Abstract
The purpose of this paper is to investigate the degree of use of strategic management accounting (SMA) techniques and the main factors affecting this in the Czech Republic. In order to achieve such an understanding, we apply a quantitative approach, rooted in contingency theory, including descriptive statistics, correlation analysis and regression analysis. The most intensively-used SMA techniques are strategic planning and budgeting, customer accounting, and target costing. The least-used are integrated performance measurement systems, strategic pricing and activity-based costing. Our respondents indicated that they expect an increase in the use of all SMA techniques over the next 3 years. Regression analysis confirms that the implementation of differentiation strategy (as opposed to cost leadership strategy) has a statistically significant and positive influence on SMA use. The findings of this study contribute to the better theoretical understanding of the contingent factors influencing the use of SMA techniques.
Highlights
The term Strategic Management Accounting (SMA) was established by Simmonds (1981, p. 26), who defined strategic management accounting (SMA) as ‘the provision and analysis of management accounting data about a business and its competitors for use in developing and monitoring the business strategy’.Simmonds forecast the rapid diffusion of SMA in practice, but this did not happen
We provide descriptive statistics related to the degree of use of individual SMA techniques and an international comparison of results (Tables 3 and 4)
This paper contributes to the empirical literature on SMA, its main purpose being to investigate the degree of use of strategic management accounting techniques and the main contingent factors
Summary
The term Strategic Management Accounting (SMA) was established by Simmonds (1981, p. 26), who defined SMA as ‘the provision and analysis of management accounting data about a business and its competitors for use in developing and monitoring the business strategy’.Simmonds forecast the rapid diffusion of SMA in practice, but this did not happen. The term Strategic Management Accounting (SMA) was established by Simmonds 26), who defined SMA as ‘the provision and analysis of management accounting data about a business and its competitors for use in developing and monitoring the business strategy’. 229) claim that the term SMA was not accepted by practitioners and that ‘SMA literature seems to have languished’. This is rather surprising because there are several reasons why the implementation of SMA techniques is very important for company success. The deployment of SMA can contribute to general strategic management maturity (a concept discussed, among others, by Witek-Crabb, 2016) and contribute to the sustainable development of a company
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