The integration of Management Accounting Practices as an innovative strategy towards sustaining small businesses operating in eThekwini metropolitan, South Africa

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The adoption of Management Accounting Practices (MAPs) has been acclaimed for providing positive administrative and strategic influence on large organizations, and are understood to play an integral part in decision-making. However, SMEs are operating in a turbulent environment, they are now challenged to effectively utilize the embedded MAPs to strengthen their strategic business approaches to maintain their sustainability and survival. Therefore, this study seeks to explore the challenges of integrating the adopted MAPs as an innovative strategy towards sustaining small businesses. The research sample consisted of 120 manufacturing SMEs operating in eThekwini metropolitan South Africa. A nonprobability convenience sampling technique and a quantitative questionnaire were utilized to identify and collect the data from the sampled population. The results of the study indicated that amongst other critical factors, lack of education and training of owner/manager and shortage of skills were the contributory factors influencing the integration of MAPs as an innovative strategy towards SMEs’ sustainability. The study results further revealed that there are a variety of other challenges hindering SMEs from utilizing MAPs as an innovative strategic tool and those were the enterprise age and years in operation, lack of government business incubation and technology adoption. These contributory factors were identified as necessary aspects that SMEs needed to align and iron out before integrating MAPs as an innovative strategic tool.

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    • Figure 1. The adoption of MAPs is influenced by the enterprise age and years of being in operation
    • Figure 2. Lack of education and training of owner/manager influences the adoption of MAPs
    • Figure 3. Shortage of skills influences the adoption of MAPs in business operations
    • Figure 4. Lack of government business incubation influences the adoption of MAPs
    • Figure 5. Technology adoption influences the adoption of MAPs
    • Figure 6. Technology adoption and the usage of MAPs are key innovative strategies for business growth
    • Figure 7. The inability to adopt MAPs impedes on business innovation
    • Figure 8. Business innovation can be obtained using relevant MAPs
    • Figure 9. The adoption of relevant MAPs influences business operations
    • Figure 10. The adoption of MAPs serves as a strategic tool towards business innovation
    • Figure 11. The adoption of MAPs improves competitive business advantage
    • Conceptualization
      Mbali Portia Msomi, Musawenkosi Ngibe, Luyanda Loraine Bingwa
    • Supervision
      Mbali Portia Msomi
    • Writing – original draft
      Mbali Portia Msomi, Musawenkosi Ngibe
    • Writing – review & editing
      Musawenkosi Ngibe, Luyanda Loraine Bingwa
    • Investigation
      Luyanda Loraine Bingwa
    • Software
      Luyanda Loraine Bingwa