The Impact of Business Strategy on Strategic Management Accounting A field study of the Egyptian environment
Dr. Magdy Melegy Abdulhakim Melegy Lecturer, Department of Accounting Faculty of Commerce, Benha University
Dr. Nasr Taha Hassan Lecturer, Department of Accounting Faculty of Commerce, Benha University
Abstract: This paper aims to examine the impact of corporate strategy on a strategic management accounting (SMA), and how it associated with the company's performance. It is expected that the design of management accounting systems in line with the company's strategy lead to improve its performance. To examine these relationships, this study addressess two dimensions: first is to identify the organizational configurations in Egyptian business environment and evaluate the performance of these configurations according to a holistic approach. The second dimension is to examine the association between SMA and business strategy according to a contingency approach. Survey was utilized to collect data required to analyze the dimensions of the study through the sample of ( 148 ) financial managers in Egyptian listed companies. The results showed that there is no association between (SMA) and business strategy, and it is not reflected on the company's performance. Also, the results indicated that Egyptian companies use a large number of strategic management accounting techniques, as well as the diversity of strategy choices. The most important techniques are the value chain technique, followed by customer profitability analysis method and target cost method. In addition, the results of the study reflect an agreement a holistic approach and a contingency approach. The study provide important information about the organizational configurations with respect to the strategic choices and (SMA) practices from the standpoint of the configurational theory in the Egyptian business environment, as it is the first study may present this analytical view in the Egyptian environment. On the practical level, the results of the study can help managers to select appropriate SMA practices and strategic choices in the light of the diversity and multiplicity of available variables. Key Words: Corporate strategy, strategic management accounting, corporate performance, configurational theory. |
