The Impact of Innovative Management Accounting Practices on Corporate Performance of Manufacturing Companies in Indonesia: Moderating Contingency-Based Investigation

Alsawayeh, Ali Mohamed and Pぼ Eko CanL Sukohattmo,, SE.,M Coln Hons.,Ph D and Di Drs_Bambang Hanadi,, M_Ec,Ak_ and Abdul Ghofar, ,SE,M SL,DBA,Ak (2022) The Impact of Innovative Management Accounting Practices on Corporate Performance of Manufacturing Companies in Indonesia: Moderating Contingency-Based Investigation. Doktor thesis, Universitas Brawijaya.

Abstract

Tujuan – Penelitian ini menyelidiki dampak dari akuntansi manajemen yang inovatif praktik terhadap kinerja perusahaan manufaktur Indonesia dengan moderasi Investigasi Berbasis Kontingensi Tujuan – Penelitian ini bertujuan untuk mengukur penerapan Manajemen Inovatif Accounting Practices (IMAPs) di perusahaan manufaktur. Setiap item diteliti untuk mengidentifikasi dampak langsung IMAP pada kinerja perusahaan (CP) dan moderasi tiga faktor kontingensi, yaitu Budaya Perusahaan (CC), Teknologi Informasi Lanjutan (AIT), dan Perceived Environmental Uncertainty (PEU). Selain itu, pentingnya moderator dalam hubungan (IMAPs-CP) juga diperiksa. Desain/Metodologi/Pendekatan – Explanatory research ini menggunakan metode kuantitatif. Itu Data primer dikumpulkan melalui kuesioner yang dibagikan kepada sekelompok sampel yang dipilih dari 365 perusahaan manufaktur sebagai populasi dengan menggunakan purposive sampling. Itu kuesioner, dibuat menggunakan Google-Form, didistribusikan menggunakan pendekatan convivence melalui metode bola salju virtual kepada karyawan di tingkat manajemen rendah, menengah, dan atas atau posisi pekerjaan. Mereka adalah Manajer Keuangan (FM), Asisten atau Wakil Manajer Keuangan, Controller, Auditor, Kepala Departemen Akuntansi, Manajer Pemasaran, Manajer Penjualan, Manajer Operasi, Manajer produksi, Manajer Pengembangan produk baru, Kepala Departemen Keuangan, Manajer Sekretaris Perusahaan, Rekanan Pajak, Akuntan, dan Penjualan Pengawas. Sebanyak 85 perusahaan manufaktur ikut serta. Data dikumpulkan dan dianalisis dengan menggunakan lembar Excel untuk persiapan data dan pengkodean (Google Form Excel Lembaran). Uji validitas diskriminan dilakukan dengan menerapkan Average Variance Extracted, Komposit Keandalan, Alpha Cronbach dan Variance Inflated Factor. Kolinearitas adalah dinilai menggunakan Partial Least Square Path Modeling (PLS-PM) di SmartPLS 3.0. Itu pendekatan interaksi-moderasi dari faktor kontingensi juga digunakan untuk menganalisis dampak IMAP pada kinerja perusahaan.

English Abstract

Purpose – This research investigates the impact of innovative management accounting practices on the performance of Indonesian manufacturing companies with the moderation of Contingency-Based Investigation Objective – This study aims to measure the implementation of Innovative Management Accounting Practices (IMAPs) in manufacturing companies. Every item is scrutinized to identify the direct impact of IMAPs on corporate performance (CP) and the moderation of three contingency factors, i.e. Corporate Culture (CC), Advanced Information Technologies (AIT), and Perceived Environmental Uncertainty (PEU). In addition, the significance of the moderators in the relationship (IMAPs-CP) is also examined. Design/Methodology/Approach – This explanatory research uses quantitative method. The primary data was harvested through questionnaires distributed to a group of samples selected from 365 manufacturing companies as the population using purposive sampling. The questionnaires, created using Google-Form, were distributed using convivence approach through virtual snowball method to employees at low, middle and top management levels or job positions. They are Financial Managers (FM), Assistant or Vice Financial Manager, Controller, Auditor, Head of Accounting Department, Marketing Manager, Sales Manager, Operating Manager, production Manager, New product Development Manager, Head of Finance Department, Corporate secretary Manager, Tax Associate, Accountant and Sales Supervisors. A number of 85 manufacturing companies participated. The data was aggregated and analysed with the use of Excel sheet for data preparation and coding (Google Form Excel Sheet). Discriminant validity tests were conducted by applying Average Variance Extracted, Composite of Reliability, Cronbach’s Alpha and Variance Inflated Factor. Collinearity was assessed using Partial Least Square Path Modelling (PLS-PM) in SmartPLS 3.0. The interaction-moderation approach of the contingency factors was also used to analyse the impact of IMAPs on corporate performance. Findings – The overall mean of the implementation and usage of IMAPs does not differ significantly among the sample companies. The extents of IMAPs’ implementation and usage from the highest to lowest are innovative decision making, evaluating, corporate radar, costing and budgeting practices. Further, the impacts of innovative decision-making evaluating, costing, budgeting, and corporate radar practices as predictors on corporate performance are positive and statistically significant. The corporate performance of the manufacturing companies can be improved through intensive implementation and usage of IMAPs with the interactive application of the forms of contingency fit. The moderating role of corporate culture and advanced information technologies on the relationship between IMAPs and corporate performance is positive and significant. However, there is no strong evidence that perceived environmental uncertainty moderates the effect. Managerial Implications – This research provides a deeper understanding about the impact of Innovative Management Accounting Practices on Corporate Performance in Indonesian manufacturing companies, and the findings suggest the higher implementation and usage of IMAPs among the sample companies. Thus, it signifies IMAPs as positive predictors for corporate performance. Therefore, management and/or decision makers should move for more flexible and supportive corporate culture and should effectively use modern management and accounting software, networking and digital communications in order to enhance the impact of innovative costing, budgeting, evaluation and decision-making practices on corporate performance. However, low, middle, and top management shall have full awareness as well as capability to control and adjust with not only corporate culture and advanced information technologies as internal contingency factors, but also perceived environmental uncertainty as an external contingency factors since this factor is considered as the most powerful influencer for a superior corporate performance. To make this possible, management shall ensure that the predictability of market condition, technological change, and competition in marketplace are in a great extent of certainty through efficient control of their external business environment so that the financial and non-financial performance are maximized at satisfying levels. Originality/Value – The implementation and usage of IMAPs (Costing, Budgeting, Evaluating, Decision making and Corporate radar practices) is expected to improve the economic efficiencies and effectiveness of the manufacturing companies’ internal and external operations and activities, thereby enhancing the sustainability development and the overall value and performance. This research is expected to contribute theoretically and practically towards providing a better understanding on the impact of IMAPs on corporate performance as well as the significant moderating role of corporate culture, advanced information technology and perceived environmental uncertainty in Indonesian manufacturing companies. Research type - Ph.D. Dissertation

Item Type:	Thesis (Doktor)
Identification Number:	0622020003
Subjects:	600 Technology (Applied sciences) > 657 Accounting
Divisions:	S2/S3 > Doktor Ilmu Akuntansi, Fakultas Ekonomi dan Bisnis
Depositing User:	Nur Cholis
Date Deposited:	08 Jul 2022 02:39
Last Modified:	08 Jul 2022 02:39
URI:	http://repository.ub.ac.id/id/eprint/191736

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