Abstract:
This paper explores the emergence of Total Quality Management (TQM), its continuation as
well as the management accounting implications in a leading solid tyre manufacturing firm in
Sri Lanka, where TQM has been practiced for over fifteen years. The paper adopts the
qualitative methodology and case study approach, while the rational-choice perspective and
new institutional sociology have been utilized as the theoretical lens. Our findings suggests that
both institutional as well as technical efficiency reasons have influenced the implementation of
TQM, and that the management accounting system of the firm has been changed to keep up
with the TQM system. How management accounting systems get implicated in a TQM
environment, although important has received limited research interest; thus this research is a
useful addition to the existing literature. This paper also has theoretical merits; it depicts how
coming together of a rational-choice perspective and new institutional sociology provides a
better understanding on internal and external reasons for implementing management tools
(such as TQM). Using a TQM example, our paper provides learning points to practicing
managers on how management accounting systems could be shaped to facilitate
implementation of management tools.
