Does Strategic Management Accounting have Effect on Performance? Evidence from Small and Medium Enterprises (SMEs) in Delta State, Nigeria

Abstract

The study examined the effect of strategic management accounting on performance of Small and Medium Enterprises (SMEs) in Nigeria. A sample size of one hundred (100) was drawn from a population of 400 SMEs engaged in manufacturing using systematic sampling method. Data were generated from administration of questions responded to by four officers selected from each of the SMEs in the sample. The mean scores on the strategic management tools were employed to determine the extent of their usage while multiple regression and simple regression analyses were employed for analysis of the effect of strategic management accounting (SMA) tools and SMA on organizational performance. The study found that strategic costing, strategic decision-making and strategic management accounting have high usage, while competitor accounting and customer accounting were moderately used. From the multiple regression analysis, strategic costing, strategic decision-making, competitor accounting and customer accounting have positive significant effect on organization performance. Strategic management accounting was found to have positive significant effect on organizational performance from the simple regression analysis. The study therefore, recommended extensive use of strategic management accounting by SMEs in order to attain desired organizational performance.