Effects of Strategic Management Accounting Practices on the Performance of Manufacturing Firms Listed in Nigeria
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Strategic management accounting practices, specifically cost accounting information, customer accounting information and competitor accounting information, is essential to improve the performance of manufacturing firms. Managers must consistently apply these practices to improve quality, productivity and strengthen customer relationships. However, many organizations do not have awareness of the importance of these accounting practices in decision-making. Therefore, this study investigates the impact of strategic management accounting practices specifically cost accounting information, customer accounting information and competitor accounting information on the performance of listed manufacturing firms in Lagos State, Nigeria. The study employed cross-sectional research design. The population of the study comprises 1,247 management staff. Data was collected from simply randomly selected 297management staff of the selected manufacturing firms. The data were analyzed using descriptive statistics and Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reported that cost accounting information (β = 0.870, p = 0.05), customer accounting information (β = 0.015, p = 0.000) and competitor accounting information (β = 0.035, p = 0.003) have significant positive effects on organizational performance. The study concludes that strategic management accounting practices play a significant role in enhancing organizational performance. Based on this, the study recommends that organizations are encouraged to adopt modern Enterprise Resource Planning (ERP) systems and decision support tools that enable real-time cost tracking and analysis. Also, organizations are encouraged to establish cross-functional committees dedicated to analyzing customer data and developing strategies that foster effective collaboration among finance, marketing, and customer service teams in order to ensure comprehensive utilization of customer accounting information. Finally, organizations should adopt management information systems that support the systematic collection and analysis of competitor data to monitor competitors’ annual reports.
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