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

The purpose of this paper is to investigate factors that affect the use of management accounting practices (MAPs) in Malaysian medium-sized firms in manufacturing sector. Design/methodology/approach – A quantitative research design involving the use of postal questionnaire was carried out to investi...

Full description

Saved in:
Bibliographic Details
Main Author: Ahmad, Kamilah
Format: Article
Published: Emerald Group Publishing 2015
Subjects:
Online Access:http://dx.doi.org/10.1108/JSBED-04-2012-0057
http://dx.doi.org/10.1108/JSBED-04-2012-0057
http://eprints.uthm.edu.my/7688/3/Kamilah_Ahmad_U_%2D_Copy.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The purpose of this paper is to investigate factors that affect the use of management accounting practices (MAPs) in Malaysian medium-sized firms in manufacturing sector. Design/methodology/approach – A quantitative research design involving the use of postal questionnaire was carried out to investigate the influences of key contingent factors on MAPs. The survey was conducted to 500 Malaysian medium-sized firms in manufacturing sector which elicited 110 useable responses. Findings – The results indicates that size of the firm, intensity of market competition, commitment of owner/manager of firm and advanced manufacturing technology have significant influences on the use of certain MAPs. Thus the research provides support for a contingency-based explanation for the 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 MAPs in smaller firms. Research limitations/implications – The research focused on medium-sized firms inmanufacturing sector. Therefore the empirical research results may lack generalizability to the overall Malaysian small and medium-sized enterprises (SMEs). Future study might investigate whether there is a variation of the significant contingent factors in medium-sized firms across economies. Practical implications – This research fills in the significant research gap and provides a start for further research into MAPs among SMEs based on a contingency approach. Social implications – The results contribute to a better understanding of the factors underlying the development of MAPs among smaller firms. Originality/value – The paper discusses key contingency factors influencing MAPs in larger firms and SMEs and how these factors could affect the use of MAPs in smaller firms’ context.