A Framework of Contingencies Factors, Government Support and Management Accounting Practices in Malaysian Small and Medium-Sized Enterprises

Abstract

Small and medium-sized enterprises (SMEs) are critical in developing countries, as they create significant job opportunities and contribute to global economic development. Numerous Malaysian SMEs are struggling to survive in the aftermath of the COVID-19 outbreak. As a result, the adoption of management accounting practices (MAPs) plays an important role in supporting decision making, which aids in the sustainability of SMEs' economic growth and leads to long-term performance. However, there is limited research on MAPs being used in SMEs across various industries. This paper aims to propose a conceptual framework for the factors affecting MAPs in Malaysian SMEs from a contingency theory perspective. This paper employs a qualitative approach by reviewing all pertinent literature on the subject from various databases and relating it to the current environment, which attempts to bring the entire concept of MAPs into focus based on the findings of previous research and a proposed conceptual framework that can be used for future research. This research has contributed to the literature by providing a conceptual framework for MAPs from the perspective of contingency theory, with an addition on government support, which can improve industry competitiveness, business prosperity, and long-term performance. Based on the proposed framework, further empirical study is needed to examine whether the factors that contribute significantly to the adoption of MAPs in SMEs.

Firm Performance Improvement Through Employees Performance Evaluation

“…In 2021, the SMEs contributed 37.4% to the Malaysia's Gross Domestic Product (GDP) and provided 47.8% jobs out of the country's total jobs (DOSM, 2022). These clearly demonstrated that the SMEs are significant to Malaysia's employment rate, as well as economic growth (Abdullah et al, 2022).…”

“…Small and medium-sized enterprises (SMEs) are considered as one of the crucial economic contributors to the economy growth of the country (Isa & Razak, 2021). These enterprises have significantly created tremendous job opportunities and considered the backbone of the country's economic development (Abdullah, Mirza, Krishnan, Zakaria, & Morris, 2022). Therefore, over a few decades, researchers of accounting and management area have been consistently placing efforts in investigating the SMEs (Azudin & Mansor, 2018).…”

“…On top of that, the management accounting practices (MAPs) could be one of the key success factors for the firms. The management accounting techniques and analysis could be able to provide relevant, accurate and reliable information to the firm to ensure the business continuity and sustainability in the economic growth (Abdullah et al, 2022).…”

“…Furthermore, with the integration of financial and nonfinancial information, the SMEs could have the ability to compete in the market and deal with environmental uncertainties and eventually improve the overall business performance (Reid & Smith, 2002). Although SMEs is the major contributor to Malaysian economic development, but the MAPs are not effectively utilized among the SMEs in Malaysia (Abdullah et al, 2022). According to the previous empirical studies, the study on MAPs by researchers are more towards manufacturing sectors rather than service sectors (Ashfaq, Younas, Usman, & Zahid, 2014;Terzioglu & Chan, 2013;Sleihat, Nimer, & Almahamid, 2012).…”

Bantuan Sosial, Pembiayaan Modal Kerja Dan Kinerja Umkm: Peran Moderasi Entreprenurial Resiliency

“…Dalam mekanisme penyalurannya, bantuan sosial dilaksanakan oleh kementrian/ lembaga yang telah diatur dalam PMK Nomor 228/PMK.05/2016. Hasil penelitian terdahulu menunjukkan bahwa strategi bantuan sosial berdampak positif terhadap peningkatan kinerja usaha kecil (Haykal et al, 2022;Joo & Min, 2022;Nik Abdullah et al, 2022).…”