Adding value to a technology business unit in an organisation : a management accounting perspective

M.Comm.The current business environment induces management accounting professionals to challenge themselves to enable and shape the value management accounting can add in order to maximise research and development (R&D) output in technology business units of South African minerals and energy-focused multi-national organisations. To this end the study addresses four research questions, namely: (1) how can management accounting add value to maximise R&D output across the value chain in a technology business unit to increase shareholder wealth? (2) How are management accounting mechanisms applied to cascade strategy downwards? (3) How are R&D strategic interactions across a value pipeline measured? (4) How are management accounting results connected to influence R&D decision-making? The research questions are investigated by way of a literature review based upon key management accounting aspects contained in an adapted value chain model, and qualitative semi-structured interviews with key business unit role-players. Principal findings are: management accountants need to become involved much earlier and remain involved much later in the value chain process; in cascading strategy downwards management uses both management and non-management accounting tools to ensure strategy alignment and strategic intent; business units apply „fit for purpose‟ performance measurement reporting methods to present results on similar measurement criteria; and presentation of R&D shareholder wealth measures require caution. Finally, management accounting results connected to influence R&D decision-making are embedded in the management accounting tools used in the value chain process