The Relationship of Implementing Management Accounting Practices (MAPs) with Performance in Small and Medium Size Enterprises

Abstract

The following study aims at exploring the implementation of MAPs in the Small and medium enterprises (SMEs) in Malaysia and focuses on identifying the relationship that exists between the MAPs and SMEs. There is limited research conducted on the MAPs being implemented in the SMEs, which is apparent in this study. As a part of the research methodology, a survey was conducted with the SMEs in the manufacturing sector of Malaysia. The research article demonstrates that the involvement and implementation of MAPs differ in different organisations; it ranges from the traditional approach to a more sophisticated approach in its implementation. The most commonly used accounting practices for management in the organisations include performance management system and costing systems. On the other hand, in terms of sophisticated approach, the larger organisations frequently make use of the MAPs in accordance with the theoretical arguments that are made in the context of the impact of size in adopting such practices. The findings of the study also indicate that there are certain MAPs that are related to the organisational performance. These practices hold a significant relationship with the productivity and performance of SMEs, which has helped in reinforcing the significance of such practices in today’s business environment.