Management accounting change and the rise of Vespa (1884-1965)

This paper focuses on the manner in which, over time, the architecture of a company’s management control systems can be affected by the interplay of several external and internal forces. As its object of enquiry, the Italian manufacturer Piaggio provides us with a glimpse of management accounting techniques across almost a century against a background of economic instability and political and social tensions in the country. The conditioning influences of contextual factors and their interplay with Piaggio's costing concerns are examined. The study suggests that change in accounting was dependant on a complex set of relationships and preconditions and that the specificity of the company's accounting controls was tied to both the interplay of internal and external forces, For instance changes in the production motivated by war requirements, the rise of the fascism and protectionism, changes in the strategy, low market competition, investment on innovation, low wages and strikes by the workforce. The findings highlight that the developments and changes that occurred were carried out in order to enable the business to survive, to change and to respond to specific managerial, behavioural and organizational needs.