Factors explaining the extent of use of management accounting practices in Malaysian medium firms

There is little recent empirical research relating to what factors affected the use of specific management accounting practices in SMEs context. This research addresses the omission and report the findings derived from a survey of Malaysian firms in SME sector. Based on the 110 Malaysian mediu...

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Bibliographic Details
Main Author: Ahmad, Kamilah
Format: Conference or Workshop Item
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Online Access:http://eprints.uthm.edu.my/3350/
http://eprints.uthm.edu.my/3350/1/kamilah_ahmad_(FPTP).pdf
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Summary:There is little recent empirical research relating to what factors affected the use of specific management accounting practices in SMEs context. This research addresses the omission and report the findings derived from a survey of Malaysian firms in SME sector. Based on the 110 Malaysian medium firms in the manufacturing sector, the study indicates that size of the firm, intensity of market competition; commitment of owner/manager of firm and advanced manufacturing technology (AMT) have significant influence on the use of certain management accounting practices i.e costing system and performance evaluation system. The some use of more sophisticated MAPs (decision support system and strategic management accounting) is largely associated with the commitment of owner/manager. This research provides support for a contingency based explanation for the extent of use of MAPs and identifies new variable such as commitment of owner/manager as one of a key factor that affect the extent of use of management accounting practices in Malaysian medium firms.