To read this content please select one of the options below:

Determinants and impact of strategy-driven manufacturing accounting techniques on organisational competitiveness: a structural equation modelling approach

Babajide Oyewo (Department of Accounting,University of Southampton, Southampton, UK and Essex Business School, University of Essex, Colchester, UK)
Vincent Tawiah (Department of Accounting, Finance and Economics, Griffith Business School, Griffith University, Nathan, Australia and DCU Business School, Dublin City University, Dublin, Ireland)
Mohammad Alta’any (Department of Accounting, Business School, The Hashemite University, Zarqa, Jordan)

Journal of Accounting & Organizational Change

ISSN: 1832-5912

Article publication date: 29 March 2024

274

Abstract

Purpose

This study aims to investigate contextual factors affecting the deployment of strategy-driven manufacturing accounting techniques (SMAT), as well as the impact of SMAT usage on organisational competitiveness. Seven major SMAT were investigated, namely, benchmarking, integrated performance measurement, environmental management accounting, strategic costing, strategic pricing, strategic investment and life cycle costing.

Design/methodology/approach

By using multi-informant strategy, structured questionnaire was used to gather survey data from 129 senior accounting, finance and production personnel of publicly quoted manufacturing companies in Nigeria. Data was analysed using structural equation modelling and propensity score matching.

Findings

Result shows that the usage rate of the SMAT is generally moderate. Market orientation and deliberate strategy formulation are notable determinants of SMAT usage. The inability of competition intensity and perceived environmental uncertainty to notably affect SMAT usage suggests that external environmental pressure to use SMAT is weak.

Practical implications

Although the impact of SMAT usage on organisational competitiveness is positive and statistically significant, it is conceivable that the impact of SMAT could have been more assuming SMAT recorded extensive usage. Thus, the lack of competitiveness of manufacturing companies in Nigeria may not be unconnected to the superficial usage of SMAT.

Originality/value

The study contributes to knowledge in three ways. First, it extends studies on the contingency theory that contextual factors influence the adoption of management accounting innovations. Second, it exposes the contextual factors affecting the adoption of SMAT in a developing country. Third, it provides evidence on the value relevance of management accounting innovation in enhancing organisational competitiveness.

Keywords

Acknowledgements

The authors thank the Editor, Prof. Zahirul Hoque for helpful comments and two anonymous reviewers for constructive feedback that greatly improved the paper.

Conflict of interest declaration: The authors have no relevant financial or non-financial interests to disclose.

Funding declaration: No funding was received to assist with the preparation of this manuscript.

Citation

Oyewo, B., Tawiah, V. and Alta’any, M. (2024), "Determinants and impact of strategy-driven manufacturing accounting techniques on organisational competitiveness: a structural equation modelling approach", Journal of Accounting & Organizational Change, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JAOC-10-2022-0165

Publisher

:

Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

Related articles