Sulaiman Alsughayer

Type of the article: Research Article

The purpose of this study was to investigate the contextual factors affecting the application of strategic management accounting (SMA) in Saudi Arabia. A quantitative research methodology was adopted to collect data using a questionnaire sent to managers, senior accountants, and accountants in 64 companies; a total of 225 valid responses were obtained to test the research hypotheses. The research hypotheses were to determine whether or not external and internal factors influenced the application of SMA, and this was examined by running a regression and correlation analysis. External factors were found to be positively related to SMA application in Saudi companies. These included environmental uncertainty, competitive pressure, government regulation, and business strategy. The internal factors that also had a positive correlation with SMA application were information technology, organization size, decentralized governance, organizational culture, organizational structure, and human resources. The context and cultural components of Saudi companies determine the effects of external and internal factors on SMA application in Saudi companies, and these effects differ from one company to another in terms of their degrees of influence. The study concluded that external factors such as environmental uncertainty, competitive pressure, and business strategy have the most significant influence on SMA application. Conversely, organizational size and government regulation exert the least influence. These findings imply that companies should make SMA application a top priority if they are to perform in a dynamic environment characterized by change, and they should do so to enhance their strategic organizational responsiveness and decision-making.

Type of the article: Research Article

Abstract
This study examines the adoption and implementation of cost accounting practices in Saudi Arabian public universities following their shift from cash-based to accrual-based accounting. Guided by the resource-based view (RBV) framework, it tests four hypotheses related to drivers of cost adoption, cost tracking and allocation abilities, calculation method frequencies, and resources needed for successful cost implementation. Data from 171 financial managers and accountants across all 30 public universities were analyzed using descriptive statistics, correlations, and regression models. Results reveal a negative correlation between cost adoption and organizational factors, with external pressures – including regulatory requirements and negotiations over funding – serving as the primary catalysts. Universities demonstrate a strong capacity to track and allocate direct costs, with over 90% able to manage them; however, indirect cost management remains limited, with only 12% able to allocate indirect costs, indicating early-stage development. Cost implementation is further positively associated with the use of detailed cost calculation and allocation methods and perceived organizational resource needs, including financial policies, skilled personnel, and advanced management systems. Findings suggest that, despite external pressures, resource constraints hamper full implementation. These findings support the RBV assertion that internal capabilities are crucial for gaining a strategic advantage. Successful cost implementation depends on internal resource development and organizational capacity-building, which can transform cost accounting from a symbolic compliance exercise into a strategic tool for transparency, decision-making, and institutional efficiency.

Type of the article: Research Article

Abstract
The study aims to explore the effect of institutional pressures (INP) on environmental management accounting (EMA) and the mediating role of sustainable corporate governance (SCG) on the effects of EMA on sustainability performance. The partial least squares structural equation modeling (PLS-SEM) was applied to test the hypotheses. Data were gathered through a survey of 298 publicly listed companies in Saudi Arabia, using questionnaires distributed to executives, financial managers, accountants, and board members. The results show that INP has a significant positive effect on EMA (β = 0.295, T = 6.062); in turn, EMA has a significant positive effect on environmental (β = 0.295), social (β = 0.332), and economic (β = 0.332) performance. Mediation analysis demonstrates that SCG acts as a significant mediator between INP and EMA (β = 0.113, T = 2.366), and EMA shows significant mediation between INP and environmental (β = 0.115), social (β = 0.126), and economic (β = 0.174) performance. These findings demonstrate that INP has both direct and indirect impacts on sustainability performance through EMA. A robust SCG structure strengthens the linkage between external INP and EMA adoption and provides the linkage with an internal legitimating mechanism. These outcomes bring forward the role of EMA as a mediating variable for materializing the effects of external pressures driven by the legitimacy needs into sustainability performance. The findings add to the body of knowledge of institutional theory by emphasizing the role of concurrent external institutional forces and internal factors that affect corporate sustainability performance.