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Table 1 A sample of selected studies reviewed in this research

From: Strategic management accounting and performance implications: a literature review and research agenda

S/Nr Studies Theoretical focus and geographical setting Core arguments (or facts)
1 Cadez and Guilding [9] Examined the effectiveness of various types of strategy and SMA and also how horizontal and vertical alignment of management accounting and strategy facilitate Slovenian firms' performance There are various levels of performance and each depends on the degrees of fit. Different strategic and structural alternatives influence similar levels of performance. Internally consistent configurations lead to higher performance
2 Noordin et al. [56] This study examined explored strategic management accounting usage and performance impact in Malaysian electrical and electronic companies The study found that in explored Malaysian companies, the extent of strategic management accounting usage was significantly related to the organisation’s performance
3 Ojra [58] Using a comprehensive contingency framework, this study examined the strategic management accounting nature and performance implications in Palestinian firms The study suggests that perceived environmental uncertainty would lead to decentralised organisational structure, lead to increase in the use of non-financial performance, and also that perceived environmental uncertainty would be greater in prospector-strategy than defender-strategy Palestinian firms. The study however found no support that higher environmental uncertainty would lead to higher SMA usage. The study also found no support for the hypothesis that organisational structure (less formalisation and more decentralisation) would lead to higher SMA usage. The study notes that there is higher SMA techniques usage in prospector than defender-type companies. On the point of performance, the study found that greater SMA usage is positively associated to non-financial performance but not to financial performance
4 Turner et al. [86] This study explored hotel property performance and strategic management accounting influence The study suggests that hotel property SMA usage would depend on market orientation business strategy. Further, the study contends that hotel property SMA usage as well as hotel property customer performance impact mediating influence on how hotel property market orientation business strategy use associates with hotel property financial performance
5 Zamecnik and Rajnoha [90] The study explored strategic business performance management in Slovak enterprise industry The study found that in understanding strategic business performance, the central focus should be on endorsing a comprehensive strategic orientation rather focusing mainly on the financial aspect
6 Henri et al. [34] The study examined the relationship between executional cost management and structural cost management components of SCM, financial performance, in Canadian manufacturing firms There is a direct and positive effect of tracking environmental cost on financial performance. Also, implementation of environmental initiatives associates positively with financial performance. Indeed, both executional cost management (the tracking of environmental costs) and structural cost management (the implementation of environmental initiatives) enhance financial performance
7 Alabdullah [3] The study examined the impact of strategic management accounting on performance in the Jordanian service sector The study suggests that strategic management accounting enables performance in the service sector in Jordan. If strategic management accounting is effectively implemented, that will enable optimal strategic decision-making and ultimately improve organisational performance
8 McManus [49] This study explored the contingency perspective of strategic management practices in the Australian hotel industry The study suggests that Australian hotels that are highly market orientated and prioritise a decentralised structure use more customer focused accounting and marketing practices. Also, the study suggests a significant positive association between market orientation and a prospector-type strategy, and also between market orientation and both financial and non-financial performance
9 Cescon et al. [11] This study examined the association between strategic choices and use of strategic management accounting techniques in large Italian manufacturing firms This study contends that strategic management accounting usage is not dependent on strategy type, but however marginally dependent on geographic orientation.
10 Sedevich-Fons [77] This study explored strategic management accounting and quality management performance impact The findings show that strategic management accounting and quality management are complementary and their effective implementation would enhance overall performance. When used in conjunction, that would spread SMA techniques and enable full exploitation of Quality Management Systems
11 Pavlatos [70] This study examined the factors that influence strategic management accounting usage in the hotel industry in Greece The study concludes that seven factors that affect strategic management accounting usage in the hospitality industry (hotels), namely, “perceived environmental uncertainty, structure, quality of information systems, organisational life cycle stage, historical performance, strategy and size” (p.756)
12 Oboh and Ajibolade [57] This study examined strategic management accounting practices and strategic decision-making impact in Nigerian banks This study found that explored Nigerian banks “practice SMA not as a concept, but as a principle of operation, and that SMA contributes significantly to strategic decision-making in the area of competitive advantage and increased market share” (p.119)
13 Alamri [4] This study examined the association between strategic management accounting facets and organisational performance in Saudi firms The study contends that there is a significant positive association between strategic management accounting facets and organisational performance, both financial and non-financial components
14 Cinquini and Tenucci [17] This study explored the influence of business strategy (3-components) on strategic management accounting techniques usage in Italian manufacturing firms The study found that defender-type firms have greater use of SMA costing techniques while for prospector-type firms, no relationship was found between strategic pattern and SMA orientation. For the mission variable, the study shows that build companies are more willing than harvest companies to use SMA customer oriented techniques
15 Cadez and Guilding [8] The study explored strategic choices, market orientation, and company size on two dimensions of strategic management accounting (SMA), and mediating influence of SMA on performance in Slovenia The study found a significant positive association of prospector strategy, deliberate strategy and company size on SMA usage, as well as a significant impact of SMA usage on performance. Also, the study found that market orientation does not associate with SMA usage but associates strongly with performance
16 Hoque [37] The study explored the role of performance measures choice on the relationship between (a) strategic priorities and performance and (b) environmental uncertainty and performance The study suggests a significant positive association between management’s strategic choice and performance when non-financial performance measures are used. On the other hand, no significant relationship between environmental uncertainty and use of non-financial performance measures was found
17 Mohammed et al. [53] The study explored the impact of strategic management accounting information on organisational performance in Malaysian hospitals The study suggests that strategic management accounting information (which included competitor, client and product data) impacts positively on the performance of explored private Malaysian hospitals
18 Chenhall [13] This study reviewed the findings in prior literature ( over 25 years up to the time of the study) on the contingencies of management control systems (MCS) This critical review examined previous literature on how the nature of environment, structure, size, technology, strategy and national culture explain the effectiveness of management control systems. The review explored MCS purpose, core elements, as well as the meaning and measurement of contextual variables
19 Cuganesan and Dunford [19] This study examined strategic management accounting and strategy practices in the public sector The study identifies critical management accounting roles in strategising beyond the typically ascribed functions of decision-facilitation and decision influencing. The study indicates that public sector entities are using particular management accounting techniques for strategising, which offers a counter-point to private sector insights that till date has dominated SMA research
20 Jusoh [43] The study explored the influence of perceived environmental, firm size uncertainty, and business strategy on the use of multiple performance measures in Malaysian firms The study found that perceived environmental uncertainty negatively influences the extent financial and internal processes measures are used, while prospector strategy exerts a positive influence on the use of innovation and learning and overall balanced scorecard (BSC) measures. Also, the study contends that analyzer strategy associates positively with the use of time-focused customer measures, while firm size positively impacts the use of innovation and learning measures
21 El Deeb [23] This study explored strategic management accounting and performance impact in healthcare industry in Cairo, Egypt Appropriate cost management practices will enable organisations to effectively monitor the external environment towards appropriate and effective strategies. Utilising appropriate costing system (full absorption costing, marginal costing, activity-based costing and standard costing will enable proper identification of costs and profitability of hospital units
22 Acquaah [2] This study explored relationships between management control systems (MCS), business strategy and firm performance in family businesses (FBs) and non-family businesses (NFBs) in Ghana The study found that the influence of (i) diagnostics control systems (DCS) on cost leadership strategy is higher for NFBs than FBs; (ii) interactive control systems (ICS) on differentiation strategy is higher for FBs than NFBs. Also, the study contends that the impact of the dynamic tension created by concurrently using DCS and ICS on both the cost leadership and differentiation strategies is higher for FBs than NFBs. Furthermore, it contends that business strategy mediates the association between MCS and performance, but the impact of MCS on performance (both indirect and total) are stronger for FBs than NFBs
  1. Content analysis in this study followed the inductive lens [84]. This involved thorough reading of the selected studies to capture the state of knowledge in the domain of this study (e.g. [65]). To ensure that knowledge is captured accurately, an iterative approach that involved reading the text back and forth was used (e.g. [65]). Analysing the relevant literature, we focused on identifying the core thematic threads in the discourse (see Table 1) in each selected paper. In concordance with the central aim of this review, data abstracted were in the form, effect and findings, and conceptualisation of ideas or theoretical perspectives [83]