Management, accounting and philosophy: The development of management accounting at Kyocera, 1959-2013
Accounting, Auditing & Accountability Journal
ISSN: 0951-3574
Article publication date: 7 February 2014
Abstract
Purpose
The purpose of this paper is to provide an understanding of the “Kyocera approach” to business, i.e. the relationship between the Kyocera philosophy, the amoeba management system (AMS) and the associated management accounting system.
Design/methodology/approach
Utilising a variety of secondary sources, including semi-autobiographical works written by Inamori, the architect of AMS, the authors examine in detail the links between the underlying Kyocera philosophy and the management and accounting principles derived therefrom. These sources are used to examine the historical origins of these principles, their influence on both the AMS and the management accounting system, and how these have developed over time.
Findings
Both the AMS and the associated management accounting system can be shown to contain a mixture of influences, including traditional Asian/Japanese factors, but also Inamori/Kyocera-specific factors linked to Inamori's underlying philosophical approach to life and specific life experiences encountered by him. This suggests that while the Kyocera approach may be applicable more widely in Japan or Asia, outside of this context, the conflicts between Western and Asian cultures, although not necessarily insurmountable, may provide barriers leading to incomplete applications of the Kyocera approach
Originality/value
This study adds to the understanding of the interrelationship between management philosophy and management accounting practices, and the ability of individuals to determine culture within organisations. It illustrates the importance of historical research in obtaining a detailed understanding of the philosophical, cultural and religious underpinnings of current management and accounting practices.
Keywords
Acknowledgements
The authors would like to express their thanks to the following: to Elly Yoshikawa of the Kyocera Corporation for permission to reproduce material from the Kyocera web site; to Professors Ralph Adler and Toshiro Hiromoto for access to aspects of their ongoing research into Kyocera's management system and permission to reproduce quotes therefrom; to Professor Masafumi Fujino for indicating specific references; to Professor Masayoshi Noguchi for advice and guidance regarding certain sections of this paper; to the three referees of AAAJ who have helped to clarify the authors' views; and last, but not least, to Professor Lee Parker for his encouragement with regard to this paper. The authors alone, however, remain responsible for the views expressed.
Citation
Takeda, H. and Boyns, T. (2014), "Management, accounting and philosophy: The development of management accounting at Kyocera, 1959-2013", Accounting, Auditing & Accountability Journal, Vol. 27 No. 2, pp. 317-356. https://doi.org/10.1108/AAAJ-10-2013-1495
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited