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Contingency Factors
Influencing the Use of Management Accounting Techniques in Indonesian
Manufacturing Firms |
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Received: Revised: Accepted: |
Theodorus Radja Ludji* Retno Yuliati Faculty Member of Department of Accounting, School of Business and Economics (SBE), Universitas Prasetiya Mulya, Indonesia |
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Keywords: Contingency Factors, |
ABSTRACT This study examined
the effect of four contingency factors (competition intensity, extent of decentralisation, top management support and resources
availability) on management accounting (MA) techniques use across Indonesian
manufacturers. MA techniques examined comprised of activity-based costing
(ABC), activity-based management (ABM), cost-volume-profit analysis (CVP),
integrated performance measures (IPM), operating budget (OB) and target
costing (TC). Survey method was used in which the respondents were 41
managers of Indonesian-listed manufacturing firms. Data were analysed with Partial Least Square (PLS) Structural
Equation Modelling (SEM). Significant and positive associations were
observable between extent of decentralisation and
resources availability, top management support and resources availability,
top management support and use of MA techniques and resources availability
and use of MA techniques. Additional analysis reveals the mediating role of
resources availability in facilitating significant positive indirect effects
of extent of decentralisation and top management
support on MA techniques use. This study distinguish itself as it examines
the effect of multiple contingency factors on the adoption of essential MA
techniques among Indonesian manufacturing business practice in line with the
congruence fit notion. This study contributes to contingency-based MA
literature in emerging economies settings and offers practical implications
regarding the influence of internal and external contingency factors on MA
techniques use in an emerging economy. |
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