Strategic Management Accounting Practices among Indigenous Nigerian Manufacturing Enterprises

Abstract

The primary objective of this study was to review the extent of application of Strategic Management Accounting Practices (SMAP) by local Nigerian manufacturing enterprises in the making of effective decisions by business managers and accountants. Using a sample of ten manufacturing enterprises, fifty professional accountants and business managers working in the organizations were used in this study. In addition, questionnaires were used for gathering primary data. The Pearson Product Moment Correlation Coefficient and multiple regression analysis were adopted as the main statistical tools for this analysis. The first hypothesis shows a ranking of -0.58 which is less than 0.5 level of confidence. On the other hand, the second hypothesis shows that the sampled enterprises were hindered by inherent barriers in utilizing the benefits of SMAP resulting in the p value of 0.061 which is greater than 0.05. The results of this study indicated significant disapproval of SMAP among professionals working in indigenous manufacturing enterprises. The findings of the study may have implications on the management staff and accountant of the enterprise. Thus, this is because they revealed the below average knowledge of the workings of SMAP. As a result of this research, one is able to conclude on the need for managers to employ SMAP to enable them identify, accumulate, and manage the costs of their activities to ensure accuracy in their decisions making.

Do innovation attributes really drive the diffusion of management accounting innovations? Examination of factors determining usage intensity of strategic management accounting

“…For example, if relative advantage actually predicts the propensity to use an innovation, then the uptake of SMA should be higher than TMA owing to the relative superiority of the former over the latter in enhancing organisational competitiveness (Kraaijenbrink and Spender, 2011; Abdullah and Said, 2015). However, recent studies report that TMA is still preferred and witnesses higher usage in comparison to SMA among companies (Akenbor and Okoye, 2012; Ojua, 2016).…”

“…Knowledge on the underlying factors driving SMA usage intensity in such organisations is important in addressing companies' inertia in embracing contemporary management accounting practices, as studies have shown the dominance of TMA usage over the uptake on SMA in the country (e.g. Abogun and Abomide, 2013; Ojua, 2016). Elevation in the competitiveness of manufacturing companies in Nigeria, owing to the application of SMA, is expected to yield tremendous benefits including value creation for stakeholders, greater level of industrialisation in the manufacturing sector and actualisation of the country's United Nations Sustainable Development Goals (SDG) 2030, among others.…”

Does the Use of Strategic Management Accounting Techniques Creates and Sustains Competitive Advantage? Some Empirical Evidence

“…This study examined the extent to which the usage of SMA techniques such as customer accounting and competitor accounting could create and sustain competitive advantage. Analysis of data obtained from the annual reports of fifty-six (56) publicly-quoted manufacturing companies in Nigeria revealed that the adoption rate of SMA is moderate (research objective one). The usage of SMA positively and significantly impacts competitive advantage (research objective two).…”

A Structural Equation Model for Analyzing the Impact of Strategic Management Accounting Techniques on Quality of Financial Information

“…Ojua (2016) aims to review the extent of application of Strategic Management Accounting Practices in Nigerian manufacturing enterprises, The results indicated significant disapproval of Strategic Management Accounting Practices among professionals working in indigenous manufacturing enterprises. Agu et al (2016) aims to determine the use of strategic management Accounting Techniques in sustainability Performance Measurement for Corporate Governance in Nigeria, the findings revealed the need for managers to employ strategic management accounting techniques to enable them identify, accumulate and manage social and environment costs of their activities for good corporate governance in Nigeria.…”