The Relationship between Strategic Management Accounting Information Usage, Environmental Uncertainty and Nationality of Director of Manufacturing Enterprises in Thailand

Abstract

Dynamic business environments have caused intensified information in order to make decisions. Advanced management accounting techniques which have the potential for a more strategic role are used as a tool to facilitate successful organizational reforms to survive through rapid changes. This study aims to investigate relationships between strategic management accounting (SMA) information usage, environmental uncertainty (EU) and nationality of director (ND) using contingency theory. Based on Cadez and Guilding's (2008) framework, sixteen strategic management accounting techniques were classified into five categories: costing, planning, control and performance measurement, strategic decision-making, competitor accounting and customer accounting. Questionnaires were employed for data collection from 217 manufacturing enterprises in Thailand selected by purposive sampling. The results show that managers increasingly require SMA information to calculate product and service costs, to plan control and performance measures, to evaluate competitor performance and assess individual customer profitability under environmental uncertainty situations. In addition, Thai chief executive officers trend to use SMA information for strategic decision-making and market competitions less than non-Thai ones. This study contributes to existing knowledge by enhancing our understanding of the relationships between SMA information usage, EU and ND in Thailand. Executives can effectively utilize the advantages of SMA information usage in order to gain sustainable competitive advantage.

CONTINGENCY FACTORS IN MANAGEMENT ACCOUNTING PRACTICES IN MSMEs IN THE FOOD SECTOR IN CENTRAL JAVA

“…Environmental uncertainty had a positive effect on management accounting practices. These results align with research conducted by Sumkaew & Intanon (2020) and Pusparini et al (2020).…”

“…Therefore, the decisions taken by managers become more reliable. Higher environmental uncertainty will encourage higher management accounting practices (Putri et al, 2018), (Sumkaew & Intanon, 2020), (Pusparini et al, 2020). H1: Environmental uncertainty has a positive effect on management accounting practices.…”

“…Several studies on the effect of environmental uncertainty on management accounting practices still show inconsistencies. Environmental uncertainty has been shown to have a positive effect on management accounting practices (Putri et al, 2018), (Sumkaew & Intanon, 2020), (Pusparini et al, 2020). However, several other studies have also stated that environmental uncertainty does not affect management accounting practices (Erserim, 2012), (Melania et al, 2021).…”

The Influence Of Strategic Management Accounting And Information Technology Capability On Company Performance With Sustainable Competitive Advantage As The Mediator

“…By applying strategic management accounting, companies can minimize costs, carry out planning and control, make strategic decisions, assess competitors, analyze customer profitability and create added value to survive (Sumkaew & Intanon, 2020). The existence of strategic management accounting will support the company to be able to achieve competitive advantage because the company's strategy focuses on competition and is long term.…”

The impact of balanced scorecard adoption on performance of Algerian manufacturing firms: a contingency approach

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