Association between strategic management accounting facets and organizational performance

Abstract

Purpose The purpose of this paper is to develop an extensive conceptualization of strategic management accounting (SMA) facets, as well as to explore the impact of these facets on both financial and non-financial measures of organizational performance (OP). Design/methodology/approach Data are collected from 435 accounting managers working in Saudi companies listed in the Saudi Stock Exchange. The study applies hierarchical regression analysis to test the association between SMA facets and OP. Findings The results show that SMA facets significantly affect OP, assessed in the two major categories of financial and non-financial performance. Research limitations/implications The dominance of companies listed in the Saudi Stock Exchange in the data set limits the generalizability of the findings. Practical implications The present study supports the idea that companies can enhance their OP by adopting some facets of SMA such as the availability of appropriate structural arrangements, supportive resources, adequate information types and usages and good organizational climate. Originality/value The current study expands the conceptualization of SMA in light of organizational context as a set of facets to overcome the polarization found in the existing literature and explores their impact on OP, including non-financial performance, for which empirical evidence is still scant.