Influential factors on strategic management accounting application and its influence on the business: Empirical evidence from a developing market

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Abstract

The successful application of strategic management accounting (SMA) and its influence on business in a developing market are contingent on various factors. Oyewo (2022) emphasizes the impact of contextual factors such as organizational structure, information technology (IT) quality, business strategy, market orientation, competition, and environmental uncertainty on the usage intensity of SMA and its influence on competitive advantage. This study investigates the drivers behind adopting SMA and its consequential effects on the performance of listed Vietnamese firms. The research employed a mixed-methods approach, integrating qualitative and quantitative methodologies to delineate research models, formulate hypotheses, assess the determinants influencing SMA implementation, and evaluate the impact of SMA application on corporate performance. The authors employed the partial least squares structural equation modeling (PLS-SEM) framework to analyse data from 147 listed companies in Vietnam. The outcomes reveal that variables such as the utilisation of information technology in business operations, participative decision-making, accountant qualifications, perceived environmental uncertainty, and strategic orientation positively influence SMA implementation, subsequently yielding positive effects on the performance of listed companies in Vietnam. This research contributes valuable insights into the factors shaping SMA adoption in Vietnamese enterprises, enriching practical managerial knowledge and theoretical perspectives.

Keywords: Listed Vietnamese Firms, Strategic Management Accounting, Information Technology, Participatory Decision-Making, Accountant Qualifications, Perceived Environmental Uncertainty, Strategic Orientation

Authors’ individual contribution: Conceptualization — N.H.T.; Methodology — T.T.T.D.; Investigation — T.T.T.D.; Resources — T.T.T.D.; Writing — N.H.T.; Supervision — N.H.T.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G18, G38, M41, M43, M44

Received: 16.10.2023
Accepted: 19.03.2024
Published online: 22.03.2024

How to cite this paper: Do, T. T. T., & Tran, N. H. (2024). Influential factors on strategic management accounting application and its influence on the business: Empirical evidence from a developing market [Special issue]. Corporate & Business Strategy Review, 5(1), 463–472. https://doi.org/10.22495/cbsrv5i1siart19