Accounting Network Disclosures, Market Competition, and the Implementation of Strategic Management Accounting Technique
Main Article Content
Keywords
Strategic Management Accounting, Accounting Network, Market Competition, Firm Size, Firm Growth, Accounting Technique
Abstract
Strategic Management Accounting (SMA) assists companies in expressing strategic goals and identifying strategies owned by competitors. This study aims to determine whether accounting networking and market competition affect strategic management accounting techniques. This study used a purposive sampling method with 25 samples of the subsector of metal and food and beverage companies in the 2016-2021 observation period. The dependent variable uses the disclosure of thirteen strategic management accounting techniques in the annual report. The market competition variable is measured by market share and the accounting networking, which is measured by the number of board of directors’ companies that have attended training or seminars related to high school technical development. The result found that accounting networking and market competition did not affect the number of strategic management accounting techniques used in the sample companies. These results indicate that even though executives know the benefits of various strategic management accounting techniques, implementing them in companies takes work. This result also discovered that the sample companies used more strategic management accounting techniques that helped increase company efficiency.
References
Adamuthe, A. C., Surve, A. v., & Thampi, G. T. (2016). Technology Forecasting: A Case Study of Software Technology Product Families. International Journal of Information Engineering and Electronic Business, 8(1), 11–20. https://doi.org/10.5815/ijieeb.2016.01.02
Al-Htaybat, K., & von Alberti-Alhtaybat, L. (2017). Big Data and corporate reporting: impacts and paradoxes. Accounting, Auditing and Accountability Journal, 30(4), 850–873. https://doi.org/10.1108/AAAJ-07-2015-2139
Alamri, A. M. (2019). Association between strategic management accounting facets and organizational performance. Baltic Journal of Management, 14(2), 212–234. https://doi.org/10.1108/BJM-12-2017-0411
Andreassen, R. I. (2020). Digital technology and changing roles: a management accountant’s dream or nightmare? Journal of Management Control, 31(3), 209–238. https://doi.org/10.1007/s00187-020-00303-2
Ax, C., & Greve, J. (2017). Adoption of management accounting innovations: Organizational culture compatibility and perceived outcomes. Management Accounting Research, 34, 59–74. https://doi.org/10.1016/j.mar.2016.07.007
Bianchi, P., Causholli, M., Minutti-Meza, M., Sulcaj, V., Bradley, D., Carrera, N., Ferri, F., Ertimur, Y., Hochberg, Y., Trombetta, M., Villamil-Otero, R., & Wheatley, C. (2022).
Cescon, F., Costantini, A., & Grassetti, L. (2019). Strategic choices and strategic management accounting in large manufacturing firms. Journal of Management and Governance, 23(3), 605–636. https://doi.org/10.1007/s10997-018-9431-y
Dang, L. A., Le, T. M. H., Le, T. H., & Pham, T. B. T. (2021). The effect of strategic management accounting on business performance of sugar enterprises in vietnam. Accounting, 7(5), 1085–1094. https://doi.org/10.5267/j.ac.2021.2.031
Duçi, E. (2021). The relationship between management accounting, strategic management accounting and strategic cost management. Academic Journal of Interdisciplinary Studies, 10(5), 376–389. https://doi.org/10.36941/ajis-2021-0146
Geng, S., Liu, S., & Liao, X. (2021). Operating Performance of Tourism Listed Companies in China: The Perspective of Economic Value Added. SAGE Open, 11(1). https://doi.org/10.1177/2158244020981064
Glyptis, L., Hadjielias, E., Christofi, M., Kvasova, O., & Vrontis, D. (2021). Dynamic familiness capabilities and family business growth: A longitudinal perspective framed within management accounting. Journal of Business Research, 127, 346–363. https://doi.org/10.1016/j.jbusres.2021.01.019
Gonçalves, T., & Gaio, C. (2021). The role of management accounting systems in global value strategies. Journal of Business Research, 124, 603–609. https://doi.org/10.1016/j.jbusres.2020.10.059
Gunarathne, N., & Lee, K. H. (2021). Corporate cleaner production strategy development and environmental management accounting: A contingency theory perspective. Journal of Cleaner Production, 308. https://doi.org/10.1016/j.jclepro.2021.127402
Gu, Z., Li, Z., Yang, Y. G., & Li, G. (2019). Friends in need are friends indeed: An analysis of social ties between financial analysts and mutual fund managers. Accounting Review, 94(1), 153–181. https://doi.org/10.2308/accr-52160
Guo, Y. (2022). Data Source Analysis of Computerized Management Accounting Based on Data Warehouse and Mobile Edge Computing. Wireless Communications and Mobile Computing, 2022. https://doi.org/10.1155/2022/3216180
Hadid, W., & Al-Sayed, M. (2021). Management accountants and strategic management accounting: The role of organizational culture and information systems. Management Accounting Research, 50. https://doi.org/10.1016/j.mar.2020.100725
Hassan, A. S., & Jaaron, A. A. M. (2021). Total quality management for enhancing organizational performance: The mediating role of green manufacturing practices. Journal of Cleaner Production, 308. https://doi.org/10.1016/j.jclepro.2021.127366
Honggowati, S., Rahmawati, R., Aryani, Y. A., & Probohudono, A. N. (2017). Corporate Governance and Strategic Management Accounting Disclosure. Indonesian Journal of Sustainability Accounting and Management, 1(1), 23. https://doi.org/10.28992/ijsam.v1i1.24
Honggowati, S., Rahmawati, R., Aryani, Y. A., & Probohudono, A. N. (2019). Strategic Management Accounting disclosure, ownership structure, and firm characteristics in Indonesia manufacturing companies. Jurnal Keuangan Dan Perbankan, 23(3). https://doi.org/10.26905/jkdp.v23i3.3228
Huyen, T. N. T., Anh, T. le, & Van, N. V. (2021). Factors affecting the implementation of management accounting techniques in medium-sized enterprises of Vietnam. Problems and Perspectives in Management, 19(3), 440–452. https://doi.org/10.21511/ppm.19(3).2021.36
Kalkhouran, A. A. N., Nedaei, B. H. N., & Rasid, S. Z. A. (2017). The indirect effect of strategic management accounting in the relationship between CEO characteristics and their networking activities, and company performance. Journal of Accounting and Organizational Change, 13(4), 471–491. https://doi.org/10.1108/JAOC-05-2015-0042
Lapsley, I., & Rekers, J. v. (2017). The relevance of strategic management accounting to popular culture: The world of West End Musicals. Management Accounting Research, 35, 47–55. https://doi.org/10.1016/j.mar.2017.01.001
Lee, C. H., Hoehn-Weiss, M. N., & Karim, S. (2021). Competing both ways: How combining Porter’s low-cost and focus strategies hurts firm performance. Strategic Management Journal, 42(12), 2218–2244. https://doi.org/10.1002/smj.3279
Majid, J. (2021). KONTRIBUSI TEORI CONTIGENCY : UPAYA MEWUJUDKAN GOOD GOVERNANCE MELALUI E-GOVERNMENT DI INDONESIA. Assets : Jurnal Ekonomi, Manajemen Dan Akuntansi, 11(2), 186. https://doi.org/10.24252/assets.v11i2.23810
Marlina, E., Ardi, H. A., Samsiah, S., Ritonga, K., & Tanjung, A. R. (2020). Strategic costing models as strategic management accountin techniques at private universities in Riau, Indonesia. International Journal of Financial Research, 11(1), 274–283. https://doi.org/10.5430/ijfr.v11n1p274
Manh NGUYEN, T., & Thi NGUYEN, T. (2021). The Application of Strategic Management Accounting: Evidence from the Consumer Goods Industry in Vietnam*. Journal of Asian Finance, 8(10), 139–0146. https://doi.org/10.13106/jafeb.2021.vol8.no10.0139
Mehera, A., & Ordonez-Ponce, E. (2021). Social and economic value creation by Bendigo Bank and Stockland Property Group: Application of Shared Value Business Model. Business and Society Review, 126(1), 69–99. https://doi.org/10.1111/basr.12224
Moll, J., & Yigitbasioglu, O. (2019). The role of internet-related technologies in shaping the work of accountants: New directions for accounting research. British Accounting Review, 51(6). https://doi.org/10.1016/j.bar.2019.04.002
Nor, A. M., Gray, T. S., Caldwell, G. S., & Stead, S. M. (2004). A value chain analysis of Malaysia’s seaweed industry. https://doi.org/10.1007/s10811-019-02004-3/Published
Omer, T. C., Shelley, M. K., & Tice, F. M. (2020). Do director networks matter for financial reporting quality? Evidence from audit committee connectedness and restatements. Management Science, 66(8), 3361–3388. https://doi.org/10.1287/mnsc.2019.3331
Onufrey, K., & Bergek, A. (2021). Transformation in a mature industry: The role of business and innovation strategies. Technovation, 105. https://doi.org/10.1016/j.technovation.2020.102190
Pavlatos, O., & Kostakis, X. (2018). The impact of top management team characteristics and historical financial performance on strategic management accounting. Journal of Accounting and Organizational Change, 14(4), 455–472. https://doi.org/10.1108/JAOC-11-2017-0112
Ping, W. (2021). Data mining and XBRL integration in management accounting information based on artificial intelligence. Journal of Intelligent and Fuzzy Systems, 40(4), 6755–6766. https://doi.org/10.3233/JIFS-189509
Ping, W. (2021). Data mining and XBRL integration in management accounting information based on artificial intelligence. Journal of Intelligent and Fuzzy Systems, 40(4), 6755–6766. https://doi.org/10.3233/JIFS-189509
Pranadita٭, N., Hurriyati, R., & Dirgantari, P. D. (2021). Pengaruh Hukum terhadap The Influence of the Law on The Five Competition Force Related to the Formulation of a Competitive Strategy According to Michael E. Porter. Jurnal Manajemen Dan Organisasi (JMO), 12(1), 51–66.
Puspitawati, L. (2021). Strategic Information Moderated By Effectiveness Management Accounting Information Systems: Business Strategy Approach. Jurnal Akuntansi, 25(1), 101. https://doi.org/10.24912/ja.v25i1.727
Quesado, P., & Silva, R. (2021). Activity-based costing (ABC) and its implication for open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 1–20. https://doi.org/10.3390/joitmc7010041
Rashid, M. M., Ali, M. M., & Hossain, D. M. (2020). Strategic management accounting practices: a literature review and opportunity for future research. In Asian Journal of Accounting Research (Vol. 6, Issue 1, pp. 109–132). Emerald Group Holdings Ltd. https://doi.org/10.1108/AJAR-06-2019-0051
Rashid, M. M., Ali, M. M., & Hossain, D. M. (2020). Revisiting the relevance of strategic management accounting research. PSU Research Review, 4(2), 129–148. https://doi.org/10.1108/prr-11-2019-0034
Sedevich-Fons, L. (2018). Linking strategic management accounting and quality management systems. Business Process Management Journal, 24(6), 1302–1320. https://doi.org/10.1108/BPMJ-02-2018-0038
Shafiq, M., Lasrado, F., & Hafeez, K. (2019). The effect of TQM on organisational performance: empirical evidence from the textile sector of a developing country using SEM. Total Quality Management and Business Excellence, 30(1–2), 31–52. https://doi.org/10.1080/14783363.2017.1283211
Sugiyono. (2015). Metode Penelitian Pendidikan (Pendekatan Kuantitatif, Kualitatif, dan R&D). Alfabeta.
Turner, M. J., Way, S. A., Hodari, D., & Witteman, W. (2017). Hotel property performance: The role of strategic management accounting. International Journal of Hospitality Management, 63, 33–43. https://doi.org/10.1016/j.ijhm.2017.02.001
Wu, X., & Liu, X. (2021). Building crack identification and total quality management method based on deep learning. Pattern Recognition Letters, 145, 225–231. https://doi.org/10.1016/j.patrec.2021.01.034
Al-Htaybat, K., & von Alberti-Alhtaybat, L. (2017). Big Data and corporate reporting: impacts and paradoxes. Accounting, Auditing and Accountability Journal, 30(4), 850–873. https://doi.org/10.1108/AAAJ-07-2015-2139
Alamri, A. M. (2019). Association between strategic management accounting facets and organizational performance. Baltic Journal of Management, 14(2), 212–234. https://doi.org/10.1108/BJM-12-2017-0411
Andreassen, R. I. (2020). Digital technology and changing roles: a management accountant’s dream or nightmare? Journal of Management Control, 31(3), 209–238. https://doi.org/10.1007/s00187-020-00303-2
Ax, C., & Greve, J. (2017). Adoption of management accounting innovations: Organizational culture compatibility and perceived outcomes. Management Accounting Research, 34, 59–74. https://doi.org/10.1016/j.mar.2016.07.007
Bianchi, P., Causholli, M., Minutti-Meza, M., Sulcaj, V., Bradley, D., Carrera, N., Ferri, F., Ertimur, Y., Hochberg, Y., Trombetta, M., Villamil-Otero, R., & Wheatley, C. (2022).
Cescon, F., Costantini, A., & Grassetti, L. (2019). Strategic choices and strategic management accounting in large manufacturing firms. Journal of Management and Governance, 23(3), 605–636. https://doi.org/10.1007/s10997-018-9431-y
Dang, L. A., Le, T. M. H., Le, T. H., & Pham, T. B. T. (2021). The effect of strategic management accounting on business performance of sugar enterprises in vietnam. Accounting, 7(5), 1085–1094. https://doi.org/10.5267/j.ac.2021.2.031
Duçi, E. (2021). The relationship between management accounting, strategic management accounting and strategic cost management. Academic Journal of Interdisciplinary Studies, 10(5), 376–389. https://doi.org/10.36941/ajis-2021-0146
Geng, S., Liu, S., & Liao, X. (2021). Operating Performance of Tourism Listed Companies in China: The Perspective of Economic Value Added. SAGE Open, 11(1). https://doi.org/10.1177/2158244020981064
Glyptis, L., Hadjielias, E., Christofi, M., Kvasova, O., & Vrontis, D. (2021). Dynamic familiness capabilities and family business growth: A longitudinal perspective framed within management accounting. Journal of Business Research, 127, 346–363. https://doi.org/10.1016/j.jbusres.2021.01.019
Gonçalves, T., & Gaio, C. (2021). The role of management accounting systems in global value strategies. Journal of Business Research, 124, 603–609. https://doi.org/10.1016/j.jbusres.2020.10.059
Gunarathne, N., & Lee, K. H. (2021). Corporate cleaner production strategy development and environmental management accounting: A contingency theory perspective. Journal of Cleaner Production, 308. https://doi.org/10.1016/j.jclepro.2021.127402
Gu, Z., Li, Z., Yang, Y. G., & Li, G. (2019). Friends in need are friends indeed: An analysis of social ties between financial analysts and mutual fund managers. Accounting Review, 94(1), 153–181. https://doi.org/10.2308/accr-52160
Guo, Y. (2022). Data Source Analysis of Computerized Management Accounting Based on Data Warehouse and Mobile Edge Computing. Wireless Communications and Mobile Computing, 2022. https://doi.org/10.1155/2022/3216180
Hadid, W., & Al-Sayed, M. (2021). Management accountants and strategic management accounting: The role of organizational culture and information systems. Management Accounting Research, 50. https://doi.org/10.1016/j.mar.2020.100725
Hassan, A. S., & Jaaron, A. A. M. (2021). Total quality management for enhancing organizational performance: The mediating role of green manufacturing practices. Journal of Cleaner Production, 308. https://doi.org/10.1016/j.jclepro.2021.127366
Honggowati, S., Rahmawati, R., Aryani, Y. A., & Probohudono, A. N. (2017). Corporate Governance and Strategic Management Accounting Disclosure. Indonesian Journal of Sustainability Accounting and Management, 1(1), 23. https://doi.org/10.28992/ijsam.v1i1.24
Honggowati, S., Rahmawati, R., Aryani, Y. A., & Probohudono, A. N. (2019). Strategic Management Accounting disclosure, ownership structure, and firm characteristics in Indonesia manufacturing companies. Jurnal Keuangan Dan Perbankan, 23(3). https://doi.org/10.26905/jkdp.v23i3.3228
Huyen, T. N. T., Anh, T. le, & Van, N. V. (2021). Factors affecting the implementation of management accounting techniques in medium-sized enterprises of Vietnam. Problems and Perspectives in Management, 19(3), 440–452. https://doi.org/10.21511/ppm.19(3).2021.36
Kalkhouran, A. A. N., Nedaei, B. H. N., & Rasid, S. Z. A. (2017). The indirect effect of strategic management accounting in the relationship between CEO characteristics and their networking activities, and company performance. Journal of Accounting and Organizational Change, 13(4), 471–491. https://doi.org/10.1108/JAOC-05-2015-0042
Lapsley, I., & Rekers, J. v. (2017). The relevance of strategic management accounting to popular culture: The world of West End Musicals. Management Accounting Research, 35, 47–55. https://doi.org/10.1016/j.mar.2017.01.001
Lee, C. H., Hoehn-Weiss, M. N., & Karim, S. (2021). Competing both ways: How combining Porter’s low-cost and focus strategies hurts firm performance. Strategic Management Journal, 42(12), 2218–2244. https://doi.org/10.1002/smj.3279
Majid, J. (2021). KONTRIBUSI TEORI CONTIGENCY : UPAYA MEWUJUDKAN GOOD GOVERNANCE MELALUI E-GOVERNMENT DI INDONESIA. Assets : Jurnal Ekonomi, Manajemen Dan Akuntansi, 11(2), 186. https://doi.org/10.24252/assets.v11i2.23810
Marlina, E., Ardi, H. A., Samsiah, S., Ritonga, K., & Tanjung, A. R. (2020). Strategic costing models as strategic management accountin techniques at private universities in Riau, Indonesia. International Journal of Financial Research, 11(1), 274–283. https://doi.org/10.5430/ijfr.v11n1p274
Manh NGUYEN, T., & Thi NGUYEN, T. (2021). The Application of Strategic Management Accounting: Evidence from the Consumer Goods Industry in Vietnam*. Journal of Asian Finance, 8(10), 139–0146. https://doi.org/10.13106/jafeb.2021.vol8.no10.0139
Mehera, A., & Ordonez-Ponce, E. (2021). Social and economic value creation by Bendigo Bank and Stockland Property Group: Application of Shared Value Business Model. Business and Society Review, 126(1), 69–99. https://doi.org/10.1111/basr.12224
Moll, J., & Yigitbasioglu, O. (2019). The role of internet-related technologies in shaping the work of accountants: New directions for accounting research. British Accounting Review, 51(6). https://doi.org/10.1016/j.bar.2019.04.002
Nor, A. M., Gray, T. S., Caldwell, G. S., & Stead, S. M. (2004). A value chain analysis of Malaysia’s seaweed industry. https://doi.org/10.1007/s10811-019-02004-3/Published
Omer, T. C., Shelley, M. K., & Tice, F. M. (2020). Do director networks matter for financial reporting quality? Evidence from audit committee connectedness and restatements. Management Science, 66(8), 3361–3388. https://doi.org/10.1287/mnsc.2019.3331
Onufrey, K., & Bergek, A. (2021). Transformation in a mature industry: The role of business and innovation strategies. Technovation, 105. https://doi.org/10.1016/j.technovation.2020.102190
Pavlatos, O., & Kostakis, X. (2018). The impact of top management team characteristics and historical financial performance on strategic management accounting. Journal of Accounting and Organizational Change, 14(4), 455–472. https://doi.org/10.1108/JAOC-11-2017-0112
Ping, W. (2021). Data mining and XBRL integration in management accounting information based on artificial intelligence. Journal of Intelligent and Fuzzy Systems, 40(4), 6755–6766. https://doi.org/10.3233/JIFS-189509
Ping, W. (2021). Data mining and XBRL integration in management accounting information based on artificial intelligence. Journal of Intelligent and Fuzzy Systems, 40(4), 6755–6766. https://doi.org/10.3233/JIFS-189509
Pranadita٭, N., Hurriyati, R., & Dirgantari, P. D. (2021). Pengaruh Hukum terhadap The Influence of the Law on The Five Competition Force Related to the Formulation of a Competitive Strategy According to Michael E. Porter. Jurnal Manajemen Dan Organisasi (JMO), 12(1), 51–66.
Puspitawati, L. (2021). Strategic Information Moderated By Effectiveness Management Accounting Information Systems: Business Strategy Approach. Jurnal Akuntansi, 25(1), 101. https://doi.org/10.24912/ja.v25i1.727
Quesado, P., & Silva, R. (2021). Activity-based costing (ABC) and its implication for open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 1–20. https://doi.org/10.3390/joitmc7010041
Rashid, M. M., Ali, M. M., & Hossain, D. M. (2020). Strategic management accounting practices: a literature review and opportunity for future research. In Asian Journal of Accounting Research (Vol. 6, Issue 1, pp. 109–132). Emerald Group Holdings Ltd. https://doi.org/10.1108/AJAR-06-2019-0051
Rashid, M. M., Ali, M. M., & Hossain, D. M. (2020). Revisiting the relevance of strategic management accounting research. PSU Research Review, 4(2), 129–148. https://doi.org/10.1108/prr-11-2019-0034
Sedevich-Fons, L. (2018). Linking strategic management accounting and quality management systems. Business Process Management Journal, 24(6), 1302–1320. https://doi.org/10.1108/BPMJ-02-2018-0038
Shafiq, M., Lasrado, F., & Hafeez, K. (2019). The effect of TQM on organisational performance: empirical evidence from the textile sector of a developing country using SEM. Total Quality Management and Business Excellence, 30(1–2), 31–52. https://doi.org/10.1080/14783363.2017.1283211
Sugiyono. (2015). Metode Penelitian Pendidikan (Pendekatan Kuantitatif, Kualitatif, dan R&D). Alfabeta.
Turner, M. J., Way, S. A., Hodari, D., & Witteman, W. (2017). Hotel property performance: The role of strategic management accounting. International Journal of Hospitality Management, 63, 33–43. https://doi.org/10.1016/j.ijhm.2017.02.001
Wu, X., & Liu, X. (2021). Building crack identification and total quality management method based on deep learning. Pattern Recognition Letters, 145, 225–231. https://doi.org/10.1016/j.patrec.2021.01.034
Article Sidebar
Published
Nov 30, 2023
Article Details
How to Cite
Novita, N., & Hafidz, M. (2023). Accounting Network Disclosures, Market Competition, and the Implementation of Strategic Management Accounting Technique. SIMAK, 21(02), 222-238. https://doi.org/https://doi.org/10.35129/simak.v21i02.433
Section
Articles