Application of management accounting and business performance: A literature review

Dr. Suphaneed Boonpenge

doi:10.18535/ijsrm/v11i12.em03

Abstract

Research on the application and benefits of management accounting has been carried out by many studies from many developed and developing countries in recent decades. However, there are still limitations to the empirical evidence proving the correlation between management accounting and corporate performance. The study is based on a survey of domestic and foreign scientific documents on the application of management accounting and enterprise performance, through the method of analysis, comparison and synthesis in order to provide an overview of the relationship between management accounting application and enterprise performance. The results show the fact that traditional management accounting is widely used and still brings many benefits. In addition, there is a contradiction that shows the inconsistency in the correlation between the application of management accounting and corporate performance in many studies. In particular, studies on the application of management accounting in Thailand have mostly stopped at identifying the factors affecting the application of management accounting at enterprises but have not evaluated the business results achieved from the application of management accounting.

Keywords

Management accountingcorporate performancemanagement accounting applicationThailand

References

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Abdel‐Kader, M., & Luther, R. (2006). Management accounting practices in the British food and drinks industry. British food journal, 108(5), 336-357Google Scholar ↗
Abdel Al, S. F., & McLellan, J. D. (2013). Strategy and Management Accounting Practices Alignment and Its Effect on Organizational Performance. Journal of Accounting, Business Management, 20(1), 1- 27.Google Scholar ↗
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Ahmad, N. S. M., & Leftesi, A. (2014). An exploratory study of the level of sophistication of management accounting practices in Libyan manufacturing companies. International Journal of Business Management, 2(2), 1.Google Scholar ↗
Al-Omiri, M., & Drury, C. (2007). A survey of factors influencing the choice of product costing systems in UK organizations. Management accounting research, 18(4), 399-424.Google Scholar ↗
Angelakis, G., Theriou, N., & Floropoulos, I. (2010). Adoption and benefits of management accounting practices: Evidence from Greece and Finland. Advances in Accounting, 26(1), 87-96.Google Scholar ↗
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Asmilia, N., & Sugiyarti, L. (2020). Managerial Performance: The Mediating Role of Strategy Management Accounting Techniques on Competitive Advantage and Organization Performance. Economics and Accounting Journal, 3(2), 80-89.Google Scholar ↗
Baines, A., & Langfield-Smith, K. (2003). Antecedents to management accounting change: a structural equation approach. Accounting, organizations society, 28(7-8), 675-698.Google Scholar ↗
Bandury, J., & Nahapiet, J. E. (1979). Towards a framework for the study of the antecedents and consequences of information systems in organizations. Accounting, Organizations Society, 4(3), 163-177.Google Scholar ↗
Banker, R. D., Bardhan, I. R., & Chen, T.-Y. (2008). The role of manufacturing practices in mediating the impact of activity-based costing on plant performance. Accounting, organizations society, 33(1), 1- 19.Google Scholar ↗
Bui, N. T., Le, O. T. T., & Nguyen, P. T. T. (2020). Management Accounting Practices among Vietnamese Small and Medium Enterprises. Asian Economic Financial Review, 10(1), 94-115.Google Scholar ↗
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[refR-1] Abdel-Kader, M., & Luther, R. (2008). The impact of firm characteristics on management accounting practices: A UK-based empirical analysis. The British Accounting Review, 40(1), 2-27.Google Scholar ↗

[refR-2] Abdel‐Kader, M., & Luther, R. (2006). Management accounting practices in the British food and drinks industry. British food journal, 108(5), 336-357Google Scholar ↗

[refR-3] Abdel Al, S. F., & McLellan, J. D. (2013). Strategy and Management Accounting Practices Alignment and Its Effect on Organizational Performance. Journal of Accounting, Business Management, 20(1), 1- 27.Google Scholar ↗

[refR-4] Abernethy, M. A., & Guthrie, C. H. (1994). An empirical assessment of the “fit” between strategy and management information system design. Accounting Finance, 34(2), 49-66.Google Scholar ↗

[refR-5] Agbejule, A. (2005). The relationship between management accounting systems and perceived environmental uncertainty on managerial performance: a research note. Accounting business research, 35(4), 295-305.Google Scholar ↗

[refR-6] Ahmad, K. (2017). The implementation of management accounting practice and its relationship with performance in Small and Medium Enterprises sector. International Review of Management Marketing, 7(1).Google Scholar ↗

[refR-7] Ahmad, N. S. M., & Leftesi, A. (2014). An exploratory study of the level of sophistication of management accounting practices in Libyan manufacturing companies. International Journal of Business Management, 2(2), 1.Google Scholar ↗

[refR-8] Al-Omiri, M., & Drury, C. (2007). A survey of factors influencing the choice of product costing systems in UK organizations. Management accounting research, 18(4), 399-424.Google Scholar ↗

[refR-9] Angelakis, G., Theriou, N., & Floropoulos, I. (2010). Adoption and benefits of management accounting practices: Evidence from Greece and Finland. Advances in Accounting, 26(1), 87-96.Google Scholar ↗

[refR-10] Anh, D. N. P. (2012). The Adoption of Western Management Accounting Practices in Vietnamese Enterprises During Economic Transition. In Griffith University.Google Scholar ↗

[refR-11] Anh, D. N. P. (2016). Factors Affecting the Use and Consequences of Management Accounting Practices in A Transitional Economy: The Case of Vietnam. Journal of Economics Development, 18(1), 54-73.Google Scholar ↗

[refR-12] Asmilia, N., & Sugiyarti, L. (2020). Managerial Performance: The Mediating Role of Strategy Management Accounting Techniques on Competitive Advantage and Organization Performance. Economics and Accounting Journal, 3(2), 80-89.Google Scholar ↗

[refR-13] Baines, A., & Langfield-Smith, K. (2003). Antecedents to management accounting change: a structural equation approach. Accounting, organizations society, 28(7-8), 675-698.Google Scholar ↗

[refR-14] Bandury, J., & Nahapiet, J. E. (1979). Towards a framework for the study of the antecedents and consequences of information systems in organizations. Accounting, Organizations Society, 4(3), 163-177.Google Scholar ↗

[refR-15] Banker, R. D., Bardhan, I. R., & Chen, T.-Y. (2008). The role of manufacturing practices in mediating the impact of activity-based costing on plant performance. Accounting, organizations society, 33(1), 1- 19.Google Scholar ↗

[refR-16] Bui, N. T., Le, O. T. T., & Nguyen, P. T. T. (2020). Management Accounting Practices among Vietnamese Small and Medium Enterprises. Asian Economic Financial Review, 10(1), 94-115.Google Scholar ↗

[refR-17] Cadez, S., & Guilding, C. (2008). An exploratory investigation of an integrated contingency model of strategic management accounting. Accounting, organizations society, 33(7-8), 836-863.Google Scholar ↗

[refR-18] Chenhall, R. H. (2003). Management control systems design within its organizational context: findings from contingency-based research and directions for the future. Accounting, organizations society, 28(2- 3), 127-168.Google Scholar ↗

[refR-19] Chenhall, R. H., & Langfield-Smith, K. (1998a). Adoption and benefits of management accounting practices: an Australian study. Management Accounting Research, 9(1), 1-19.Google Scholar ↗

[refR-20] Chenhall, R. H., & Langfield-Smith, K. (1998b). The relationship between strategic priorities, management techniques and management accounting: an empirical investigation using a systems approach. Accounting, Organizations Society, 23(3), 243-264.Google Scholar ↗

[refR-21] Chong, H. G. (2008). Measuring performance of small-and-medium sized enterprises: the grounded theory approach. Journal of Business Public Affairs, 2(1), 1-10.Google Scholar ↗

[refR-22] Chong, V. K., & Chong, K. M. (1997). Strategic choices, environmental uncertainty and SBU performance: a note on the intervening role of management accounting systems. Accounting Business Research, 27(4), 268-276.Google Scholar ↗

[refR-23] Chow, C. W., Duh, R.-R., & Xiao, J. Z. (2006). Management accounting practices in the People's.Google Scholar ↗

[refR-24] Hung, P. H. (2022). Influence Of Factors On Responsible Accounting Organization In Enterprises: Evidence From Vietnam. Journal of Positive School Psychology, 6(7), 4112-4130.Google Scholar ↗

[refR-25] Hung, P. H. (2022). Audit Service Quality And Loyalty To Audit Firms: Empirical Evidence From Vietnam. Journal of Positive School Psychology, 6(7), 5266-5281.Google Scholar ↗

[refR-26] Hung, P. H. (2023). The Influence of Cultural, Legal and Institutional Factors on Auditors' Roles, Responsibilities and Perceptions of Audit Quality. European Journal of Theoretical and Applied Sciences, 1(5), 1131-1145.Google Scholar ↗

[refR-27] Pham, H. H. (2022). Factors affecting the implementation of environmental management accounting in manufacturing enterprises: Evidence from Vietnam. NeuroQuantology, 20(12), 214.Google Scholar ↗