The relevancy of strategic thinking in the role of management accounting systems for SME’s survivability: A new conceptual framework

• Main Authors: Mazuri, Abd Ghani, Safrul Izani, Mohd Salleh, Shahid, Latif
• 格式: Conference or Workshop Item
• 语言: English
• 出版: 2021
• 主题: HD28 Management. Industrial Management; HF5601 Accounting
• 在线阅读: http://eprints.unisza.edu.my/4238/1/FH03-FPP-21-56046.pdf; http://eprints.unisza.edu.my/4238/

This paper aims to present a novel conceptual model for long-term survival in the context of Pakistani SMEs. Researchers have long been interested in uncovering what makes certain entrepreneurs better to others, particularly in SMEs from emerging economies that are primarily concerned with their own survivability. Scholarship has revealed that the desire for survival is deeply ingrained in the owners/managers of SMEs, as a result of which they endeavor to lessen their struggle for survival. Long-term survival, or sustainable survival, is arguably influenced by strategic thinking. When discussing the SME context, management accounting research has captured the attention of scholars due to its significance and application. Management accounting systems provide financial and nonfinancial data that stimulate the cognitive process. Certain management accounting tools, particularly at the strategic level, include “strategy mapping, analysis of core competencies, long-range and business planning, risk management, environmental impact assessment, value for money audits, value engineering or value analysis, competitor analysis”. We have argued in this conceptual paper that management accounting systems can activate strategic thinking cognitively, thereby enabling SMEs to sustain themselves in the long run. Thus, it is critical for SMEs to optimize management accounting systems because they can have a significant impact on their survival. Further, the presence of management accounting systems can bring robustness in planning, controlling and decision making in SMEs.