Dynamic Management Accounting Orientation and Firm Growth: Empirical Evidence from Food Businesses in Thailand
Keywords:
Dynamic Management Accounting Orientation, Decision-Making Success, Firm GrowthAbstract
This study aims at investigating the relationship between the dynamic
management accounting orientation, which comprises five major practices, and firm
growth of food businesses in Thailand. The data were gathered from 294 food
businesses in Thailand using mail questionnaire survey, while the key informants
were accounting manager from each of the firms. The regression analyses
suggested that dynamic management accounting orientation’s dimensions consisting
of strategic positioning analysis, cost management strategy, modern performance
measurement, and market information orientation had a positive effect on firm
growth. Likewise, the results have shed light on the mediating role of decisionmaking
success and operational goal achievement. This empirical evidence could
be used as a guideline for management accounting development to enhance the
operational efficiency and growth of an organization in a constantly changing
business environment.
References
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organisational goals, Riva technique and e-business
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Abdel-Kader, M., & Luther, R. (2008). The impact of firm
characteristics on management accounting practices:
A UK-based empirical analysis. The British Accounting
Review, 40(1), 2-27.
Abushaiba, I. B. & Zainuddin, Y. (2012). Performance
measurement system design, competitive capability,
and performance consequences - A conceptual like.
International Journal of Business and Social Science,
3(11), 1-10.
Anand, M. (2004). A Review of research on the theory and
practice of cost management. South Asian Journal of
Management, 11(1), 59-95.
Armstrong, J.S., & Overton, T.S. (1977). Estimating nonresponse
bias in mail surveys. Journal of Marketing
Research, 14(3), 396-402.
Baines, A., & Langfield-Smith, K. (2003). Antecedents to
management accounting change: A structural equation
approach. Accounting, Organizations and Society,
28(7), 675-698.
Baines, T., Kay, G., Adesola, S., & Higson, M. (2005). Strategic
positioning: An integrated decision process for
manufacturers. International Journal of Operations &
Production Management, 25(2), 180-201.
Bianca, A. (2014). The Importance of objectives in organizations.
Retrieved June 26, 2016, from https://yourbusiness.
azcentral.com/importance-objectives-organizations-
2613.html.
Carmen, A. A., & Corina, G. (2009). A strategic approach of
management accounting. Annals of the University of
Oradea, Economic Science Series, 18(3), 736-741.
Chaikambang, C., Ussahawanitchakit, P., & Boonlua, S. (2012).
Strategic cost management and goal achievement:
Evidence from food businesses in Thailand. International
Journal of Business Strategy, 12(4), 1-27.
Cinquini, L., & Tenucci, A. (2007). Is the adoption of strategic
management accounting techniques really “strategydriven”?
Evidence from a survey. Munich Personal
RePEc Archive, 1-27.
De Beer, P., & Friend, F. (2006). Environmental accounting:
A management tool for enhancing corporate
environmental and economic performance. Ecological
Economics, 58(3), 548-560.
Deepen, J. M., Goldsby, T. J., Knemeyer, A. M., & Wallenburg,
C. M. (2008). Beyond expectations: An examination
of logistics outsourcing goal achievement and goal
exceedance. Journal of Business Logistics, 29(2),
75-105.
Drnevich, P., & Kriauciunas, A. (2011). Clarifying the
conditions and limits of the contributions of ordinary
and dynamic capabilities to relative firm performance.
Strategic Management Journal, 32(3), 254-279.
Food intelligence center of Thailand. (2016). Thai food
industry overview. Retrieve March 7, 2017, from http://
food.fda.moph.go.th/lgtfdapv/data/Strategy.pdf.
Gibson, K. C., & Martin, B. A. (2004). Demonstrating value
through the use of environmental management
accounting. Environmental quality management, 13(3),
45-52.
Gosselin, M. (2005). An empirical study of performance
measurement in manufacturing firms. International
Journal of Productivity and Performance Management,
54(5/6), 419-437.
Hair, J.F., Black, W.C., Babin, B.J., & Anderson, R.E. (2010).
Multivariate data analysis: A global perspective. 7th
ed. New Jersey: Person Prentice Hall.
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June 6, 2017, from http://www.virtualsalt.com/
crebook5.htm.
Heidmann, M., Schäffer, U., & Strahringer, S. (2008). Exploring
the role of management accounting systems in strategic
sense making. Information Systems Management,
25(3), 244-257.
Helgesen, Ø. (2007). Customer accounting and customer
profitability analysis for the order handling industry-
A managerial accounting approach. Industrial
marketing management, 36(6), 757-769.
Hilton, R.W. (2005). Managerial accounting: Creating value
in a dynamic business environment. 6th ed. Boston: Mc
Graw Hill.
Holm, C., & Rikhardsson, P. (2008). Experienced and novice
investors: Does environmental information influence
investment allocation decisions?. European Accounting
Review, 17(3), 537-557.
Hongsombud, A., Ussahawanitchakit, P. & Muenthaisong, K.
(2012). Accounting quality control and firm growth:
An empirical investigation of corporate governance
awarded firms in Thailand. Journal of Academy of
Business and Economics, 12(5), 97-126.
Hoque, Z., Mia, L., & Alam, M. (2001). Market competition,
computer-aided manufacturing and use of multiple
performance measures: An empirical study. The British
Accounting Review, 33(1), 23-45.
Horngren, C., Sundem, G., Stratton, W., Burgstahler, D., &
Schatzberg, J. (2007). Introduction to management
accounting. 14th ed. New Jersey: Pearson Prentice Hall.
Inglis, R., & Clift, R. (2008). Market-orientated accounting:
Information for product-level decisions. Managerial
Auditing Journal, 23(3), 225-239.
International Federation of Accountants (IFAC). (1998, March).
International management accounting practice
statement: Management accounting concepts.
New York: Financial and Management Accounting
Committee, New York, pp. 82-100.
Ittner, C. D., Larcker, D. F., & Randall, T. (2003). Performance
implications of strategic performance measurement in
financial services firms. Accounting, Organizations and
Society, 28(7), 715-741.
Kidane, F. (2012). Decision making and the role of management
accounting function–A review of empirical literature.
Radix International Journal of Banking, Finance and
Accounting, 1(4), 77-97.
Kim, Y. J., Song, J., & Koo, C. (2008). Exploring the effect
of strategic positioning on firm performance in the
e-business context. International Journal of
Information Management, 28(3), 203-214.
Kumar, V., Jones, E., Venkatesan, R., & Leone, R. P. (2011). Is
market orientation a source of sustainable competitive
advantage or simply the cost of competing?. Journal
of marketing, 75(1), 16-30.
Lääts, K., & Haldma, T. (2012). Changes in the scope of
management accounting systems in the dynamic
economic context. Economics and Management, 17(2),
441-447.
Langfield-Smith, K., Thorne, H., and Hilton, R. (2009).
Management accounting: Information for creating and
managing value. 5thed. Australia: McGraw-Hill North
Ryde.
Malinic, S., Jovanovic, D., & Jankovic, S. (2012). Competitive
management accounting: Response to the challenges
of strategic business decision making. Economics and
Organizations, 9(3), 297-309.
Mohamed, B. (2008). Corporate sustainability/CSR communication
and value creation: A marketing approach. The
International Journal of Accounting, 14(52), 145-160.
Mokhtari, A., Moghadam, M. R. H., Borhani, M. M., &
Sabaghian, S. (2013). The effect of market orientation
and international experience on performance with
regard to the mediating role of global marketing
strategy. International Journal of Economy, Management
and Social Sciences, 2(10), 864-875.
Moustaghfir, K. (2008). The dynamics of knowledge assets and
their link with firm performance. Measuring Business
Excellence, 12(2), 10-24.
Naranjo-Gil, D., & Hartmann, F. (2006). How top management
teams use management accounting systems to
implement strategy. Journal of Management Accounting
Research, 18(1), 21-53.
Naranjo-Gil, D., & Hartmann, F. (2007). Management accounting
systems, top management team heterogeneity and
strategic change. Accounting, Organizations and Society,
32(7-8), 735-756.
Neely, A., Gregory, M., & Platts, K. (2005). Performance
measurement system design: A literature review and
research agenda. International Journal of Operations
& Production Management, 25(12), 1228-1263.
Nunnally, J. C. & Bernstein, I. H. (1994). Psychometric theory.
New York: McGraw-Hill.
Ombasa, H. (2015). The effects of customer satisfaction in
strategic positioning in the insurance industry in Kenya:
A survey of selected insurance firms. Strategic Journal
of Business & Change Management, 2(27), 516-545.
Roslender, R., & Hart, S. J. (2003). In search of strategic
management accounting: Theoretical and field study
perspectives, Management Accounting Research, 14(3),
255-279.
Schiller, S. (2010). Management accounting in a learning
environment. Journal of Accounting & Organizational
Change, 6(1), 123–148.
Schulz, A. K., Wu, A., & Chow, C. W. (2010). Environmental
uncertainty, comprehensive performance measurement
systems, performance-based compensation, and
organizational performance. Asia-Pacific Journal of
Accounting & Economics, 17(1), 17-39.
Setthasakko, W. (2010). Barriers to the development of
environmental management accounting: An exploratory
study of pulp and paper companies in Thailand.
EuroMed Journal of Business, 5(3), 315-331.
Sulaiman, M., Nazli Nik Ahmad, N., & Mohd Alwi, N. (2005).
Is standard costing obsolete? Empirical evidence from
Malaysia. Managerial Auditing Journal, 20(2), 109-
124.
Talaulicar, T., Grundei, J., & Werder, A. V. (2005). Strategic
decision making in start-ups: The effect of top
management team organization and processes on speed
and comprehensiveness. Journal of Business Venturing,
20(4), 519-541.
Tanc, A., & Gokoglan, K. (2015). The impact of environmental
accounting on strategic management accounting: A
research on manufacturing companies. International
Journal of Economics and Financial Issues, 5(2), 566-
573.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities
and strategic management. Strategic Management
Journal, 18(7), 509-533.
Thitiyapramote, N. (2015). Managerial accounting practice
capability and decision making success: A conceptual
model. Proceedings of 19th ISERD International
Conference (pp. 9-13), Kyoto, Japan.
Tontiset N. & Choojan J. (2012). The successful of strategic
cost management of electronics manufacturing
businesses in Thailand: An empirical research of its
antecedents and consequences. International Journal
of Business Strategy, 12(3), 133-149.
Tsui, C. S. (2014). A Literature Review on Environmental
Management Accounting (EMA) Adoption. Web
Journal of Chinese Management Review, 17(3), 1-19.
Tuomela, T., (2005). The interplay of different levers of control:
A case study of introducing a new performance
measurement system. Management Accounting
Research, 16, 293–320.
Vaivio, J. (2008). Qualitative management accounting research:
Rationale, pitfalls and potential. Qualitative Research
in Accounting & Management, 5(1), 64–86.
Van der Stede, W. A., Chow, C. W. & Lin, T. W. (2006). Strategy,
choice of Performance measures and performance.
Behavioural Research in Accounting, 18, 185-205.
Vasile, E., & Man, M. (2012). Current dimension of environmental
management accounting. Procedia-Social and Behavioral
Sciences, 62, 566-570.
Waweru, N. M., Hoque, Z., & Uliana, E. (2004). Management
accounting change in South Africa: Case studies
from retail companies. Accounting, Auditing and
Accountability Journal, 17(5), 675-704.
Williams, J. J., & Seaman, A. E. (2002). Management accounting
systems change and departmental performance:
The influence of managerial information and task
uncertainty. Management Accounting Research, 13(4),
419-445.
Zollo, M., & Winter, S. G. (2002). Deliberate learning and
the evolution of dynamic capabilities. Organization
Science, 13(3), 339-351.
New York: John Wiley and Sons.
Abd El Aziz, R., & Fady, R. (2013). Business improvement using
organisational goals, Riva technique and e-business
development stages: A case study approach. Journal
of Enterprise Information Management, 26(5), 577-595.
Abdel-Kader, M., & Luther, R. (2008). The impact of firm
characteristics on management accounting practices:
A UK-based empirical analysis. The British Accounting
Review, 40(1), 2-27.
Abushaiba, I. B. & Zainuddin, Y. (2012). Performance
measurement system design, competitive capability,
and performance consequences - A conceptual like.
International Journal of Business and Social Science,
3(11), 1-10.
Anand, M. (2004). A Review of research on the theory and
practice of cost management. South Asian Journal of
Management, 11(1), 59-95.
Armstrong, J.S., & Overton, T.S. (1977). Estimating nonresponse
bias in mail surveys. Journal of Marketing
Research, 14(3), 396-402.
Baines, A., & Langfield-Smith, K. (2003). Antecedents to
management accounting change: A structural equation
approach. Accounting, Organizations and Society,
28(7), 675-698.
Baines, T., Kay, G., Adesola, S., & Higson, M. (2005). Strategic
positioning: An integrated decision process for
manufacturers. International Journal of Operations &
Production Management, 25(2), 180-201.
Bianca, A. (2014). The Importance of objectives in organizations.
Retrieved June 26, 2016, from https://yourbusiness.
azcentral.com/importance-objectives-organizations-
2613.html.
Carmen, A. A., & Corina, G. (2009). A strategic approach of
management accounting. Annals of the University of
Oradea, Economic Science Series, 18(3), 736-741.
Chaikambang, C., Ussahawanitchakit, P., & Boonlua, S. (2012).
Strategic cost management and goal achievement:
Evidence from food businesses in Thailand. International
Journal of Business Strategy, 12(4), 1-27.
Cinquini, L., & Tenucci, A. (2007). Is the adoption of strategic
management accounting techniques really “strategydriven”?
Evidence from a survey. Munich Personal
RePEc Archive, 1-27.
De Beer, P., & Friend, F. (2006). Environmental accounting:
A management tool for enhancing corporate
environmental and economic performance. Ecological
Economics, 58(3), 548-560.
Deepen, J. M., Goldsby, T. J., Knemeyer, A. M., & Wallenburg,
C. M. (2008). Beyond expectations: An examination
of logistics outsourcing goal achievement and goal
exceedance. Journal of Business Logistics, 29(2),
75-105.
Drnevich, P., & Kriauciunas, A. (2011). Clarifying the
conditions and limits of the contributions of ordinary
and dynamic capabilities to relative firm performance.
Strategic Management Journal, 32(3), 254-279.
Food intelligence center of Thailand. (2016). Thai food
industry overview. Retrieve March 7, 2017, from http://
food.fda.moph.go.th/lgtfdapv/data/Strategy.pdf.
Gibson, K. C., & Martin, B. A. (2004). Demonstrating value
through the use of environmental management
accounting. Environmental quality management, 13(3),
45-52.
Gosselin, M. (2005). An empirical study of performance
measurement in manufacturing firms. International
Journal of Productivity and Performance Management,
54(5/6), 419-437.
Hair, J.F., Black, W.C., Babin, B.J., & Anderson, R.E. (2010).
Multivariate data analysis: A global perspective. 7th
ed. New Jersey: Person Prentice Hall.
Harris, R. (2012). Introduction to decision making. Retrieve
June 6, 2017, from http://www.virtualsalt.com/
crebook5.htm.
Heidmann, M., Schäffer, U., & Strahringer, S. (2008). Exploring
the role of management accounting systems in strategic
sense making. Information Systems Management,
25(3), 244-257.
Helgesen, Ø. (2007). Customer accounting and customer
profitability analysis for the order handling industry-
A managerial accounting approach. Industrial
marketing management, 36(6), 757-769.
Hilton, R.W. (2005). Managerial accounting: Creating value
in a dynamic business environment. 6th ed. Boston: Mc
Graw Hill.
Holm, C., & Rikhardsson, P. (2008). Experienced and novice
investors: Does environmental information influence
investment allocation decisions?. European Accounting
Review, 17(3), 537-557.
Hongsombud, A., Ussahawanitchakit, P. & Muenthaisong, K.
(2012). Accounting quality control and firm growth:
An empirical investigation of corporate governance
awarded firms in Thailand. Journal of Academy of
Business and Economics, 12(5), 97-126.
Hoque, Z., Mia, L., & Alam, M. (2001). Market competition,
computer-aided manufacturing and use of multiple
performance measures: An empirical study. The British
Accounting Review, 33(1), 23-45.
Horngren, C., Sundem, G., Stratton, W., Burgstahler, D., &
Schatzberg, J. (2007). Introduction to management
accounting. 14th ed. New Jersey: Pearson Prentice Hall.
Inglis, R., & Clift, R. (2008). Market-orientated accounting:
Information for product-level decisions. Managerial
Auditing Journal, 23(3), 225-239.
International Federation of Accountants (IFAC). (1998, March).
International management accounting practice
statement: Management accounting concepts.
New York: Financial and Management Accounting
Committee, New York, pp. 82-100.
Ittner, C. D., Larcker, D. F., & Randall, T. (2003). Performance
implications of strategic performance measurement in
financial services firms. Accounting, Organizations and
Society, 28(7), 715-741.
Kidane, F. (2012). Decision making and the role of management
accounting function–A review of empirical literature.
Radix International Journal of Banking, Finance and
Accounting, 1(4), 77-97.
Kim, Y. J., Song, J., & Koo, C. (2008). Exploring the effect
of strategic positioning on firm performance in the
e-business context. International Journal of
Information Management, 28(3), 203-214.
Kumar, V., Jones, E., Venkatesan, R., & Leone, R. P. (2011). Is
market orientation a source of sustainable competitive
advantage or simply the cost of competing?. Journal
of marketing, 75(1), 16-30.
Lääts, K., & Haldma, T. (2012). Changes in the scope of
management accounting systems in the dynamic
economic context. Economics and Management, 17(2),
441-447.
Langfield-Smith, K., Thorne, H., and Hilton, R. (2009).
Management accounting: Information for creating and
managing value. 5thed. Australia: McGraw-Hill North
Ryde.
Malinic, S., Jovanovic, D., & Jankovic, S. (2012). Competitive
management accounting: Response to the challenges
of strategic business decision making. Economics and
Organizations, 9(3), 297-309.
Mohamed, B. (2008). Corporate sustainability/CSR communication
and value creation: A marketing approach. The
International Journal of Accounting, 14(52), 145-160.
Mokhtari, A., Moghadam, M. R. H., Borhani, M. M., &
Sabaghian, S. (2013). The effect of market orientation
and international experience on performance with
regard to the mediating role of global marketing
strategy. International Journal of Economy, Management
and Social Sciences, 2(10), 864-875.
Moustaghfir, K. (2008). The dynamics of knowledge assets and
their link with firm performance. Measuring Business
Excellence, 12(2), 10-24.
Naranjo-Gil, D., & Hartmann, F. (2006). How top management
teams use management accounting systems to
implement strategy. Journal of Management Accounting
Research, 18(1), 21-53.
Naranjo-Gil, D., & Hartmann, F. (2007). Management accounting
systems, top management team heterogeneity and
strategic change. Accounting, Organizations and Society,
32(7-8), 735-756.
Neely, A., Gregory, M., & Platts, K. (2005). Performance
measurement system design: A literature review and
research agenda. International Journal of Operations
& Production Management, 25(12), 1228-1263.
Nunnally, J. C. & Bernstein, I. H. (1994). Psychometric theory.
New York: McGraw-Hill.
Ombasa, H. (2015). The effects of customer satisfaction in
strategic positioning in the insurance industry in Kenya:
A survey of selected insurance firms. Strategic Journal
of Business & Change Management, 2(27), 516-545.
Roslender, R., & Hart, S. J. (2003). In search of strategic
management accounting: Theoretical and field study
perspectives, Management Accounting Research, 14(3),
255-279.
Schiller, S. (2010). Management accounting in a learning
environment. Journal of Accounting & Organizational
Change, 6(1), 123–148.
Schulz, A. K., Wu, A., & Chow, C. W. (2010). Environmental
uncertainty, comprehensive performance measurement
systems, performance-based compensation, and
organizational performance. Asia-Pacific Journal of
Accounting & Economics, 17(1), 17-39.
Setthasakko, W. (2010). Barriers to the development of
environmental management accounting: An exploratory
study of pulp and paper companies in Thailand.
EuroMed Journal of Business, 5(3), 315-331.
Sulaiman, M., Nazli Nik Ahmad, N., & Mohd Alwi, N. (2005).
Is standard costing obsolete? Empirical evidence from
Malaysia. Managerial Auditing Journal, 20(2), 109-
124.
Talaulicar, T., Grundei, J., & Werder, A. V. (2005). Strategic
decision making in start-ups: The effect of top
management team organization and processes on speed
and comprehensiveness. Journal of Business Venturing,
20(4), 519-541.
Tanc, A., & Gokoglan, K. (2015). The impact of environmental
accounting on strategic management accounting: A
research on manufacturing companies. International
Journal of Economics and Financial Issues, 5(2), 566-
573.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities
and strategic management. Strategic Management
Journal, 18(7), 509-533.
Thitiyapramote, N. (2015). Managerial accounting practice
capability and decision making success: A conceptual
model. Proceedings of 19th ISERD International
Conference (pp. 9-13), Kyoto, Japan.
Tontiset N. & Choojan J. (2012). The successful of strategic
cost management of electronics manufacturing
businesses in Thailand: An empirical research of its
antecedents and consequences. International Journal
of Business Strategy, 12(3), 133-149.
Tsui, C. S. (2014). A Literature Review on Environmental
Management Accounting (EMA) Adoption. Web
Journal of Chinese Management Review, 17(3), 1-19.
Tuomela, T., (2005). The interplay of different levers of control:
A case study of introducing a new performance
measurement system. Management Accounting
Research, 16, 293–320.
Vaivio, J. (2008). Qualitative management accounting research:
Rationale, pitfalls and potential. Qualitative Research
in Accounting & Management, 5(1), 64–86.
Van der Stede, W. A., Chow, C. W. & Lin, T. W. (2006). Strategy,
choice of Performance measures and performance.
Behavioural Research in Accounting, 18, 185-205.
Vasile, E., & Man, M. (2012). Current dimension of environmental
management accounting. Procedia-Social and Behavioral
Sciences, 62, 566-570.
Waweru, N. M., Hoque, Z., & Uliana, E. (2004). Management
accounting change in South Africa: Case studies
from retail companies. Accounting, Auditing and
Accountability Journal, 17(5), 675-704.
Williams, J. J., & Seaman, A. E. (2002). Management accounting
systems change and departmental performance:
The influence of managerial information and task
uncertainty. Management Accounting Research, 13(4),
419-445.
Zollo, M., & Winter, S. G. (2002). Deliberate learning and
the evolution of dynamic capabilities. Organization
Science, 13(3), 339-351.
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Published
2019-01-01
How to Cite
Hannimitkulchai, K., Phornlaphatrachakorn, K., & Pratoom, K. (2019). Dynamic Management Accounting Orientation and Firm Growth: Empirical Evidence from Food Businesses in Thailand. Journal of Multidisciplinary in Social Sciences, 15(1), 78–89. Retrieved from https://so03.tci-thaijo.org/index.php/sduhs/article/view/186675
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