Strategic management accounting and sense-making in a multinational company

PurposeThis paper aims to discuss the interplay between strategic management accounting (SMA) and three organizational change configurations: strategy, structure and restructuring. This explication occurs within a context that is characterized by organization restructuring and corporate strategy changes within Jordan Customs Organization (JCO).Design/methodology/approachThis paper uses a qualitative research approach and presents an interpretive case study of the JCO public sector organization. To collect data, it uses methodological triangulation, which includes interviews, historical and statistical analyses, documents and archival records. It is informed by the theoretical lens of configurational theory and strategic typologies to interpret the influences of organizational change configurations on SMA as it relates to the interplay of strategy, structure and restructuring.FindingsThe study findings agree with the related literature that SMA practices have developed management accounting from important operational transactions to gain a more strategic orientation through integrating customers, human resources, processes and financial departments. This paper concludes that specific SMA techniques have been used for strategizing by organizations in the public sector, providing a valuable counterpoint to the private sector adaptation that has dominated SMA research. This study finds that organizational restructuring has also contributed to decentralization and delegation, which has led to the distribution of tasks and specialization in accounting departments. It also concludes that SMA may facilitate or delay organizational change configurations in JCO. SMA can play a significant role in ensuring that the institution learns in response to organizational changes. On the contrary, this paper also concludes that organizational practices led to changes in SMA rules and routines.Research limitations/implicationsA general criticism of case-study methods is that they lack rigor and provide little basis for generalization. First, case studies tend to be specific and individual, posing significant issues regarding generalization. Therefore, several comparative case studies involving various organizations should be conducted to ascertain if these practices have become more commonplace, especially in the public sector. Second, considering the nature of a government entity and the sensitivity of the information that required confidentiality, certain strategizing imperatives could not be directly examined, such as meetings between top management to make important decisions of strategic significance. This paper has important implications because it highlights the shortcomings of a supercilious singular relationship between strategic choices and the design of SMA practices.Originality/valueThis paper contributes to the growing literature by focusing on the relationship between SMA and three organizational change configurations: strategy, structure and restructuring. This paper is informed by the configuration theory perspective commonly used in accounting research. The empirical evidence in this study is provided in an SMA field, where empirical research is needed to be comparable with traditional accounting practices.

The expediency of developing strategic management accounting based on the use of a balanced scorecard has been substantiated. The purpose of the article is to identify areas of development of the strategic management accounting system based on the use of a balanced scorecard, as well as obstacles to its effective functioning. The necessity of introducing the position of a strategic management accountant in the conditions of using a balanced scorecard at enterprises has been substantiated. The main differences between a strategic management accountant and a traditional management accountant have been identified. In order to overcome the crisis in the management accounting system, it has been proposed to expand the subject area of the classical management accounting system in order to meet the needs of strategic management of the enterprise. The possibilities of the balanced scorecard to provide comprehensive control and interactive management of the strategic development of the enterprise have been analyzed. The directions for the development of strategic management accounting based on the use of a balanced scorecard have been developed (development of organizational structure for building strategic management accounting system; distinguishing between the functions of strategic management accountants and strategic managers; empirical analysis of the effectiveness of the implementation of a balanced scorecard as an accounting tool). Organizational and methodological obstacles that prevent the introduction of a balanced scorecard as a method of strategic management accounting are identified and systematized into three groups. The job functions and strategic tasks of a strategic management accountant have been formed, which will combine traditional accounting functions for the collection and processing of strategic accounting information with analytical, control and communication functions. Organizational and methodological barriers to the smooth implementation of a balanced scorecard as a method of strategic management accounting in the practice of Ukrainian enterprises have been identified and analyzed (associated with improper performance of strategic management functions; associated with improper performance of their functions by strategic accountants; related to the economic and communication problems of the functioning of a balanced scorecard as an accounting tool).

The domestic economy is experiencing continued improvement, driven by the recovery of the tourism sector. In turn, this has led to increased demand for related industrial goods. Businesses must adapt through innovation to survive in a rapidly changing market. Consequently, they are actively seeking competitive advantages to improve operational efficiency. Strategic management accounting is, therefore, a key factor in organizational success, designed to assist in controlling and managing issues related to the economic sector and organizational performance. Furthermore, the development of innovation will enhance operational efficiency and sustain competitiveness. This research aims to analyze the levels of strategic management accounting (SMA), innovation development, and operational performance efficacy within the southern border manufacturing industry of Thailand. This study employs a mixed-methods research design, incorporating structural equation modeling (SEM). The population comprises 136 southern border manufacturing industries. Data collection involves questionnaires and semi-structured interviews. Data analysis utilizes descriptive statistics, structural equation modeling, and content analysis. The research findings indicate that the manufacturing industry exhibits a high level of agreement regarding strategic management accounting, innovation development, and operational efficiency overall. Furthermore, innovation development positively influences operational efficiency, innovation development positively influences strategic management accounting, and strategic management accounting positively influences operational efficiency. Consequently, businesses can utilize these findings as a decision-making guide for employing management accounting techniques and fostering innovation, thereby maximizing resource utilization and leveraging existing knowledge for management to achieve a competitive advantage, ultimately leading to improved operational efficiency.

PurposeThe purpose of this paper is to investigate the relationship between strategy, strategic management accounting (SMA) and performance. Specifically, it aims to explore how SMA alignment is achieved to support both the internal and external fit of organizational configurations and achieve superior performance.Design/methodology/approachThis study has adopted a longitudinal case study approach, focusing on a leading company in the credit mediation industry, and uses the configurational theory and a network approach to understand how an alignment between organizational configurations and SMA leads to superior performance.FindingsThis study shows that the configurational fit involves interactions between environmental, strategic and structural elements and SMA. Moreover, it helps understanding the causal complexity of these interactions by showing how various organizational configurations, along with SMA, may lead to superior performance. Finally, from a longitudinal perspective, the study shows how SMA alignment continuously supports both the external and internal configuration fit.Research limitations/implicationsCase studies often lack generalizability due to their detailed, context-specific nature. In addition, the study assumes that aligning SMA practices with organizational configurations leads to higher performance, although outcomes may be affected by other unobserved factors.Practical implicationsThis study also has practical implications for managers, as it provides a profound understanding of the role of SMA in supporting both the external and internal alignment of the organizational configuration. Managers should particularly leverage SMA to gather and analyze external environmental data, thereby enabling the organization to ensure the continuous consistency of its strategic priorities, as well as to support and reinforce both existing and emerging strategic imperatives. However, it is essential for managers to perceive SMA not as an isolated instrument, but as an integral component of the broader organizational system. Effective implementation necessitates the integration of SMA techniques with the strategic and structural elements of the organization, which complement their implementation, determining the actual contribution to external and internal fit.Originality/valueTo the best of the author’s knowledge, this study has been one of the first to adopt a qualitative approach to investigate the relationships between strategy, SMA and performance through the lens of the configurational theory. It elucidates the causal mechanisms underlying the relationships between configurations and SMA from a dynamic, change-oriented perspective, showing how SMA continuously contributes to configurational fit and performance.

The importance of the influence of Industry 4.0 and the digitalization of the economy on the development of the accounting system in modern conditions has been grounded. The role of Big Data in solving key accounting problems and increasing the relevance of accounting information has been grounded. The reasons for the relevance of using Big Data in management accounting have been analyzed. The problems caused by using Big Data in management accounting have been identified and analyzed. The need to develop management accountants’ abilities and skills in data processing and presentation using Big Data tools has been grounded. The role of big data in ensuring the digital transformation of the enterprise’s strategic management system has been analyzed. Directions for using Big Data in strategic management accounting have been identified and described (innovative development of the system; improvement of strategic control; improvement of particular accounting methods; improvement of accounting methodology; change in the role of strategic management accountants).

This research investigates the relationship between supply chain management (SCM) strategy, strategic management accounting, internal and external orientation of companies, and their impact on company growth. The study utilizes a quantitative method using a questionnaire designed with a Likert scale ranging from 1 to 7 points. The sample used in this research reached 215 respondents. The respondents in this study are employees, staff, and managers of public sector companies in Indonesia. Data analysis was conducted using Structural Equation Modelling (SEM) analysis using SmartPLS 4.0 software. The results indicate that SCM strategy significantly influences internal and external orientation. Similarly, strategic management accounting has a significant impact on internal and external orientation. Both internal and external orientations significantly contribute to company growth. In the mediating role, both internal and external orientations have a significant impact on the relationship between SCM strategy and strategic management accounting with company growth.

The paper presents a brief overview of the dynamics of management accounting evolution, but the focus ofthe paper are innovations and trends in management accounting which characterise the first two decades of the 21stcentury. The circumstances, incentives, and transformation of the management accounting system (MAS) as well asthe reasons for delay in accepting innovative approaches in management accounting were considered. Managementaccountingtechniques and practices are very dynamic, relatively adaptable to changing business conditions, but theimplementation of management accounting innovations (MAI) has earned some criticism. Investigated and presentedin the paper, basic trends in management accounting for the XXI century according to available literature, with thestudy of the influence of the environment and the impact of the organization on the transformation of managementaccounting. It was pointed out the role and competences of management accountants in the 21st century, as well as onthe challenges of innovation in the era of globalization that were set before management accounting. Theoretical andpractical achievements of strategic management accounting (SMA) were considered in order to support the processesof strategic management. A communication gap between management accountants and managers in companies hasbeen identified. The purpose of the work is to identify potential solutions for better implementation of innovativetechniques and management accounting tools and to establish frameworks for increasing satisfaction and meeting theobjectives of management due to the techniques used in management accounting.

PurposeSocial networking site (SNS) service is a popular cultural issue that affects communication methods and mannerisms. The purpose of this paper is to analyze the case of the growth and development of a China SNS service company using the strategic management accounting (SMA) spectrum.Design/methodology/approachThe paper primarily employs archival resources such as company reports and newspaper clippings online to provide a business and social developmental context to the study. Three propositions are developed and discussed.FindingsThe study illustrates SMA application in business. It shapes the perception of contemporary accounting, and then delivers an awareness of the relationship among business strategy, accounting, and social life.Research limitations/implicationsThis paper is based on a single case study, thus the findings may not be generalized to other popular culture service companies. The case has shown some reasons why different SMA techniques are used by the company in different stages of the organizational life cycle.Practical implicationsFirst, in the start‐up stage of an SNS service company, it engages in product development to obtain funding resources and market so as to enhance market share. Second, in the growth stage of SNS service, the company engages in product financing through the capital market and trade financing.Originality/valueThe SNS service has emerged for accounting for popular culture. Such connection is especially found in SMA in different stages of the organizational life cycles as addressed in the study.

Much progress has been achieved in research works on SMA and the scope of modern analytical tools in SMA techniques.Although there had been many reviews on SMA techniques and their adoption by firms around the world, research on the application of analytical tools like artificial intelligence (AI), big data analytics (BDA) and cloud computing (CC) in SMA techniques had been fewer.This review aimed at assessing the relative extent of research done on these two aspects and the findings obtained from them.Google Scholar was used to search for papers and the PRISMA flow process was used to screen and select the papers.A total of 41 papers were obtained from these methods for this review.These papers were discussed under three main sections: Papers on the use of advanced analytical tools in SMA by firms, SMA (strategic management accounting) techniques used by Australian manufacturing firms and Use of advanced analytical tools for performance improvement by Australian manufacturing firms.However, since the adoption rate of SMA itself is low, using advanced analytical tools in SMA has been still low.Low levels of (negative) adoption of both SMA techniques and tools are due to a lack of awareness, lack of the required skills, lack of resources and resistance to change.The first two of these barriers could be addressed by training employees about SMA, and its techniques and tools.Incremental implementation of SMA and the tools with increasing availability of resources over time may solve the resource problem.Effective change management strategies and positive organisational culture towards changing to SMA and tools can solve the resistance problem.But the current low levels of adoption do not indicate the possibility of changing the organisational culture.

* Challenging and provocative book * Shows how management accounting techniques can be integrated into the strategic decision making process * Extensive use of practical examples from a variety of contexts.An introduction to business strategy for management accountants, financial accountants or managers with an accounting orientation. The book places management accounting clearly within the context of strategic management of the business. Offers qualified accountants a sound introduction to strategic management, and with practical examples and mini-cases provided throughout, this book is comprehensive yet concise. Keith Ward addresses strategic management accounting as a continuous process of analysis, planning and control. Management accounting is about supplying the right information to the right people at the right time, and this can only be expressed in the context of the business strategy and strategic plan. The implementation of appropriate management accounting systems to complement different strategies is discussed in detail. Applications and examples include multinational organizations, non-profit organizations and varying organizational structures. Finally the author covers methods of using management accounting for strategic advantage.

With the advances made in management accounting techniques such as strategic management accounting, optimizing management accounting will play an important role in strategic decision makers. To achieve competitive advantage and ensure high performance, a clear strategy is needed, and the condition alone is not enough. Based on the contingency approach introduced into the management accounting field, the optimal use of these techniques requires the adaptation of management accounting with contingency variables. The contingency variables in this research are environment, strategy, and organizational culture. This research tries to provide an adaptive model of management accounting by examining the effect of contingency variables on how management accounting techniques are applied. In this research, the environment is based on typology; the strategy is based on Porter typology; culture based on Cameron and Queen Typologies and management accounting techniques based on the model of the International Federation of Accountants. The present research is a survey based on the purpose, applicability, and according to how data is collected. The statistical population of the survey is the auditing companies in the geographical area of Erbil and sampling is available as a sampling type. To investigate the relationship, Kruskal-Wallis test and to prioritize management accounting techniques, Friedman’s test was used in terms of the amount of use, and in terms of significance, as well as a significant gap between significance and Wilcoxon’s test was used. The research results are as follows: The first hypothesis, which claims that companies operating in an uncertain environment are not more sophisticated management accounting techniques than companies operating in a more secure environment, were not approved. The second hypothesis claims. Companies with a differentiation strategy apply to companies with cost leadership strategies that are more sophisticated management accounting techniques. The third hypothesis, which claims that companies with a market-oriented culture and business use more sophisticated management accounting techniques than hierarchical and tribal societies. In addition, management accounting techniques are based on the amount of use and importance Prioritized.

The transition process in the Republic of Serbia – and the transition from a planned to a market economy – makes managing a company more demanding and sophisticated. In these circumstances, to be competitive, companies must have a strong and sophisticated information system that will provide information support to allow management to react in a timely manner and be proactive to market changes. One of the most important sources of such information is, of course, management accounting. Using only the traditional management accounting (TMA) could no longer fulfil the purpose of management requirements. For this purpose, strategic management accounting (SMA) and strategic cost management (the term ‘SCM’ is more commonly used in US literature) have been developed. This article explores the usefulness of using the aforementioned SMA techniques in obtaining timely and relevant information. Also, the intention was to identify synergetic effects of their implementation in terms of positive impact on cost control and costs reduction. The results were much more positive than expected.

In implementing strategic management accounting practices, insufficient attention to managers' emotional intelligence often leads to poorly aligned strategies and weakened organizational performance, especially in the pharmaceutical manufacturing sector where adaptability and collaboration are vital. Therefore, considering managers’ emotional intelligence is crucial for successful SMA implementation. This study investigated the influence of managerial emotional intelligence on strategic management accounting (SMA) practices in selected pharmaceutical industrial goods companies in Ilorin, Kwara State. The study used a survey research design and the population covered all the eight (8) pharmaceutical manufacturing firms in Ilorin metropolis, kwara state. All the pharmaceutical manufacturing firms in Ilorin metropolis were selected for the study, hence, a census study. Primary data used for the study were collected with the use of questionnaire administration to the cost accountants, management accountants, internal auditors, production managers, sales managers and finance directors of the studied firms. Data collected for the study were analyzed using both descriptive and inferential statistics ordered logistic regression. The findings of the study were: self-awareness has a positive significance impact on strategic management accounting practices, self-awareness, empathy, self-regulation and motivation have significance impact on SMA practices in the studied manufacturing firms, p-value greater than 0.001, while social skills does not have significance influence on SMA practices in the study with (?=0.78,p<0.007 ). Based on the findings, it is concluded that emotional intelligence as contingency factors has a substantial influence on the strategic management accounting practices in the selected firms. It is therefore recommended that enhancing emotional intelligence in managers, particularly through training in self-awareness, empathy, self-regulation, and motivation, can improve SMA practices and strategic decision-making. Furthermore, the pharmaceutical manufacturing firms should deeply seized the importance of integrating emotional intelligence development into managerial training programs to optimize SMA outcome.

This study investigates how Strategic Management Accounting (SMA) contributes to firm performance, emphasizing the mediating role of decision-making quality. Grounded in Contingency Theory, the Resource-Based View, and Information Processing Theory, the research develops and tests a model linking SMA practices, decision-making quality, and firm outcomes. Data were collected from 150 small and medium-sized manufacturing enterprises (SMEs) in Makassar, Indonesia, using a structured survey and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM). The results demonstrate that SMA has a significant positive effect on both decision-making quality and firm performance. Decision-making quality itself strongly enhances performance and partially mediates the SMA–performance relationship. These findings suggest that SMA functions not only as a provider of strategically relevant information but also as a resource that strengthens managerial decision-making processes. Theoretically, the study enriches the strategic management accounting literature by clarifying the causal pathway through which SMA creates value. Practically, it highlights the importance for SME managers and policymakers to promote SMA adoption and to invest in developing decision-making competencies. The study concludes that SMA drives firm performance through both direct and indirect mechanisms, with decision-making quality acting as a critical conduit.

Strategic management accounting (SMA) has been presented as an efficacious approach to strategy formulation and implementation. It also suggests accountants move away from purely financial concerns to give consideration to wider business issues. Management accounting change has attracted significant research attention in recent years. This case study explores the issues which surround change and which enable the adoption of SMA and the repositioning of management accountants to become more strategic. The empirical enquiry is based in one company through a prolonged series of interviews and meetings which enabled activities over a number of years to be reviewed. This revealed an increasing strategic role for management accountants in informing strategic decision‐making and how this role came into being. The research is informed by institutional theories and neoinstitutionalism in particular, to interpret the external and internal influences on the change in roles of some management accountants and the outputs of their work.