The effect of leadership style on the information receivers' reaction to management accounting change

Although we know that the use of accounting information and the leadership styles of managers are related, only little is known about how the leadership styles of managers affect the information receivers' reaction to management accounting change. Therefore, using a case study of a company that owns ten car dealerships, this paper explores how the leadership styles of managers can affect the use of newly introduced management accounting information. In the case, new senior management introduced new accounting information to facilitate their leadership style. Interestingly, the individual car dealerships differed in the extent to which they used the new information and also in the history of their senior management's leadership style. Different leadership styles appeal to different work-related needs of employees and the paper explains (1) how the change affected the satisfaction of these needs: (2) how this resulted in support for or resistance to the change and (3) how this resistance was overcome. (C) 2010 Elsevier Ltd. All rights reserved.