Linking business strategy to management accounting: a study in Malaysian service organizations

Despite being economically and socially important to Malaysia, little has been done to study the innovations in the administration of service organizations to maintain the survival of such organizations in the globalization era. The purpose of this paper is to examine the use of strategic managemen...

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Main Authors:	Sofiah Md. Auzair, Rozita Amiruddin, Ainun Abdul Majid, Ruhanita Maelah
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2013
Online Access:	http://journalarticle.ukm.my/6957/ http://journalarticle.ukm.my/6957/ http://journalarticle.ukm.my/6957/1/3626-8087-1-PB.pdf

id	ukm-6957
recordtype	eprints
spelling	ukm-69572016-12-14T06:42:42Z http://journalarticle.ukm.my/6957/ Linking business strategy to management accounting: a study in Malaysian service organizations Sofiah Md. Auzair, Rozita Amiruddin, Ainun Abdul Majid, Ruhanita Maelah, Despite being economically and socially important to Malaysia, little has been done to study the innovations in the administration of service organizations to maintain the survival of such organizations in the globalization era. The purpose of this paper is to examine the use of strategic management accounting (SMA), as an administrative innovation, by the service organizations operating in Malaysia. The literature suggested that business strategy is an important factor affecting the use of SMA techniques and, as a result, the use of SMA will differ with different strategic priorities. The SMA techniques studied are costing, competitor accounting and customer accounting, while business strategy includes cost leadership and differentiation strategies. Survey questionnaires were administered to managers yielding 62 usable responses. Using ANOVA, the present study finds that service organizations pursuing differentiation strategies place higher emphasis on competitor and customer accounting compared to service organizations pursuing cost leadership strategies. The results also reveal that the highest emphasis on all SMA techniques is found in service organizations that place high emphasis on both strategies.The study provides evidence regarding practices that place high emphasis on strategic issues that lead to a high usage of innovative information systems. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/6957/1/3626-8087-1-PB.pdf Sofiah Md. Auzair, and Rozita Amiruddin, and Ainun Abdul Majid, and Ruhanita Maelah, (2013) Linking business strategy to management accounting: a study in Malaysian service organizations. Jurnal Pengurusan, 37 . pp. 45-52. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/index
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	Despite being economically and socially important to Malaysia, little has been done to study the innovations in the administration of service organizations to maintain the survival of such organizations in the globalization era. The purpose of this paper is to examine the use of strategic management accounting (SMA), as an administrative innovation, by the service organizations operating in Malaysia. The literature suggested that business strategy is an important factor affecting the use of SMA techniques and, as a result, the use of SMA will differ with different strategic priorities. The SMA techniques studied are costing, competitor accounting and customer accounting, while business strategy includes cost leadership and differentiation strategies. Survey questionnaires were administered to managers yielding 62 usable responses. Using ANOVA, the present study finds that service organizations pursuing differentiation strategies place higher emphasis on competitor and customer accounting compared to service organizations pursuing cost leadership strategies. The results also reveal that the highest emphasis on all SMA techniques is found in service organizations that place high emphasis on both strategies.The study provides evidence regarding practices that place high emphasis on strategic issues that lead to a high usage of innovative information systems.
format	Article
author	Sofiah Md. Auzair, Rozita Amiruddin, Ainun Abdul Majid, Ruhanita Maelah,
spellingShingle	Sofiah Md. Auzair, Rozita Amiruddin, Ainun Abdul Majid, Ruhanita Maelah, Linking business strategy to management accounting: a study in Malaysian service organizations
author_facet	Sofiah Md. Auzair, Rozita Amiruddin, Ainun Abdul Majid, Ruhanita Maelah,
author_sort	Sofiah Md. Auzair,
title	Linking business strategy to management accounting: a study in Malaysian service organizations
title_short	Linking business strategy to management accounting: a study in Malaysian service organizations
title_full	Linking business strategy to management accounting: a study in Malaysian service organizations
title_fullStr	Linking business strategy to management accounting: a study in Malaysian service organizations
title_full_unstemmed	Linking business strategy to management accounting: a study in Malaysian service organizations
title_sort	linking business strategy to management accounting: a study in malaysian service organizations
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2013
url	http://journalarticle.ukm.my/6957/ http://journalarticle.ukm.my/6957/ http://journalarticle.ukm.my/6957/1/3626-8087-1-PB.pdf
first_indexed	2023-09-18T19:48:23Z
last_indexed	2023-09-18T19:48:23Z
_version_	1777406053543051264

Linking business strategy to management accounting: a study in Malaysian service organizations

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