Improving Msme Performance: Management Accounting Strategies, Leadership Quality and Market Orientation
DOI:
https://doi.org/10.38035/jafm.v4i3.232Keywords:
Management Accounting Strategy, Leadership Quality, Market Orientation, Micro small, Medium EnterprisesAbstract
The micro, small and medium enterprises (MSMEs) sector plays an important role in the national economy, but high competition makes it difficult for businesses to develop. Company performance is used as a benchmark for assessing business operating systems so it is necessary to know the factors that affect business performance, one of which is the strategic management accounting method. In the context of financing to the MSME sector--as a 61.07 percent contributor to GDP, so that economic growth is maintained, the government has also given a signal to continue to increase financing to MSMEs. The purpose of this research is to test and analyze whether Mannaement Accounting Strategy, Leadership Quality and Market Orientation affect the Performance of Micro, Small and Medium Enterprises (MSMEs). This study uses primary data which is conducted by distributing questionnaires to MSME owners in DKI Jakarta and its surroundings. The method used in this study is quantitative, because this method can test the relationship between variables in a model, both the relationship between variables and their constructs and the relationship between constructs. The results of this study indicate that management accounting strategies have an effect on MSME performance; leadership quality does not affect MSME performance; Market orientation has no effect on MSME performance.
References
Akhmetzianov, A. A., & Sokolov, A. Y. (2020). Technical and economic indicators of strategic management accounting in the development companies based on the life cycle of the produce. International Journal of Criminology and Sociology, 9, 2697–2704 https://doi.org/10.6000/1929-4409.2020.09.333.
Al-Tarawneh, I. M., Al-Thnaibat, H., & Almomani, S. N. (2021). The impact of strategic management accounting techniques on achieving competitive advantage in the Jordanian public industrial companies. Academy of Accounting and Financial Studies Journal, 25(SI2), 1–15 https://www.abacademies.org/articles/the-impact-of-strategic- management-accounting-techniques-on-achieving-competitive-advantage-in-the- jordanian-public-indu.pdf.
Alamri, A. M. (2019). Association between strategic management accounting facets and organizational performance. Baltic Journal of Management, 14(2), 212–234. https://doi.org/10.1108/BJM-12-2017-0411
Alsoboa, S. (2015). The External Orientation of Strategic Management Accounting: Customer Accounting, Business Strategies, and Customer Performance. Research Journal of Finance and Accounting, Vol 6 (18), pp.94 – 105. https://core.ac.uk/display/234631049
Bravo, F., & Dolores Alcaide-Ruiz, M. (2019). The disclosure of financial forward- looking information: does the financial expertise of female directors make a difference. Gender in Management, 34(2), 140-156.
Akhtar, C. S., Awan, S. H., Naveed, S., Ismail, K. (2018). A comparative study of the application of systems thinking in achieving organizational effectiveness in Malaysian and Pakistani banks, International Business Review, Vol.27, No. 4, Pages 767-776, ISSN 0969-5931, https://doi.org/10.1016/j.ibusrev.2018.01.001
Borges, A. F., Laurindo, F. J., Spínola, M. M., Gonçalves, R. F., & Mattos, C. A. (2021). The strategic use of artificial intelligence in the digital era: Systematic literature review and future research directions. International Journal of Information Management, 57, 102225. https://doi.org/10.1016/j.ijinfomgt.2020.102225
Chang, H.-Y. and Ma, C.-A. (2019), "Financial flexibility, managerial efficiency and firm life cycle on firm performance: An empirical analysis of Chinese listed firms", Journal of Advances in Management Research, Vol. 16 No. 2, pp. 168-180. https://doi.org/10.1108/JAMR-06-2017-0072
Cheng, T. Y., Li, Y., Lin, Y., & Chih, H. (2020). Does the fit of managerial ability with firm strategy matters on firm performance. Journal of Asian Finance, Economics, and Business, 7(4), 9-19. https://doi.org/10.13106/jafeb.2020.vol7.no4.9
Doktoralina, C., & Apollo, A. (2019). The contribution of strategic management accounting in supply chain outcomes and logistic firm profitability. Uncertain Supply Chain Management, 7(2), 145–156. https://doi.org/10.5267/j.uscm.2018.10.010
Duci, E. (2021). The relationship between management accounting, strategic management accounting and strategic cost management. Academic Journal of Interdisciplinary Studies, 10(5), 376. https://doi.org/10.36941/ajis-2021-0146
Noor Arif Fatchurochman, N.A. dan Yamit, Z. (2022). Pengaruh Total Quality Management (TQM) terhadap Kinerja Perusahaan (Studi Kasus UMKM Makanan Kabupaten Temanggung). Selekta Manajemen: Jurnal Mahasiswa Bisnis & Manajemen Vol. 01, No. 02. pp. 14-30. e-ISSN: 2829-7547. https://journal.uii.ac.id/selma/index
Halim, A. (2020). Pengaruh Pertumbuhan Usaha Mikro, Kecil dan Menengah Terhadap Pertumbuhan Ekonomi Kabupaten Mamuju. GROWTH: Jurnal Ilmiah Ekonomi Pembangunan. Volume 1, No. 2. Hal. 157-172. p-ISSN: 2621-3842, e-ISSN: 2716-2443. https://stiemmamuju.e-journal.id/GJIEP
Kalkhouran, A. A. N., Nedaei, B. H. N., & Rasid, S. Z. A. (2017). The indirect effect of strategic management accounting in the relationship between CEO characteristics and their networking activities, and company performance. Journal of Accounting & Organizational Change, 13(4), 471–491. https://doi.org/10.1108/JAOC-05-2015-0042
Marlina, E., Ardi, H. A., Samsiah, S., Ritonga, K., & Tanjung, A. R. (2020). Strategic costing models as strategic management accounting techniques at private universities in Riau, Indonesia. International Journal of Financial Research, 11(1), 274–283. https://doi.org/10.5430/ijfr.v11n1p274
Ngo, Huy. (2020). The Impact of Prospecting Strategy on Small Business Performance in Vietnam: The Role of Broad-Scope Management Accounting System. Strategic Management. Strategic management, Vol. 26 (2021), No. 2, pp. 054-063. https://doi.org/10.5937/StraMan2102054Q..
Nguyen, P. N. (2018). Performance implication of market orientation and use of management accounting systems: The moderating role of accountants’ participation in strategic decision making", Journal of Asian Business and Economic Studies, https://doi.org/10.1108/JABES-04-2018-0005
Nguyen, H. T., & Nguyen, A. H. (2020). The impact of capital structure on firm performance: evidence from Vietnam. Journal of Asian Finance, Economics, and Business, 7(4), 97-105. https://doi.org/10.13106/jafeb.2020.vol7.no4.97
Nguyen, T. M., & Nguyen, T. T. (2021). The application of strategic management accounting: Evidence from the consumer goods industry in Vietnam. The Journal of Asian Finance, Economics and Business, 8(10), 139–146 https://www.koreascience.or.kr/article/JAKO202127335615024.pdf.
Oboh, C. S., & Ajibolade, S. O. (2017). Strategic management accounting and decision making: A survey of the Nigerian Banks. Future Business Journal, 3(2), 119–137. https://doi.org/10.1016/j.fbj.2017.05.004
Oyewo, B., Moses, O., & Erin, O. (2021). Balanced scorecard usage and organizational effectiveness: Evidence from manufacturing sector, Measuring Business Excellence, https://www.emerald.com/insight/content/doi/https://doi.org/10.1108/MBE-01-2021- 0005/full/html
Pangestu, J. C. (2021). Strategi Pengembangan Pada Perspektif Nonkeuangan Metode Balance Scorecard Terhadap Peningkatan Kinerja Keuangan UMKM Di Indonesia Saat Pandemic Covid-19. Jurnal Lentera kuntansi Vol.6 (1), 31-47. P-ISSN 2339-2991, E- ISSN 2745-6978. http://dx.doi.org/10.34127/jrakt.v6i1.434
Pasch, T. (2019). Strategy and innovation: the mediating role of management accountants and management accounting systems’ use. J Manag Control Vol.30, pp.213–246.. https://doi.org/10.1007/s00187-019-00283-y.
Phornlaphatrachakorn, K. (2019). Influences of strategic management accounting on firm profitability of information and communication technology businesses in Thailand. International Journal of Business Excellence, 17(2), 131–153. https://doi.org/10.1504/IJBEX.2019.097540
Rusli, Y. M. (2021). Strategic Management Accounting Terhadap Hubungan Antara Business Strategy dan Organizational Performance saat Pandemic Covid-19. Media Ilmiah Akuntansi, Vol.1 (1), 25–45. Retrieved from https://mia.iaikapddkijakarta.id/index.php/mia/article/view/3
Shaqqour, O. F. (2020). Impact of vertical and horizontal integration between strategic management accounting and decision-making on reducing financial failures case of Jordan. Academy of Accounting and Financial Studies Journal, 24(5), 1–9 https://www.abacademies.org/articles/Impact-of-Vertical-and-Horizontal-Integration- Between-Strategic-Management-1528-2635-24-4-581.pdf.
Truong, D. D., Nguyen, H., & Duong, T. Q. L. (2020). Factors influencing balanced scorecard application in evaluating the performance of tourist firms. Journal of Asian Finance, Economics, and Business, 7(5), 217-224. https://doi.org/10.13106/jafeb.2020.vol7.no5.217
Turner, M. J., Way, S. A., Hodari, D., & Witteman, W. (2017). Hotel property performance: The role of strategic management accounting. International Journal of Hospitality Management, 63, 33–43. https://doi.org/10.1016/j.ijhm.2017.02.001
Visedsun, N., & Terdpaopong, K. (2021). The effects of the strategy and goal on business performance as mediated by management accounting systems. Economies, 9(4), 149. https://doi.org/10.3390/economies9040149
Vu, T. K. A., Dam, B. H., & Ha, T. T. V. (2022). Factors affecting the application of strategy management accounting in Vietnamese logistics enterprises. Journal of Distribution Science, 20(1), 27–39 https://doi.org/10.15722/jds.20.01.202201.27.
Yeo, R.K. (2019), "From operational excellence to organizational significance: setting the tempo for change", Strategic HR Review, Vol. 18 No. 4, pp. 142-149. https://doi.org/10.1108/SHR-04-2019-0027
Yu, W., Chavez, R., Jacobs, M., Wong, C.Y. and Yuan, C. (2019), "Environmental scanning, supply chain integration, responsiveness, and operational performance: An integrative framework from an organizational information processing theory perspective", International Journal of Operations & Production Management, Vol. 39 No. 5, pp. 787-814. https://doi.org/10.1108/IJOPM-07-2018-0395
Al-Tarawneh, I. M., Al-Thnaibat, H., & Almomani, S. N. (2021). The impact of strategic management accounting techniques on achieving competitive advantage in the Jordanian public industrial companies. Academy of Accounting and Financial Studies Journal, 25(SI2), 1–15 https://www.abacademies.org/articles/the-impact-of-strategic- management-accounting-techniques-on-achieving-competitive-advantage-in-the- jordanian-public-indu.pdf.
Alamri, A. M. (2019). Association between strategic management accounting facets and organizational performance. Baltic Journal of Management, 14(2), 212–234. https://doi.org/10.1108/BJM-12-2017-0411
Alsoboa, S. (2015). The External Orientation of Strategic Management Accounting: Customer Accounting, Business Strategies, and Customer Performance. Research Journal of Finance and Accounting, Vol 6 (18), pp.94 – 105. https://core.ac.uk/display/234631049
Bravo, F., & Dolores Alcaide-Ruiz, M. (2019). The disclosure of financial forward- looking information: does the financial expertise of female directors make a difference. Gender in Management, 34(2), 140-156.
Akhtar, C. S., Awan, S. H., Naveed, S., Ismail, K. (2018). A comparative study of the application of systems thinking in achieving organizational effectiveness in Malaysian and Pakistani banks, International Business Review, Vol.27, No. 4, Pages 767-776, ISSN 0969-5931, https://doi.org/10.1016/j.ibusrev.2018.01.001
Borges, A. F., Laurindo, F. J., Spínola, M. M., Gonçalves, R. F., & Mattos, C. A. (2021). The strategic use of artificial intelligence in the digital era: Systematic literature review and future research directions. International Journal of Information Management, 57, 102225. https://doi.org/10.1016/j.ijinfomgt.2020.102225
Chang, H.-Y. and Ma, C.-A. (2019), "Financial flexibility, managerial efficiency and firm life cycle on firm performance: An empirical analysis of Chinese listed firms", Journal of Advances in Management Research, Vol. 16 No. 2, pp. 168-180. https://doi.org/10.1108/JAMR-06-2017-0072
Cheng, T. Y., Li, Y., Lin, Y., & Chih, H. (2020). Does the fit of managerial ability with firm strategy matters on firm performance. Journal of Asian Finance, Economics, and Business, 7(4), 9-19. https://doi.org/10.13106/jafeb.2020.vol7.no4.9
Doktoralina, C., & Apollo, A. (2019). The contribution of strategic management accounting in supply chain outcomes and logistic firm profitability. Uncertain Supply Chain Management, 7(2), 145–156. https://doi.org/10.5267/j.uscm.2018.10.010
Duci, E. (2021). The relationship between management accounting, strategic management accounting and strategic cost management. Academic Journal of Interdisciplinary Studies, 10(5), 376. https://doi.org/10.36941/ajis-2021-0146
Noor Arif Fatchurochman, N.A. dan Yamit, Z. (2022). Pengaruh Total Quality Management (TQM) terhadap Kinerja Perusahaan (Studi Kasus UMKM Makanan Kabupaten Temanggung). Selekta Manajemen: Jurnal Mahasiswa Bisnis & Manajemen Vol. 01, No. 02. pp. 14-30. e-ISSN: 2829-7547. https://journal.uii.ac.id/selma/index
Halim, A. (2020). Pengaruh Pertumbuhan Usaha Mikro, Kecil dan Menengah Terhadap Pertumbuhan Ekonomi Kabupaten Mamuju. GROWTH: Jurnal Ilmiah Ekonomi Pembangunan. Volume 1, No. 2. Hal. 157-172. p-ISSN: 2621-3842, e-ISSN: 2716-2443. https://stiemmamuju.e-journal.id/GJIEP
Kalkhouran, A. A. N., Nedaei, B. H. N., & Rasid, S. Z. A. (2017). The indirect effect of strategic management accounting in the relationship between CEO characteristics and their networking activities, and company performance. Journal of Accounting & Organizational Change, 13(4), 471–491. https://doi.org/10.1108/JAOC-05-2015-0042
Marlina, E., Ardi, H. A., Samsiah, S., Ritonga, K., & Tanjung, A. R. (2020). Strategic costing models as strategic management accounting techniques at private universities in Riau, Indonesia. International Journal of Financial Research, 11(1), 274–283. https://doi.org/10.5430/ijfr.v11n1p274
Ngo, Huy. (2020). The Impact of Prospecting Strategy on Small Business Performance in Vietnam: The Role of Broad-Scope Management Accounting System. Strategic Management. Strategic management, Vol. 26 (2021), No. 2, pp. 054-063. https://doi.org/10.5937/StraMan2102054Q..
Nguyen, P. N. (2018). Performance implication of market orientation and use of management accounting systems: The moderating role of accountants’ participation in strategic decision making", Journal of Asian Business and Economic Studies, https://doi.org/10.1108/JABES-04-2018-0005
Nguyen, H. T., & Nguyen, A. H. (2020). The impact of capital structure on firm performance: evidence from Vietnam. Journal of Asian Finance, Economics, and Business, 7(4), 97-105. https://doi.org/10.13106/jafeb.2020.vol7.no4.97
Nguyen, T. M., & Nguyen, T. T. (2021). The application of strategic management accounting: Evidence from the consumer goods industry in Vietnam. The Journal of Asian Finance, Economics and Business, 8(10), 139–146 https://www.koreascience.or.kr/article/JAKO202127335615024.pdf.
Oboh, C. S., & Ajibolade, S. O. (2017). Strategic management accounting and decision making: A survey of the Nigerian Banks. Future Business Journal, 3(2), 119–137. https://doi.org/10.1016/j.fbj.2017.05.004
Oyewo, B., Moses, O., & Erin, O. (2021). Balanced scorecard usage and organizational effectiveness: Evidence from manufacturing sector, Measuring Business Excellence, https://www.emerald.com/insight/content/doi/https://doi.org/10.1108/MBE-01-2021- 0005/full/html
Pangestu, J. C. (2021). Strategi Pengembangan Pada Perspektif Nonkeuangan Metode Balance Scorecard Terhadap Peningkatan Kinerja Keuangan UMKM Di Indonesia Saat Pandemic Covid-19. Jurnal Lentera kuntansi Vol.6 (1), 31-47. P-ISSN 2339-2991, E- ISSN 2745-6978. http://dx.doi.org/10.34127/jrakt.v6i1.434
Pasch, T. (2019). Strategy and innovation: the mediating role of management accountants and management accounting systems’ use. J Manag Control Vol.30, pp.213–246.. https://doi.org/10.1007/s00187-019-00283-y.
Phornlaphatrachakorn, K. (2019). Influences of strategic management accounting on firm profitability of information and communication technology businesses in Thailand. International Journal of Business Excellence, 17(2), 131–153. https://doi.org/10.1504/IJBEX.2019.097540
Rusli, Y. M. (2021). Strategic Management Accounting Terhadap Hubungan Antara Business Strategy dan Organizational Performance saat Pandemic Covid-19. Media Ilmiah Akuntansi, Vol.1 (1), 25–45. Retrieved from https://mia.iaikapddkijakarta.id/index.php/mia/article/view/3
Shaqqour, O. F. (2020). Impact of vertical and horizontal integration between strategic management accounting and decision-making on reducing financial failures case of Jordan. Academy of Accounting and Financial Studies Journal, 24(5), 1–9 https://www.abacademies.org/articles/Impact-of-Vertical-and-Horizontal-Integration- Between-Strategic-Management-1528-2635-24-4-581.pdf.
Truong, D. D., Nguyen, H., & Duong, T. Q. L. (2020). Factors influencing balanced scorecard application in evaluating the performance of tourist firms. Journal of Asian Finance, Economics, and Business, 7(5), 217-224. https://doi.org/10.13106/jafeb.2020.vol7.no5.217
Turner, M. J., Way, S. A., Hodari, D., & Witteman, W. (2017). Hotel property performance: The role of strategic management accounting. International Journal of Hospitality Management, 63, 33–43. https://doi.org/10.1016/j.ijhm.2017.02.001
Visedsun, N., & Terdpaopong, K. (2021). The effects of the strategy and goal on business performance as mediated by management accounting systems. Economies, 9(4), 149. https://doi.org/10.3390/economies9040149
Vu, T. K. A., Dam, B. H., & Ha, T. T. V. (2022). Factors affecting the application of strategy management accounting in Vietnamese logistics enterprises. Journal of Distribution Science, 20(1), 27–39 https://doi.org/10.15722/jds.20.01.202201.27.
Yeo, R.K. (2019), "From operational excellence to organizational significance: setting the tempo for change", Strategic HR Review, Vol. 18 No. 4, pp. 142-149. https://doi.org/10.1108/SHR-04-2019-0027
Yu, W., Chavez, R., Jacobs, M., Wong, C.Y. and Yuan, C. (2019), "Environmental scanning, supply chain integration, responsiveness, and operational performance: An integrative framework from an organizational information processing theory perspective", International Journal of Operations & Production Management, Vol. 39 No. 5, pp. 787-814. https://doi.org/10.1108/IJOPM-07-2018-0395
Downloads
Published
2023-07-28
How to Cite
Surjadi, M., Tandry Whittleliang Hakki, & Frans Saputra. (2023). Improving Msme Performance: Management Accounting Strategies, Leadership Quality and Market Orientation. Journal of Accounting and Finance Management, 4(3), 250–257. https://doi.org/10.38035/jafm.v4i3.232
Issue
Section
Articles
License
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Journal of Accounting and Finance Management (JAFM) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Journal of Accounting and Finance Management (JAFM).
