Management accounting practices and organizational performance

  • Received November 11, 2021;
    Accepted March 30, 2022;
    Published April 13, 2022
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  • Article Info
    Volume 20 2022, Issue #2, pp. 33-43
  • Cited by
    2 articles

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This work is licensed under a Creative Commons Attribution 4.0 International License

Management accounting practices (MAPs) are crucial for manufacturing firms to control diverse organizational operations and improve their organizational performance. The study aimed to analyze the scope of MAPs and their association with the organizational performance of Nepalese manufacturing firms. The outcomes relied on primary data obtained through structured survey from 223 medium to top-level employees of the selected companies. It was found that traditional management accounting practices had greater dominance (β = 0.817, p = 0.000) in the package of MAPs than contemporary management accounting practices (β = 0.707, p = 0.000) in Nepalese manufacturing firms. The extent of use of contemporary management accounting practices was marginally greater (mean = 3.757) than traditional management accounting practices (mean = 3.563). The analysis also disclosed no association of MAPs with organizational performance of Nepalese manufacturing firms. Though the study had a moderately small sample size from the manufacturing industry, future studies may examine the association between MAPs and organizational performance by taking samples of the manufacturing and service industry to ensure comparability and generalizations. The study endeavored to advance management accounting literature by presenting pragmatic evidence on the association of MAPs with organizational performance in the Nepalese scenario.

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    • Figure 1. The hypothesized model
    • Figure 2. Model of the study
    • Table 1. Overview of respondents’ demographics
    • Table 2. Reliability indicators
    • Table 3. Validity indicators
    • Table 4. Descriptive statistics of the study constructs (N = 223)
    • Table 5. The extent of use of specific MAPs
    • Conceptualization
      Rewan Kumar Dahal
    • Data curation
      Rewan Kumar Dahal
    • Formal Analysis
      Rewan Kumar Dahal
    • Investigation
      Rewan Kumar Dahal
    • Methodology
      Rewan Kumar Dahal
    • Project administration
      Rewan Kumar Dahal
    • Software
      Rewan Kumar Dahal
    • Supervision
      Rewan Kumar Dahal
    • Validation
      Rewan Kumar Dahal
    • Visualization
      Rewan Kumar Dahal
    • Writing – original draft
      Rewan Kumar Dahal
    • Writing – review & editing
      Rewan Kumar Dahal