See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/333245762

STRATEGIC MANAGEMENT ACCOUNTING AND INFORMATION FOR

MANAGERIAL DECISION MAKING IN SELECTED MANUFACTURING FIRMS IN
KWARA STATE

Article · May 2019

CITATION READS
1 596

3 authors, including:

Olubunmi Osemene Oluwaseye Fakile

University of Ilorin University of Ilorin
8 PUBLICATIONS   6 CITATIONS    3 PUBLICATIONS   1 CITATION   

SEE PROFILE SEE PROFILE

Some of the authors of this publication are also working on these related projects:

Corporate Social Responsibility impact on the financial performance of Nigerian manufacturing companies View project

Radio Frequency Identification Technologies RFID View project

All content following this page was uploaded by Oluwaseye Fakile on 19 June 2019.

The user has requested enhancement of the downloaded file.

 STRATEGIC MANAGEMENT ACCOUNTING AND INFORMATION FOR
MANAGERIAL DECISION MAKING IN SELECTED MANUFACTURING FIRMS
IN KWARA STATE

Adigbole, Ezekiel A. (Ph. D.)*

Osemene, Olubunmi F. (Ph. D.)

&
Fakile, Grace. O

Abstract
In this competitive business environment, firms required financial and non - financial information
to be able to effectively make strategic decisions that can enhance competitive advantage. The
traditional management accounting techniques that some manufacturing firms in Nigeria continue
to use cannot deliver this type of information and so there is need to implement non - costing
Strategic Management Accounting (SMA) techniques. The specific objectives of this study were
to: assess the influence of: Strategic Planning, Control and Performance Measurement (SPCPM)
and Competitor Accounting (COMA) on the provision of information for managerial decision
making. Survey research design was employed and questionnaire used in collecting primary data
from accountants in 28 sampled manufacturing firms in Kwara State. Ordered logistic regression
was used in data analysis. The study found that: SPCPM has a positive significant impact on
information for managerial decision making (β = 0.4485, p < 0.05); and COMA has no
significant influence on information for managerial decision making (β = 0.0617, p < 0.10). The
study concluded that strategic management accounting especially SPCPM is relevant for the
provision of information for managerial decision making. It is recommended that manufacturing
firms that are not implementing SMA should do so to access complete information.
Keywords: Strategic management accounting, information, decision – making

Introduction

T he accounting systems form the information life wire of a business and so it must be
up to date so that it can provide the needed information that is broad and accurate
enough to enable business firms compete well in the market place. In a company, the
system of accounting that focuses attention on the provision of relevant information for
internal use by management in performing their functions of decision making, planning,
controlling and directing is the management accounting (Hopper, Northcott & Scapens,
2007). Management accounting discipline which grew from Cost accounting in the 1940‟s as
a result of the industrial revolution has an internal orientation in the provision of information
(Roberts, 1989). However, over the years the traditional management accounting was
discovered to be inadequate in this modern business competitive environment as the
information emanating from it was not broad and accurate enough for use in strategic decision
making (Roslender & Hart, 2003).

*
Department of Accounting, Faculty of Management Sciences, University of Ilorin, Ilorin, Kwara
State, Nigeria
132 Strategic Management Accounting and Information for Managerial Decision Making

In the 1980‟s several accounting professionals and academics began to observe the
obsolescence of the traditional management accounting (Shah, Malik & Malik, 2011). It was
observed that the information from the accounting system was too large, too aggregated and
too distorted to be relevant for strategic planning and control decisions making (Noordin,
Zainuddin, Mail & Mail, 2014). It was contended that management accounting information
was based on the existing financial accounting system thereby making information provided
to be restrictive, less accurate and incomplete (Baines and Langfield-Smith, 2003). Cooper
(1996) and Parker (2002) observed that management accounting makes little use of strategic
management. It was also argued by Ahlstrom and Karlsson (1996) that management
accounting had not advanced to take advantage of innovative technologies in the field of
management.

There is also the need for management accounting to take a strategic orientation in this
present business environment that is characterized by intensive competition, and shorter
product life cycle (Burstahler, Horngreen, Schatzberg, Stratton & Sundem, 2007; Noordin,
Zainuddin & Tayles, 2009). The improvement in technology resulting to production of
diverse products by firms further necessitates the need to improve the sophistication of cost
and management control systems (Chai-Amonphaisal & Ussahawanitchakit, 2010).

Notwithstanding the attention given to Strategic Management Accounting (SMA) since 1981,
there is still limited consensus on the exact meaning of the term “strategic management
accounting” and what constitutes it is also still a matter of debate as various authors have
come up with various techniques that are contained in SMA „tool box‟ (McManus, 2013).
Some studies such as those of Cinquinin and Tenucci (2010); and Guilding, Cravens and
Tayles (2000) have concluded that SMA use is still very low and developing. Hence, there is
need for continuous research on the various techniques of SMA and particularly its relevance
for the generation of information for managerial decision making.

From the previous studies on SMA mentioned above, research have been carried out in
developed countries (Europe and the USA) and the empirical works on SMA conducted in
Nigeria is still very few and some of these include those of Ojua (2016a); Egbunike, Ogbodo
and Onyali (2015). In Nigeria, it is still not clear as to what use SMA has been put in
manufacturing firms as most of these firms still rely on the traditional management
accounting to generate information for management use despite the changing business
environment. Information so generated from such accounting system is not relevant for taking
strategic decisions. Hence, there is the need for manufacturing firms to focus attention on a
new management accounting system that can deliver accurate and relevant information for
effective managerial decision making.

In view of the forgoing, the following research questions are raised: How does strategic
planning, control and performance influence the provision of information for managerial
decision making; and what is the impact of competitor accounting on the provision of
information for managerial decision making.

The objectives of this study are to: examine the influence of strategic planning, control and
performance measurement on the provision of information for managerial decision making;
Ilorin Journal of Management Sciences 133
and assess the impact of competitor accounting on the provision of information for
managerial decision making.

The following hypotheses stated in null term were formulated based on the objectives of the
study:
H01: Strategic planning, control and performance measurement does not significantly
influence the provision of information for managerial decision making.
H02: Competitor accounting does not significantly influence the provision of information
for managerial decision making.

The rest of this paper is organized into - literature review; methodology; data analysis and
discussion of results; and lastly, conclusion and recommendation

LITERATURE REVIEW
Conceptual Review
Strategic Management Accounting
Strategic management accounting was coined by Simmonds (1981) who defined it as the
provision and analysis of management accounting data about a business and its competitors
for use in developing and monitoring business strategy. Bromwish (1990) defined strategic
management accounting as the provision and analysis of financial information on the
company‟s product markets, competitors‟ costs, cost structure and the monitoring of
strategies of the enterprise and its competitors over a period of time. Langfield (2008: 206)
defined strategic management accounting as “strategic management accounting entails taking
a strategic orientation to generation, interpretation and analysis of management accounting
information and competitors‟ activities provides the key dimension for comparison‟‟.
From the above definitions, there is seems to be no agreement as to the specific meaning of
strategic management accounting, but all the definitions agree on the strategic approach of the
new subject. These definitions thus proved clearly that the scope of the traditional
management accounting has been greatly extended (Adigbole, 2017).

Strategic Management Accounting (SMA) Techniques

For any management technique to be included in strategic management accounting such
technique must have a strategic orientation as strategy connotes long-term future-oriented
time frame and an externally focused perspective (Porter,1996; Guildsing, et al,2000).
Therefore, strategic management accounting techniques are techniques that demonstrate the
following orientations: environmental (outward-looking); or long term (forward-looking) and
/or market focus (Cadez & Guilding, 2008).

The techniques that qualified as SMA given by Guilding et al. 2000; Cadex and Guilding
(2008); and Fowzra, (2011) can be classified into five classes as: Costing techniques;
planning, control and performance measurement; strategic decision making; competitor
accounting; and customer accounting.

Costing class include- Activity – based costing / management, target costing, life- cycle
costing, quality costing, and value chain costing.
Planning, control and performance measurement class which has external strategic orientation
towards competitors contained these techniques - Bench marking (Cinquinni & Tenucci,
134 Strategic Management Accounting and Information for Managerial Decision Making

2007); and Integrated performance measurement (Kaplan & Norton, 2000; Nixon and Burns
2012).
Strategic decision- making class contained - Strategic costing (Shank & Govindarajan, 1992);
Strategic pricing (Alnawaiseh, 2013; Novianty, 2015); and Brand valuation (Budgeting and
monitoring) (Alnawaiseh, 2013).
Competitor accounting class comprised of: Competitor cost assessment (Ward, 1992);
Competitor performance appraisal based on published financial statements; and Competitive
position monitoring (Ciquini & Tenucci, 2010).
The last class, Customer accounting comprised of: Customer profitability analysis (Zeithaml,
2000);
Life time customer profitability analysis (Cadez & Guilding, 2008); and Valuation of
customers as assets (Cadez & Guilding, 2008; McManus, 2013).

Information for Managerial Decision Making

Managers take various types of decision during the day-day operation of a business as well as
in planning for the future (Warren, Reene & Duchac, 2009). As one of the major functions of
management is decision making, it is very important that relevant information are supplied to
perform this function. Decision making involves the selection of a course of action from
among two or more possible alternatives so as to arrive at a solution for a given problem
(Trewartha & Newport, 1982). Effective decision can only be made when the right
information is supplied at the point of making such a decision. It has been noted that when a
system is designed to provide correct information to managers, decision processes work
extremely well and task will be accomplished (Trewartha & Newport, 1982).

SMA is designed to provide relevant and broader information to the managers for making
strategic decisions. Some of the decisions that can be taken with the use of SMA information
are product cost and pricing decisions; strategic cost management decisions (Monden, 1989);
profit planning decisions and capital investment decision (Bhimani,Horngren,, Datar,Foster,
2008); marketing decisions (Roslender & Hart, 2003) etc.

The three important elements of SMA information from available literature are: competitor
information, customer information and product related information (Noordin, Zainudin, Mail,
F, Mail & Sariman, 2015; Noordin et al 2009; Al-Mawali & Amoush, 2013).

Empirical Review
Noordin, Zainuddin, and Tayles (2009) explored the level of SMA information usage among
Malaysian Electrical and Electronic companies in Malaysia. It examined the usage of SMA
information – competitor information analysis, customer information analysis, and product-
related information analysis. The study conceptualized SMA information as competitor
information, customer information and product-related information. The study sampled 23
manufacturing companies and used mailed questionnaire in data collection. Descriptive
analytical method was employed in data analysis. The findings of the study sheds light on the
development of SMA information usage among the sampled companies. It was found out that
the widely-utilized information was competitor information analysis. Customer information
and product-related information use was negligible.
Ilorin Journal of Management Sciences 135
Ranijak and Rogosik (2012) investigated the practices of SMA in Croatia and their
implication on provision of relevant and timely information for management use. It also
examined the synergistic effect of the different SMA techniques on cost control and
reduction. The study sampled 65 companies in Croatia and collected data using questionnaire
mailed to the accounting manager in each firm. Data collected were analyzed descriptively
and Man Whitney test statistics and one way ANOVA were used in testing the hypotheses
formulated. The study found that activity-based costing, quality costing are the most widely
used SMA techniques in Croatian sampled companies. The study also shows that the
fundamental purpose of SMA of providing relevant and timely information was fulfilled. It
further shows a positive synergistic effect of the different SMA techniques implementation on
cost control and reduction.

Noordin, Zainuddin, Mail F. and Mail (2014) examined the current development of SMA and
its uses in selected manufacturing companies in Malaysia. The study examined the use of
SMA information – competitor information analysis, customer information analysis, and
product-related information analysis. The study sampled 30 manufacturing companies in
Malaysia. Questionnaire was used in data collection. Descriptive statistics were used in
analyzing the data collected. The study shed some lights on the development of SMA
information usage of the sampled firms. It found out that the most widely-utilized information
was competitor information. While other SMA information (such as customer information,
and product-related information) was rather negligible, thus supporting the study of Guilding
et al (2000). However, the results of the study show some progress in the usage of SMA
information among firms. This study introduced a set of 26 items scale for measuring SMA
information elements. The study concluded that manufacturing companies are using SMA
information to adopt to the needs of competitive market.

Noordin, Zainudin, F. Mail, Mail and Sariman (2015) explored the progress of SMA
information usage within electrical and electronics companies in Malaysia. The study
investigated the extent of SMA information usage among the sampled companies and its
influence on performance of the companies. The survey method was employed and structured
questionnaire used in data collection from 595 companies sampled. SMA information usage
was measured by competitor information and market information. Data collected were
analyzed using descriptive statistics, factor analysis and inferential statistics such as multiple
regression analysis. The results of the study show that companies use SMA information to
high extent.

Egbunike, Ogbodo and Onyali (2014) investigated the use of SMA techniques for
sustainability performance measurement. It examined whether the use of SMA techniques
would provide information for environmental performance measurement, social performance
measurement and economic performance measurement. The study sampled 81 accountants
distributed across product-sector organizations. Questionnaires were used in collection of data
for the study. Multiple regression analysis was the main method of analysis used. This study
revealed that sustainability performance measurement is a multi-faceted activity, requiring
managers to implement strategic techniques capable of capturing information from diverse
areas of corporate environment. The study further found that SMA techniques is capable of
providing information for environmental performance management, social performance
measurement and economic performance measurement and management. The study
136 Strategic Management Accounting and Information for Managerial Decision Making

concluded that sustainability is at the forefront of modern business corporations, as enlarged

stakeholder interest necessitates that managers of corporations should go beyond meeting
shareholders‟ interest (economic interest) to a more broader scope encompassing social and
environmental concerns. This study however lacks study area and not linked to any theory.

Ojua (2016a) studied management perceptions of the role of SMA techniques in decision-
making in selected petroleum marketing firms in Nigeria. The study sampled fifty (50)
petroleum marketing firms in Apapa area of Lagos randomly. Data used were collected
through the administration of questionnaires. Both descriptive analysis (by mean and standard
deviations) and Pearson Product Movement Correlation Co-efficient were used in analysing
the data collected. The result of the study indicated that there is limited trust by managers on
the use of SMA techniques for decision-making and pricing policies. This study concluded
that management have reservations in applying SMA techniques in decision-making. There is
the need for further research to confirm or refute this study.

Ojua (2016b) investigated the extent of application of SMA practices by local Nigerian
manufacturing enterprises in making effective decision. The study sampled ten (10)
manufacturing companies operating in Agbara Industrial Estate, Ogun State. Structured
questionnaire was used in collecting primary data from the sampled firms. The study
employed the Pearson Movement Correlation Co-efficient in data analysis. This study shows
that there is no significant relationship between the adoption of SMA practices and decision-
making system of the sampled management firms. The entire results show that the use of
SMA practices in many Nigerian manufacturing enterprises is not only low, but also
management knowledge about the tools and importance are yet to be appreciated. This study
calls for a further research to determine the sustainability of this assertion.

In the light of the empirical review made, the following gaps have been identified to be filled
by this present study. Firstly, the conceptualization of SMA in this is not common in the
empirical study of SMA in Nigerian. And secondly, SMA information elements has not been
well researched in Nigerian which this study sought to achieved.
Methodology
The study employed a cross-section survey design as it allows generalization to be made from
large population when representative samples are drawn.
Population and Sampling
The population of this study is made up of thirty (30) manufacturing firms in Kwara State that
are registered with and paid up members of the Manufacturers Association of Nigeria (MAN),
Kwara State branch as at December, 2016. These firms are focused on because of their
standardized accounting system which is one of the requirements for registration with MAN.
The study sampled 28 (twenty – eight) manufacturing firms using purposive sampling as
only these firms out of the population were available for sampling, others could not be
reached due to lack of access.
Data type and Data Collection Procedure
This study employed primary data which were collected using a structured questionnaire. The
questionnaire is structured into six sections to capture all the questions relating to all the
variables under study. Three (3) copies of the questionnaire were distributed to each of the 28
Ilorin Journal of Management Sciences 137
sampled manufacturing firms. Thus, a total of 84 copies of questionnaires were distributed.
The target audience were cost accountants, management accountants and financial
accountants / chief accountants / Finance directors of the firms selected for the study. These
officers in the companies were chosen because they are believed to be knowledgeable in cost
and management accounting.

Out of the total copies of questionnaire administered only 51 copies were returned after
several visits to the sampled firms. Of the received figure, only 49 copies were properly and
completely filled. This translate to about 58% success rate of return which according to
Baruch and Holtom (2008) is satisfactory.

Variable Measurement
Dependent variable - Information for Managerial decision making (INFM).
This variable which relates to strategic management accounting information was
conceptualized as: product related information, competitor information, and customer
information. This study measured information for managerial decision making using 19 items
of strategic management accounting information adopted from Noordin et al (2009); Noordin
et al. (2014) and Noordin et al (2015) with some little modification to suite the purpose of this
study. Each respondent was required to indicate the extent to which strategic management
accounting of provide: product related information, competitor information, and customer
information for managerial decision making. This was anchored by a seven-point Likert scale
ranging from „1‟ (NO extent) to „7‟ (Great extent).

Strategic Management Accounting Techniques (SMAT) Usage

The degree of SMATs usage was measured with the instruments of Guilding and Mc Manus
(2002); Cadez and Guilding (2007, 2008) using the following question: “To what extent does
your organization use the following 17 SMA techniques grouped into five classes”. The 17
SMA techniques grouped into five classes: strategic planning, control and performance
measurement (SPCPM)- 2 techniques; and Competitor accounting (COMA) - 3 techniques
are listed and anchored with a Linkert scale ranging from “1” (Not at all) to “7” (To a great
extent)..

Validity and Reliability

The data collection instrument used was subjected to content validity by the initial draft being
vetted by season researchers and some post graduate lecturers in accounting. Besides, most of
the variables used were adopted from previous studies done in developed countries.

The reliability test was carried out and the results of the Cronbarch alpha statistics for all the
7 variables measured are presented in table 1. From the table it can be seen that the
Cronbach‟s alpha statistics of the variables vary from 0.644 to 0.904. These scores are high as
they are more than the suggested minimum of 0.60 and the results indicate a very strong
internal stability and consistency with which the instrument measured the concepts (Sekaran,
2003).
138 Strategic Management Accounting and Information for Managerial Decision Making

Table 1: Reliability Statistics (N = 49)

Items Cronbach’s Number of
Alpha Items
Strategic Planning, Control and Performance 0.644 2
Measurement (SPCPM)
Strategic Decision Making (SDM) 0.824 3
Competitor Accounting (COMA) 0.775 3
Customer Accounting (CUSA) 0.894 3
Information for managerial decision – making 0.900 19
(IFMD):
Source: Researcher’s STATA analysis results (2017)

Ordered Logit Regression Model

Information for managerial decision making = ∫ (Strategic management accounting) …… (1).
The above model is stated in ordered logistic form as:
Prob (IMDM ≤ j|x) = a+β1 SPCPM+β2 SDM+β3 COMA+β4 CUSA+U

Where:
a = intercept
j = order of response range 1 to 7
x = independent variable in the model
β1 –β4 = parameter of estimate
IMDM = Information for managerial decision making
SPCPM = Strategic planning, control and performance measurement
SDM = Strategic decision making
COMA = Competitor accounting
CUSA = Customer accounting

Method of Data Analysis

The data collected in the study have been analysed using ordered logistic regression This
technique was used as both dependent and independents variable are all ordered variables.

DATA ANALYSIS, TESTING OF HYPOTHESES AND DISCUSION OF RESULTS

Data Analysis and Testing of hypotheses
Table 2: Strategic Management Accounting Techniques and Information for
Managerial decision making
Dependent variable: Information for Managerial Decision (IMDM)
Independent Variables (Non - Coefficient Marginal Standard Z- Statistic P- Value
Costing Techniques of SMA): effect Error
Strategic Planning, Control 0.4485 0.0308 0.0123 2.47 0.012
and Performance
Measurement (SPCPM)
Competitor Accounting 0.0617 0.0042 0.0161 0.26 0.793
(COMA)
Pseudo R2 0.1246
LR-chi2 28.89
Prob (chi2) 0.0000
Source: Extract from the Researchers’ STATA analysis results (2017)
Ilorin Journal of Management Sciences 139
Strategic planning, control, and performance measurement (SPCPM) and the provision
of information for managerial decision making (IMDM).
Table 2 shows the ordered logit regression results of model 1 can be seen. From the table, the
coefficients of SPCPM with a value of 0.4485 indicates that it has a positive effect on the
provision of information for managerial decision making (IMDM). Hence, the more SPCPM
usage improve the more IMDM will improve. The marginal effect in the results with a value
of 0.0308 indicates that a unit increase in the usage of SPCPM techniques will give rise to the
probability (likelihood) that information for managerial decision making (IMDM) will
improve by 3.1%. These results therefore show that strategic planning, control, and
performance measurement techniques of SMA significantly affect the provision of
information for managerial decision making since it has a p-value of 0.012 at 5% level of
significance.

With the above results, the hypothesis (Ho1) that: Strategic planning, control and performance
measurement does not significantly affect the provision of information for managerial
decision making is not accepted.

Competitor Accounting (COMA) and the provision of information for managerial

decision making.
Result from Table 2 shows the coefficients of COMA to be 0.0617, this indicates that it has a
positive influence on the provision of information for managerial decision making (IMDM).
This implies that the more SDM usage improve the more IMDM will improve. The marginal
effect in the results with a value of 0.0042 indicates that a unit increase in the usage of
COMA techniques will give rise to the probability (likelihood) that information for
managerial decision making (IMDM) will improve by 0.04%. These results are not significant
enough as COMA has a p-value of 0.793 at 10% level of significance.
The above results indicate that the hypothesis (Ho2): Competitor accounting does not
significantly affect the provision of information for managerial decision making is accepted.

Discussion of results
The discussion of the findings of this study is done in line with the objectives of the study.

Firstly, to assess the influence of strategic planning, control and performance measurement on
the provision of information for managerial decision making, the result of testing hypothesis
one is that strategic planning, control and performance measurement of SMA significantly
influence the provision of information for managerial decision making. It thus implies that
the use of strategic planning, control and performance measurement techniques of: Bench
marking and Integrated performance measurement can enable a manufacturing firm provide
product related, competitor, and customer information. This finding is in agreement with
Noordin et al (2014) and Noordin et al (2015) that found out that product related information,
competitor information and customer accounting information are generated from strategic
management accounting (SMA) system. It also supports the study of Ranijak and Rogosik
(201) who found out that the use of composite SMA techniques can generate relevant and
timely information relating to products, competitors and customers.

Secondly, to evaluate the effect of competitor accounting on the provision of information for
managerial decision making, the result of testing hypothesis two is that competitor accounting
140 Strategic Management Accounting and Information for Managerial Decision Making

does not significantly affect the provision of information for managerial decision making. It
thus implies that the usage of competitor cost assessment, competitor performance appraisal
based on published financial statements and competitive position monitoring (Competitor
accounting class of SMA) cannot necessarily translate to the provision of product related,
competitor, and customer information. This finding is at variance with the study of Noordin et
al (2014). It could be that the sampled manufacturing firms have not been using these
techniques properly. Otherwise they should at least lead to the provision of competitor
information.

Conclusion and Recommendation

This study investigated the extent of implementation of non – costing techniques of strategic
management accounting and its impact on the provision of information for managerial
decision making in selected manufacturing in the sampled firms. The data used in the study
were primary data collected through questionnaire and analysed using ordered logistic
regression. The study found that planning, control and performance measurement; of SMA
can enhance the provision of information for managerial decision making. It was also found
that competitor accounting techniques of SMA may not enhance the provision of information
for managerial decision making in the sampled firms.
From the findings of this study it can be concluded that strategic management accounting
techniques, especially planning, control and performance measurement of SMA when
properly implemented, can provide product related information, competitor information and
customer information for managerial decision making.

In the light of the findings of this study, the following recommendations are made.
(i) To manufacturing firms that are yet to implement SMA, it is suggested that in
the view of the fact that the examined techniques can provide relevant
information for managerial decision making, they should consider implementing
SMA techniques.
(ii) Further research should be made on the implementation of competitor
accounting of SMA to confirm or refute the findings of this study in respect of
their usage in the provision of information for managerial decision making.

References
Adigbole, EA. (2017). Strategic management accounting and information for managerial
decision making in selected manufacturing firms in Kwara State. Unpublished Ph. D.
Seminar, University of Ilorin, Nigeria.
Ahlstrom, P. and Karlsson, C. (1996). Change processes towards lean Production.
International Journal of Operation and Production Management, 16 (11), 42-56.
Al-Mawali, H., & Amoush, A. (2013). Customer accounting information usage: A mixed-
method study.Interdisciplinary Journal of Contemporary Research In Business, 5
(6), 392 – 403
Alsoboa, S., Al-Ghazzawi, A . & Joudeh, A (2015). The Impact of Strategic costing
Techniques on the Performance of Jordanian Listed Manufacturing
Companies.Research Journal of Finance and Accounting, 6 (10), 116-127.
Baines, A., & Langfield-Smith, K. (2003). Antecedents to management accounting change: A
structural equation approach. Accounting, Organizations and Society, 28, 675-698.
Ilorin Journal of Management Sciences 141
Baruch, Y. & Holtom, B. C. (2008). Survey response rate levels and trends in organizational
research. Human Relations, 61(8), 1139-1160.
Bhimani, A., Horngren, C.T. Datar,S.M, & Foster, G.(2008). Management and Cost
Accounting (4th ed). Essex: Pearson Education.
Bromwhich M. (1990). The case for strategic management accounting: The role of accounting
information for strategy in competitive market. Accounting, Organisation and
Society, 5 (1), 27-46.
Bromwich, M. 1992. Strategic Management Accounting. In C. Drury (Ed). Management
Accounting Handbook. Oxford: Butterworth – Heinemann.
Burstahler, D., Horngreen, C T., Schatzberg J., Stratton, W. O. & Sundem, G. L. (2007).
Introduction to Management Accounting, 14th ed. Upper Saddle, NJ:
Pearson/Prentice Hall.
Cadez, S., & Guilding, C. (2007). Benchmarking the incidence of strategic management
accounting in Slovenia. Journal of Accounting and Organizational Change, 3, 126-
146.
Cadez, S. & Guilding, C. (2008). An exploratory investigation of an integrated contingency
model of strategic management accounting. Accounting, Organisations and Society,
836-873.
Chai-Amonphaisal, K. and Ussahawanitchakit, P. (2010). Strategic management accounting
and corporate performance of Thai listed companies: a mediating effect of
management process. International Journal Of Strategic Management, 10(1),1
Cinquini, L & Tenucci, A, (2007). Is the adoption of strategic management accounting really
“strategy driven‟‟? Evidence from survey.
Cinquini, L. & Tennuci, A. (2010). Strategic management accounting and business strategy: a
loose coupling? Journal of Accounting and Organisational change, 228-259.
Cooper, R. (1996). Costing techniques to support corporate strategy: evidence from Japan.
Management Accounting Research, 7, 219-246.
Egbunike, F. C., Ogbodo, O. C.Y. & Onyali, C. I. (2014). Utilizing strategic management
accounting techniques (SMATs) for sustainability performance measurement.
Research Journal of Finance and Accounting, 5(13), 140-153.
Fowzia, R. (2011). Strategic management accounting techniques: relationship with business
strategy and strategic effectiveness of manufacturing organization in Bangladesh.
World Journal of Management,3(2), 54-62.
Guilding, C., Cravens, K. S. & Tayles, M. (2000). An international comparison of strategic
management accounting practices. Management Accounting Research, 11 (1), 113–
135.
Hopper, T. Northcott D. & Scapens,P. (2007). Issues in Management Accounting, 3rd ed.
Harlow: Financial Times/Prentice Hall.
Imeokparia, L. 2013). Activity – Based Costing and the Performance of Manufacturing
Industries in South – Western Nigeria. Unpublished Doctoral Thesis in Business
Administration, Babcock University, Nigeria.
Kaplan R. S. & Norton D. P. (2000). The Strategy – focused organization, Boston: Harvard
Business School Press.
Langfield-Smith, K. (2008). Strategic management accounting: how far have we come in 25
years? Accounting, Auditing and Accountability Journal, 21, 204-228.
142 Strategic Management Accounting and Information for Managerial Decision Making

McManus, L. (2013). Customer accounting and marketing performance measures in the hotel
industry: Evidence from Australia. International Journal of Hospitality Management,
33,140- 152.
Ma, Y. & Tayles, M. (2009). On the emergence of strategic management accounting: an
institutional perspective. Accounting and Business Research, 39 (5), 473-495.
Monden, Y. (1989). Total Cost Management System in Japanese Automobile Corporations, in
Japanese Management Accounting, (edited by Y. Monden and M. Sakurai).
Cambridge, MA: Productivity Press, 15-33.
Nixon, B. and Burns, J. (2012). The paradox of strategic management accounting.
Management Accounting Research, 23 (4) 229-244.
Noordin, R; Zainuddin, Y. & Tayles, M. (2009). Strategic management accounting
information elements: Malaysian evidence. Asia – Pacific Management Accounting
Journal,4(1), 17-34.
Noordin, R. Zainuddin,Y. Mail, F. and Mail, R. (2014). Strategic management accounting:
state of the art. Malaysian. Journal of Business and Economics 1(1) 47-71.
Noordin,R., Zainudin,Y., Mail, F., Mail, R. & Sariman, N.K ( 2015). Performance outcome of
strategic management accounting information usage in Malaysia: insights from
Electrical and Electronics companies. Procedia Economics and Finance, 31, 13-
25.
Ojua, M.O. (2016 a). Strategic management accounting practices among indigenous Nigeria
manufacturing Enterprises. Open Science Journal, 1-13.
Ojua, M.O. (2016b). Management perception of the role of strategic management accounting
techniques in decision making: a survey of Nigeria petroleum marketing firms.
Imperial Journal of Interdisciplinary Research, 2(8), 1-9.
Parker, I. D. (2002). Reinventing the Management Accountant. Transcript of CIMA address
delivered at Glasgow University, 15 March, 2002.
Porter, M. E. (1986). What is strategy? Harvard Business Review, 74, 61-78.
Ranijak, B. and Rogosik ,A. (2012). Strategic management accounting practice in Croatia.
The Journal of International Management Studies,7(2), 93-100.
Roberts, A. (1989). Reminiscence about management accounting. Journal of Management
Accounting Research, fall, 1, 1-20.
Roslender, R. & Hart, S. (2003). In search of strategic management accounting: theoretical
and field study perspectives. Management Accounting Research, 16,.255-279.
.Sekaran, U.(2003). Research Methods for Business: A Skill Building Approach (4th ed). New
York: John Wiley & Sons Incorporation.
Shah, H., Malik, A., & Malik, M. S. (2011). Strategic Management Accounting-A messiah
for Management Accounting? Australian Journal of Business and Management
Research, 1(4), 1–6.
Shank, J. K. & Govindarajan, V. (1992). Strategic cost management: the value chain
perspective. Journal of Management Accounting Research, 4(Fall), 179-197.
Shank, J. K., & Govindarajan, V. (2012). Strategic Cost Management and Value Chain.
Retrieved from http://www. Study mode.com/essays/strategic–cost management on
10/11/2016
Shields, M. D., & Young, M. S. (1991). Managing product life cycle costs: An organizational
model. Journal of Cost Management, 5, 39-52.
Shuah, H., Malik, A & Malik, M.S. (2011). Strategic management accounting: A messiah for
management accounting. Australian Journal of Business and Management, 1 (4),1-7.
Ilorin Journal of Management Sciences 143
Simmonds, K. (1981). Strategic management accounting. Management Accounting, CIMA,
(April), 26-29.
Simmonds, K. (1982). Strategic management accounting for pricing: a case example.
Accounting Business Research, 47, 206-214.
Simmonds, K. (1986). The accounting assessment of competitive position. European Journal
of Marketing, 20, 16-32.
Tillmann, K. & Goddard, A. (2008), "Strategic management accounting and sense-making in
Multinational company", Management Accounting Research, 19,
Trewartha, R.G. & Newport, N.G. (1976). Management: Functions and Behavior. Dallas:
Business Publications.
Ward, K. (1992). Strategic management accounting. Oxford: Butterworth-Heinemann.
Warren, C. S., J. M. Reeve, & J. Duchac. 2009. Financial Accounting, 2e, New York:
Cengage Learning.
Zeithaml, V. A. (2000). Service quality, profitability, and the economic worth of customers:
what we know and what we need to learn. Academy of Marketing Science Journal,
28, 67-85.
144 Strategic Management Accounting and Information for Managerial Decision Making

APPENDIX
Appendix 1: STATA OUTPUT
Analysis of Demographic Variables of the Respondents
Table : Demographic Variables
Variables Frequency Percentage Cumulative
Percentage
Position in The Firm
Cost Accountant 11 22 22
Management Accountant 25 51 73
Financial Accountant/ Chief 13 27 100
Accountant/ Finance Controller
or Director
Total 49 100
Working Experience
5 Years and Below 19 39 39
6 - 10 Years 20 41 80
11 - 15 Years 2 4 84
Above 15 Years 8 16 100
Total 49 100
Qualifications
Diploma/ NCE 2 4 4
B.Sc./BA/HND 27 55 59
M.Sc./M.A. 3 6 65
Ph. D. - - 65
ACA/ACCA & B.Sc. 17 35 100
/HND/M.sc/MA/Ph. D
Total 49 100
Gender
Male 38 78 78
Female 11 22 100
Total
Age
Under 25 5 10 10
25 – 30 Years 19 39 49
31 – 40 Years 16 33 82
41 – 50 Years 7 14 96
51 and Above 2 4 100
Total 49 100
Source: Researcher’s (Adigbole, 2017) Survey results
Ilorin Journal of Management Sciences 145
 146 Strategic Management Accounting and Information for Managerial Decision Making

APPENDIX 2: LIST OF SAMPLED MANUFACTURING COMPANIES IN KWARA

REGISTERED WITH MAN
S/N NAME OF COMPANY LOCATION ( Corporate Office)
1 International Tobacco Company 1, Billingsway, (T & E) Premises) Oregun,
Lagos
2 Padson Industries 3, Muritala Mohammed Road, Ilorin
3 Kam Industries Nig. Ltd. Asa Dam Road, Ilorin
4 Forgo Battery co. Ltd. 243, Taiwo Road, Ilorin
5 Olak Roofing Ltd Opposite A Division, Ilorin
6 Lubcon Plc Lubcon Aven., Adewole Industrial Layout, Ilorin
7 Remto Industries Ltd Irewole Road, Ilorin
8 Shelter Setters Ltd Lubcon avenue, Irewolede Road, Ilorin
9 Kwara comm. Metal & chem Ng. Ltd. Gaa Imam, Ilorin
10 Stanfrey Engineering Nig. Ltd. Coca Cola Road, Ilorin
11 El-Samat Pharmaceuticals Ltd Block F1, Asa Dam, Ilorin
12 BPA Services Nig. ltd. Obbo Road, Ilorin
13 Omega Rock & Minerals Ltd. Osin Junction, Asa Dam Road, Ilorin
14 Pacific Alliance & Trust Ltd Plot 1, Odunnade industrial Estate, Odota, Ilorin
15 Tuyil Pharmaceuticals Ltd Irewolede, Ilorin
16 Global soap & detergent ind. Ltd. Asa Dam Road, Ilorin
17 Tascon Plastic Industries Oko Afon Road, Ilorin
18 Bram Industries Ltd kilanko Area, Ilorin
19 United foam products Nig. Ltd. Asa Dam Road, Ilorin
20 Mount Olive Ltd Asa LGA, Kwara State
21 Quarra Rice Shonga Road, Kwara State
22 Omorinoye Afolabi ind. Co. Ltd. 1, sEsinkin Alokomaji compound, Ijomu-Oro,
Kwara state
23 Ayo-Ayodele Pharmaceuticals Chemical 22, Old cemetary Road, Sabo Oke, Ilorin
(Nig) Ltd
24 Nigeria Yeast & Alcohol Mfg. Plc Bacita, Kwara State
25 Universal Roof Nig Ltd Asa Dam Road, Ilorin
26 Dimkit Global Concept Ltd Oke-Ogba, Ganmon
27 Biomedical Limited 1, Ohimege Road, Industrial Estate, Ilorin,
28 Biora Pharmaceutical Limited Okoolowo Road, Ilorin

Source: Extract from Records of Manufacturing Association of Nigeria (MAN), Kwaara State Branch

View publication stats