Vol. 9 No. 2 (2021): Business & Management Studies: An International Journal

The effect of management accounting system and strategic planning on firm performance

Gökhan Özer
Prof. Dr., Gebze Technical University
Canan Doğru
Phd. Student, Gebze Technical University

Published 2021-06-25


  • Yönetim Muhasebesi Sistemi,
  • Stratejik Planlama,
  • Firma Performansı
  • Management Accounting System,
  • Strategic Planning,
  • Firm Performance

How to Cite

Özer, G., & Doğru, C. (2021). The effect of management accounting system and strategic planning on firm performance. Business & Management Studies: An International Journal, 9(2), 694-713. https://doi.org/10.15295/bmij.v9i2.1828


In previous studies, the effect of the importance, usefulness, and use of information provided by the management accounting system on performance under contextual factors has often been investigated. Although there are findings in the literature indicating that management accounting positively impacts firm performance, which is a distant outcome, further research is needed to explain this relationship. In the present study, using management accounting system information on strategic planning, an important managerial activity, and the mediating effect of strategic planning between the management accounting system and firm performance were examined. PLS-SEM analyzed the data collected through surveys from 75 companies listed in Turkey's Largest 500 Industrial Firms. As a result of the research, it has been observed that the management accounting system has a positive effect on strategic planning and the effect of the management accounting system on firm performance is partially through strategic planning. This finding is crucial as it partially explains the relationship between the management accounting system and firm performance. Consequently, it has been revealed that the management accounting system designed according to the company's strategies and objectives while considering its resources and needs can improve performance by playing a role in the success of strategic planning.



Download data is not yet available.


  1. Abernethy, M. A. ve Guthrie, C. H. (1994). An empirical assessment of the “fit” between strategy and management information system design. Accounting and Finance, 34(2), 49-66.
  2. Agbejule, A. (2005). The relationship between management accounting systems and perceived environmental uncertainty on managerial performance: A research note. Accounting and Business Research, 35(4), 295-305.
  3. Agbejule, A. ve Burrowes, A. (2007). Perceived environmental uncertainty, supply chain purchasing strategy, and use of MAS information: An empirical study of Finnish firms. Managerial Auditing Journal, 22(9), 913-927.
  4. Arend, R.J., Zhao, Y.L., Song, M. ve Im, S. (2017). Strategic planning as a complex and enabling managerial tool. Strategic Management Journal, 38, 1741-1752.
  5. Armstrong, J. S. (1982). The value of formal planning for strategic decisions: Review of empirical research. Strategic Management Journal, 3(3), 197-211.
  6. Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
  7. Benitez, J., Henseler, J., Castillo, A. ve Schuberth, F. (2020). How to perform and report an impactful analysis using partial least squares: Guidelines for confirmatory and explanatory IS research. Information and Management, 57(2), 103168.
  8. Bouwens, J. ve Abernethy, M. A. (2000). The consequences of customization on management accounting system design. Accounting, Organizations and Society, 25(3), 221-241.
  9. Boyd, B. K. ve Reuning-Elliott, E. (1998). A Measurement Model of Strategic Planning. Strategic Management Journal, 19(2), 181–192.
  10. Calantone, R.J., Cavusgil, S.T. ve Zhao, Y. (2002). Learning orientation, firm innovation, and firm performance. Industrial Marketing Management, 31 (6), 515-524.
  11. Cheng, M. (2012). The joint effect of budgetary participation and broadscope management accounting systems on management performance. Asian Review of Accounting, 20(3), 184-197.
  12. Chenhall, R. H. (2003). Management control systems design within its organizational context: Findings from contingency-based research and directions for the future. Accounting, Organizations and Society, 28(2), 127-168.
  13. Chenhall, R. H. ve Morris, D. (1986). The Impact of Structure, Environment, and Interdependence on the Perceived Usefulness of Management Accounting Systems. The Accounting Review, 61(1), 16-35.
  14. Chia, Y. M. (1995). Decentralization, Management Accounting System (Mas) Information Characteristics and Their Interaction Effects on Managerial Performance: A Singapore Study. Journal of Business Finance & Accounting, 22(6), 811-830.
  15. Chiou, B. (2011). Which types of management accounting system information can be used to respond adequately to environmental uncertainty? The effects of user participation and tolerance of ambiguity. African Journal of Business Management, 5(34), 13293-13301.
  16. Chong, V. K. (1996). Management accounting systems, task uncertainty and managerial performance: A research note. Accounting, Organizations and Society, 21(5), 415-421.
  17. Chong, V. K. ve Chong, K. M. (1997). Strategic choices, environmental uncertainty and SBU performance: A note on the intervening role of management accounting systems. Accounting and Business Research, 27(4), 268-276.
  18. Chong, V. K. ve Eggleton, I. R. C. (2003). The Decision-Facilitating Role of Management Accounting Systems on Managerial Performance: The Influence of Locus of Control and Task Uncertainty. Advances in Accounting, 20(03), 165-197.
  19. Cohen, J. (1988). Statistical power analysis for the behavioral sciences. Mahwah, NJ: Lawrence Erlbaum.
  20. Dibrell, C., Craig, J. B. ve Neubaum, D. O. (2014). Linking the formal strategic planning process, planning flexibility, and innovativeness to firm performance. Journal of Business Research, 67(9), 2000-2007.
  21. Etemadi, H., Dilami, Z. D., Bazaz, M. S. ve Parameswaran, R. (2009). Culture, management accounting and managerial performance: Focus Iran. Advances in Accounting, 25(2), 216-225.
  22. Falshaw, J. R., Glaister, K. W. ve Tatoglu, E. (2006). Evidence on formal strategic planning and company performance. Management Decision, 44(1), 9-30.
  23. Fisher, C. (1996). The impact of perceived environmental uncertainty and individual differences on management information requirements: A research note. Accounting, Organizations and Society, 21(4), 361-369.
  24. Fornell, C. ve Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39.
  25. Frezatti, F., Aguiar, A. B., Guerreiro, R. ve Gouvea, M. A. (2011). Does management accounting play role in planning process? Journal of Business Research, 64(3), 242-249.
  26. Ghasemi, R., Habibi, H. R., Ghasemlo, M. ve Karami, M. (2019). The effectiveness of management accounting systems: Evidence from financial organizations in Iran. Journal of Accounting in Emerging Economies, 9(2), 182-207.
  27. Ghasemi, R., Mohamad, N. A., Karami, M., Bajuri, N. H. ve Asgharizade, E. (2016). The mediating effect of management accounting system on the relationship between competition and managerial performance. International Journal of Accounting and Information Management, 24(3), 272-295.
  28. Ghasemi, R., Mohamad, N. A., Karami, M., Hafiz Bajuri, N. ve Asgharizade, E. (2015). The Relationship among Strategy, Competition and Management Accounting Systems on Organizational Performance. European Online Journal of Natural and Social Sciences, 4(3), 565-581.
  29. Glaister, K. W., Dincer, O., Tatoglu, E., Demirbag, M. ve Zaim, S. (2008). A causal analysis of formal strategic planning and firm performance: Evidence from an emerging country. Management Decision, 46(3), 365-391.
  30. Govindarajan V. (1984). Appropriateness of accounting data in performance evaluation: an empirical examination of environmental uncertainty as an intervening variable. Accounting, Organizations and Society, 9, 125-135
  31. Grant, R. M. (2003). Strategic planning in a turbulent environment: Evidence from the oil majors. Strategic Management Journal, 24(6), 491-517.
  32. Greenley, G. E. (1994). Strategic planning and company performance: An appraisal of the empirical evidence. Scandinavian Journal of Management, 10(4), 383-396.
  33. Gul, F. A. ve Chia, Y. M. (1994). The effects of management accounting systems, perceived environmental uncertainty and decentralization on managerial performance: A test of three-way interaction. Accounting, Organizations and Society, 19(4-5), 413-426.
  34. Hair, J.F., Hult, G.T.M., Ringle, C.M. ve Sarstedt, M. (2017) A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). 2nd Ed., Sage, Thousand Oaks.
  35. Hair, J. F., Risher, J. J., Sarstedt, M. ve Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24.
  36. Hammad, S. A., Jusoh, R. ve Ghozali, I. (2013). Decentralization, perceived environmental uncertainty, managerial performance and management accounting system information in Egyptian hospitals. International Journal of Accounting and Information Management, 21(4), 314-330.
  37. Henseler, J., Ringle, C. M. ve Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135.
  38. Hopkins, W. E. ve Hopkins, S. A. (1997). Strategic planning-financial performance relationships in banks: A causal examination. Strategic Management Journal, 18(8), 635-652.
  39. Hutahayan, B. (2020). The mediating role of human capital and management accounting information system in the relationship between innovation strategy and internal process performance and the impact on corporate financial performance. Benchmarking, 27(4), 1289-1318.
  40. Ismail, K., Isa, C. R. ve Mia, L. (2018). Evidence on the usefulness of management accounting systems in integrated manufacturing environment. Pacific Accounting Review, 30(1), 2-19.
  41. Lal, M. ve Hassel, L. (1998). The joint impact of environmental uncertainty and tolerance of ambixguity on top managers’ perceptions of the usefulness of non-conventional management accounting information. Scandinavian Journal of Management, 14(3), 259-271.
  42. Lawrence, P. R. ve Lorsch, J. W. (1967). Differentiation and Integration in Complex Organizations. Administrative Science Quarterly, 12(1), 1.
  43. Linn, G., Casey, K. M., Johnson, G. H. ve Ellis, T. S. (2001). Do broad scope managerial accounting systems moderate the effects of budget emphasis, budget participation and perceived environmental uncertainty on the propensity to create budgetary slack? Journal of Computer Information Systems, 42(1), 90-96.
  44. McCarthy, D. J. ve Minichiello, R. J. (1996). Business policy and strategy, concepts and readings. 4th ed. Homewood, IL: Richard D. Irwin.
  45. Meissner, P. (2014). A process-based perspective on strategic planning: The role of alternative generation and information integration. Business Research, 7(1), 105-124.
  46. Mia, L. (1993). The Role Of Mas Information In Organisations: An Empirical Study. British Accounting Review, 25(3), 269-285.
  47. Mia, L. (2000). Just-in-time manufacturing, management accounting systems and profitability. Accounting and Business Research, 30(2), 137-151.
  48. Mia, L. ve Chenhall, R. H. (1994). The usefulness of management accounting systems, functional differentiation and managerial effectiveness. Accounting, Organizations and Society, 19(1), 1-13.
  49. Mia, L. ve Clarke, B. (1999). Market competition, management accounting systems and business unit performance. Management Accounting Research, 10(2), 137-158.
  50. Mia, L. ve Winata, L. (2008). Manufacturing strategy, broad scope MAS information and information and communication technology. British Accounting Review, 40(2), 182-192.
  51. Mia, L. ve Winata, L. (2014). Manufacturing strategy and organisational performance: The role of competition and MAS information. Journal of Accounting and Organizational Change, 10(1), 83-115.
  52. Miller, C. C. ve Cardinal, L. B. (1994). Strategic Planning and Firm Performance: A Synthesis of More Than Two Decades of Research. Academy of Management Journal, 37(6), 1649-1665.
  53. Naranjo-Gil, D. ve Hartmann, F. (2007). Management accounting systems, top management team heterogeneity and strategic change. Accounting, Organizations and Society, 32(7-8), 735-756.
  54. Nguyen, N. P. (2018). Performance implication of market orientation and use of management accounting systems. Journal of Asian Business and Economic Studies, 25(1), 33-49.
  55. Nguyen, T. T., Mia, L., Winata, L. ve Chong, V. K. (2017). Effect of transformational-leadership style and management control system on managerial performance. Journal of Business Research, 70, 202-213.
  56. Novas, J. C., Alves, M. do C. G. ve Sousa, A. (2017). The role of management accounting systems in the development of intellectual capital. Journal of Intellectual Capital, 18(2), 286-315.
  57. Otley, D. T. (1980). The contingency theory of management accounting: Achievement and prognosis. Accounting, Organizations and Society, 5(4), 413-428.
  58. Patiar, A. ve Mia, L. (2008). The Interactive Effect of Market Competition and Use of MAS Information on Performance: Evidence From the Upscale Hotels. Journal of Hospitality and Tourism Research, 32(2), 209-234.
  59. Pearce, J. A., Freeman, E. B. ve Robinson, R. B. (1987). The Tenuous Link between Formal Strategic Planning and Financial Performance. The Academy of Management Review, 12(4), 658.
  60. Pedroso, E., Gomes, C. F. ve Yasin, M. M. (2020). Management accounting systems: An organizational competitive performance perspective. Benchmarking, 27(6), 1843-1874.
  61. Rasid, S. Z. A., Isa, C. R. ve Ismail, W. K. W. (2014). Management accounting systems, enterprise risk management and organizational performance in financial institutions. Asian Review of Accounting, 22(2), 128-144.
  62. Ringle, C. M., Wende, S. ve Becker, J.-M. (2015). SmartPLS 3. Boenningstedt: SmartPLS GmbH, http://www.smartpls.com.
  63. Sarstedt, M., Hair, J. F., Cheah, J. H., Becker, J. M. ve Ringle, C. M. (2019). How to specify, estimate, and validate higher-order constructs in PLS-SEM. Australasian Marketing Journal, 27(3), 197-211.
  64. Sax, J. ve Andersen, T. J. (2019). Making Risk Management Strategic: Integrating Enterprise Risk Management with Strategic Planning. European Management Review, 16(3), 719-740.
  65. Sharma, R., Jones, S. ve Ratnatunga, J. (2006). The relationships among broad scope MAS, managerial control, performance, and job relevant information: A concomitant analysis. Review of Accounting and Finance, 5(3), 228-250.
  66. Shea-Van Fossen, R. J., Rothstein, H. R. ve Korn, H. J. (2006). Thirty-five years of strategic planning and firm performance research: A meta-analysis. Academy of Management 2006 Annual Meeting: Knowledge, Action and the Public Concern, AOM 2006, 1-7.
  67. Shmueli, G., Ray, S., Velasquez Estrada, J. M. ve Chatla, S. B. (2016). The elephant in the room: Predictive performance of PLS models. Journal of Business Research, 69(10), 4552-4564.
  68. Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J. H., Ting, H., Vaithilingam, S. ve Ringle, C. M. (2019). Predictive model assessment in PLS-SEM: guidelines for using PLSpredict. European Journal of Marketing, 53(11), 2322-2347.
  69. Soobaroyen, T. ve Poorundersing, B. (2008). The effectiveness of management accounting systems: Evidence from functional managers in a developing country. Managerial Auditing Journal, 23(2), 187-219.
  70. Tsui, J. S. L. (2001). The impact of culture on the relationship between budgetary participation, management accounting systems, and managerial performance: An analysis of Chinese and Western managers. International Journal of Accounting, 36(2), 125-146.
  71. Wolf, C. ve Floyd, S. W. (2017). Strategic Planning Research: Toward a Theory-Driven Agenda. Journal of Management, 43(6), 1754–1788.