Strategic Management Accounting System Research Articles

Factors affecting the implementation of strategic management accounting system in small and medium enterprises in the manufacturing sector in Vietnam

Factors affecting the implementation of strategic management accounting system in small and medium enterprises in the manufacturing sector in Vietnam

Classification of Costs in Strategic Management Accounting at Agricultural Enterprises

"The existing need to develop the main aspects of strategic management accounting systems in agricultural enterprises determines the relevance of the research. The goal of the research is to reveal theoretical aspects of cost classification and determination of strategic management accounting evaluation for agricultural production effective management. The subject of the research is the main theoretical, methodological, and practical provisions of agricultural production accounting and analysis. In the process of research, a set of special and general research method groups was used, namely: theoretical generalization, dialectical, grouping, analysis, abstraction, methods of cluster analysis, statistical methods, synthesis. The theoretical basis of the conducted research was the main conclusions and basic recommendations presented and substantiated by the research of scientists in the field of cost classification in strategic management accounting in agricultural enterprises. In the course of the research, it was determined that the main elements of cost classification in strategic management accounting in agricultural enterprises are costs in crop production, including pricing of products, production reporting, budget planning system, analysis, and implementation of control in the production of agricultural products. The results and substantiated conclusions contribute to the development of a theoretical and methodological basis for agricultural enterprises, information support, can be used in the development of documents that regulate issues related to the organization of accounting and analytical processes, as well as in the practice of agricultural enterprises, ministries, and departments of the republic."

THE IMPACT OF MANAGEMENT ACCOUNTING PRACTICES ON OPERATIONAL PERFORMANCE IN SMES IN THE COLOMBO DISTRICT, SRI LANKA

"The objective of this study was to address the research problem of how the effect of management accounting practices influences the operation performance of SMEs in the manufacturing sector of the Colombo district. Different SMEs use financial knowledge in varying ways, which affects the performance of the businesses. This study sheds light on the Practices of management accounting used by SMEs in the manufacturing sector and how they affect Operational success. The Management accounting practices which are discussed in the study is, costing, performance evaluation, budgeting, strategic management accounting and decision support system. The data gathered was primary data, using a convenience sampling method in cross-sectional time horizon. And the deductive research methodology and the survey method were used in the research design. The Research was conducted using demographic analysis, correlation coefficient analysis, and regression analysis. The sample was taken from the small and medium-sized, 131 manufacturing enterprises in the Colombo district. The study found, the budgeting system, performance evaluation system, and strategic management accounting system to have a statistically significant impact on operational performance. Costing systems and Decision support systems were found to be not statistically significant in regression analysis. Therefore, 3 out of 5 hypotheses were accepted. As for concluding remarks, this study’s findings recommend that using management accounting practices can enhance operational performance. Further, study suggests that budgeting, performance evaluation, and strategic management accounting be used by management to improve the operational performance of Manufacturing SMEs. The study thereby, hopes to increase the knowledge and awareness of students and professionals who are interested in this field. Additionally, this will provide insight on the management accounting techniques now employed by SME's and their level of financial literacy. Consequently, this study’s valuable information can be used by government, organizations, and experts to advance the Small Medium Enterprises of Sri Lanka."

MODERN CONCEPTS OF STRATEGIC MANAGEMENT ACCOUNTING

The article considers the possibility or impossibility of using the main modern concepts of strategic management accounting, as well as its advantages and disadvantages in the context of each business entity. The study analyzes the main modern concepts of strategic management accounting presented in the works of foreign and domestic researchers in the field of strategic management accounting. By studying the development of the theory of the strategic management accounting system, it was concluded that the effective functioning of this system can only be achieved through the integration of strategic management and management accounting. The necessity of their introduction into the practice of economic entities in our country is substantiated. It has also been scientifically proven that each company should choose the necessary model of strategic management accounting, based on factors important for achieving its goals.

Modelling the role of strategic planning, strategic management accounting information system, and psychological factors on the budgetary slack

ABSTRACT This study aims to identify the mediating role of strategic management accounting systems, autonomous budget motivation, and affective organisational commitment on the relationship between management participation in strategic planning and budgetary slack variables. It also further extends the topic to multi-layer management contingency theory via agency theory and stewardship theory. By applying structural equation modelling in a public health and medical services setting, the study concludes that the participation of all managers not only does not reduce budgetary slack, but increases it; strategic management accounting systems and affective organisational commitment act as mediating factors, though the autonomous budget motivation cannot perform such a role. Further, for higher level managers, only the strategic management accounting system shows a significant effect on budgetary slack. Evidence regarding middle managers confirms the significant effect of the mediating role of strategic management accounting systems and for operating managers, only affective organisational commitment reduces budgetary slack. Therefore, management levels posit a significant contingency effect on constructs affecting budgetary slack. By identifying the mediator variables, the study extends budgetary slack theory and provides empirical evidence for each level of public health and medical services management.

СТРАТЕГИЧЕСКИЙ УПРАВЛЕНЧЕСКИЙ УЧЕТ КАК ФУНДАМЕНТАЛЬНАЯ СИСТЕМА ПОДДЕРЖКИ ИНТЕГРИРОВАННОЙ ОТЧЕТНОСТИ

Integrated reporting is the latest development in a movement that focuses on corporate reporting on non-financial information related to an organization’s corporate citizenship along with the financial information presented in the financial statements. An integrated report should include the extent of the effects on capitals that are not owned by the organization, or externalities, such as the effect of a well-educated labor force on the productivity of a company or the impact of pollution emitted by a factory on nearby residents. Related information can be presented in integrated reports in the context of sustainable development concept and supported by strategic management accounting system. The development and implementation of integrated performance indicators for sustainable development and innovative development within the framework of strategic management accounting is of fundamental importance for implementing a strategy of sustainable development. Integrated performance indicators for evaluation the economic, social and the environmental aspects of sustainable development in the context of innovative development can be unified in a strategic integrated indicator of sustainable development using the fuzzy sets theory founded by Lotfi Zadeh.

Use Of Strategic Management Accounting by Large Manufacturing Companies in Bujumbura

The purpose of this research was to determine the types and extent to which strategic management accounting systems are used by manufacturing companies in Bujumbura. The primary goal of this research is to determine the kind and extent to which strategic management accounting systems are implemented in the manufacturing sector of Bujumbura. Primary data was gathered to attain this goal. Data was collected using a quantitative technique based on descriptive analysis. According to the findings of this study, significant companies in Bujumbura have primarily embraced strategic management accounting methodologies. Strategic planning and budgeting, as well as strategic costing, are the most commonly used strategies. Other strategic management accounting strategies, such as quality costing and customer accounting, do not appear to have been used a lot

The Effects of the Strategy and Goal on Business Performance as Mediated by Management Accounting Systems

Previous research in the literature often investigated the associations between management accounting systems and the success of organizations. However, little has been done in regard to the association of business strategies, goals, and firms’ performance while having management accounting tools as mediators. Management accounting systems are classified as traditional and strategic management accounting themes. Each theme, of course, implements different accounting tools. This article explores the degree to which, as mediated by management accounting systems, the business strategies and business goals of large Thai manufacturing companies influence their financial and non-financial performance. To gather the data, a survey questionnaire was developed. Of the 1500 companies selected for inclusion in the survey, 205 provided completed and usable responses for a response rate of 13.67%. Structural equation modeling (SEM) was used to analyze the relationships among the variables. The findings shed some light on what the management of a firm could expect concerning organizational performance from their business strategies, business goals, and the implementation of specific management accounting systems. Corporate strategies and corporate goals had a statistical influence on both the financial and non-financial performance of the large corporations in Thailand when mediated via strategic management accounting systems, while there was no influence when mediated by traditional management accounting systems. A greater understanding of the relationships and effects of which mediators should have been employed in organizations to bring forth business strategies and business goals and generate productive results for organizational performance is provided by this research. Choosing the appropriate performance mediators can help achieve corporate strategies and goals.

Testing of Strategic Management Accounting Contingency Model on SME Performance in Maluku

The sustainability of SMEs is supported by various important factors, both financial and non-financial. This study examines non-financial factors, namely the management accounting adoption model on the performance of SMEs in Maluku. The sample of this study consisted of 63 UKM units located in Ambon City, SBB Regency and Central Maluku Regency. The testing of management accounting adoption contingency models is carried out using path analysis. The result showed that management accounting adoption is a mediator of the relationship between the level of innovation and technology adoption in manufacturing activities with the performance of SMEs. However, this study has not succeeded in proving the relationship between manager characteristics and managers' perceptions of environmental uncertainty with the decision to adopt strategic management accounting by business units. These results indicate that there is a need for further introduction to the benefits of a strategic management accounting system as an important instrument in streamlining the business value chain.

РОЗВИТОК СИСТЕМИ СТРАТЕГІЧНОГО УПРАВЛІНСЬКОГО ОБЛІКУ НА ОСНОВІ ЗБАЛАНСОВАНОЇ СИСТЕМИ ПОКАЗНИКІВ

The expediency of developing strategic management accounting based on the use of a balanced scorecard has been substantiated. The purpose of the article is to identify areas of development of the strategic management accounting system based on the use of a balanced scorecard, as well as obstacles to its effective functioning. The necessity of introducing the position of a strategic management accountant in the conditions of using a balanced scorecard at enterprises has been substantiated. The main differences between a strategic management accountant and a traditional management accountant have been identified. In order to overcome the crisis in the management accounting system, it has been proposed to expand the subject area of the classical management accounting system in order to meet the needs of strategic management of the enterprise. The possibilities of the balanced scorecard to provide comprehensive control and interactive management of the strategic development of the enterprise have been analyzed. The directions for the development of strategic management accounting based on the use of a balanced scorecard have been developed (development of organizational structure for building strategic management accounting system; distinguishing between the functions of strategic management accountants and strategic managers; empirical analysis of the effectiveness of the implementation of a balanced scorecard as an accounting tool). Organizational and methodological obstacles that prevent the introduction of a balanced scorecard as a method of strategic management accounting are identified and systematized into three groups. The job functions and strategic tasks of a strategic management accountant have been formed, which will combine traditional accounting functions for the collection and processing of strategic accounting information with analytical, control and communication functions. Organizational and methodological barriers to the smooth implementation of a balanced scorecard as a method of strategic management accounting in the practice of Ukrainian enterprises have been identified and analyzed (associated with improper performance of strategic management functions; associated with improper performance of their functions by strategic accountants; related to the economic and communication problems of the functioning of a balanced scorecard as an accounting tool).

The role and place of the strategic management accounting system in the organization

The role and place of the strategic management accounting system in the organization

FORMATION OF STRATEGIC MANAGEMENT ACCOUNTING SYSTEM FOR A STARTUP ENTERPRISE

The article is devoted to the research of theoretical and methodical foundations of the functioning of the strategic man-agement accounting system and the elaboration of practical recommendations for its formation at a startup enterprise in terms of digitization. The essence of the category “strategic management accounting system” and its main characteristics are defined. Core directions of the formation of a strategic management accounting system depending on the stages of life cycle of a startup are described. Forms of reports are developed, which are recommended to be implemented at a startup enterprise in order to monitor the directions of funds’ consumption and to control the costs for innovative activity.

La contabilidad de gestión estratégica como herramienta multidisciplinar de planificación y control en la exportadora bananera Novamerc S.A.

Recibido: 1 de septiembre de 2019Aprobado: 30 de septiembre de 2019La situación económica actual del sector bananero exige buscar estrategias para obtener rentabilidad. Antiguamente, el margen de utilidad era determinado mediante el precio del producto menos costos y gastos; actualmente, se toma el margen de utilidad deseado con relación al precio del bien, es decir que depende de la gestión del administrador controlar los costos y gastos. La contabilidad de gestión estratégica va más allá de la contabilidad tradicional, raciona y proporciona información importante para la toma de decisiones. En este contexto, el presente artículo tiene por objetivo diseñar un sistema de contabilidad de gestión estratégica para la optimización de costos y gastos en la exportadora bananera Novamerc S.A. El sistema incluye herramientas de planificación y control, con miras a una gestión eficaz y eficiente de los recursos, como son el presupuesto, el modelo costeo objetivo, punto de equilibrio, entre otros.

Determinants of the Usage of Management Accounting Practices in Small and Medium Sized Enterprises Operating in Egypt-An Exploratory Study

This study aims to respond to the recent call for more research, investigating the applicability of management accounting practices (MAPs), in small and medium sized enterprises (SMEs), particularly those operating in developing economies. Accordingly, stemming from escalating importance of SMEs in the development of the Egyptian economy, this study employs a questionnaire, to collect information about the extent of usage of five MAPs (namely, cost accounting systems, budgeting systems, financial and non-financial performance evaluation tools, decision support systems, and strategic management accounting systems), by SMEs that are listed on the Nile Exchange (NILEX), and those operating in Gamasa Industrial Zone, at Dakahlia Governorate. Additionally, the study questionnaire investigates the main determinants of usage of MAPs by SMEs operating in Egypt. The study results suggest that MAPs are employed by Egyptian SMEs at varying degrees. The reliance on advanced MAPs is not as common as traditional ones. However, employing advanced MAPs by some SMEs is a good sign that there is an awareness among accountants and owners in such SMEs about the types and uses of different MAPs. On the other hand, results generated through regression analysis, indicate that the extent of usage of MAPs is significantly and positively influenced by owner/manager belief in the importance of MAPs, listing status, company size, SME industry, and employment of technology within the firm. These results lend support to the contingency theory. Accordingly, the study made a number of recommendations including increasing awareness about the advantages of using MAPs among owners of SMEs and the need to provide training to inform them about management accounting different practices and uses of each, as well as the necessity of reviewing and developing management accounting modules that are taught by Accounting professors at Egyptian universities. On the other hand, the findings of this study could be considered as a starting point for further future research, targeting a greater number of Egyptian SMEs, as well as other MENA developing economies.

Financial responsibility centers in the strategic management accounting system

Financial responsibility centers in the strategic management accounting system

The Effect of Competitive Strategy and Strategic Management Accounting System on Business Performance

본 연구의 목적은 경쟁전략, 전략적 관리회계시스템의 이용, 정보교류체계 및 경영성과의 인과관계를 파악하기 위한 것이다. 또한, 최근 조직학습에 관한 연구에서 많은 주목을 받은 TMS가 국내의 관리회계분야에서는 거의 연구가 이루어지지 않은 점을 인지하고 본 연구는 TMS가 SMA시스템의 이용과 경영성과 간의 관계에 조절효과가 있는지를 파악하고자 한다. 연구 결과, 첫째, 경쟁전략이 경영성과에 긍정적인(+) 영향을 미치는 것이 실증적으로 입증됨으로써 기업이 경쟁정략(원가우위전략 혹은 차별화전략)을 수립․실행하면 경영성과를 강화시킬 수 있다는 Porter(1980, 1985)의 주장을 뒷받침하고 있다. 둘째, 경쟁전략이 경영성과에 미치는 과정에서 SMA시스템의 이용이 어느 정도 매개역할을 하는 것으로 나타나 경쟁전략의 실행력을 높이기 위해서는 SMA시스템의 이용이 수반되어야 경영성과를 더욱 강화시킬 수 있음을 시사하고 있다. 셋째, SMA시스템의 이용과 경영성과 간의 관계에서 TMS의 조절효과가 있는 것으로 나타나, 기업들은 TMS의수준을 높일 수 있도록 지식 및 정보공유(Knowledge and Information Sharing)를 활성활 시키는 것이 중요하다는 것을 나타내고 있다.The purpose of this study is to understand the causal relationship among competitive strategy, use of Strategic Management Accounting system, Transactive Memory System, and Business Performance. In addition, TMS, which has recently received much attention in research on organizational learning, has been rarely studied in the field of management accounting in Korea. Therefore, this study wants to find out whether TMS has a moderating effect on the relationship between the use of SMA system and management performance. First, The results of this study proved that competitive strategy positively affected the business performance. Therefore, the company can strengthen the business performance by establishing and executing the competitive strategy (cost advantage strategy or differentiation strategy) which was from Porter(1980, 1985). Second, the use of the SMA system plays a mediating role in the process of competition strategy to business performance, suggesting that the use of the SMA system could help implementation of competitive strategy to enhance the business performance. Third, it appears that there is a moderating effect of TMS on the relationship between the use of SMA system and business performance, so it is significant for companies to activate Knowledge and Information Sharing to increase the level of TMS.

The Cost Drivers, Revenue Drivers, and Value Chain Analysis in Strategic Management Accounting

Strategic management accounting provides financial information and analysis regarding product markets, competitors’ costs, cost structures, and monitoring of firm strategy and competitor strategy (Bromwich, 1990). It assists the management team with better strategic decisions and organizational effectiveness by identifying, gathering, choosing and analyzing accounting data (Hoque, 2002). The role of accountants in strategic decision-making is crucial for the sustainability of corporate strategy, and accountants should consider the cost structure of both their own firm and competitors (including existing competitors and potential entrants). Moreover, instead of focusing on cost information only, accountants must adopt a holistic view of strategic information. Since many cost and other market characteristics of product attributes are intertwining, accountants need to incorporate all these characteristics into strategic management accounting consideration (Bromwich, 1990). In this paper, I empirically investigate the following two research questions. First, what are the essential dimensions of cost drivers and revenue drivers in strategic management accounting systems? Second, is the performance of strategic management accounting contingent on a balance between cost drivers and revenue drivers (including relevant costing, operating, R&D, and marketing activities) in value chain analysis?

The Accounting Assessment of Competitive Position

Concerns itself with competitive position accounting measurement, stating that it is a much more complex task, however, than devising a standard procedure for measuring competitive position. States that changes in competitive position generally build gradually, ebbing and flowing. Argues that a competitor's sales revenue is perhaps the most important of all competitive indicators and that estimation of this for firms and markets must be prime in developing a strategic management accounting system. Adds that market share provides a link between accounting performance of the single period for which the share is measured and the performance of future periods. Sums up by showing within this article that accounting representation of a firm's competitive position within an industry is possible by using quite basic accounting measurements. Goes on to say there is much development needed to refine methods of accounting for competitors, but the resulting change in the role of accountants will be immense.