Association between strategic management accounting facets and organizational performance

2019 ◽  
Vol 14 (2) ◽  
pp. 212-234 ◽  
Author(s):  
Ahmad Mohammed Alamri
Keyword(s):  
Strategic Management ◽  
Financial Performance ◽  
Organizational Performance ◽  
Organizational Context ◽  
Stock Exchange ◽  
Management Accounting ◽  
Data Set ◽  
Content Type ◽  
Strategic Management Accounting ◽  
The Impact

Purpose The purpose of this paper is to develop an extensive conceptualization of strategic management accounting (SMA) facets, as well as to explore the impact of these facets on both financial and non-financial measures of organizational performance (OP). Design/methodology/approach Data are collected from 435 accounting managers working in Saudi companies listed in the Saudi Stock Exchange. The study applies hierarchical regression analysis to test the association between SMA facets and OP. Findings The results show that SMA facets significantly affect OP, assessed in the two major categories of financial and non-financial performance. Research limitations/implications The dominance of companies listed in the Saudi Stock Exchange in the data set limits the generalizability of the findings. Practical implications The present study supports the idea that companies can enhance their OP by adopting some facets of SMA such as the availability of appropriate structural arrangements, supportive resources, adequate information types and usages and good organizational climate. Originality/value The current study expands the conceptualization of SMA in light of organizational context as a set of facets to overcome the polarization found in the existing literature and explores their impact on OP, including non-financial performance, for which empirical evidence is still scant.

The indirect effect of strategic management accounting in the relationship between CEO characteristics and their networking activities, and company performance

2017 ◽  
Vol 13 (4) ◽  
pp. 471-491 ◽  
Author(s):  
Abolfazl Amanollah Nejad Kalkhouran ◽  
Bahareh Hossein Nezhad Nedaei ◽  
Siti Zaleha Abdul Rasid
Keyword(s):  
Strategic Management ◽  
Indirect Effect ◽  
Management Accounting ◽  
Chief Executive ◽  
Company Performance ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Strategic Management Accounting ◽  
The Impact ◽  
Ceo Characteristics

Purpose The purpose of this paper is to investigate the effect of chief executive officer (CEO) characteristics and involvement in networks on strategic management accounting (SMA) and, in turn, the indirect effect of SMA on company performance. Design/methodology/approach A model is advanced and tested using partial least-squares path modelling and data were collected from a sample of 121 service small and medium-sized enterprises (SMEs) in Malaysia. Findings The results indicate significant and positive relationships between the CEO education and the application of SMA as well as between involvement in networks and SMA. Moreover, it is found that SMA has an indirect effect in relations of CEO education, involvement in networks and company performance. Practical implications SMEs’ leaders may realize their important role in affecting outcomes by their choices, which are in turn affected by their characteristics and activities. Originality/value This study provides an empirical evidence on the impact of two new factors on the SMA by considering contingency theory and upper echelons theory simultaneously for explaining relationships and developing a new model.

scholarly journals Pengaruh Strategic Management Accounting dalam Memediasi Pengaruh Orientasi Pasar, dan Kualitas Pimpinan terhadap Kinerja Keuangan

2021 ◽  
Vol 7 (2) ◽  
pp. 100-108
Author(s):  
Christina Verawaty Situmorang ◽  
Arthur Simanjuntak
Keyword(s):  
Strategic Management ◽  
Financial Performance ◽  
Market Orientation ◽  
Management Accounting ◽  
Leadership Qualities ◽  
Leadership Quality ◽  
Descriptive Research ◽  
Strategic Management Accounting ◽  
Quantitative Descriptive ◽  
The Impact

The aim of the study is to identify and analyze the impact of strategic management accounting, which mediates market orientation and leadership qualities to financial performance.  This research is quantitative descriptive research. Researchers use quantitative descriptive research to uncover the truth about the study's problems. Bbased on the facts and information available obtained directly from the respondent. The types of data used are primary and supporting data. The main data is obtained from respondents with direct interviews of competent respondents. Supporting data isobtained from dokumen Hotel in Medan City. The method used in data collection in the form of interviewing informants who are sources is hotel managers up to employees who work for at least 3 years. The population of this study is all hotels based on the criteria of three-, four- and five-star hotels in the city of Medan and have been established for at least   5 years. The method used is metode purposive sampling, with the number of samples obtained as many as 64 respondents. Based on the results of the study, partially Market Orientation affects Financial Performance through Strategic Management Accounting. And The Quality of Leaders influences Financial Performance through Strategic Management Accounting. Simultaneously Market Orientation and Leadership Quality have a significant effect on Financial Performance. And Market Orientation and Leadership Qualities Affect Financial Performance Through Strategic Management Accounting.

Impact of R&D activities on the financial performance: empirical evidence from Indian pharmaceutical companies

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mithun Nandy
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Secondary Data ◽  
Pharmaceutical Companies ◽  
Financial Returns ◽  
Data Set ◽  
Content Type ◽  
Return On Equity ◽  
Performance Framework ◽  
The Impact

Purpose This paper aims to study the impact of research and development (R&D) activities on the financial performance of Indian pharmaceutical companies listed with the national stock exchange (NSE) of India by conceptualizing R&D’s impact and financial performance framework (RDiFPF). Design/methodology/approach Strongly balanced panel data set was used for the period of 1999–2020 on the basis of secondary data subscribed from a reputable Capitalline, a corporate database as well as individual company-wise annual report extract for cross-validation. Findings The paper presents a novel conceptualized framework called RDiFPF with the help of financial performance related variables: sales turnover, return on assets, return on equity and market capitalization, where R&D impacts in a significant manner on the financial performance of the NSE-listed Indian pharmaceutical companies. The paper finally establishes a link between R&D activities and financial performance with respect to the Indian pharmaceutical companies listed with the NSE. Research limitations/implications The suggested framework opens new dimension of research with respect to R&D, innovative practices in the pharmaceutical business and financial performance. The research can also be used in teaching and may be beneficial for framing public policy. Though the study has been carried out in Indian context, it might have implications in the emerging economies. Practical implications To achieve financial returns, pharmaceutical companies need to adopt appropriate endeavour to invest substantial amount on R&D to bring innovation in the pharmaceutical business. Social implications A better allocation of R&D expenditure has the potential for bringing new medicine, which can cure unknown diseases and impact on the lives of the patient fraternities. Originality/value The contributions of the paper are twofold: on the one hand, the author proposes a framework where emphasis has been provided on the R&D investment in the pharmaceutical business and, on the other hand, significant financial performance has been shown which motivates every R&D-centric pharmaceutical companies. Notably, the novel RDiFPF framework, which has been proposed in this study, may ignite and inspire the pharmaceutical business leaders as well as entrepreneurs to take R&D and innovation in pharmaceutical business for impacting human lives as well as to enjoy significant financial returns by providing health-care solution for treating novel diseases and disorders.

scholarly journals Revisiting the relevance of strategic management accounting research

2020 ◽  
Vol 4 (2) ◽  
pp. 129-148 ◽  
Author(s):  
Md Mamunur Rashid ◽  
Md Mohobbot Ali ◽  
Dewan Mahboob Hossain
Keyword(s):  
Strategic Management ◽  
Organizational Context ◽  
Management Accounting ◽  
Employee Performance ◽  
Case Study Method ◽  
Content Type ◽  
Strategic Management Accounting ◽  
Adoption And Implementation ◽  
Influential Paper

Purpose The purpose of this study is to present a review of the literature on strategic management accounting (SMA). Specifically, it focuses on the trend of SMA research since the publication of Langfield-Smith’s (2008) influential paper “Strategic management accounting: how far have we come in 25 years?” which raised the question of relevance of further SMA research. Design/methodology/approach The study reviewed articles published on SMA as a whole (comprising a set of advanced management accounting techniques) and its specific techniques for the period of 2008 to 2019 in 23 leading accounting journals. Findings The review finds that research on SMA has focused on the contingencies influencing the adoption and implementation of SMA techniques and the effects of such adoption on various aspects of firm and employee performance. The renovation and modification of existing practices in attempt to match with the organizational context has also attracted the attention of several SMA scholars. In addition, a noticeable shift to the strategic management theory and case study method was observed during the study period. Originality/value The study focuses on the trend of SMA research in an attempt to revisit the relevance of further research in this arena, particularly as a response to the criticism raised by Langfield-Smith (2008).

The impact of top management team characteristics and historical financial performance on strategic management accounting

2018 ◽  
Vol 14 (4) ◽  
pp. 455-472 ◽  
Author(s):  
Odysseas Pavlatos ◽  
Xara Kostakis
Keyword(s):  
Financial Performance ◽  
Role Theory ◽  
Management Accounting ◽  
Top Management Team ◽  
Financial Statements ◽  
Management Control ◽  
Content Type ◽  
Strategic Management Accounting ◽  
The Impact ◽  
First Time

PurposeThe purpose of this paper is to explore the impact of the top management team (TMT) characteristics and historical financial performance on strategic management accounting (SMA) usage.Design/methodology/approachObjective data were extracted from annual financial statements, as well as data from questionnaires in a sample of 94 enterprises were used.FindingsData analysis showed that one of the most important factors that influence the level of usage of SMA techniques is lagging historical performance of the enterprises. Those organizations that had low profitability in the past, due to the economic crisis, adopted and used innovative SMA tools more extensively, to improve their financial performance in the future. Based on Upper Echelons theory and Role theory, it was found that TMT characteristics (educational background, tenure, creativity) affect the adoption and the usage of SMA tools.Research limitations/implicationsFirst, this research was performed on one sector. Second, only a few SMA techniques were included. Third, some TMT characteristics were measured with only one item. As a result, it was not possible to check for reliability and validity of the measurements.Practical implicationsFirst, TMT characteristics influence the decision-making process and management control. This should be taken into account during the process of the selection of top managers. Moreover, SMA tools can be effectively used not only by CEOs and the managers of the accounting department, but from marketing managers as well. Consequently, a better communication between marketing and accounting managers is deemed essential to improve the performance of the company.Originality/valuePrevious research has studied the effect of CEOs and CFOs characteristics in the design of Management Control Systems. The authors explored for the first time, the effect of the characteristics of one more member of Board of the TMT, that is, Chief Marketing Officer (CMO), in the adoption and use of management accounting innovations (MAIs). Second, the authors studied one more characteristic of top level managers from Role theory, that is, creativity. Although many studies link creativity to the adoption of MAIs, this is the first time, to the best of the authors’ knowledge, that creativity is studied as an additional parameter that influences the adoption and use of SMA. Furthermore, this research provides additional knowledge about the effect of historical performance in MAIs usage. For the first time, it used objective data from annual financial statements, it calculated financial ratios, to measure historical financial performance. Moreover, this study provides knowledge about the effect of TMT characteristics in accounting choices in geographical areas, outside the USA.

Strategic management accounting practices in hospitals

2013 ◽  
Vol 9 (3) ◽  
pp. 336-369 ◽  
Author(s):  
Maik Lachmann ◽  
Thorsten Knauer ◽  
Rouven Trapp
Keyword(s):  
Strategic Management ◽  
Management Accounting ◽  
Structural Characteristics ◽  
Capital Budgeting ◽  
Future Research ◽  
Content Type ◽  
Performance Differences ◽  
Strategic Management Accounting ◽  
Starting Point ◽  
The Impact

PurposeThe purpose of this paper is to give an overview of the use of strategic management accounting (SMA) techniques in hospitals under competitive market environments. The paper analyses the dissemination of SMA techniques in consideration of structural characteristics and perform a cluster analysis in order to investigate performance differences between various groups of hospitals.Design/methodology/approachThe paper collected empirical data in a nationwide survey of German general hospitals. Analyses are based on questionnaires from 116 hospitals.FindingsResults show that strategies are applied and regularly adjusted in most hospitals. However, SMA techniques are not in widespread use. The paper explores performance differences between the clusters comprised. The paper finds evidence that the use of SMA techniques varies among hospitals based on their structural characteristics.Research limitations/implicationsThe authors' exploratory analysis suggest that further study exploring both the determinants and effects of the use of SMA techniques in hospitals represents an interesting path for future research. This study is subject to limitations, particularly concerning the limited number of contextual variables and performance measures taken into consideration.Practical implicationsConsidering the limited use of SMA techniques, this paper conclude that hospitals should consider the adoption of additional practices. The paper identifies particular potential for development in the areas of risk management and capital budgeting methods.Originality/valueThis study provides the first comprehensive overview of SMA techniques used in hospitals and advances the literature, which primarily includes case study evidence on single SMA techniques or analyses of the impact of strategies and health reforms on “conventional” management accounting practices. This paper, then, constitutes a useful starting point for further research on SMA practices in hospitals.

Effect of corporate governance characteristics on strategic management accounting in Thailand

2017 ◽  
Vol 25 (1) ◽  
pp. 85-105 ◽  
Author(s):  
Teerachai Arunruangsirilert ◽  
Supasith Chonglerttham
Keyword(s):  
Corporate Governance ◽  
Strategic Management ◽  
Audit Committee ◽  
Stock Exchange ◽  
Management Accounting ◽  
Management Strategies ◽  
Primary Data ◽  
Business Success ◽  
Content Type ◽  
Strategic Management Accounting

Purpose The purpose of this paper is to explore relationships between corporate governance characteristics and strategic management accounting (SMA). The relationships provide insight into a debatable issue of whether corporate governance characteristics affect applications of SMA in Thailand. SMA is supporting tools for an organization to effectively execute its management strategies aiming for business success. Design/methodology/approach This study analyzes primary data from survey and corporate governance data from year 2011 to 2013 of companies listed on the Stock Exchange of Thailand. Findings Results show that corporate governance characteristics significantly affect SMA in two aspects, namely, participation and usage. This study finds some results that, on the one hand, separation of CEO’s role and chairmanship, size of independent board, and frequency of audit committee meetings positively affect both participation and usage. On the other hand, an independent chairman and board size negatively affect both participation and usage. Originality/value Findings confirm framework of enterprise governance issued by the International Federation of Accountants that not only does corporate governance provides assurance control, but it also provides strategic governance through behavioral applications of SMA tools and supports.

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

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 149
Author(s):  
Nimnual Visedsun ◽  
Kanitsorn Terdpaopong
Keyword(s):  
Strategic Management ◽  
Financial Performance ◽  
Organizational Performance ◽  
Management Accounting ◽  
Business Strategies ◽  
Accounting Systems ◽  
Corporate Strategies ◽  
Management Accounting Systems ◽  
Business Goals ◽  
Strategic Management Accounting

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.

The prisoner’s dilemma in the workplace: how cooperative behavior of managers influence organizational performance and stress

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Josef Spurný ◽  
Ivan Kopeček ◽  
Radek Ošlejšek ◽  
Jaromír Plhák ◽  
Francesco Caputo
Keyword(s):  
Organizational Performance ◽  
Stress Resistance ◽  
Prisoner's Dilemma ◽  
Organizational Context ◽  
Cooperative Behavior ◽  
Prisoner’S Dilemma ◽  
Working Environment ◽  
Content Type ◽  
Stress Levels ◽  
The Impact

Purpose The aim of the paper is to analyze the impact of cooperativeness of managers who occupy central positions in interaction networks on the performance and stress levels of a whole organization. Design/methodology/approach To explore this relationship, a multi-parameter agent-based model is proposed which implements the prisoner’s dilemma game approach on a scale-free network in the NetLogo environment. A description of the socioeconomic aspects and the key concepts implemented in the model is provided. Stability and correctness have been tested through a series of validation experiments, including sensitivity analysis. The source code is available for further exploration and testing. Findings The simulations revealed that improving the stress resistance of all employees moderately increases organizational performance. Analyzing managers’ roles showed that increasing only the stress resistance of managers does not account for significantly higher overall performance. However, a substantial increase in organizational performance and a decrease in stress levels are achieved when managers are unconditionally cooperative. This effect is stronger for the lowered stress resistance of employees. Therefore, the willingness of managers to cooperate under all circumstances can be a key factor in achieving better performance and building a more pleasant, stress-free working environment. Originality/value This paper aims to present a model for analyzing cooperation, specifically in the organizational context, extending the prisoner’s dilemma with novel concepts and mechanisms. Although the results confirm the existing theories about the importance of central nodes in complex networks, they also provide further details on how the cooperative behavior of central nodes (i.e. the managers) might benefit the organization.

Do innovation attributes really drive the diffusion of management accounting innovations? Examination of factors determining usage intensity of strategic management accounting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Babajide Oyewo
Keyword(s):  
Factor Analysis ◽  
Strategic Management ◽  
Management Accounting ◽  
Environmental Uncertainty ◽  
Relative Advantage ◽  
Competitive Strategies ◽  
Content Type ◽  
Future Studies ◽  
Strategic Management Accounting ◽  
Innovation Attributes

PurposeThis study investigates the usage of modern management accounting techniques popularly referred to as “strategic management accounting” (SMA), and the extent to which innovation attributes (namely relative advantage, compatibility, complexity, trialability and observability) determine SMA usage intensity.Design/methodology/approachSurvey data was obtained through a structured questionnaire from 45 out of 56 publicly listed manufacturing companies on the Mainboard of the Nigerian Stock Exchange. Descriptive statistics, one-way ANOVA, exploratory factor analysis, confirmatory factor analysis and structural equation modelling were used to analyse data.FindingsWhereas the overall usage rate of SMA as an innovation is generally moderate, there is significant difference in SMA usage intensity across industries in the manufacturing sector due to environmental uncertainty. Compatibility emerged as the strongest determinant of SMA usage intensity, implying that commercial enterprises would intensely apply SMA to remain innovative, to continuously improve and to incorporate strategy in accounting practice in a bid to survive competition. SMA will witness extensive usage if it aligns with the competitive strategies of an organisation.Research limitations/implicationsThe attributes of innovation measured treat all SMA techniques as one, but did not measure relative advantage, compatibility, complexity, trialability and observability for each of the techniques. Future studies may consider investigating how innovation attributes specifically affect each SMA technique. The dimension of compatibility investigated in the study lean towards the alignment of SMA with competitive strategies. Taking into account the multidimensionality of compatibility as an innovation attribute, future studies may examine how past experience of implementing new ideas, as well as compatibility of SMA with corporate culture and value system, affect the dissemination and diffusion of management accounting innovations.Practical implicationsThe paper proposes that although innovation attributes may partly explain SMA usage, coercive factors such as competition and environmental uncertainty may also be responsible for the decision to adopt innovative management accounting practices. The study therefore calls for a critical appraisal of how coercive institutional factors such as competition, regulation and actions of key stakeholders influence the decision of organisations to adopt an innovation.Originality/valueThis paper contributes to knowledge by challenging existing knowledge and presenting evidence that innovation attributes acclaimed to determine the spread of an innovation may be inapplicable in certain settings due to some environmental challenges. The study also contributes to knowledge by developing a composite scale for measuring innovation attributes specifically adapted to management accounting innovation, which can be used in future studies.

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