of the fidelity of organziational accounting communication and the impact of organizational culture

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1991-06-04
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Virginia Tech
Abstract

Communication and culture both play essential roles in organizations. The effective communication of accounting information is required to coordinate business operations and move the organization toward the accomplishment strategic goals. Without effective communication, the most sophisticated analyses and crucial reports will fail to generate appropriate decisions and actions. Culture is a symbolic system of values that helps the members of an organization explain, coordinate, and evaluate behavior and to ascribe common meanings to events and symbols encountered in the organization. Organizations confine the experience and interaction of its members into structured and recurring patterns. As organization members interact, shared meaning for issues of common interest evolve. A technical organizational language develops whose symbols have definite and common meaning. If the culture of organizations or subcultures within an organization are different, dissimilar meanings could be ascribed to the management accounting terms (symbols) used to communicate accounting information. Dissimilar meanings could inhibit the fidelity of accounting communication within and between organizations and organization subunits.

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