Abstract
Dynamic business environments have caused intensified information in order to make decisions. Advanced management accounting techniques which have the potential for a more strategic role are used as a tool to facilitate successful organizational reforms to survive through rapid changes. This study aims to investigate relationships between strategic management accounting (SMA) information usage, environmental uncertainty (EU) and nationality of director (ND) using contingency theory. Based on Cadez and Guilding’s (2008) framework, sixteen strategic management accounting techniques were classified into five categories: costing, planning, control and performance measurement, strategic decision-making, competitor accounting and customer accounting. Questionnaires were employed for data collection from 217 manufacturing enterprises in Thailand selected by purposive sampling. The results show that managers increasingly require SMA information to calculate product and service costs, to plan control and performance measures, to evaluate competitor performance and assess individual customer profitability under environmental uncertainty situations. In addition, Thai chief executive officers trend to use SMA information for strategic decision-making and market competitions less than non-Thai ones. This study contributes to existing knowledge by enhancing our understanding of the relationships between SMA information usage, EU and ND in Thailand. Executives can effectively utilize the advantages of SMA information usage in order to gain sustainable competitive advantage.
Highlights
The global economy and business environment have rapidly changed causing an intensity of resource management within organizations
This study aims to investigate relationships between strategic management accounting (SMA) information usage, environmental uncertainty (EU) and nationality of director (ND) using contingency theory
Based on Cadez and Guilding’s (2008) framework, sixteen strategic management accounting techniques were classified into five categories: costing, planning, control and performance measurement, strategic decision-making, competitor accounting and customer accounting
Summary
The global economy and business environment have rapidly changed causing an intensity of resource management within organizations. The organizations are able to minimize cost, plan and control, make strategic decisions, assess competitors, analyze customer profitability and create value added in order to survive (Franco-Santos et al, 2012; Junidi & Warrad, 2019). The techniques demonstrate environmental (outwardlooking) and long-term orientation. They aim for reducing manufacturing cost, pronouncing customer oriented posture, adding product value through value chain analysis and focusing on continuous improvement. SMA information plays a significant role in the procedure of operation plan to increase profit sharing under high competition and business environmental uncertainty (Rowe, Birnberh, & Shields, 2008; Vongjaruandach, 2014; Taechoyotin, Supattarakul, & Phadoongsitthi, 2018)
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