Strategic Management Accounting Research Articles

Exploring the impact of environmental uncertainty and strategic management accounting on competitive advantage and performance: Empirical insights from SMEs in Indonesia

Small and medium-sized businesses (SMEs) in Indonesia have suffered significantly because of the COVID-19 pandemic that led to unpredictability of operational performance. Hence, SMEs must formulate the right strategies and innovative techniques to be able to hurdle the challenges. In this study, the numerous factors influencing SMEs’ performance are evaluated to determine their impact on internal business procedures. Performance, environmental uncertainty, the use of strategic management accounting, and competitive advantage with a focus on product differentiation are the variables examined. This study employs a quantitative methodology and questionnaire-based data collection approaches. Furthermore, structural equation modelling is used to process the gathered data. According to the data collected from 167 respondents across 67 firms, environmental uncertainty has a negative impact on business performance, but has no effect on the usage of strategic management accounting. While having a positive impact on the competitive advantage that focuses on product differentiation, the use of strategic management accounting has no impact on performance. Furthermore, performance is positively impacted by a competitive advantage that emphasizes product differentiation. The results of this research contribute to the development of accounting science, especially management accounting. Meanwhile, the practical contribution for SMEs is in terms of increasing their competitive advantages.

Effects of Knowledge Management Processes by Strategic Management Accounting on Organizational Ambidexterity: Mediation of Operational Processes Under Environmental Dynamism

Effects of Knowledge Management Processes by Strategic Management Accounting on Organizational Ambidexterity: Mediation of Operational Processes Under Environmental Dynamism

A Systematic Literature Review of Accounting Information Systems Implementation Success Factors

This study aims to investigate the influence of factors related to Accounting Information Systems (AIS) on the level of innovation in organizations. The factors analyzed include the characteristics of the Accounting Information System (AIS) for innovation, resource allocation and integrated reporting, the quality of the Accounting Information System, and the role of Strategic Management Accounting. Data was collected through surveys and analyzed using a systematic literature review method approach. The research results show that AIS characteristics that support innovation, appropriate resource allocation, AIS quality, and the role of Strategic Management Accounting have a significant positive impact on the level of innovation in the organization. These findings emphasize the importance of using an Accounting Information System that supports innovation in improving the innovative performance of an organization.

The Impact of Green Strategic Management Accounting in Rationalizing Green Decisions for Economic Units Evidence from Iraq

The Impact of Green Strategic Management Accounting in Rationalizing Green Decisions for Economic Units Evidence from Iraq

Sustainability and strategic management accounting: evidence of green manufacturing in Thailand

Sustainability and strategic management accounting: evidence of green manufacturing in Thailand

The Effect of Strategic Management Accounting Practices on Firm Performance in Jordan, the Mediating Role of Supply Chain Management Practices

The Effect of Strategic Management Accounting Practices on Firm Performance in Jordan, the Mediating Role of Supply Chain Management Practices

СТРАТЕГІЧНИЙ УПРАВЛІНСЬКИЙ ОБЛІК В СИСТЕМІ ПРИЙНЯТТЯ ЕФЕКТИВНИХ УПРАВЛІНСЬКИХ РІШЕНЬ НА ПІДПРИЄМСТВІ

The article examines the specifics of the role of strategic management accounting in the process of making effective management decisions at the enterprise in modern conditions. The mechanism of the use of the tools of strategic management accounting by enterprises to ensure the achievement of competitive advantages in the market, as well as to increase the productivity of the management system, is considered. The relationship between strategic management accounting and the process of management decision-making is studied, taking into account that an effective strategic accounting system can become a key factor for successful business development. The main aspects of strategic management accounting are studied, including the definition of strategic goals, the collection and analysis of information, the development of key performance indicators and the identification of strategic alternatives. The influence of modern information technologies on the development of strategic management accounting and the possibilities of their implementation in practice are considered. It was determined that the use of strategic management accounting can provide enterprises with a systematic improvement in the quality of management decisions, reduce risks and increase the efficiency of business processes. The importance of strategic management accounting for ensuring the successful functioning of modern enterprises has been proved, and recommendations for improving this process have been formed. The key aspects of the internal and external environment that affect strategic management accounting are considered, including such factors as changes in legislation, the competitive situation on the market, changes in consumer demands, new technological trends, as well as the mechanism of their influence on the decision-making process and accounting. It was determined that strategic management accounting is a relevant tool for business entities in modern conditions of uncertainty and dynamic changes in the business environment, as it enables enterprises to be flexible and respond to changes in a timely manner, while creating conditions for achieving defined strategic goals. The importance of implementing strategic management accounting in modern business as a key factor in making effective management decisions in order to ensure the sustainable development of enterprises in dynamic conditions of market competition and uncertainty is proven.

The influence of organisational learning capability on the organisational use of SMA practices: The mediating role of employee creativity and empowerment

AbstractThis study extends the strategic management accounting (SMA) and organisational learning literature by examining the role of organisational learning capability in facilitating the organisational use of SMA practices. Further, we consider the role of two employee behavioural factors – employee empowerment of SMA practices and employee creativity – in mediating this relationship. Data was collected from 332 accountants in Australian business organisations using an online survey questionnaire, with structural equation modelling applied to analyse the data. The findings highlight the direct and indirect (through employee empowerment of SMA practices and employee creativity) influence that organisational learning capability has on the organisational use of SMA practices.

Influential factors on strategic management accounting application and its influence on the business: Empirical evidence from a developing market

The successful application of strategic management accounting (SMA) and its influence on business in a developing market are contingent on various factors. Oyewo (2022) emphasizes the impact of contextual factors such as organizational structure, information technology (IT) quality, business strategy, market orientation, competition, and environmental uncertainty on the usage intensity of SMA and its influence on competitive advantage. This study investigates the drivers behind adopting SMA and its consequential effects on the performance of listed Vietnamese firms. The research employed a mixed-methods approach, integrating qualitative and quantitative methodologies to delineate research models, formulate hypotheses, assess the determinants influencing SMA implementation, and evaluate the impact of SMA application on corporate performance. The authors employed the partial least squares structural equation modeling (PLS-SEM) framework to analyse data from 147 listed companies in Vietnam. The outcomes reveal that variables such as the utilisation of information technology in business operations, participative decision-making, accountant qualifications, perceived environmental uncertainty, and strategic orientation positively influence SMA implementation, subsequently yielding positive effects on the performance of listed companies in Vietnam. This research contributes valuable insights into the factors shaping SMA adoption in Vietnamese enterprises, enriching practical managerial knowledge and theoretical perspectives.

The Power of Strategic Management Accounting for Enhancing Performance Efficiency of the Food Industry

The Power of Strategic Management Accounting for Enhancing Performance Efficiency of the Food Industry

Big Data in strategic management accounting

The importance of the influence of Industry 4.0 and the digitalization of the economy on the development of the accounting system in modern conditions has been grounded. The role of Big Data in solving key accounting problems and increasing the relevance of accounting information has been grounded. The reasons for the relevance of using Big Data in management accounting have been analyzed. The problems caused by using Big Data in management accounting have been identified and analyzed. The need to develop management accountants’ abilities and skills in data processing and presentation using Big Data tools has been grounded. The role of big data in ensuring the digital transformation of the enterprise’s strategic management system has been analyzed. Directions for using Big Data in strategic management accounting have been identified and described (innovative development of the system; improvement of strategic control; improvement of particular accounting methods; improvement of accounting methodology; change in the role of strategic management accountants).

STRATEGIC MANAGEMENT ACCOUNTING INFORMATION, SERVICE QUALITY, AND KNOWLEDGE MANAGEMENT TO COMPANY PERFORMANCE: A LITERATURE REVIEW

The objective of this study is to investigate the influence of Strategic Management Accounting Information, service quality, and Knowledge Management on institutional performance. Through the utilization of a literature review methodology, this research examines the SINTA and Scopus databases, which are valuable sources of Indonesian scholarly publications spanning the last ten years. By systematically organizing the findings, methodologies, and concepts in a chronological manner, this literature review offers a comprehensive overview of the research progress regarding the interplay between strategic management accounting, service quality, knowledge management, and performance. The effective integration of strategic management accounting plays a crucial role in optimizing strategic decision-making, managing resources, and enhancing the quality of healthcare services. Additionally, a focus on service quality variables such as patient safety and operational efficiency creates an environment that supports operational growth and establishes a strong reputation. The synergy among these elements is expected to make a significant contribution to the competitive landscape and the overall advancement of the institution in the future.

أثر المحاسبة الإدارية التنافسية على اتخاذ قرارات الأعمال الاستراتيجية

With the increasing complexity of business transactions, and increasing business risk, the role of competitive management accounting is becoming increasingly important, especially in making strategic business decisions. As a part of strategic management accounting, competitive management accounting positions the company to a place which has the best view of the existing and potential competitor activity, by creating a strong information base on competition, all to create added value and improve the company operations. This paper aims to highlight the importance of competitive management accounting in strategic decision-making, and based on case studies in the world and empirical research conducted in Iraq, to highlight the importance of competitive management accounting in the world and to answer the question of whether the companies in Jordon use the information from competitive management accounting in the process of decision-making?

Management accounting system as mediator on sustainability performance

This paper aims to investigate the factors of competitive success and examine the relationship between Strategic Management Accounting, management accounting information systems and sustainability performance. This research was conducted with a quantitative approach. The survey involved 125 managers of 4- and 5-star hotels in Bali, Indonesia, a research sample of 154 managers was determined to be given a research questionnaire. Analysis of research data was carried out through Structural Equation Modeling. The results showed that strategic management accounting and Information Management Accounting System had a positive effect on sustainability performance. MAS information also mediates the relationship between strategic management accounting and sustainability performance which can involve a variety of factors. This study only focuses on competitive strategy and MAS information variables, so further research is needed on the sustainability performance of the hospitality industry. The positive relationship between strategic management accounting and social and environmental performance supports the argument that hotels use socio-environmental aspects for their strategic management accounting. Hotel managers also need government regulations and information related to social and environmental issues such as the Indonesian occupational health and safety management system and the Indonesia Green Hotel Award.

Sustainable performance management in the EU SME sector. A review and analysis of concepts and methods of strategic management accounting

Purpose: The paper’s main objective is to structure the knowledge of the existing regulatory frameworks, projects and actions that support sustainable performance management (SPM) in small and medium-sized enterprises (SMEs) against the backdrop of the growing significance of the circular economy. The paper will also evidence how strategic management accounting (SMA) assists this process, what individual metrics, dashboards or scorecard concepts have been proposed and how their use may be assessed. Methodology/approach: The research methods include (1) a descriptive systematic analysis of the policies established by the policymakers and regulators in the EU, (2) a comparative analysis of various organisations’ initiatives, actions, delivered toolkits and their outputs, and (3) a literature review of the essential works and research studies on sustainable business models (SBMs), circular business models (CBMs) and SPM in the context of SMEs. Findings: The policies established in the EU support SPM by encouraging SMEs to be involved in sustainable business practices and indicating how to embark on a green transition. Recently, multiple initiatives have been aimed at indicating the opportunities the closed-loop economy system offers SMEs. Many toolkits have also been developed to help SMEs measure their sustainable performance. Although this measurement is vital for SMEs, the business practice falls behind the regulatory framework. Therefore, internal initiatives from the SME sector are needed to popularise the sustainability concept. Research limitations/implications: SMEs show lower levels of compliance with environmental requirements and are unaware of how their activities affect the environment. A limitation of the research is that, in many cases, SMEs are not ready to respond properly to the ESG requirements imposed by regulators. The reason may be a lack of knowledge, experience and limited funds. Therefore, future research should focus on recognizing the gaps in this area and identifying what may be impeding the development of sustainability performance management in SMEs. Originality/value: The work presents the evolution path from the traditional business models (TBMs) through the SBMs to innovative CBMs and addresses their distinctive features. It contributes to the existing knowledge about SMA in SMEs by analysing its links with SPM.

Challenges of Implementing Strategic Management Accounting and Innovative Culture

Strategic management accounting (SMA) is important for every organization to achieve its strategic goals. This is because SMA can provide significant added value by providing the relevant information that modern organizations need to successfully achieve competitive advantage. The aim of this study is to investigate the application of SMA techniques in building a culture of innovation in creative industry companies in Garut district. This research contributes to knowledge that can provide an overview of the challenges in implementing strategic management accounting in adopting strategic management accounting innovations holistically. This research uses a qualitative approach. The informants in this research were 5 company managers and strategic management experts as sources person. The research results show that companies are faced with several challenges, such as managers being required to understand accounting and the ability of managers to make strategic decisions by paying attention to environmental changes that occur. The stages of SMA techniques to achieve a culture of innovation are by carrying out strategic benchmarking and performance benchmarking, competitive position monitoring, performance measurement system, competitor cost estimation and pricing strategy. By implementing SMA Techniques, this really helps the Company in improving its culture of innovation. By studying environmental changes, which are fully oriented towards meeting customer expectations, this has an impact on the team's work culture becoming more innovative.

Accounting Network Disclosures, Market Competition, and the Implementation of Strategic Management Accounting Technique

Strategic Management Accounting (SMA) assists companies in expressing strategic goals and identifying strategies owned by competitors. This study aims to determine whether accounting networking and market competition affect strategic management accounting techniques. This study used a purposive sampling method with 25 samples of the subsector of metal and food and beverage companies in the 2016-2021 observation period. The dependent variable uses the disclosure of thirteen strategic management accounting techniques in the annual report. The market competition variable is measured by market share and the accounting networking, which is measured by the number of board of directors’ companies that have attended training or seminars related to high school technical development. The result found that accounting networking and market competition did not affect the number of strategic management accounting techniques used in the sample companies. These results indicate that even though executives know the benefits of various strategic management accounting techniques, implementing them in companies takes work. This result also discovered that the sample companies used more strategic management accounting techniques that helped increase company efficiency.

Impact of Strategic Management Accounting Practices on Financial Performance of Nepalese Manufacturing Firms

This study was carried out to examine the relationship between financial performance and the application of management accounting practices in the Nepalese manufacturing firms. The study adopted the survey research design. The population of the study consists of all listed manufacturing companies under Nepal stock exchange. The study used simple random sampling. Four manufacturing firms were randomly selected for the study. Data for the study were obtained through the administration of a self-designed questionnaire to managers or accountants of the sampled firms through mail survey. Regression and t-test were used to test the hypotheses postulated for the study. The study showed that application of management accounting tools has a positive relationship with financial performance of companies’ survey. The study also found a significant difference in effectiveness of decision making between application of management accounting tools and traditional management accounting techniques and concludes that implementation of strategic management accounting practice is necessary to enhance organizational performance of the firm. The study therefore recommends that manufacturing companies, especially the ones listed and still tradable under NEPSE, put in place appropriate measures to apply modern management accounting tools called strategic management accounting practices to ensure efficient and realistic decision-making process that will enhance financial performance.

RISK-ORIENTED STRATEGIC MANAGEMENT ACCOUNTING IN UKRAINE

In order to survive, Ukrainian enterprises in the conditions of war must look for new ways of effective management, a higher degree of integration of risk management and strategic management. Management accounting helps make risk-based decisions to achieve strategic goals. The expert survey method made it possible to identify the most significant risks for enterprises in Ukraine in war conditions: the risk of increased costs, reduced income, the risk of inability to repay obligations, loss of customers, non-payment of receivables, loss of asset value, risk of unprofitability, reduction of business and bankruptcy. The strategic management accounting risk matrix shows the probability and potential impact of each risk on accounting data. A strategic plan and measurement of the effectiveness of risk-oriented strategic management accounting was developed. It shows the relationship of accounting objects, the financial statements of the enterprise, with analytical indicators for assessing the financial condition and the impact of risks under pessimistic, optimistic and optimal scenarios. In practice, it helps to identify risks, determine their impact on enterprise performance indicators, model indicators, assess their compliance with strategic goals, adapt in a timely manner, and make effective management decisions.

Functional Expansion and Developmental Scenarios of Management Accounting Based on Data Analytics Modelling

Abstract This paper explores the theory and practice characteristics of management accounting, expands upon the function of management accounting, and outlines the business process of strategic management accounting. Then, it constructs the functional effect analysis model of management accounting, establishes the causality analysis model of the structural equation, explores the markov property of the equation, and uses multiple linear regression equations to estimate the regression parameters. Finally, it analyzes the correlation between the overall level of strategic management accounting, the application level of management accounting, and the horizontal integration level of management accounting and enterprise performance. According to regression analysis, the three dimensions have a significant positive correlation with enterprise performance at the 1% level. The structural equation analysis indicates that the path coefficient of management accounting on performance is 0.388, which is significant at a 1% level. The application of management accounting can have a positive impact on the performance level of enterprises, as shown. This research promotes the innovative practice of management accounting and is of great significance for the high-quality development of enterprises.