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The Implementation of Management Accounting Practices and its Relationship with Performance in Small and Medium Enterprises

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  • Kamilah Ahmad

    (Department of Production and Operations Management, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Batu Pahat, 86400, Malaysia)

Abstract

There is scarce research into management accounting practices (MAPs) in small and medium-sized enterprises (SMEs) in the current literature. This study aims to explore the implementation of MAPs in SMEs and the relationship between MAPs and performance. A questionnaire survey was conducted among Malaysian SMEs in the manufacturing sector. The study demonstrates that the level of uptake of MAPs differs from traditional to more sophisticated approach. Costing system and performance measurement system (PMS) appear to be the common MAPs employed by the responding enterprises. Meanwhile, the sophisticated MAPs are frequently utilized by larger enterprises which is in line with the theoretical arguments of the effect of size in the adoption of MAPs. The findings also reveal that certain MAPs are found to have significant relationships with performance and these findings have reinforced the importance of MAPs in today’s organization. This study provides additional empirical evidences on MAPs in SMEs and their relationships with performance

Suggested Citation

  • Kamilah Ahmad, 2017. "The Implementation of Management Accounting Practices and its Relationship with Performance in Small and Medium Enterprises," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 342-353.
    • Handle: RePEc:eco:journ3:2017-01-45
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    References listed on IDEAS

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    Cited by:

    1. Sudhashini Nair & Xin Tan, 2018. "Factors Influencing the Implementation of Activity-Based Costing: A Study on Malaysian SMEs," International Business Research, Canadian Center of Science and Education, vol. 11(8), pages 133-141, August.
    2. Baker Akram Falah Jarah & Nidal Zaqeeba & Mefleh Faisal Mefleh Al-Jarrah & Abdalla Mohammad Al Badarin & Zeyad Almatarneh, 2023. "The Mediating Effect of the Internal Control System on the Relationship between the Accounting Information System and Employee Performance in Jordan Islamic Banks," Economies, MDPI, vol. 11(3), pages 1-18, February.
    3. S. N. Nartey & H. M. van der Poll, 2021. "Innovative management accounting practices for sustainability of manufacturing small and medium enterprises," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 18008-18039, December.

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    More about this item

    Keywords

    Small and Medium-sized Enterprises; Management Accounting; Manufacturing Sector; Malaysia;
    All these keywords.

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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