Exploring the Factors Influencing the Adoption of Strategic Management Accounting Techniques: A Focus on Contingency and Control Variables

Document Type : Research Paper

Authors

1 Associate Prof., Department of Accounting, Hazrat_e Masoumeh University (HMU), Qom, Iran.

2 MSc., Department of Accounting, Faculty of Humanities and Science, University of Kurdistan, Sanandaj, Iran.

10.22059/acctgrev.2024.377800.1008972

Abstract

Objective
Management accountants play a crucial role in shaping the strategic direction of organizations by utilizing management accounting techniques, which are essential tools for achieving strategic objectives. The design and implementation of management accounting techniques are strongly influenced by organizational culture, i.e., the ability of management accountants to build strong relationships with others, and the development of efficient information systems. This study investigates the impact of four contingent variables (soft skills, information systems, innovation culture, and outcome culture) alongside four control variables (firm size, competition, perceived environmental uncertainty, and product diversity). The study is grounded in a comprehensive model that outlines how these factors influence the implementation of strategic management accounting techniques.
Methods
This research is classified as applied in nature, and the data collection method employed is a descriptive-survey. The data was collected through a 5-point Likert scale questionnaire. The questionnaire included two parts; the first part included demographic questions, and the second part included questions related to research constructs. The study's population consisted of accountants employed in manufacturing companies. The sample size comprised 173 accountants. To analyze the data, structural equation modeling (SEM) was employed using SPSS version 26 and Smart PLS software version 3.
Results
According to the research findings, soft skills, outcome culture, and information systems (among the contingent variables) affect the implementation of strategic management accounting techniques. Furthermore, innovation culture and outcome culture do not moderate the relationship between soft skills and the implementation of strategic management accounting techniques, whereas information systems do. The findings showed that the soft skills of management accountants mediated the relationship between innovation culture and the implementation of strategic management accounting techniques. This means that innovation culture does not have a direct impact on the implementation of strategic management accounting techniques; however, it has an indirect effect through the soft skills of management accountants. In addition, outcome culture had only a positive direct influence on the implementation of strategic management accounting techniques. Although outcome culture had a significant effect on the soft skills of management accountants, its indirect impact on the implementation of strategic management accounting techniques was not significant through the interaction of soft skills with management accountants. Furthermore, the findings showed that firm size was the only control variable that had a significant positive effect on the implementation of strategic management accounting techniques. Conversely, the other three variables (i.e., competition, perceived environmental uncertainty, and product diversity) had no significant effect on the implementation of strategic management accounting techniques. Finally, contingent and control variables were able to explain 65% of the changes in the dependent variable.
Conclusion
The present study aimed to contribute to the literature on contingency theory by identifying factors that affect the implementation of strategic management accounting techniques and examining the role of management accountants in this process. Furthermore, this research offered insights into how three variables management accountants' soft skills, the quality of information systems, and organizational culture impact the implementation of strategic management accounting techniques by considering more complex relationships. Additionally, management accountants need to interact with other stakeholders to enhance their role in the design and implementation of these techniques. Finally, the findings of this research can contribute to the effective implementation of strategic management accounting techniques.

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References

 
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Accounting and Auditing Review
Volume 31, Issue 4
2024
Pages 733-762

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