Management accounting and the implications of supply chain management practices : an empirical study

There have been calls for more research into how changes in supply chain management practices (SCMPs) affect management accounting practices (MAPs) and in turn affect performance. While the linkages between SCMPs, MAPs and performance may seem intuitive, to date there has been limited empirical research testing these relationships. The objective of the research is therefore to test a number of hypotheses regarding the association between these variables and firm performance based on the contingency theory framework. Data were collected through a postal survey of senior accounting executives from the Consumer and Industrial Products Sectors under Malaysian publicly listed firms. The relationships between SCMPs, MAPs, supply chain performance (SCPERF) and overall firm performance (OPERF) were analysed using Partial Least Squares (PLS) path modelling in two conceptual models via PLS-Graph Beta Version 3. To supplement the questionnaire survey, semi-structured interviews were used to gather the experiences and views of selected companies as means to triangulate the research study. It was found that SCMPs are directly related to both MAPs and SCPERF, that MAPs are directly related to SCPERF, and that SCPERF was directly related to overall firm performance (OPERF). Although SCMPs and MAPs were not directly related to OPERF, they were related to OPERF indirectly. MAPs were categorized into stages of their evolution as postulated by the International Federation of Accountants (IFAC). The most sophisticated MAPs, however, have a positive direct and indirect association with OPERF. Supply chain performance (SCPERF) is found to be an important mediator linking SCMPs and MAPs to OPERF. The survey findings which are re-affirmed by the interviews are consistent with the contingency theory approach. This research adds to the existing body of research by developing a framework for linking a firm’s SCM practices to its management accounting practices, supply chain performance and overall firm performance. These findings provide management with strategically important insights that strategic supplier partnership, customer relationships, information management and internal supply chain activities are primary factors in SCM that will influence MAPs and supply chain performance. Managers can thus use MA information to effectively create an efficient SCM environment that will lead to improved SCPERF, which will in turn enhance overall firm performance. Areas where future research may prove fruitful are also discussed.EThOS - Electronic Theses Online ServiceGBUnited Kingdo

Investigating the Relationship between Supply Chain Management and Management Accounting Practices

This paper investigates relationships between supply chain management and management accounting practices and their individual or combined effects on both supply chain and overall organisational performance. Using a contingency theory approach a conceptual model was empirically tested with managers in Malaysian publicly listed organisations and the resultant structural equation analysis found a positive and direct relationship between both sets of practices. The findings also found a positive and direct relationship between these two sets of practices and supply chain performance, but only found an indirect relationship related to overall organisational performance that was mediated through supply chain performance. The findings provide practice with a strategically important overview of these relationships to support the creation of a successful supply chain environment that will lead to improved supply chain and overall performance.peerReviewe