Business strategy, intensity of competition, strategic role of accountants, strategic management accounting and firm performance

• Main Authors: Ah Lay, T., Jusoh, R.
• 格式: Conference or Workshop Item
• 语言: English
• 出版: 2014
• 主题: HF Commerce
• 在线阅读: http://eprints.um.edu.my/13406/1/business_strategy%2Cintensity.pdf; http://eprints.um.edu.my/13406/

This exploratory study investigates whether usage of strategic management accounting (SMA) techniques and the accountants' participation in strategic decision-making process mediate the relationship between differentiation strategy and firm performance. The contingency model also examines the impact of strategic role of accountant and intensity of competition on the usage of SMA. Past studies suggest that firms tend to adopt SMA techniques to better cope with the pressures of competitive and unpredictable environment. The results of partial least squares appear to support that differentiation strategy is closely associated with the usage of SMA techniques and strategic role of accountant. Intensity of competition is not associated with the usage of SMA. SMA usage mediates the relationship between differentiation strategy and firm performance. Strategic role of accountant has an indirect effect on firm performance via SMA usage. The current study also supports that strategic management accounting (SMA), being proactive, forward-looking and outward-looking, is more relevant to larger firms pursuing product differentiation strategy. Equally important is the changing role of management accountants who begin to participate in the strategic decision-making process.