Management Accounting and Service Companies' Performance: Research in Emerging Economies

Abstract

Organizations use management accounting information in a variety of ways, and specifically management accounting information that plays a significant role in the effective management process. In addition, management accounting information contributes to the organization's performance by giving feedback on carrying out the strategic plans and completing the work, and consequently enhancing the economy of the country. However, new management accounting systems, due to its externally and futureoriented strategic characteristics, (that may avoid many of the weaknesses of conventional management accounting systems) still lack a solid base in empirical studies. The main goal of this research is to determine the effect of Strategic Management Accounting (SMA) on the Jordanian service sector's performance as one of the emerging economies. This is especially important as service sectors in several countries in the Middle East, including Jordan, have faced a notable decline in their performance. This research uses a quantitative method; the quantitative data was collected via a questionnaire. The total selected sample size for the quantitative approach was 127 companies belonging to the Jordania service sector for the fiscal year 2017. The research found that the Strategic Management Accounting influences the service sector's performance and therefore that could be used to help the service sector's managers understand the importance of accounting information for strategic decision making. AbstractOrganizations use management accounting information in a variety of ways, and specifically management accounting information that plays a significant role in the effective management process. In addition, management accounting information contributes to the organization's performance by giving feedback on carrying out the strategic plans and completing the work, and consequently enhancing the economy of the country. However, new management accounting systems, due to its externally and future-oriented strategic characteristics, (that may avoid many of the weaknesses of conventional management accounting systems) still lack a solid base in empirical studies. The main goal of this research is to determine the effect of Strategic Management Accounting (SMA) on the Jordanian service sector's performance as one of the emerging economies. This is especially important as service sectors in several countries in the Middle East, including Jordan, have faced a notable decline in their performance. This research uses a quantitative method; the quantitative data was collected via a questionnaire. The total selected sample size for the quantitative approach was 127 companies belonging to the Jordania service sector for the fiscal year 2017. The research found that the Strategic Management Accounting influences the service sector's performance and therefore that could be used to help the service sector's managers understand the importance of accounting information for strategic decision making. JEL classification: M40.

Audit Committee Impact on Corporate Profitability in Oman Companies: an Auditing and Management Accounting Perspective

“…Audit committee characterized among other control mechanisms is considered as an essential role in monitoring and overseeing the management and advising with regards to the usage of internal control systems and preparation of financial statement, as such importance for such control mechanisms and others are mentioned by several studies that done in the literature review (e.g. Hamdan, 2020;Ammar & Ahmad Zuluki, 2017;Alabdullah, 2019;Alabdullah, 2018;Alabdullah, 2017;Alabdullah, 2016;Alabdullah, 2016a;Alabdullah, 2016b;Alabdullah, Nor, & Ries, 2018). A study done by Ahmed et al (2020) investigates the control mechanisms and firm profitability in Oman and found that a positive relationship between all the CG mechanisms is found: gender, ownership, audit committee and board size and firm profitability.…”

Agency Theory, Accounting Based Performance Evaluation Systems and IFRS: A Brief Relational Overview

“…For example, using managerial cost accounting to estimate better individual costs of products and services of a company allowing company managers to assess the performance of individuals concerning these costs (Mohr, 2017). Alabdullah (2019) implied the accounting performance measurement is an approach that keeps a company on target to hit its goals. Additionally, it is a system used by both the managers and shareholders of an organization because performance measurements must sync with the organization's strategy to be sufficient.…”

“…Additionally, it is a system used by both the managers and shareholders of an organization because performance measurements must sync with the organization's strategy to be sufficient. Accounting Performance measurements identify the strategies that offer the highest potential for obtaining the corporation's objectives (Alabdullah, 2019).…”

How Significantly to Emerging Economies Benefit From Board Attributes and Risk Management in Enhancing Firm Profitability?

“…It is known through researches done in the whole world that corporate governance (CG) is known as a great instrument in assessing the firms' ability of being functional and strong ( (Alabdullah, Yahya & Ramayah, 2014;Alfadhl et al, 2013;Alfadhl and Alabdullah, 2016;Crifo, Escrig-Olmedo, & Mottis, 2019). CG, together with its mechanisms and structures is very useful to monitor profitability of the firm (Alabdullah, 2019). The best CG reflects better information to make the firm reach its targets and goals; that's to reach the effective level of firm profitability .…”

“…This made CG strongly appear in the last few decades in several developed and developing countries. This system appeared before a hundred years but in another form as controlling role that has standards, principles and mechanisms that help different parties (e.g., Alabdullah, 2019;Alabdullah, 2016aAlabdullah, , 2016bAlabdullah, , 2016cAlabdullah, , 2016dAlabdullah, , 2017Alabdullah , Laadjal, Ries, & Al-Asadi, 2018). Its mechanisms are board size, board independency, duality, gender , and ownership structure plus other internal mechanisms .…”