Management accounting adoption in small businesses: interfaces with challenges and performance
Ylä-Kujala, Antti; Kouhia-Kuusisto, Kati; Ikäheimonen, Tuuli; Laine, Teemu; Kärri, Timo (2023)
Ylä-Kujala, Antti
Kouhia-Kuusisto, Kati
Ikäheimonen, Tuuli
Laine, Teemu
Kärri, Timo
Emerald
2023
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2023061956863
https://urn.fi/URN:NBN:fi-fe2023061956863
Tiivistelmä
Purpose – While companies worldwide are largely comprised of small and medium-sized enterprises
(SMEs), a significant amount of management accounting (MA) research focuses on larger organisations, thus leaving MA practice in SMEs relatively under-researched. This paper aims to examine MA adoption (MAA) and its interfaces withMA challenges and business performance from a small business perspective.
Design/methodology/approach – A sample of 502 small businesses is investigated with an embedded
mixed methods research design comprised of qualitative content analysis, factor analysis and analysis of variance.
Findings – Up to 78% of small businesses are facing MA challenges that stem from organisation, systems, personnel and/or resources. Based on the present findings, MA challenges do motivate small businesses to at least consider investing inMAA as small businesses facing challenges are more likely to acquire systems and services than those reporting no issues at all. Hence, small business managers seem to not only recognise where their challenges lie, but also seek ways to improve the situation through MAA. The analysis also reveals that companies with the highestMA know-how have the best average solvency, suggesting that small businesses indeed benefit from MAA. Interestingly, the performance at medium levels of know-how declines while investments increase, revealing a “decreasing solvency phenomenon”. Potential explanations are, e.g.
(SMEs), a significant amount of management accounting (MA) research focuses on larger organisations, thus leaving MA practice in SMEs relatively under-researched. This paper aims to examine MA adoption (MAA) and its interfaces withMA challenges and business performance from a small business perspective.
Design/methodology/approach – A sample of 502 small businesses is investigated with an embedded
mixed methods research design comprised of qualitative content analysis, factor analysis and analysis of variance.
Findings – Up to 78% of small businesses are facing MA challenges that stem from organisation, systems, personnel and/or resources. Based on the present findings, MA challenges do motivate small businesses to at least consider investing inMAA as small businesses facing challenges are more likely to acquire systems and services than those reporting no issues at all. Hence, small business managers seem to not only recognise where their challenges lie, but also seek ways to improve the situation through MAA. The analysis also reveals that companies with the highestMA know-how have the best average solvency, suggesting that small businesses indeed benefit from MAA. Interestingly, the performance at medium levels of know-how declines while investments increase, revealing a “decreasing solvency phenomenon”. Potential explanations are, e.g.