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The Implementation of Management Accounting Practices and its Relationship with Performance in Small and Medium Enterprises


  • Kamilah Ahmad

    (Department of Production and Operations Management, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Batu Pahat, 86400, Malaysia)


There is scarce research into management accounting practices (MAPs) in small and medium-sized enterprises (SMEs) in the current literature. This study aims to explore the implementation of MAPs in SMEs and the relationship between MAPs and performance. A questionnaire survey was conducted among Malaysian SMEs in the manufacturing sector. The study demonstrates that the level of uptake of MAPs differs from traditional to more sophisticated approach. Costing system and performance measurement system (PMS) appear to be the common MAPs employed by the responding enterprises. Meanwhile, the sophisticated MAPs are frequently utilized by larger enterprises which is in line with the theoretical arguments of the effect of size in the adoption of MAPs. The findings also reveal that certain MAPs are found to have significant relationships with performance and these findings have reinforced the importance of MAPs in today’s organization. This study provides additional empirical evidences on MAPs in SMEs and their relationships with performance

Suggested Citation

  • Kamilah Ahmad, 2017. "The Implementation of Management Accounting Practices and its Relationship with Performance in Small and Medium Enterprises," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 342-353.
  • Handle: RePEc:eco:journ3:2017-01-45

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    References listed on IDEAS

    1. Abdel K. Halabi & Rowena Barrett & Robyn Dyt, 2010. "Understanding financial information used to assess small firm performance: An Australian qualitative study," Qualitative Research in Accounting & Management, Emerald Group Publishing, vol. 7(2), pages 163-179, June.
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    9. Christopher D. Ittner, 2002. "The Association Between Activity-Based Costing and Manufacturing Performance," Journal of Accounting Research, Wiley Blackwell, vol. 40(3), pages 711-726, June.
    10. Tulus Tambunan, 2008. "SME development, economic growth, and government intervention in a developing country: The Indonesian story," Journal of International Entrepreneurship, Springer, vol. 6(4), pages 147-167, December.
    11. Perera, S. & Harrison, G. & Poole, M., 1997. "Customer-focused manufacturing strategy and the use of operations-based non-financial performance measures: A research note," Accounting, Organizations and Society, Elsevier, vol. 22(6), pages 557-572, August.
    12. Wijewardena, Hema & De Zoysa, Anura, 1999. "A Comparative Analysis of Management Accounting Practices in Australia and Japan: An Empirical Investigation," The International Journal of Accounting, Elsevier, vol. 34(1), pages 49-70.
    13. Mohinder Chand & Ashish Dahiya, 2010. "Application of management accounting techniques in Indian small and medium hospitality enterprises: an empirical study," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 11(1), pages 25-41.
    14. Hall, Matthew, 2008. "The effect of comprehensive performance measurement systems on role clarity, psychological empowerment and managerial performance," Accounting, Organizations and Society, Elsevier, vol. 33(2-3), pages 141-163.
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    More about this item


    Small and Medium-sized Enterprises; Management Accounting; Manufacturing Sector; Malaysia;

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting


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