Role of Management Accounting Systems in Sustainable Survival of SMEs in Pakistan: A Conceptual Framework

Abstract

This conceptual paper proposes a new framework for ensuring Pakistani SMEs' sustainable survival. SME owners always strive to survive in the long run, but most SMEs cannot sustain themselves due to resource constraints. In the ensuing survival of SMEs, the role of management accounting is critical. Management accounting provides financial and non-financial information for planning, controlling and decision-making. This information can persuade SME owners to think in a strategic way which can enhance their strategic thinking. Arguably, management accounting can cognitively engage SME owners by enhancing their strategic thinking, leading SMEs to enhance sustainable survival. Based on these arguments, a conceptual framework has been proposed in which strategic thinking mediates the relationship between management accounting systems and sustainable survival. This conceptual paper has endeavored to advance the understanding of strategic thinking in management accounting scholarship. Furthermore, this paper has also provided practical guidelines for SME owners to concentrate on sustainable survival by developing management accounting systems and focusing on strategic thinking.

Governance characteristics and sustainable longevity of family firms: the role of long-term orientation

“…This study provides practical implications for managers to sustain their business. Family SMEs are the dominant forms of business in the world have numerous constraints, struggling for survival and constantly pursuing strategies for sustainable longevity (Latif et al ., 2022). In today's competitive environment, the issues of governance and inter-temporal choices are fundamental to all managers.…”

“…There are several specific characteristics that all play a role in sustainable survival. For instance, innovation capabilities in a firms' survival (Shabir et al, 2020b), corporate social responsibility in SMEs survival (Shabir et al, 2020a), operational resilience (Irawan et al, 2022), management accounting systems and strategic thinking in the survival of SMEs (Latif et al, 2022). Despite the significance of these factors, the role of governance characteristics and long-term orientation as predictors of sustainable longevity of family firms is scantly addressed in the literature.…”