Firm culture and management accounting practices among manufacturing firms in Nigeria

Abstract

AbstractThis study sought to find out the effects of firm culture on management accounting practices (MAPs). The study used a structured questionnaire to collect data from 220 randomly selected manufacturing firms out of 514 firms and used logistic regression for analysis. This study examined seven dimensions of firm cultures, including innovation/risk orientation culture, people orientation culture, outcome orientation culture, aggressive culture, stability culture, team-based culture, and attention to details culture. The study established that team-based, attention to details, and stability cultures have a significant influence on the choice of management accounting practices. In contrast, the considerable influence of other cultural dimensions lacks statistical support. The study concludes that attention to details culture and team-based culture are barriers to modern management accounting practices, and cautions should be exercised by managers in using these cultures. Therefore, this study recommends that manufacturing firms in Nigeria should be cautious of their culture and its implication on MAPs. In a more specific term, they should practice cultures that will allow them to choose modern MAPs and take advantage of the benefits attached.