Strategic Management Accounting Practices and Organizational Performance of Manufacturing Firms in Kurunegala District

Abstract

Different types of business strategies and a number of sophisticated strategy-based techniques have emerged to support to meet the challenges of global competition and customer satisfaction. The primary objective of this study is to examine the impact of strategic management accounting practices on organizational performance of manufacturing firms in Kurunegala District. The researcher has included dimensions of the strategic management accounting practices as strategic costing, strategic decision-making, competitor accounting, strategic performance, and customer accounting. A questionnaire was designed using five-point likert scales and distributed using a stratified random sampling technique among 164 Accountants/ Managers of manufacturing firms in Kurunegala District. Data were analyzed using descriptive statistics, correlation analysis, and regression analysis. Based on the findings of the study, it is concluded that there is a positive significant impact of strategic management accounting practices on organizational performance of manufacturing firms in Kurunegala District. As per the result of the study, it is recommended that managers employ strategic management accounting practices to enable them to identify, accumulate, and manage the costs of their activities to ensure accuracy in their decision-making.The findings in this study are supported by other studies in the literature and enable them to implement suitable strategies.