ABSTRACT

Planning is a tool designed to assist managers in decision making and control. It is regarded as one of the basic managerial tasks that contribute to the success of a fi rm (Drucker 1973; Schwenk and Shrader 1993). Planning is not only important for large fi rms, it is essential for small fi rms as well. Both practitioners and academics are interested in determining the appropriate design of planning systems in order to enable a fi rm to achieve sustainable growth and/or successful performance. The appropriate design of planning systems has been studied in the academic literature through different theoretical lenses. Among those lenses, contingency theory is the most widely adopted theoretical framework. This theoretical paradigm assumes that management accounting systems (MAS), including planning systems, are adopted to assist managers in achieving some desired organizational outcome and that the appropriate design is infl uenced by the context in which the fi rm operates.