Contextual Factors as Determinants of Management Accounting Practices Adoption and its Impact on the Performance of Egyptian Firms | ||
| The Academic Journal of Contemporary Commercial Research | ||
| Article 4, Volume 3, Issue 2, June 2023, Pages 75-103 PDF (596.03 K) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/ajccr.2023.304708 | ||
| Author | ||
| Rola Samy Nowar* | ||
| Faculty of Commerce, Cairo University, Giza, Egypt | ||
| Abstract | ||
| This research aimed to analyze the association between contextual factors existing within the business firms operating in Egypt. They represent determinants of the adoption level of management accounting practices (MAPs). In addition, examining the effect of MAPs adoption on firm performance. A study was conducted on a sample of firms operating in divergent industry sectors in Egypt and was carried out in mid-2022. Results of multiple regression analysis revealed that only firm competitiveness as a contextual variable can be considered as a determinant of MAPs adoption. However, contextual factors such as firm size and firm strategy have a significant negative relationship with MAPs adoption level. Furthermore, the type of activity has no impact on MAPs adoption. Moreover, MAPs adoption level has an impact on sampled firms’ performance. The limits of the research were mostly related to the analyzed MAPs since the analysis was confined to only some of the commonly used traditional/strategic MAPs in practice. This is in addition to the fact that all firms of the sample were representative of profit-making business firms, which indicates that the results are to be only generalizable to that category of business entities. The research contributes to the literature addressing MAPs' recent adoption level in the Egyptian firms from two aspects. First, it identifies the recent contextual factors to be considered as determinants of the implementation level of MAPs whether traditional MAPs (TMAPs) or contemporary/strategic MAPs (CMAPs/SMAPs). Second, it explores the effect of implementing MAPs on firm performance measured by both financial and non-financial indicators. | ||
| Keywords | ||
| Management accounting practices; determinants; contextual factors; Egyptian firms; firm performance | ||
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