Influencing Factors on the Implementation of Strategy Management Accounting in the Kurdistan Region

Rebin Bilal Mohammed; Sardar Jalal Braim; Ronyaz Hayyas Mahmood; Karkhi Khalid Sabah

doi:10.25212/lfu.qzj.8.4.51

Authors

Rebin Bilal Mohammed Department of Accounting and Finance, Administration and Economics, Lebanese French University, Erbil, Iraq
Sardar Jalal Braim Department of Accounting and Finance, Administration and Economics, Lebanese French University, Erbil, Iraq
Ronyaz Hayyas Mahmood Department of Business Administration, Administration and Economics, Lebanese French University, Erbil, Iraq
Karkhi Khalid Sabah Department of Business Administration, Administration and Economics, Lebanese French University, Erbil, Iraq

DOI:

https://doi.org/10.25212/lfu.qzj.8.4.51

Abstract

The Purpose of this study is to illustrate the influences Kurdistan Region logistics companies' adoption of strategic management accounting. Design/Methodology/Approach: is the total of 188 accountants and directors from Kurdistan Region Logistics Enterprises filled out questionnaires for this quantitative study (including, transportation, warehousing, and forwarding). Five variables were chosen for correlation and regression analysis to determine the extent to which Kurdistan Region Logistics Enterprises (LEs) using strategic management accounting (SMA). These variables are company sizes and structures, technical advancement, and the cost of applying SMA. The research found a number of main conclusions, The results of Empirical evidence demonstrates a robust connection between these variables and the deployment of SMA. The use of SMA by LEs has been widely endorsed since it helps them gather data for making important strategic decisions. The financial and non-financial benefits of SMA applications are enhanced by factors such as company size and organizational structure, technology progress, SMA implementation costs, and strategy. The importance of SMA for management is highlighted by this result. The results of this research offered an outline of the benefits of SMA implementation in business settings. Managers can have a deeper insight into SMA and how it can be applied in the future. In addition, managers will be able to use the study's findings to determine what aspects affect their SMA practices and refine the way they now handle management.

Downloads

Download data is not yet available.

References

Abdel. K. M. & Luther. R. (2008). The impact of firm characteristics on management accounting practices: A UK-based empirical analysis, The British Accounting Review, 40, 2-27.

Anh.D.N.P (2012). Study the factors affecting the application of strategic management accounting in enterprises, Journal of Economic Development, 264, 9-15

Banomyong, R., Thai, V. V., & Yuen, K. F. (2015). Assessing the national logistics system of the Kurdistan Region. Asian Journal of Shipping and Logistics, 31(1), 21-58. https://doi.org /10.1016/j.ajsl.2015.03.002

Cadez, S. & Guilding, C. (2008). An exploratory investigation of an integrated contingency model of strategic management accounting, Accounting, Organizations and Society, 33(7-8), 836–863. https://doi.org /10.1016/j.aos.2008.01.003lơ.

Cinquini, L. & Tenucci. A. (2010). Strategic management accounting and business strategy: Aloose coupling?, Journal of Accounting & Organizational Change, 6(2), 228-259. https://doi.org /10.1108 /18325911011048772.

Chowdhury, T. S., Habibullah, M., & Nahar, N. (2018). Risk and Return Analysis of Closed-End Mutual Fund in Bangladesh.

Journal of Accounting, Business and Finance Research, 3(2), 83-92. https://doi.org /10.20448/2002.32.83.92

Collier, P., & Nandan, R. (2010). Management Accounting Needs of SMEs and the Role of Professional Accountants: A Renewed Research Agenda. Journal of applied management accounting research, 8(1), 65-73.

Creswell, J. W. (2009). Research design: Qualitative, quantitative, and mixed methods approach. New York: SAGE Publications.

Dang, V. L. & Yeo, G. T. (2018). Weighing the Key Factors to Improve Kurdistan Region's Logistics System. The Asian Journal of

Shipping and Logistics, 34(4), 308-316. https://doi.org/10.1016/j.ajsl.2018.12.004

Doktoralina, C. & Apollo, A. (2019). The contribution of strategic management accounting in supply chain outcomes and logistic firm profitability. Uncertain Supply Chain Management, 7(2), 145-156. https://doi.org /10.5267/j.uscm.2018.10.010.

Fowzia, R. (2011). Strategic management accounting techniques: Relationship with business strategy and strategic effectiveness of manufacturing organizations in Bangladesh. World Journal of Management, 3(2), 54-69.

Hair, J.J.F., Anderson, R.E., Tatham, R.L., & Black, W. C, (2010). Multivariate Data Analysis (7th ed), Peason Preason Prentice Hall.

Howcroft, D. (2017). Graduates’ vocational skills for the management accountancy profession: Exploring the accounting education expectation-performance gap. Accounting Education, 26(5–6), 459–481. https://doi.org/10.1080/09639284.2017.1361846

Hyvonen, J. (2007). Strategy, performance measurement techniques and information technology of the firm and their links to organizational performance. Management Accounting Research, 18, 343-366.

Isa. C. R. & Foong, S.Y. (2005). Adoption of advanced manufacturing technology (AMT) and management accounting practices: the case of manufacturing firms in Malaysia, World Review of Science, Technology and Sustainable Development, 2(1), 35. https://doi.org/10.1504/wrstsd.2005.006726.

Ju, Y., Wang, Y., Cheng, Y., & Jia, J. (2019). Investigating the Impact Factors of the Logistics Service Supply Chain for Sustainable Performance: Focused on Integrators. Sustainability, 11(2), 538. Retrieved from https://www.mdpi.com/2071-1050/11/2/538

Kalkhouran, A. A. N., Rasid, S. Z. A., Sofian, S., & Nedaei, B. H. N.

(2015). A Conceptual Framework for Assessing the Use of

Strategic Management Accounting in Small and Medium Enterprises. Global Business and Organizational Excellence, 35(1), 45–54. https://doi.org /10.1002/joe.21644.

Kober, R., Ng, J., & Paul, B. J. (2007). The interrelationship between management control mechanisms and strategy. Management Accounting Research, 18(4), 425-452.

Kordlouie, H.R. & Hosseinpour, A. (2018). Management

Accounting Practices In Small And Medium-Sized Enterprises

Regarding The Impact of Organizational DNA, Commercial Potential And Operational Technology, International Journal of Business Quantitative Economics and Applied Management Research, 4(8), 22-31.

Kosaiyakanont, A. (2011). SME Entrepreneurs in Northern

Thailand: Their Perception of and Need for Management Accounting. Journal of Business and Policy Research, 6(3), 143-155.

Langfield-Smith, K., Smith, D., Andon, P., Hilton, R., & Thorne, H. (2017). Management accounting: Information for creating and managing value. McGraw-Hill Education Australia.

Lavia L_opez, O. & Hiebl, M. R. W. (2015). Management accounting in small and medium-sized enterprises e current knowledge and avenues for further research. Journal of Management Accounting Research, 27(1), 81-119. https://doi.org/10.2308/jmar-50915.

Lord, B. R. (1996). Strategic Management Accounting: The emperor’s New Clothes? Management Accounting Research, 7(3), 347–366. doi:10.1006/mare.1996.0020.

Neuman, W. L. (2013). Social research methods: Pearson new international edition: Qualitative and quantitative approaches. London: Pearson

Nunnally, J.C. & Bernstein, I.H. (1994). The Assessment of Reliability, Psychometric Theory, 3, 248-292.

Oboh, C. S., & Ajibolade, S. O. (2017). Strategic management accounting and decision making: A survey of the Nigerian Banks, Future Business Journal, 3(2), 119-137. https://doi.org/10.1016/j.fbj.2017.05.004

Otley. D. (2016). The contingency theory of management accounting and control: 1980–2014, Management Accounting Research, 31, 45–62. doi:10.1016/j.mar.2016.02.001.

Pavlatos, O. (2015). An empirical investigation of strategic management accounting in hotels. International Journal of Contemporary Hospitality Management, 27(5), 756–767. doi:10.1108/ijchm-12-2013-0582.

Peterson, R. A. (1994). A Meta-Analysis of Cronbach’s Coefficient Alpha, Journal of Consumer Research, 21, 381-391

Phuong V, T., Grant, D. B., & Menachof, D. A. (2020). Exploring logistics service quality in Hai Phong, Kurdistan Region. The Asian Journal of Shipping and Logistics, 36(2), 54-64. doi:https://doi.org/10.1016/j.ajsl.2019.12.001

Roslender, R., & Hart, S. J. (2003). In search of strategic management accounting: theoretical and field study perspectives, Management accounting research, 14(3), 255-

https://doi.org/10.1016/S1044-5005(03)00048-9

Rosli, M. H., Said, J., & Mohd, F. (2014). Factors that influence the use of Strategic Management Accounting in Malaysian Government-Linked companies, Malaysian Accounting Review, 13(2), 23-46. Available at: http://arionline.uitm.edu.my/ ojs/index.php/MAR/article/view/32.

Russell, D. M. & Hoang, A. M. (2004). People and information technology in the supply chain: Social and organizational influences on adoption. International Journal of Physical Distribution & Logistics Management, 34(1/2), 102-122. doi:http://dx.doi.org /10.1108 /09600030410526914.

Shah, H., Malik, A., & Malik, M. S. (2011). Strategic management accounting - A messiah for management accounting. Australian Journal of Business and Management Research, 1(4), 1-7.

Slagmulder, R. (1997). Using management control systems to achieve alignment between strategic investment decisions and strategy. Management Accounting Research, 8, 108-139. https://doi.org/10.1006/mare.1996.0035

Sulaiman, N.N & Norhayati, A. (2014). Management accounting practice in selected Asian countries, Managerial Auditing Journal, 19(4), 493 - 50.

Tayles M. (2011). Strategic Management Accounting. In: AbdelKader M.G. (eds) Review of Management Accounting Research. Palgrave Macmillan, London. https://doi.org/10.1057/9780230353275_2.

Tomkins. C. & Carr. C. (1996a). Editorial Strategic Management Accounting, Management Accounting Research, 7, 165-167.

Van. T.H. & Lan. T.T.P. (2021). Factors affecting the implementation of strategic management accounting. Journal of Finance and Marketing, 59. https://doi.org/10.52932/jfm.vi59.35.

Valančienė, L. & Gimžauskienė, E. (2007). Changing Role of Management Accounting: Lithuanian Experience Case Studies, Engineering Economics. 5(55), 16-23.