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Strategic Choices, Environmental Uncertainty and SBU Performance: A Note on the Intervening Role of Management Accounting Systems

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  • Vincent Chong
  • Kar Chong

Abstract

This paper examines the role of management accounting systems (MAS) design on the relationship between: (1) strategic business unit (SBU) strategy and SBU performance and (2) perceived environmental uncertainty (PEU) on SBU performance. MAS design was defined in terms of the extent to which managers use broad scope MAS information for managerial decision making. The responses of 62 SBU managers, drawn from a cross-section of manufacturing companies in Western Australia, to a questionnaire survey were analysed by using a path analysis. The results suggest that SBU strategy and PEU are important antecedents of MAS design, and that broad scope MAS information is an important antecedent of SBU performance.

Suggested Citation

  • Vincent Chong & Kar Chong, 1997. "Strategic Choices, Environmental Uncertainty and SBU Performance: A Note on the Intervening Role of Management Accounting Systems," Accounting and Business Research, Taylor & Francis Journals, vol. 27(4), pages 268-276.
    • Handle: RePEc:taf:acctbr:v:27:y:1997:i:4:p:268-276
    DOI: 10.1080/00014788.1997.9729553
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