The Potential of Blockchain to Increase the Effectiveness of Management Accounting: A Systematic Literature Review

Authors

  • Rimal Mahdani Department of Accounting, Faculty of Economics, Universitas Teuku Umar, Meulaboh 23615, Indonesia
  • Cut Widya Aulia Putri Department of Accounting, Faculty of Economics, Universitas Teuku Umar, Meulaboh 23615, Indonesia
  • Hafizhah Risnafitri Department of Accounting, Faculty of Economics, Universitas Teuku Umar, Meulaboh 23615, Indonesia

DOI:

https://doi.org/10.60084/ijma.v1i1.82

Keywords:

Blockchain technology, Management accounting, Convergence, Integration, Decision-making

Abstract

This comprehensive literature review examines how blockchain technology may enhance management accounting procedures. The investigation indicates that blockchain technology might change financial data administration and transmission, improving precision, effectiveness, and dependability. However, scalability, interoperability, and data protection must be addressed. The review also underlines the need for greater research to fully understand how blockchain technology affects management accounting in ever-changing organizational contexts. Empirical studies examine blockchain technology's actual applications, whereas conceptual studies examine theoretical frameworks and models. Integrating blockchain technology with Artificial intelligence (AI) and eXtensible Business Reporting Language (XBRL) enhances its use in accounting systems. The study shows that blockchain technology might alter management accounting operations, improving financial data quality and dependability for decision-making. Electronic procurement, when integrated with Enterprise Resource Planning (ERP) and Accounting Information Systems (AIS), can improve transparency, efficiency, and operational automation. This report suggests additional research, adoption strategies, training methodologies, data privacy concerns, and ongoing monitoring.

Downloads

Download data is not yet available.

References

  1. Nowiński, W., and Kozma, M. (2017). How Can Blockchain Technology Disrupt the Existing Business Models?, Entrepreneurial Business and Economics Review, Vol. 5, No. 3, 173–188. doi:10.15678/EBER.2017.050309.
  2. Khanfar, A. A. A., Iranmanesh, M., Ghobakhloo, M., Senali, M. G., and Fathi, M. (2021). Applications of Blockchain Technology in Sustainable Manufacturing and Supply Chain Management: A Systematic Review, Sustainability, Vol. 13, No. 14, 7870. doi:10.3390/su13147870.
  3. Saukkonen, N., Laine, T., and Suomala, P. (2018). Utilizing management accounting information for decision-making, Qualitative Research in Accounting & Management, Vol. 15, No. 2, 181–205. doi:10.1108/QRAM-01-2017-0007.
  4. Pedroso, E., Gomes, C. F., and Yasin, M. M. (2020). Management accounting systems: an organizational competitive performance perspective, Benchmarking: An International Journal, Vol. 27, No. 6, 1843–1874. doi:10.1108/BIJ-12-2019-0547.
  5. Panchenko, O. (2018). Place and Role of Management Accounting in the General Accounting System, Institute of Accounting and Finance, Vol. 1, No. 3, 75–82.
  6. De Filippi, P. (2019). Blockchain Technology and Decentralized Governance: The Pitfalls of a Trustless Dream, SSRN Electronic Journal. doi:10.2139/ssrn.3524352.
  7. Noviandy, T. R., Maulana, A., Idroes, G. M., Suhendra, R., Adam, M., Rusyana, A., and Sofyan, H. (2023). Deep Learning-Based Bitcoin Price Forecasting Using Neural Prophet, Ekonomikalia Journal of Economics, Vol. 1, No. 1, 19–25. doi:10.60084/eje.v1i1.51.
  8. Schletz, M., Franke, L. A., and Salomo, S. (2020). Blockchain Application for the Paris Agreement Carbon Market Mechanism—A Decision Framework and Architecture, Sustainability, Vol. 12, No. 12, 5069. doi:10.3390/su12125069.
  9. Bonsón, E., and Bednárová, M. (2019). Blockchain and its implications for accounting and auditing, Meditari Accountancy Research, Vol. 27, No. 5, 725–740. doi:10.1108/MEDAR-11-2018-0406.
  10. Moosavi, J., Naeni, L. M., Fathollahi-Fard, A. M., and Fiore, U. (2021). Blockchain in supply chain management: a review, bibliometric, and network analysis, Environmental Science and Pollution Research. doi:10.1007/s11356-021-13094-3.
  11. Granlund, M., and Lukka, K. (2017). Investigating highly established research paradigms: Reviving contextuality in contingency theory based management accounting research, Critical Perspectives on Accounting, Vol. 45, 63–80. doi:10.1016/j.cpa.2016.11.003.
  12. Ndemewah, S. R., and Hiebl, M. R. W. (2022). Management Accounting Research on Africa, European Accounting Review, Vol. 31, No. 4, 1029–1057. doi:10.1080/09638180.2021.1897025.
  13. Schneider, S., Leyer, M., and Tate, M. (2020). The Transformational Impact of Blockchain Technology on Business Models and Ecosystems: A Symbiosis of Human and Technology Agents, IEEE Transactions on Engineering Management, Vol. 67, No. 4, 1184–1195. doi:10.1109/TEM.2020.2972037.
  14. Gaikwad, A. S. (2020). Overview of Blockchain, International Journal for Research in Applied Science and Engineering Technology, Vol. 8, No. 6, 2268–2270. doi:10.22214/ijraset.2020.6364.
  15. Xu, Y., Zhang, C., Wang, G., Qin, Z., and Zeng, Q. (2021). A Blockchain-Enabled Deduplicatable Data Auditing Mechanism for Network Storage Services, IEEE Transactions on Emerging Topics in Computing, Vol. 9, No. 3, 1421–1432. doi:10.1109/TETC.2020.3005610.
  16. Nanayakkara, S., Perera, S., Senaratne, S., Weerasuriya, G. T., and Bandara, H. M. N. D. (2021). Blockchain and Smart Contracts: A Solution for Payment Issues in Construction Supply Chains, Informatics, Vol. 8, No. 2, 36. doi:10.3390/informatics8020036.
  17. Yoo, M., and Won, Y. (2018). A Study on the Transparent Price Tracing System in Supply Chain Management Based on Blockchain, Sustainability, Vol. 10, No. 11, 4037. doi:10.3390/su10114037.
  18. Hardjono, T., Lipton, A., and Pentland, A. (2020). Toward an Interoperability Architecture for Blockchain Autonomous Systems, IEEE Transactions on Engineering Management, Vol. 67, No. 4, 1298–1309. doi:10.1109/TEM.2019.2920154.
  19. Cunha, P. R. da, Soja, P., and Themistocleous, M. (2021). Blockchain for development: a guiding framework, Information Technology for Development, Vol. 27, No. 3, 417–438. doi:10.1080/02681102.2021.1935453.
  20. Liberati, A., Altman, D. G., Tetzlaff, J., Mulrow, C., Gotzsche, P. C., Ioannidis, J. P. A., Clarke, M., Devereaux, P. J., Kleijnen, J., and Moher, D. (2009). The PRISMA statement for reporting systematic reviews and meta-analyses of studies that evaluate healthcare interventions: explanation and elaboration, BMJ, Vol. 339, No. jul21 1, b2700–b2700. doi:10.1136/bmj.b2700.
  21. Papaioannou, D., Sutton, A., and Booth, A. (2016). Systematic approaches to a successful literature review, Systematic Approaches to a Successful Literature Review, 1–336.
  22. Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., Shamseer, L., Tetzlaff, J. M., Akl, E. A., Brennan, S. E., Chou, R., Glanville, J., Grimshaw, J. M., Hróbjartsson, A., Lalu, M. M., Li, T., Loder, E. W., Mayo-Wilson, E., McDonald, S., McGuinness, L. A., Stewart, L. A., Thomas, J., Tricco, A. C., Welch, V. A., Whiting, P., and Moher, D. (2021). The PRISMA 2020 statement: an updated guideline for reporting systematic reviews, BMJ, n71. doi:10.1136/bmj.n71.
  23. Grover, P., Kar, A. K., and Vigneswara Ilavarasan, P. (2018). Blockchain for Businesses: A Systematic Literature Review, 325–336. doi:10.1007/978-3-030-02131-3_29.
  24. Soloviev, V. (2018). Fintech Ecosystem in Russia, 2018 Eleventh International Conference ‘Management of Large-Scale System Development’ (MLSD, IEEE, 1–5. doi:10.1109/MLSD.2018.8551808.
  25. Yu, T., Lin, Z., and Tang, Q. (2018). Blockchain: The Introduction and Its Application in Financial Accounting, Journal of Corporate Accounting & Finance, Vol. 29, No. 4, 37–47. doi:10.1002/jcaf.22365.
  26. Al-Zaqeba, M. A. A., Jarah, B. A. F., Ineizeh, N. I., Almatarneh, Z., and Jarrah, M. A. AL. (2022). The effect of management accounting and blockchain technology characteristics on supply chains efficiency, Uncertain Supply Chain Management, Vol. 10, No. 3, 973–982. doi:10.5267/j.uscm.2022.2.016.
  27. Frizzo-Barker, J., Chow-White, P. A., Adams, P. R., Mentanko, J., Ha, D., and Green, S. (2020). Blockchain as a disruptive technology for business: A systematic review, International Journal of Information Management, Vol. 51, 102029. doi:10.1016/j.ijinfomgt.2019.10.014.
  28. Faccia, A., Al Naqbi, M. Y. K., and Lootah, S. A. (2019). Integrated Cloud Financial Accounting Cycle, Proceedings of the 2019 3rd International Conference on Cloud and Big Data Computing, ACM, New York, NY, USA, 31–37. doi:10.1145/3358505.3358507.
  29. Idroes, G. M., Maulana, A., Suhendra, R., Lala, A., Karma, T., Kusumo, F., Hewindati, Y. T., and Noviandy, T. R. (2023). TeutongNet: A Fine-Tuned Deep Learning Model for Improved Forest Fire Detection, Leuser Journal of Environmental Studies, Vol. 1, No. 1, 1–8.
  30. Ijiri, Y. (1986). A framework for triple-entry bookkeeping, Accounting Review, 745–759.
  31. Hardi, I., Saputra, J., Hadiyani, R., Maulana, A. R. R., and Idroes, G. M. (2023). Decrypting the Relationship Between Corruption and Human Development: Evidence from Indonesia, Ekonomikalia Journal of Economics, Vol. 1, No. 1, 1–9. doi:10.60084/eje.v1i1.22.
  32. Jangir, S., Muzumdar, A., Jaiswal, A., Modi, C. N., Chandel, S., and Vyjayanthi, C. (2019). A Novel Framework for Pharmaceutical Supply Chain Management using Distributed Ledger and Smart Contracts, 2019 10th International Conference on Computing, Communication and Networking Technologies (ICCCNT), IEEE, 1–7. doi:10.1109/ICCCNT45670.2019.8944829.
  33. Coita, D. C., Abrudan, M. M., and Matei, M. C. (2019). Effects of the Blockchain Technology on Human Resources and Marketing: An Exploratory Study, 683–691. doi:10.1007/978-3-030-12453-3_79.
  34. Faccia, A., and Petratos, P. (2021). Blockchain, Enterprise Resource Planning (ERP) and Accounting Information Systems (AIS): Research on e-Procurement and System Integration, Applied Sciences, Vol. 11, No. 15, 6792. doi:10.3390/app11156792.

Downloads

Published

2023-09-09

How to Cite

Mahdani, R., Putri, C. W. A., & Risnafitri, H. (2023). The Potential of Blockchain to Increase the Effectiveness of Management Accounting: A Systematic Literature Review. Indatu Journal of Management and Accounting, 1(1), 1–11. https://doi.org/10.60084/ijma.v1i1.82

Issue

Vol. 1 No. 1 (2023): September 2023

Section

Articles

License

Copyright (c) 2023 Rimal Mahdani, Cut Widya Aulia Putri, Hafizhah Risnafitri

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.