Browsing by Author "Nejad Kalkhouran, Abolfazl Amanollah"

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    A contingency-based framework of strategic management accounting, sophisticated budgeting and costing techniques in Malaysian small and medium entreprises
    (Universiti Teknologi Malaysia, 2015) Nejad Kalkhouran, Abolfazl Amanollah
    Survival in the current competitive business environment requires updated and accurate accounting information through adoption of appropriate management accounting practices (MAPs). However, improving organizational performance may require businesses including small and medium enterprises (SMEs) to not merely adopt those practices but also to observe the fit between MAPs and the contextual variables that determine performance. Knowledge regarding MAPs in SMEs is still scarce; hence, the need for further understanding of factors affecting the adoption of MAPs and how appropriate the fit between those factors and practices enhances SMEs’ performance. This study aims to examine the effect of perceived environmental uncertainty (PEU), advanced manufacturing technology (AMT) and chief executive officers’ (CEOs) involvement in networks and characteristics on advanced MAPs including strategic management accounting (SMA), advanced budgeting and sophisticated costing techniques. The study also explores the mediating effect of advanced MAPs on performance. An online survey was conducted among 1470 manufacturing SMEs in Malaysia which produced 186 useable responses. The Partial Least Squares-Structural Equation Modeling (PLS-SEM) was used and the data was analysed using SmartPLS 3. The results provide evidence of the positive relationship between the contingency factors and almost all MAPs as well as between MAPs (with the exception of costing techniques) and performance. In addition, the main result suggested that in a situation of high PEU or when CEOs are highly educated and experienced, the increased use of budgeting practices will yield higher performance. Moreover, when CEOs are more educated, using more SMA can have similar effect to firm performance. This study elucidates the appropriate MAPs for SMEs by offering empirical evidence based on the integration of the theory of contingency and upper echelon theory. This model helps SMEs adopt suitable advanced MAPs for better response to particular circumstances that their firm faces