Measuring to innovate: How managers evaluate management accounting systems and gauge innovation performance

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Abstract

This study aims to explore two core research questions through qualitative interviews: first, how companies evaluate the effectiveness of their management accounting reporting systems (MARS), and second, how enterprises measure their innovation performance. Building on foundational frameworks such as the Global Management Accounting Principles (GMAP) (American Institute of Certified Public Accountants [AICPA], & Chartered Institute of Management Accountants [CIMA], 2014), the research employs a qualitative multi-case study design, conducting semi-structured interviews with middle and senior managers from five companies across different industries, sizes, and ownership types. Data were analyzed using content analysis and a three-stage coding process. The findings reveal that companies evaluate MARS effectiveness through multi-dimensional criteria — timeliness, accuracy, decision-support capability, and user satisfaction — supported by a multi-level reporting structure encompassing strategic, operational, and execution layers. Regarding innovation performance measurement, the study identifies a diverse set of indicators, including new product launches, patents, return on research and development (R&D) investment, and process improvements, while noting that although independent or hybrid evaluation mechanisms are emerging, significant challenges persist in data integration and metric standardization. Theoretically, this study provides empirical evidence from a managerial perspective that enriches the conceptual framework linking management accounting with innovation performance. Practically, it offers practitioners a concrete framework for assessing MARS effectiveness and a valuable reference for building robust innovation performance measurement systems.

Keywords: Management Accounting Reporting System (MARS), Innovation Performance (IP), Qualitative Research, Performance Measurement, Effectiveness Evaluation

Authors’ individual contribution: Conceptualization — Q.Z. and N.T.; Methodology — Q.Z. and N.T.; Formal Analysis — Q.Z.; Data Curation — Q.Z.; Writing — Original Draft — Q.Z.; Writing — Review & Editing — Q.Z. and N.T.; Supervision — A.A. and S.T.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D83, L25, M41, O32

Received: 27.01.2026
Revised: 04.03.2026; 25.03.2026
Accepted: 31.03.2026
Published online: 02.04.2026

How to cite this paper: Zhang, Q., Teruki, N., Alwie, A., & Taasim, S. (2026). Measuring to innovate: How managers evaluate management accounting systems and gauge innovation performance. Business Performance Review, 4(2), 8–18. https://doi.org/10.22495/bprv4i2p1