The Extent to Which the Jordanian Private Industrial Companies Use SMA Techniques

Abstract

This study aims to examine the extent of usage of SMA techniques in the Jordanian private industrial companies (JPIC) and to examine the impact of general and financial managers’ characteristics on the adoption of SMA techniques. It also aims to explore the importance of usage the SMA techniques by JPIC in the future. The study is based on a questionnaire survey of JPIC. The study reveals that 12 out of 19 SMA techniques were adopted by JPIC. These techniques are ABC, COQ, VCC, SCM, EMA, benchmarking, BSC, competitor cost assessment, competitor position monitoring, CPA, customer lifetime value and valuation of customer assets. The results also provide interesting findings; whenever JPIC used the SMA technique they placed high importance of usage rate in the future. The SMA techniques that were not used by JPIC had a low importance of usage rate in the future, in exception of integrated PMS which achieved high importance of usage rate and the LCC which achieved a moderate rate. Finally, no impact of general and financial managers' characteristics was found on the adoption of SMA techniques in JPIC. Keywords: strategic management accounting, private companies, Jordan