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Changes in management accounting practices in Malaysia

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  • Tuan Zainun Tuanmat
  • Malcolm Smith

Abstract

Purpose - Malaysia has moved towards global competitiveness. As an important contributor to the Malaysian economy, this change makes manufacturing companies in Malaysia need to ensure that their business operation and management cope with the current changes. To do this they need to reconsider their existing management accounting practices more than ever. Therefore, this study is carried out to determine how changes in management accounting practices in Malaysian manufacturing companies took place in response to a changing business environment and the effect of changes on performance. Design/methodology/approach - A structured questionnaire survey is used to collect the data from various manufacturing companies in Malaysia. The Federation of Malaysian Manufacturer Directory is used as a sampling frame. Findings - The results show that the level of changes in management accounting practices increased over the five year period from 2003 to 2007. The changes mostly occurred through the introduction of new practices, replacement of existing practices and modification of the way existing practices were used. Findings in this study also reveal that there are no significant differences in management accounting practices among local and foreign companies, or between small and medium, and large companies. This study also support previous research in terms of the positive relationship between changes in management accounting practices and performance. Originality/value - Taken together this research outcome has contributed to the existing management accounting change literature especially in a developing economy setting.

Suggested Citation

  • Tuan Zainun Tuanmat & Malcolm Smith, 2011. "Changes in management accounting practices in Malaysia," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 19(3), pages 221-242, September.
    • Handle: RePEc:eme:arapps:v:19:y:2011:i:3:p:221-242
    DOI: 10.1108/13217341111185146
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    References listed on IDEAS

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    Cited by:

    1. S. N. Nartey & H. M. van der Poll, 2021. "Innovative management accounting practices for sustainability of manufacturing small and medium enterprises," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 18008-18039, December.
    2. Kanogporn Suranatthakul & Supaporn Dokmaithong & Ruankwan Intanon & Warawit Phetruen & Nuatip Sumkaew, 2020. "Modern Management Accounting Practices for Large Manufacturing Enterprise in Lower Northern Provinces Group I Thailand," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 9(1), pages 24-28.
    3. Ainon Ramli & Rosmaizura Mohd Zain & Muhammad Ashlyzan Razik & Abu Sofian Yaacob, 2017. "Micro Businesses: Do They Need Accounting?," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(9), pages 185-206, September.
    4. Kanogporn Suranatthakul & Supaporn Dokmaithong & Ruankwan Intanon & Warawit Phetruen & Nuatip Sumkaew, 2020. "Modern Management Accounting Practices for Large Manufacturing Enterprise in Lower Northern Provinces Group I Thailand," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 8(3), pages 120-124.
    5. Sudhashini Nair & Yee Soon Nian, 2017. "Factors Affecting Management Accounting Practices in Malaysia," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(10), pages 177-177, September.

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