The significance of strategic management accounting on the performance of transport businesses in Nigeria

Adetayo Olaniyi Adeniran,Oluwabukunmi Eunice Obembe

doi:10.9770/ird.2020.2.3(5)

Abstract

The study provided that strategic management accounting is related to the provisions and use of accounting information by people in the organization such as the management and the managers, to make business decisions that would enhance competitive advantage and effective control of the firm's activity. The major purpose of this study is to investigate the significance of the strategic role of strategic management accounting in realizing the better performance of transport businesses in Nigeria. The study generated data from 230 transport businesses in Nigeria through a cross-sectional questionnaire survey approach using drop and pick means of data distribution. The findings revealed that factors such as information, people, and government policy are significant factors impacting the performance of the transport business. Hence, it was suggested that the factors are essential in realizing the performance of transport businesses. Also, the findings reveal that technology has a significant effect on the performance of transport businesses, and revealed the relationship between strategic management accounting and business performance. It is pertinent to note that this study would be of advantage to all transport business owners and researchers as it would give a plausible guideline for taking vibrant decisions concerning business performance, and will be a basis for future research. Based on the findings, it is therefore concluded that information, people, government policy, and technology are the significant factors necessary to induce the efficient performance of the transport business in Nigeria.

Highlights

The strategic management accounting concept is not new in most fields like accounting, marketing management, business management, etc
This study examines the significance of strategic management accounting on the performance of the transport business in Nigeria
To determine the nature of the transport business, the following are surveyed: 9.57 percent are into warehousing, 24.35 percent are into spare parts dealing, 31.3 percent are into tyre dealing, and vulcanizing, 15.65 percent are into vehicle maintenance and repairs, and 19.13 percent are bus operators

Summary

Introduction

The strategic management accounting concept is not new in most fields like accounting, marketing management, business management, etc. It has come across many fields of human endeavor. Strategic management accounting according to France (2006); Uyar (2010) is the provision and usage of accounting information by people in the organization such as the management and the managers, to make business decisions that would enhance competitive advantage and effectively control the firm's performances. The role of strategic management accounting cannot be underestimated (Uyar, 2010; Senan, 2018; Vegera et al, 2018; Wakuła, 2020)

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