STRATEGIC MANAGEMENT ACCOUNTING, DIGITALIZATION OF ACCOUNTING PRACTICES AND PERFORMANCE AMONG CONSUMER GOODS FIRMS IN LAGOS STATE
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Date
2023-12
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MALETE JOURNAL OF ACCOUNTING AND FINANCE, Department of Accounting and Finance, Faculty of Management and Social Sciences, Kwara State University, Malete
Abstract
Modern management accounting practices have posed challenges for global manufacturing
companies, particularly in the transition from traditional to strategic methods. This transition has
been notably deficient among numerous consumer goods firms in Nigeria, where the absence of
effective strategic costing practices has led to significant issues such as cost inefficiency,
competitive disadvantage, and ineffective decision-making. Recognizing the significance of
technological advancement for growth and competitiveness, this study investigated the impact of
strategic management accounting and digitalization of accounting practices on the performance
of consumer goods companies in Lagos. The research methodology employed a survey research
design, sampling 161 management employees from 45 consumer goods companies in Lagos as of
January 2023. The research utilized partial least square structural equation modelling to analyse
primary data. Results highlighted significant impacts on Consumer goods performance from
strategic costing practices and the digitalization of accounting methods. Both strategic costing
practices and digitalization displayed positive and noteworthy effects on performance, reflected
by t-values of 0.213 and 0.218, along with respective p-values of 0.037 and 0.023. However,
strategic customer accounting practices exhibited an insignificant impact on performance, evident
through a t-value of 1.345 and a p-value of 0.179 at a 5% significance level. The study concludes
that strategic costing and digitalizing accounting methods highly influence and benefit and
consumer goods firms’ performance, unlike strategic customer accounting. The study recommends
that the implementation and integration of effective strategic costing methodologies and
digitalization initiatives to further propel the growth and competitiveness of these companies in
Lagos State
Description
Strategic management accounting (SMA) focuses on providing forward-looking information to support strategic decision-making. It includes practices like strategic costing, which aids in managing and reducing costs effectively. Digitalization of accounting practices involves adopting digital tools and technologies to streamline accounting processes, enhance accuracy, and provide real-time data for decision-making. Together, SMA and digitalization can significantly improve a company's performance by increasing efficiency, reducing costs, and providing valuable insights for strategic decisions. This synergy is particularly beneficial for consumer goods companies in competitive markets, fostering growth and competitiveness.
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Citation
Olumoh, Y. A. (2023). STRATEGIC MANAGEMENT ACCOUNTING, DIGITALIZATION OF ACCOUNTING PRACTICES AND PERFORMANCE AMONG CONSUMER GOODS FIRMS IN LAGOS STATE. Malete Journal of Accounting and Finance, 4(1), 143-159.https://majaf.com.ng/index.php/majaf/article/view/117