Adoption Of Management Accounting Practices Research Articles

A Study of Management Accounting Practices and Financial Performance in Industrial Companies in Jordan

With advancement in technology and changing business environment, it is important to assess the effect of adoption of management accounting practices on the financial performance in companies. Hence, the purpose of the study was to assess the effect of Management Accounting Practices (MAPs) on the financial performance in industrial companies of Jordan. The study considered MAPs (costing practices, budgeting practices, decision-making practices, performance evaluation practices and strategic analysis) as the independent variables and financial performance (Return on Assets - ROA) as the dependent variable. Data collection was done through primary sources where 142 responses were collected using structured questionnaire. Multiple regression test was used to test the hypothesis which found that there is a statistically significant effect of adoption of management accounting practices on the financial performance in Jordanian industrial companies.

EXTENT OF THE ADOPTION OF MANAGEMENT ACCOUNTING PRACTICES AS TOOLS FOR DECISION MAKING IN MANUFACTURING FIRMS IN ANAMBRA STATE, NIGERIA

<p>This study determined the extent of the adoption of management accounting practices as tools for decision-making in manufacturing firms in Anambra State, Nigeria. Two research questions were answered in the study and four null hypotheses were formulated and tested at 0.05 level of significance. The study adopted a descriptive survey design. The population of the study comprised of 292 owners and managers of registered manufacturing firms with the Ministry of Commerce and Industry, Corporate Affairs Commission, Awka, Anambra State. A purposive sampling technique was used to select a sample size of 228 registered manufacturing firms in Onitsha, Nnewi and Awka. Data for this study was collected using a structured questionnaire titled Questionnaire on Adoption of Management Accounting Practices by Manufacturing Firms (QOAOMAPBMF)’ developed by the researchers based on the insight gained from the literature review and the research questions guiding the study. The reliability of the instrument was determined using the Cronbach Alpha co-efficient which yielded a reliability value of 0.95 and 0.81 respectively for the two clusters with an overall reliability value of 0.88. Descriptive statistics of mean and standard deviation were used to answer the research questions to determine the homogeneity or otherwise of the respondents’ views, while the ANOVA was used to test the null hypotheses at a 0.05 level of significance. The findings revealed that costing systems and budgeting systems are adopted as tools for decision-making by manufacturing firms in Anambra State, Nigeria to a great extent. Owners and managers do not significantly differ in their academic qualifications in this regard, but they differ significantly in their years of working experience. The researchers concluded that manufacturing firms in Anambra State, Nigeria would benefit immensely from the effective and efficient adoption of management accounting practices which will enhance and boost their decision-making so as to increase their competitive advantage in the long run. Based on the findings, it was recommended among others that the management of manufacturing firms should update themselves on management accounting practices through training and workshops organized by relevant research institutes and set a benchmark for the adoption of management accounting practices with the aim to improve the adoption of these practices.</p><p> </p><p><strong>JEL</strong>: O12; O14; O20</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0041/a.php" alt="Hit counter" /></p>

Management Accounting Practices in the Hospitality Industry: The Portuguese Background

Background: Despite the increase in tourism revenues, management in the hospitality industry faces constant challenges for profit maximization. In this way, the aim of this study is to analyze management accounting (MA) research applied to the Portuguese hospitality industry, identifying all the practices mentioned by authors studying the same theme in the rest of the world. Methods: fifty-two studies were obtained and used between 2010 and 2021 for data assessment through bibliometric review, which involved both quantitative and qualitative methods of analysis. To achieve the objectives, studies were selected according to the MA practices identified by several authors for the global hospitality industry. Results: the results highlight the importance of increasing research on MA practices in the hospitality industry to empower management and smooth out the differences between their use. Currently, the emphasis is on hotel ratios and indicators, budgeting, and benchmarking. Conclusions: The adoption of MA practices is decisive for the success of hotel companies. This study evidenced the increasing use of some hotel MA practices over the years and made it possible to assess the development of these practices in Portugal, since to date no other author has produced a bibliometric review on this topic.

A Framework of Contingencies Factors, Government Support and Management Accounting Practices in Malaysian Small and Medium-Sized Enterprises

Small and medium-sized enterprises (SMEs) are critical in developing countries, as they create significant job opportunities and contribute to global economic development. Numerous Malaysian SMEs are struggling to survive in the aftermath of the COVID-19 outbreak. As a result, the adoption of management accounting practices (MAPs) plays an important role in supporting decision making, which aids in the sustainability of SMEs' economic growth and leads to long-term performance. However, there is limited research on MAPs being used in SMEs across various industries. This paper aims to propose a conceptual framework for the factors affecting MAPs in Malaysian SMEs from a contingency theory perspective. This paper employs a qualitative approach by reviewing all pertinent literature on the subject from various databases and relating it to the current environment, which attempts to bring the entire concept of MAPs into focus based on the findings of previous research and a proposed conceptual framework that can be used for future research. This research has contributed to the literature by providing a conceptual framework for MAPs from the perspective of contingency theory, with an addition on government support, which can improve industry competitiveness, business prosperity, and long-term performance. Based on the proposed framework, further empirical study is needed to examine whether the factors that contribute significantly to the adoption of MAPs in SMEs.

The Miles and Snow Business Strategy Typology and the Adoption of Management Accounting Practices

Changes in the business environment requires that a company adopts a more adaptive strategy. A business strategy is not just about planning, but it needs to be supported with meaningful information. Management accounting complements a business strategy by providing crucial information, not just limited to cost efficiency, but customer satisfaction and quality management. However, the adoption of management accounting practices (MAPs) is believed to be influenced by strategy. Using the Miles and Snow (1978) business strategy typology model, this study examined the influence of business strategy on the adoption of MAPs, focusing on how the different types of business strategies used in organizations may influence the adoption of MAPs. Data was collected from manufacturing companies in Malaysia. The result showed that most Malaysian manufacturing companies utilized three major classifications of strategies, i.e., defender, prospector, analyzer, and only a few were classified as reactors. The result showed that the adoption level of both traditional and advanced MAPs is also high. Findings from this study indicated an influence of the defender and analyzer types towards adopting traditional MAPs, whereas the prospector type had influenced the adoption of advanced MAPs. Keywords: management accounting practices, business strategy, defender, prospector, analyzer, reactor

DETERMINANTS OF MANAGEMENT ACCOUNTING PRACTICES BY MANUFACTURING FIRMS

The impact of the management accounting practices on manufacturing firms in the developing countries cannot be overlook. Management accounting practices adopts and put to practice by these firms has always yielded result, but before management accounting practices are adopted by these firms there are factors that determine their adoption. This paper purposely looks into factors that determine the adoption of management accounting practices by manufacturing firms in Ghana. Various literatures has brought to light that that both internal and external environmental factor such firm size, market rivalry (competition), level of qualification of accounting staff and advanced production technology as the major factors that affect MAPs adoption and want to make analysis with Ghanaian manufacturing firms does these factors affect their choice of MAPs This study gathered Data from 200 manufacturing firms in Ghana through questionnaires and regression analysis were done using SPSS to determine the impact these factors have on the adoption of MAPs by these manufacturing firms in Ghana. The study identified determinants such as, firm size, market rivalry (competition), level of qualification of accounting staff and advanced production technology has a positive significant impact on the adoption of management accounting practices by manufacturing firms in Ghana. The study recommends that it is important for organizations to identify the best MAPs which can be include in the firms operations to improve performance and longevity of the organization KEYWORDS: Ghana, Management accounting practices, firm size, market rivalry (competition), qualification of accounting staff and advanced production technology

The role of multiple values in developing management accounting practices in hybrid organisations

The aim of this study is to investigate how multiple values in non-profit hybrid organisations influence the adoption of management accounting practices. The empirical analysis centres on hybrid organisations established as co-production and co-management initiatives in social care. Pragmatic constructivism, centred on the role of values, informs the empirical analysis. This research shows that management accounting practices can develop without conflicts when only some actors are interested in management and their values predominate, despite the coexistence of multiple and conflicting values. However, in this situation, where conflicts are eliminated, the validity of accounting is compromised, as it does not represent all values. The evidence of this lack of validity is clear when considering the poor development of management accounting practices and the inability to develop some relevant measures, such as outcome measures. When only some values predominate, the opportunity provided by the multiplicity of values to the development of management accounting practices is lost, and possible inefficiencies may emerge. The use of pragmatic constructivism shows that this lack of validity, determined by the non-integration of values, would be reduced by increasing the discussion among conflicting actors’ values. Findings suggest that the presence of conflicting values, that at first glance may be interpreted as an impediment, would, on the contrary, be useful to support accounting validity, when stimulating discussion. In this respect, conflicting values should work alongside communication, to include dimensions of reality.

Management control packages in family businesses: a configurational approach

This study uses survey data from top managers to explore how operational (e.g., cost types and cost center accounting) and strategically oriented (e.g., strategic and business planning) management accounting (MA) practices, diagnostic and interactive use of performance measures, and cultural controls are combined (management control package) to achieve high firm performance in family businesses (FBs). In previous research, such management control (MC) packages have received limited attention even though they offer an opportunity to reveal more information on the adoption of MA practices, use of performance measures, and MCs in FBs than analyses of individual control mechanisms. We chose a qualitative comparative analysis (QCA) because this method allows for explicitly addressing the three major challenges of configurational theory: asymmetry, conjunctional causation, and equifinality. By applying QCA, our study identifies six equifinal MC packages (i.e., different configurations of MA practices, types of use, and cultural controls with similar associations with firm performance) and, thus, provides an exploratory approach to describe more complex MA and MC designs that are empirically observable. By further analyzing these MC packages with additional information on the intensity of competition, the intensity of attention focusing, the interpretation of information by top management, and the organizational culture, this study extends the existing literature on FBs. The key finding of our analysis is that, regardless of their business environment, successful FBs place a very strong emphasis on cultural controls and/or have a high degree of interactive use of performance measures to steer their business.

The integration of Management Accounting Practices as an innovative strategy towards sustaining small businesses operating in eThekwini metropolitan, South Africa

The adoption of Management Accounting Practices (MAPs) has been acclaimed for providing positive administrative and strategic influence on large organizations, and are understood to play an integral part in decision-making. However, SMEs are operating in a turbulent environment, they are now challenged to effectively utilize the embedded MAPs to strengthen their strategic business approaches to maintain their sustainability and survival. Therefore, this study seeks to explore the challenges of integrating the adopted MAPs as an innovative strategy towards sustaining small businesses. The research sample consisted of 120 manufacturing SMEs operating in eThekwini metropolitan South Africa. A nonprobability convenience sampling technique and a quantitative questionnaire were utilized to identify and collect the data from the sampled population. The results of the study indicated that amongst other critical factors, lack of education and training of owner/manager and shortage of skills were the contributory factors influencing the integration of MAPs as an innovative strategy towards SMEs’ sustainability. The study results further revealed that there are a variety of other challenges hindering SMEs from utilizing MAPs as an innovative strategic tool and those were the enterprise age and years in operation, lack of government business incubation and technology adoption. These contributory factors were identified as necessary aspects that SMEs needed to align and iron out before integrating MAPs as an innovative strategic tool.

Impact of Management Accounting on Decision Making: A Zimbabwean Perspective

The aim of the study was to assess the impact of management accounting practices on the decision-making process of the entity operating within the manufacturing sector using a case of Capadvise Foods and Logistics (Pvt) Ltd. The research study was based on the period from 2014 to 2017 which was majorly characterised by huge amounts of losses. Capadvise Foods experienced huge amounts of losses in spite of the existence of management accounting practices. This encouraged the researchers to seek out an in-depth insight on the impact of management accounting on decision making in light of such losses which were continually experienced. The researchers made use of questionnaires and interviews to collect qualitative and quantitative data about the opinions and attitudes of employees and management at Capadvise Foods regarding management accounting tools. The researchers found that management accounting tools contributed positively to the organisational decision making through provision, interpretation and analysis of data, enhancement in communication, relevant cost analysis and creation of budgets and forecasting. However, the researchers found that management accounting practices were compromised by technological advancement, organisational strategy, organisational factors and intensity of market competition. After analysing the results attained the researchers recommended for Capadvise Foods which include enrolling qualified management accounting staff, decision makers are allowed to make use of internal reports generated by management accountants and adoption of management accounting practices in order to allow proper and accurate decision making to take place.

The Adoption of Management Accounting Practices (Maps) in Small and Medium Enterprises (SME's) of Pakistan

The practices of Management Accounting have not been highly adopted in developing countries. But with increased importance of these practices, firms of developing countries are motivated to adopt MAPs. In this research, MAPs align with increased importance of SMEs have been studied and provide understanding to enhance adoption of MAPs in SMEs. This study outlines the usage of MAPs in Pakistani SMEs; identify the contextual factors that affect the adoption of MAPs by SMEs and lastly explore perceived benefits and problems in adoption of these practices.  A mixed methodology was used to collect data. A questionnaire with five categories of MAPs was used to examine the extent of use of MAPs by 100 SMEs of Multan from textile sector. Eight interviews were conducted to identify the factors, benefits and problems. However, the results shows that majority of respondent firms adopt traditional MAPs and other medium sized firms do more focus on contemporary MAPs. The findings of current study can be helpful and informative for practitioners and policy makers in the development of contemporary MAPs as well as provide deep insight for SMEs to enhance their business by adopting these practices.

An Evaluation of the Adoption of Management Accounting Practices (MAPs) by Small and Medium Enterprises (SMEs) in Zimbabwe and Their Impact on Firm Performance: A Case of Lupane SMEs

An Evaluation of the Adoption of Management Accounting Practices (MAPs) by Small and Medium Enterprises (SMEs) in Zimbabwe and Their Impact on Firm Performance: A Case of Lupane SMEs

Factors Affecting The Use of Management Accounting Practices in Small and Medium Enterprises: Evidence from Indonesia

Small and medium sized enterprises (SMEs) contribute to the development of both developed and developing countries economy. Nevertheless, the focus of the studies in management accounting field is still in the developed countries. Studies on the adoption of management accounting practices (MAPs) in developing countries are still too little. This study explores the level of adoption of MAPs in SMEs sector in one of the developing countries in Indonesia. This study also examines factors which may affect the extent of use of MAPs in SMEs. Logistic regression is applied to analyze the data and to test the hypotheses. It is observed that qualification of internal accounting staffs, participation of owner/manager, and size of the firm significantly affect the use of MAPs in SMEs. The paper serves as a stepping stone to the research in the fields of management accounting and organizational design in Indonesian SMEs.

Exploring Management Accounting Practices in Emerging Telecommunication Market in Ghana

The ever-increasing importance of telecommunication companies in Ghana coupled with global and domestic competitions, increasing cost and decreasing profitability was the impetus for this study. This research examines the application of a broad range of management accounting practices used by telecommunication companies in Ghana. It sought to establish the extent of use and reasons for the adoption of Management Accounting Practices (MAPs) in Ghana mobile telecom industry (GMTI). This study was a cross-sectional survey that yielded 37 useable questionnaire from respondents with varied professions in accounting and finance in MTN Ghana, a leading telecommunication company in Ghana. The findings show that the most used category of MAPs is strategic analysis practices, which has a higher relative usage rate than reported in previous research. Again, MTN Ghana uses more of traditional budgeting techniques, and relies more on financial measures than for non-financial measures. The use of costing systems by MTN Ghana is quite low, prevalent among them are departmental overhead rate and Activity-based Costing. Overall, this study provides valuable understandings into the nature of MAPs applied by telecommunication companies in emerging markets in developing countries.

The Adoption of Management Accounting Practices in Malaysian Small and Medium-Sized Enterprises

This paper provides empirical evidence on the adoption of a broad range of management accounting practices in Malaysian small and medium-sized enterprises (SMEs) in the manufacturing sector. Data collected from a postal survey of 160 accountant managers are used to facilitate the study. The results indicate that the traditional MAPs such as conventional budgeting, traditional costing and financial performance measures are widely used by the respondents. The results also show that a significant number of respondents have adopted one or more measures both financial and non-financial but the reliance on financial measures is greater than for non-financial measures. The main non-financial measures frequently used by respondents are on-time delivery, number of customer complaints, defect rate and manufacturing lead time. These findings suggest that respondents, who use non-financial performance measures, are more internal-process and customer focused rather than employee focused. Further the recently developed management accounting techniques such as ABC, non-financial performance measures particularly on employees-oriented measures, decision support analysis and strategic management accounting are only adopted by the minority of the respondents. The respondents also indicated a low extent of use of all investment appraisal techniques in their decision making process. The finding suggests that given the relatively small size of the responding firms and due to some constraints, it is unlikely for the SMEs to adopt a comprehensive MAP in their firms.

An Exploratory Study on Factors Influencing the Adoption of Management Accounting Practices in Developing Countries: Evidence from Jordan

The research aims to provide a view of the present role of management accounting, to identify the extent of usage of management accounting practices (MAPs), to determine the sophistication level of MAPs by employing International Federation of Accountants model (IFAC) in the Jordanian financial sector, finally to investigate the effect of the contingent variables upon both the extent of usage and the sophistication level of MAPs. To attain these objectives, the research used a questionnaire method; 64 valid questionnaires were returned, giving a 67.3% response rate. Several statistical analyses were used to analyse the responses, namely, descriptive analysis, bivariate correlation analysis (Kendall`s tau test and Kruskal-Wallis test), and multivariate statistical tests. The research reveals that traditional practices are still widespread and highly used, rarely using the more sophisticated or advanced practices, and that there is a diversity of practices used in the financial sector context. In addition, the research reveals that the age of the company, net sale growth, number of employees, sophistication of operations, professional certificates, life cycle stages, and business type have a significant impact on the extent of usage of MAPs. Finally, it reveals that the age of the company, sophistication of operations, attendance of training courses, professional certificates, life cycle stages, and business type are the main contingency variables that influence the sophistication level of MAPs. The research provides a broad overview of MAPs in the Jordanian financial sector, indicates is a lack of using MAPs in the developing countries. In addition, the research informs practitioners of the main variables that influence the usage and sophistication level of MAPs and of those variables that need to be taken into account when planning the adoption or development of management accounting systems.

An Exploratory Study on Factors Influencing the Adoption of Management Accounting Practices in Developing Countries: Evidence from Jordan

An Exploratory Study on Factors Influencing the Adoption of Management Accounting Practices in Developing Countries: Evidence from Jordan

An exploratory study on the environmental factors influencing the adoption of MAPs in Chinese SOEs and JVs

PurposeThe purpose of this study is to analyze the environmental factors (either internal or external) that influence the adoption of management accounting practices (MAPs) in Chinese state ‐owned enterprises (SOEs) and foreign joint ventures (JVs) located in China.Design/methodology/approachA cross‐sectional survey and comparative study based on questionnaires from SOEs and JVs respondents.FindingsThe study finds a significant difference in the adoption levels of MAPs according to the ownership type of the enterprise (JVs and SOEs). This study provides some support for the findings from previous researches. It confirms that Chinese enterprises participating in foreign‐partnered JVs have made more changes to their management accounting systems when compared to similar Chinese enterprises that had no collaborative venture operation with foreign firms. This paper has also presented a detailed historic background and an in‐depth discussion to explore some environmental factors influencing the adoption of MAPs in SOEs and JVs and explain possible reasons.Originality/valueThis study is thought as one of the first attempts to systematically investigate of the benefits derived from traditional and contemporary practices of management accounting used in Chinese SOEs and JVs.

An analysis of the adoption, perceived benefits, and expected future emphasis of western management accounting practices in Chinese SOEs and JVs

This paper considers the adoption, perceived benefits, and expected future emphasis of western management accounting practices in the Chinese emerging market economy based on a sample of 64 joint ventures (JVs) and 115 State Owned Enterprises (SOE) gathered from a questionnaire survey. The study finds that the level of adoption of management accounting practices is most influenced by ownership type of the enterprise (JV or SOE) and to a lesser extent by the nature of the management accounting techniques to be adopted. A further significant finding is that management accounting practices such as budgeting for controlling costs, profit and sales budgeting, and target costing are perceived to be more beneficial for SOEs compared to JVs. However, responsibility accounting which is traditionally associated with SOEs and accounting for decision making is perceived to be less beneficial to SOEs compared with JVs.

Bundling and diffusion of management accounting innovations—the case of the balanced scorecard in Sweden

Most changes in accounting are the direct or indirect consequences of diffusion processes. A study of how management accounting innovations are being adjusted and bundled together with other ideas to facilitate entry into new markets may help us to a better understanding of the popularity and adoption of management accounting practices. The present study looks at the communication, diffusion and transformation of the balanced scorecard (BSC) in Sweden from a supply side perspective. The high interpretative viability [Benders and van Veen, 2001. What's in a Fashion? Interpretative viability and management fashions. Organization 8 (1), 33–53] of the BSC allows for different interpretations and uses of the concept that could potentially increase the supply side effect in the diffusion process, e.g. by including elements that reduce barriers and resistance to change. We have identified three elements that the propagators of the BSC include in their Swedish BSC package, in order to make the innovation more attractive to a potential Swedish adopter market.