Factors affecting the stages of management accounting evolution: The developing market research

Abstract

Management accounting is essential in supporting strategic decision-making and organizational competitiveness. However, the majority of Vietnamese businesses have not paid enough attention to management accounting practices (MAPs) (Doan, 2012; Nguyen et al., 2019). This study aims to analyze the factors influencing the evolution of management accounting in Vietnam based on the International Federation of Accountants (IFAC) model. Primary data were collected from 250 enterprises in Vietnam, and SPSS 26 was employed to examine the hierarchical multiple regression model. The findings show that production technology, intensity of competition, business environment stability, business strategy, and age of enterprises influence the evolution of management accounting in Vietnam. However, the research model was unable to verify the anticipated correlation between the characteristics of products, the information demands of managers, the qualifications of accountants, the information technology systems, and the management accounting evolution in Vietnamese companies. A variety of related parties may benefit from this study’s results. Corporate managers could identify the determinants influencing management accounting development in their companies. In addition, the research findings provide scholars, and practitioners with empirical evidence about the evolutionary stages of management accounting and the factors influencing its progress in an emerging market. Furthermore, the state authorities may consult these factors to establish a framework guiding the application of strategic management accounting in Vietnam.