Factors influencing the application of management accounting and its impact on business efficiency in SMEs: A business strategy implication

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Abstract

This study investigates key factors influencing the application of management accounting (MA) and its impact on business efficiency in small and medium-sized enterprises (SMEs) in Vietnam. Addressing a gap in the literature, the research identifies both internal (firm size, leadership engagement, accountant qualifications) and external (competitive intensity) drivers of MA adoption. A structured questionnaire was distributed to 700 Vietnamese enterprises, with 322 valid responses analyzed using structural equation modeling (SEM) via SPSS and AMOS. The findings reveal that all four factors significantly affect the adoption of MA practices. Moreover, the application of MA has a strong positive impact on business efficiency and mediates the relationship between certain factors, particularly firm size and competitive intensity, and performance outcomes. These results highlight the strategic importance of MA in enhancing decision-making and operational effectiveness in SMEs. The study offers practical insights for business leaders and policymakers aiming to improve SME competitiveness through effective accounting practices. Future research should explore similar models in other emerging markets to support broader generalizability.

Keywords: Vietnamese Enterprises, Management Accounting (MA), Management Accounting Application, Firm Size, Owner/Executive Leader’s Engagement, Accountants’ Qualifications, Competitive Intensity, Business Efficiency

Authors’ individual contribution: Conceptualization — N.H.T.; Methodology — H.D.T. and N.H.T.; Formal Analysis — H.D.T. and N.H.T.; Writing — Original Draft — H.D.T. and N.H.T.; Writing — Review & Editing — H.D.T. and N.H.T.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G18, G38, M41, M43, M44

Received: 07.01.2025
Revised: 04.04.2025; 10.10.2025
Accepted: 27.10.2025
Published online: 29.10.2025

How to cite this paper: Tran, H. D., & Tran, N. H. (2025). Factors influencing the application of management accounting and its impact on business efficiency in SMEs: A business strategy implication. Corporate & Business Strategy Review, 6(4), 96–106. https://doi.org/10.22495/cbsrv6i4art9