Management accounting control system and firms’s performance of SME family firms

• Main Author: Rodzi, Nurul Adillia
• Format: Thesis
• Language: English; English; English
• Published: 2020
• Subjects: HF5601-5689 Accounting
• Online Access: https://etd.uum.edu.my/9725/1/s824509_01.pdf; https://etd.uum.edu.my/9725/2/s824509_02.pdf; https://etd.uum.edu.my/9725/3/s824509_references.docx; https://etd.uum.edu.my/9725/

Management Accounting Control Systems (MACS) and its development has been exponential in recent years, owing mainly to three issues that have had a significant impact on performance control practice. The implementation of MACS has a huge impact on overall firms, which reflected in the firm’s performance. Therefore, this study aims to investigate the relationship between MACS uses on firms’ performances in SMEs family firms. The study is performed by adopting contingency theory and agency theory. Contingency theory explains how to design an appropriate accounting information system to match the firm's organizational structure, technology, strategy and environment while agency theory assumes that there is a contractual relationship between firm's members that recognizes the existence of two groups of people who are principals or superiors and agents or subordinates which assumed to be strictly self-involved economic individuals, who can vary with respect to interests, values and knowledge. The framework of study focused on factors namely Non-financial MACS, Financial MACS, MACS uses and family firms towards the firm’s performances. The objectives of this study are to determine the relationship of Non-financial MACS, Financial MACS, MACS uses and family firms towards firm’s performance. This study employed the quantitative method by distributing the surveys to the SMEs firms. Total sample of this study was 100 respondents. Collected data were analysed by using SPSS statistic version 24. As a result, the findings from the regression and correlation analysis revealed that Non-financial MACS, Financial MACS, MACS uses and family firms influence significantly on the firm’s performance. The findings also acclaim that high utilization of MACS has a positive impact on the firms’ performances. This relation reinforces the concept of contingency theory that the usage of MACS will directly affect efficiency as a means of competitive advantage. The conclusions of this study had an impact in particular on the building of theory in MACS and on the discipline of accounting. One of the key achievements of this report was its significance for the Malaysian economy as a whole particularly for SME organizations.