The impacts of managerial accounting practices characteristics and Kaizen environments on SMEs' financial performance
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Abstract
Developing SMEs' ability to adapt and thrive in a changing business environment is vital to the Thai economy, with financial performance being one of the main indicators. The key question is whether SMEs are identifying the real problems and continuously improving until these problems are resolved. This research aimed to study the impact on SMEs' financial performance of 1) Managerial accounting practice characteristics, 2) Kaizen environments, and 3) The interaction between Kaizen environments and Managerial accounting practice characteristics. The study collected data through a questionnaire survey of 400 owners and managers of SMEs in Thailand and analyzed the data using descriptive and multiple regression techniques. The results indicate that all three factors positively impact financial performance. Although there were some obstacles during data collection, as many SMEs had closed because of the prolonged COVID-19 outbreak, the study confirmed that all samples were survivors, with some even experiencing growth during this crisis. The research results demonstrate the importance of improving and developing the application of management accounting as part of various systems to create an environment where problems can be clearly identified and continuously improved. This research provides guidance on combining and practicing both concepts in a way that can leverage their respective strengths and address their weaknesses to create a foundation for developing a strong and sustainable business.
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