The management accounting and the business strategy development at SMEs


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The purpose of this study is to determine the relationship between management accounting practices and strategy development in SMEs. SMEs are among the main actors of economic development and growth. To determine the right strategies in a variable and competitive market, the qualitative and quantitative knowledge produced by the accounting system is needed. The management accounting system can influence managerial decisions, change strategies, and affect the performance of the firm through its extensive practices. Using the multivariate statistical analyses, the results of the applied studies for SMEs show that the management accounting system’s planning and control, cost management, and performance measurement and evaluation functions significantly affect which strategy the firms will implement. According to the research, the management accounting practices used by SMEs are related to the company strategies they have taken, and these actions have been reached as an effect on the strategies of the companies.

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    • Figure 1. Structural model of the research
    • Figure 2. Tested structural model
    • Table 1. Factor analysis and reliability values of variables
    • Table 2. Pearson correlations (one-way)
    • Table 3. Test of the research model and effects between variables
    • Table 4. Paths between sub-factors
    • Table 5. Changes in company strategies according to the level of adaptation to management accounting