Management Accounting Practices in the 4th Industrial Revolution: Potential Benefits and Challenges of Blockchain Technology
- Professor James Odia1; Anthonia Nwanneka Chinedu-Chiejine2
- DOI: 10.5281/zenodo.21820134
- ISA Journal of Business, Economics and Management (ISAJBEM)
The fourth (4th) Industrial Revolution (4IR) is
transforming the business landscape, necessitating the evolution of management
accounting practices. Blockchain technology, a key driver of the 4IR, offers
immense potential for management accounting, enabling secure, transparent,
decentralized financial transactions and data management. This is because the
traditional management accounting appears to be insufficient in providing
organization need, especially in this age. This study explores the potentials
benefits, and challenges of blockchain-enabled management accounting practices
in the 4IR era .The benefits of Blockchain-enabled management accounting
practices include enhanced transparency, integrity, security, tamper-proof, real-time
monitory efficiency, improved
decision-making and financial reporting made-easy, as well as eliminating relevance
of intermediaries. However, challenges such as scalability issues,
regulatory uncertainty, and skills gaps must be addressed to fully realize the
potentials of blockchain technology. This study contributes to the existing
literature on blockchain in management accounting, providing insights for
practitioners, researchers, and policymakers seeking to leverage the benefits
of blockchain technology in the 4IR era.
Keywords: Blockchain, Management Accounting, Tamper-proof,
Decentralized ledger.