The Effects of Managerial Accounting Data Quality on the Efficiency of Decision Making of Small and Medium Enterprises in the Northeast Region of Thailand

Abstract

Background and Aims: Businesses are currently facing liquidity problems due to declining consumer purchasing power and consumption. This situation has compelled businesses to delay investments or reduce production, while also encountering increasingly intense competition. Consequently, businesses must adapt to survive and remain competitive in the market under such challenging conditions. Therefore, the objectives of this study are as follows 1) To examine the quality of management accounting information among small and medium-sized enterprises (SMEs) in the Northeastern region of Thailand 2) To investigate the decision-making effectiveness of SMEs in the Northeastern region of Thailand 3) To test the relationship between the quality of management accounting information and decision-making effectiveness of SMEs in the Northeastern region of Thailand and 4) To examine the impact of the quality of management accounting information on the decision-making effectiveness of SMEs in the Northeastern region of Thailand.

Methodology: Data were collected from 176 executives of small and medium-sized enterprises (SMEs) in Northeastern Thailand using a questionnaire as the primary data collection tool. Statistical methods employed in the data analysis included percentages, means, standard deviations, multiple correlation analysis, and multiple regression analysis.

Result: Executives of small and medium-sized enterprises (SMEs) in the Northeastern region of Thailand reported that their overall perception of the quality of management accounting information was at a high level. Furthermore, their overall perception of decision-making effectiveness was rated at the highest level. The results of the correlation coefficient analysis revealed that the quality of management accounting information, specifically in terms of data utilization, data accuracy, and data accessibility, was positively and significantly correlated with overall decision-making effectiveness, with statistical significance at the 0.05 level. The results from the multiple regression analysis examining the relationship between the quality of management accounting information and decision-making effectiveness of SMEs in the Northeastern region of Thailand indicated potential multicollinearity among the independent variables. To assess this issue, the researcher conducted a multicollinearity test using Variance Inflation Factors (VIFs). The VIF values for the independent variables related to the quality of management accounting information ranged from 2.004 to 4.089, which are below the threshold value of 10. This indicates that although some correlation exists among the independent variables, it is not at a level that poses a significant multicollinearity concern.

Conclusion: 1) The quality of management accounting information is positively correlated with decision-making effectiveness. 2) Multiple regression analysis to predict the impact of management accounting information quality on the decision-making effectiveness of executives in small and medium-sized enterprises (SMEs) in Northeastern Thailand revealed that the quality of management accounting information has a statistically significant effect on decision-making effectiveness at the < .05 level. Specifically, positive effects were observed in the areas of data utilization, data accuracy, and data accessibility, respectively.