Firm culture and management accounting practices among manufacturing firms in Nigeria

Abstract

This study sought to find out the effects of firm culture on management accounting practices (MAPs). The study used a structured questionnaire to collect data from 220 randomly selected manufacturing firms out of 514 firms and used logistic regression for analysis. This study examined seven dimensions of firm cultures, including innovation/risk orientation culture, people orientation culture, outcome orientation culture, aggressive culture, stability culture, team-based culture, and attention to details culture. The study established that team-based, attention to details, and stability cultures have a significant influence on the choice of management accounting practices. In contrast, the considerable influence of other cultural dimensions lacks statistical support. The study concludes that attention to details culture and team-based culture are barriers to modern management accounting practices, and cautions should be exercised by managers in using these cultures. Therefore, this study recommends that manufacturing firms in Nigeria should be cautious of their culture and its implication on MAPs. In a more specific term, they should practice cultures that will allow them to choose modern MAPs and take advantage of the benefits attached.

The financial performance of private hospitals in Saudi Arabia: An investigation into the role of internal control and financial accountability

“…Financial accountability emphasizes the responsibility for meeting goals and objectives, and supports sound decision-making. Evaluating financial performance is also essential for organizations as it helps them assess their ability to generate revenue, manage costs, and achieve profitability [ 11 ].…”

“…Numerous studies have examined internal control, financial accountability, and financial performance, but most of them have focused on public organizations [ 23 – 26 ], non-governmental organizations [ 11 , 27 ], and commercial organizations [ 1 , 2 , 5 , 28 , 29 ]. This study, therefore, contributes to the literature by taking a multidimensional perspective on internal control and addressing the following questions: Does internal control influence financial performance?…”

Management accounting practices adoption and determinants: a review of worldwide empirical evidences

“…There is no effect of organizational DNA and business potential on MAPs in Malaysian SMEs. Ogungbade and Olweny, and Oluoch (2017) examined the factors affecting the choice of management accounting practices (MAPs) in Nigeria. Variables such as competitive strategy, culture, and manufacturing technology were identified as the antecedents to MAPs.…”