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Technology changes and the Norwegian accounting industry: a profitability analysis perspective

Year: 2015
Type: dissertation
Abstract: This thesis analyzes the Norwegian accounting industry using the framework of strategic\nmanagement accounting. The perspective chosen is that of a strategic profitability analysis.\nFocus is placed on how the development and adoption of new technology are affecting the\nindustry, and how the industry can adapt to changes.\nThe empirical data has been collected using two case studies and a small sample of firms. The\nthesis starts with a macro- and industry analysis of factors influencing the Norwegian\naccounting industry. Second, an analysis of profitability on the basis of a sample of twenty\nfirms from across the country is conducted. Third, an analysis of the most important drivers of\nprofitability is completed. Finally, changes and challenges caused by the development and\nadoption of new technology are described. The discussion is continued further with a\nsuggestion to how the two case firms can adapt to changes caused by technology.\nThe analysis revealed that the influence from technology is strong and that profitability has\nbeen rather good. However, we might expect the larger firms to dominate the industry in the\nfuture. The small- and medium sized firms are currently the most profitable. Important drivers\nof profitability are related to scale, capacity utilization, learning and spillovers, technology,\nand interrelationships. The main challenge caused by technology is that revenue is lost due to\nautomation as tasks takes less time to complete. Firms can therefore no longer keep up with\nthe degree of invoicing they were used to. For the smaller firms, a focus strategy is suggested\nas a «solution» to the challenges. The larger firms are better off with a differentiation strategy,\nor even a low cost strategy.
Language: English
Subfield: Accounting
Open Access status: green
OpenAlex ID: W2491667806
Cites: 28
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Related to: 10