IMPACT OF STRATEGIC MANAGEMENT ACCOUNTING ON FIRM’S FINANCIAL PERFORMANCE: EVIDENCE FROM BANGLADESH’S MANUFACTURING SECTOR

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Published: 2026-06-25
DOI: https://doi.org/10.46281/ijafr.v17i1.2915
Keywords:
Strategic Management Accounting, Contingent Factors, Financial Performance, Manufacturing Companies, Bangladesh

Main Article Content

Fahmida Begum
Associate Professor, Department of Accounting & Information Systems, Comilla University, Bangladesh
https://orcid.org/0009-0004-7762-533X
Md. Musfiqur Rahman
Professor, Department of Accounting & Information Systems, University of Dhaka, Bangladesh
https://orcid.org/0009-0004-5198-9653

Abstract

Manufacturing firms in Bangladesh operate in an increasingly competitive and dynamic business environment where effective strategic decision-making is essential for sustaining financial performance. Despite the growing importance of Strategic Management Accounting (SMA), empirical evidence on its adoption and influence on financial performance in the Bangladeshi manufacturing sector remains limited. This study examines the extent of SMA adoption and investigates the relationship between SMA practices and the financial performance of manufacturing companies in Bangladesh. The study employs a quantitative research design based on contingency theory. It uses primary data collected through a structured questionnaire survey of 78 listed manufacturing companies selected through stratified random sampling from the Dhaka Stock Exchange. Data were collected between August and November 2023 and analyzed using multivariate regression and Structural Equation Modelling (SEM). The analysis considers five contingent factors influencing SMA adoption: firm size, company age, ownership participation, accounting staff qualifications, and technology usage. The results reveal that ownership participation (β = 0.421, p < 0.01) and technology usage (β = 0.289, p < 0.01) have significant positive effects on SMA adoption, while accounting staff qualifications show a negative association (β = –0.159, p < 0.10). Firm size (β = 0.117) and company age (β = 0.103) demonstrate positive but statistically insignificant relationships with SMA usage. Furthermore, SEM results indicate that strategic analysis significantly and positively affects financial performance (β = 0.30). The findings suggest that SMA adoption is positively influenced by ownership involvement and technological capability and that greater use of SMA practices contributes to improved financial performance among manufacturing firms in Bangladesh.


JEL Classification Codes: M11, M40, M41.

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Article Details

Issue

Vol. 17 No. 1 (2026): Continuous Publication

Section

Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author Biographies

Fahmida Begum , Associate Professor, Department of Accounting & Information Systems, Comilla University, Bangladesh

Fahmida Begum is an Associate Professor in the Department of Accounting and Information Systems at Comilla University, Bangladesh, with more than 16 years of experience in tertiary education, including teaching, research, and academic administration. She has obtained her Bachelor's and Master's degrees from the Department of Accounting and Information Systems of the University of Dhaka. She is currently pursuing a PhD at the same university and in the same department. Her research topic is "Impact of Management Accounting Practices on Financial Performance: Evidence from Listed Manufacturing companies in Bangladesh". She focused on a student-centred teaching philosophy that aligns strongly with high-quality teaching, innovation, and research-informed learning.  She is primarily interested in Management Accounting, Management Accounting Practices, Corporate Governance, and Working Capital Management. 

Md. Musfiqur Rahman, Professor, Department of Accounting & Information Systems, University of Dhaka, Bangladesh

Dr. Md. Musfiqur Rahman, FCMA is serving as Professor in the Department of Accounting at the University of Dhaka, Bangladesh, with more than sixteen years of experience in tertiary education involving teaching, research, curriculum development, postgraduate supervision, and academic administration. Dr. Rahman’s academic background, industry engagement, and student-centred teaching philosophy align strongly with to high-quality teaching, innovation, and research-informed learning.  Dr. Rahman completed PhD from Kobe University, Japan in 2017. His PhD research topic is “CEO compensation and Corporate Governance: Empirical Evidence from Listed Banks of Bangladesh”. He is mainly interested for corporate governance, corporate financial reporting and disclosure, management compensation, management accounting, and sustainability reporting issues. He has the working experience as an independent director and audit committee member in publicly listed companies of Bangladesh.

How to Cite

Begum , F. ., & Rahman, M. M. . (2026). IMPACT OF STRATEGIC MANAGEMENT ACCOUNTING ON FIRM’S FINANCIAL PERFORMANCE: EVIDENCE FROM BANGLADESH’S MANUFACTURING SECTOR. International Journal of Accounting & Finance Review, 17(1), 1-14. https://doi.org/10.46281/ijafr.v17i1.2915
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