Adoption of strategic management accounting by small enterprises in South Africa
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Author(s)Londiwe Thandazi Zulu ,Zwelihle Wiseman NzuzaLink to ORCID Index: https://orcid.org/0000-0002-6202-2497
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DOIhttp://dx.doi.org/10.21511/afc.05(1).2024.03
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Article InfoVolume 5 2024, Issue #1, pp. 29-45
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Creative Commons Attribution 4.0 International License
Strategic management accounting (SMA) is essential for small enterprises to enhance business decision-making and optimize resource allocation, thereby fostering competitiveness and long-term sustainability in dynamic markets. The study aims to investigate the factors influencing the adoption of SMA by small enterprises in South Africa, using KwaZulu-Natal as a case study. To achieve this objective, a quantitative and cross-sectional design was employed, utilizing a questionnaire and covering 191 SEs owners. The research framework is based on contingency theory, and data analysis was performed using Stata. The vector autoregression analysis indicates that the adoption of SMA is driven by its perceived ability to address financial aspects such as cash management, decision-making regarding return on investment, and financial variance analysis. Furthermore, SMA adoption is influenced by its effectiveness in addressing non-financial factors, such as customer service. The observed relationships between SMA adoption and both financial and non-financial factors are all statistically significant at the 0.000 level. These findings underscore the critical role of SMA for small enterprises in South Africa, emphasizing its significance in their success and long-term sustainability.
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JEL Classification (Paper profile tab)M41, M10
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References65
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Tables12
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Figures0
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- Table 1. South Africa: National Small Business Amendment Act of 2003
- Table 2. Research variables
- Table 3. Reliability test
- Table 4. Return on іnvestment
- Table 5. Cash flows
- Table 6. Variance analysis
- Table 7. Summary statistics
- Table 8. Summary statistics
- Table 9. Correlation tests
- Table 10. Kao test for cointegration
- Table 11. Principal component analysis (PCA)
- Table 12. Vector autoregression (Var) tests
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