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

Ahmad, Kamilah (2015) Factors explaining the use of management accounting practices in Malaysian medium-sized firms. Journal of Small Business and Enterprise Development, 22 (4). pp. 762-781. ISSN 1462-6004

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Official URL: http://dx.doi.org/10.1108/JSBED-04-2012-0057

Abstract

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.

Item Type:Article
Uncontrolled Keywords:Malaysia; SMEs; contingency theory; management accounting practices
Subjects:H Social Sciences > HF Commerce > HF5001-6182 Business
Divisions:Faculty of Technology Management and Business > Department of Production and Operation
ID Code:7688
Deposited By:Normajihan Abd. Rahman
Deposited On:29 Feb 2016 16:38
Last Modified:29 Feb 2016 16:38

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