TITLE:
Management Accounting Practices and Financial Performance of Manufacturing Firms: Moderating Role of Information Technology Integration
AUTHORS:
John Kwame Akuma, Anthony Adu-Asare Idun, George Tackie, Emmanuel Addai Kwaning, Kojo Agyekum Asiama
KEYWORDS:
Information Technology Integration, Management Accounting Practices, Financial Performance
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.14 No.5,
May
30,
2024
ABSTRACT: This study assessed the moderating role of information technology integration (ITI) in the relationship between management accounting practices (MAPs) and financial performance (FP) of manufacturing firms. MAPs comprise five dimensions namely; Costing System (CS), Budgeting System (BS), Decision Support System (DSS), Performance Management System (PMS) and Strategic Management Accounting Practices (SMAP). This research applied the cross-sessional survey design to obtain data from managers of manufacturing companies in Ghana. Data from 266 respondents were processed using Smart PLS (version 4) and analysed using the Structural Equation Modelling. The study found a significant positive moderating role of ITI in the relationship between a dimension of MAPs called performance management systems (PMS) and FP. The research contributes to the literature on MAPs by empirically establishing the role technology plays in the MAPs and FP nexus. These findings extend the literature on the role of ITI by encouraging manufacturing firms in Ghana to implement ITI skills and PMS to enhance their FP. The study recommends that leadership of manufacturing firms in Ghana should blend PMS (like ratio and variance analysis) as well as ITI skills to boost their financial performance.