Effect of marketing strategy on organizational efficacy via managerial accounting

Abstract

A marketing strategy has been used by enterprises to achieve the best possible organizational efficacy. In the current research, contingency theory, the theory of resource dependency and experiential learning theory are applied to establish the research model. Marketing strategy has been regarded as one of the determinants of managerial accounting; whereas the adopting of managerial accounting in business can lead to improved organizational efficacy. Therefore, the linkage between marketing strategy and organizational efficacy can be mediated by managerial accounting. The objective of the present research article is to explore the influence of marketing strategy on organizational efficacy, considering the mediating effect of managerial accounting in the research model, which has been previously ignored. The research data were collected from 352 publicly listed enterprises on the main Vietnamese Stock Exchanges, represented by executives involved in marketing and managerial accounting. Vietnam was selected as a study case for research, because it is one of the most rapidly developing countries in Southeast Asia; accordingly, enterprises operating there as a developing economy are supposed to exploy as many sound managerial practices as possible to be able to struggle squarely with the competitors in developed nations. The AMOS analytical technique was applied to test the causal linkages,whereas the mediating procedures were employed to investigate the mediation of managerial accounting in the casual relation from marketing strategy to organizational efficacy. The empirical findings indicate that the elements of product, price, promotion and place of marketing strategy impose statistical influences on organizational efficacy and also on the adoption of managerial accounting in business. Importantly, managerial accounting is found to be a mediator in the relationship between marketing strategy and organizational efficacy. This work has implications for how executives make better decisions about planning marketing strategies in business, which should match the managerial accounting applied in business. Consequently, they could achieve the best possible organizational efficacy. The current research contributes to the existing study of marketing and managerial accounting by supporting a link between marketing strategy and organizational efficacy, which is mediated by managerial accounting in Vietnam.