TITLE:
The Relationship between Strategic Management Accounting Information Usage, Environmental Uncertainty and Nationality of Director of Manufacturing Enterprises in Thailand
AUTHORS:
Nuatip Sumkaew, Ruankwan Intanon
KEYWORDS:
Strategic Management Accounting, Environmental Uncertainty, Nationality of Director
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.8 No.9,
September
4,
2020
ABSTRACT: Dynamic business environments have caused
intensified information in order to make decisions. Advanced management
accounting techniques which have the potential for a more strategic role are
used as a tool to facilitate successful organizational reforms to survive
through rapid changes. This study aims to investigate
relationships between strategic management accounting (SMA) information usage,
environmental uncertainty (EU) and nationality of director (ND) using
contingency theory. Based on Cadez and Guilding’s (2008) framework, sixteen
strategic management accounting techniques were classified into five categories: costing, planning, control and
performance measurement, strategic decision-making, competitor accounting and
customer accounting. Questionnaires were
employed for data collection from 217 manufacturing enterprises in Thailand selected by purposive
sampling. The results show that managers increasingly require SMA
information to calculate product and service costs, to plan control and
performance measures, to evaluate competitor performance and assess individual
customer profitability under environmental uncertainty situations. In addition,
Thai chief executive officers trend to use SMA information for strategic decision-making
and market competitions less than non-Thai ones. This study contributes to
existing knowledge by enhancing our understanding of the relationships between
SMA information usage, EU and ND in Thailand. Executives can effectively
utilize the advantages of SMA information usage in order to gain sustainable
competitive advantage.