Factors impacting strategic management accounting adoption: Empirical evidence from an emerging market

Abstract

Strategic management accounting (SMA) is an advanced management tool that provides valuable information to aid managers in making strategic decisions for both long-term and short-term choices. Many factors motivated managers to adopt strategic management accounting (SMA) practices in their enterprises. Furthermore, strategic management accounting (SMA) techniques also consider external stakeholders such as customers, suppliers and regulators. Therefore, there may be various aspects of the external working environment that impact SMA implementations. On the other hand, strategic management accounting (SMA) also helps managers manage costs and resources effectively. Other internal factors such as managers’ perceptions about SMA, the knowledge of accountants and technologies also significantly impact the adoption of SMA techniques. The study’s main objective is to investigate the factors that affect SMA implementation in Vietnamese enterprises. Purposive techniques are used in the study’s explorative quantitative survey approach and data collection. Data from 305 Vietnamese enterprises are included in the sample. The findings demonstrate that the adoption of SMA practices is positively associated with four factors including top management teams, corporate culture, perceived environmental uncertainty and management networking.