A Proposed Model of the Mediating Effect of Strategic Management Accounting on the Relationship Between Perceived Environmental Uncertainty and Firm Performance

Abstract

This paper investigates the relationship between contingency factors, strategic management accounting and firm performance. Due to the development and expansion of organizations and their connections to the industrial competition, it is usable that the organization rely more on non-financial information than financial. The management accounting and financial accounting literature have highlighted the important role of perceived environmental uncertainty and strategic management accounting on firm performance. However, unpredictable conditions from external can cause big problems for the company’s decision making process because both of them have effect on firm performance. The aim of this paper is to propose a model of the relationship amid perceived environmental uncertainty on the firm performance by mediating effect of strategic management accounting through review of the related literature. One of the most significant findings to emerge from this review is the identification the contingency factors that improve organizational performance under environmental uncertainty.

The Study of Factors Influence Organizational Performance: Evidences from Companies in the Lower Northern Region of Thailand

“…Managers found that these measures were difficult to use and did not enhance organizational performance. The results are contrary to the view of Soheilirad and Sofian (2016) who found that environmental uncertainty has an influence on organizational performance and is a driver of sustainable competitive advantage. Information from SMA, which concentrate upon the consumer value generated relative to competitors, helps in monitoring organizational performance in the business environment using an overall strategic plan.…”

“…The findings support the study of Lillis (2002) SMA information does not help in enhancing organizational performance during uncertainty of business environment. The results are in consist with those of Agbejule (2005) and Soheilirad and Sofian (2016). There is not much research on the interaction effect of SMA information and environmental uncertainty on organizational performance of organizations in the Lower Northern Region of Thailand.…”

“…Business environment has rapidly changed and increasingly sophisticated. Organizations have to adapt innovation tools that approach to quality management, cost efficiency, eco-efficiency, and strategic decision making (Bisbe & Malagueño, 2012;Soheilirad & Sofian, 2016). Managers develop strategic management accounting techniques (SMA) and shift the focus from operational information to a more strategic orientation to facilitate decision making and improve organizational performance (Agbejule, 2005;Fleming, Chow, & Chen, 2009).…”

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

“…Therefore, operating in a competitive environment requires companies to have access to relevant information. According to Soheilirad & Sofian (2016) accounting information is beneficial for companies with long-term strategic tactics. From data collection to data analyses and formulation of business decisions for management (Daraban, 2018).…”