innovative management accounting practices for

Vol:.(1234567890)

Environment, Development and Sustainability (2021) 23:18008–18039https://doi.org/10.1007/s10668-021-01425-w

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Innovative management accounting practices for sustainability of manufacturing small and medium enterprises

S. N. Nartey1 · H. M. van der Poll2

Received: 21 May 2020 / Accepted: 10 April 2021 / Published online: 23 April 2021 © The Author(s) 2021

AbstractThe environment in which manufacturing small and medium enterprises operate has become very complex, and therefore manufacturing SME’s owners need to be aware of the impact their decisions have on the environment and society. The aim of the research was to identify which innovative management accounting practices can be integrated into manu-facturing SMEs’ strategies to overcome the challenge of being blamed by stakeholders as contributors to social and environmental problems. Published articles were sourced from the University of South Africa’s online library using keywords. A systematic literature review was employed to discover themes and concepts during secondary data gathering to detect traditional and innovative MAPs in management accounting literature all over the globe. The qualitative data analysis and research software, Atlas.ti was used to synthesise the data. Thematic analysis was used to evaluate the occurrence of words, phrases, themes, metaphors, and the construction of concepts in MAPs literature. During the analysis, seven innovative MAPs (activity base costing/budgeting; product life cycle costing; total qual-ity management; environmental costing; target costing; kaizen costing and value analysis) were identified. It is recommended that manufacturing SMEs integrate these innovative MAPs into their strategies to impact their environmental, social, supply chain management and recycling policies to promote operational efficiency to achieve sustainability. Further research to identify influencing factors; strategic procedures; and the environmental and social benefits of integrating these identified innovative MAPs into manufacturing SMEs to achieve sustainability, should be undertaken.

Keywords Environment · Innovative management accounting practices · Manufacturing · Small and medium enterprises · Social · Sustainability

* H. M. van der Poll [email protected]

S. N. Nartey [email protected]

1 Department of Management Accounting, Unisa, Pretoria, South Africa2 Graduate School of Business Leadership, Unisa, Midrand, South Africa

https://orcid.org/0000-0002-0887-4138

http://crossmark.crossref.org/dialog/?doi=10.1007/s10668-021-01425-w&domain=pdf

18009Innovative management accounting practices for sustainability…

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1 Introduction

Manufacturing controls the well-being and wealth of every economy; however, it also directly or indirectly leads to the depletion of the ecosystem and burdens society (Bon-voisin et al., 2017). As a result, society today blames manufacturing enterprises as partly causing global social and environmental problems (Capros et al., 2016). Therefore, high profile multi-national enterprises are also experiencing pressure from stakeholders and broader society to contribute towards environmental sustainability (Syakir et al., 2017; Wangombe, 2013). Jalaludin et al. (2011); Lucas et al. (2013) and Ntalamia (2017) argue that for enterprises to mitigate this pressure from stakeholders, they may need to integrate Management Accounting (MA) into their strategy to help reduce the pressure tarnishing their image in society. Nair and Nian (2017); and the Chartered Institute of Management Accountants (CIMA, 2014), describe MA as the process to assist with decision-making to create value and guarantee sustainable achievements. This is attained when the information provided and analysed allows enterprises to plan, implement and control their strategies. Furthermore, MA provides managers with information to make sound decisions (Dubihlela & Rundora, 2014; Matambele & van der Poll, 2017; Ratnatunga et al., 2015; Tilt, 2018). As a result, the number of enterprises that integrates MA as a practice to disclose their impacts through social and environmental activities in annual reports has increased sub-stantially during the past few years (CIMA, 2014).

However, research shows that manufacturing Small and Medium Enterprises (SMEs) are mostly unwilling to integrate environmental strategies or accept voluntary strategies such as ISO14001 and ISO14004 (Mat et al., 2018; Tuczek et al., 2018). Despite the increased number of studies on MAPs over the decades, little is known about innovative MAPs’ integration effectiveness into SMEs’ strategies (Ahmad, 2017; López & Hiebl, 2015; Shields & Shelleman, 2015). Furthermore, Volker (2015); and Nair and Nian (2017) argue that large enterprises are favoured for MA empirical research since they have the expertise and capacity that promotes innovative MAPs’ integration. This may create chal-lenges for the study of innovative MAPs in manufacturing SMEs. However, Lynch-Wood and Williamson (2014); and Volker (2015) argue that studies into SMEs may provide dif-ferent data and settings on fundamental explanations and understanding of the practices within the SMEs sector. They argue that SMEs might even provide less complex settings, which is not provided by large enterprises.

According to the researchers, the literature review shows that little research was under-taken in an attempt to identify suitable innovative MAPs for manufacturing SMEs’ sustain-ability. Alkhajeh and Khalid (2018) argue that MAPs have an impact on SMEs performance that may lead to increased productivity. According to Maziriri and Mapuranga (2017); and Kefasi (2019), manufacturing SMEs in the Gauteng and Western Cape provinces, which are industrial hubs in South Africa, uses traditional MAPs in costing, budgeting, perfor-mance evaluation, decision-making and strategic analysis. Furthermore, Ngibe and Bingwa (2020) identified that even though manufacturing SMEs’ managers are clearly aware of the strategic impacts and benefits of integrating contemporary MAPs as an innovative strategy for sustainability, due to economic challenges associated with its integration, they opt for traditional MAPs. Bearing this in mind, the researchers sought to address the problem by identifying innovative MAPs that can assist manufacturing SMEs to achieve environmental and social sustainability. As a result, the following research question will be addressed:

Which innovative MAPs can be integrated into manufacturing SMEs’ strategy to achieve environmental and social sustainability?

18010 S. N. Nartey, H. M. van der Poll

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To answer the research question above, the under listed sub-questions were dealt with:

RSQ1: What are the traditional and innovative MAPs that manufacturing SMEs can integrate into their strategy?RSQ2: Which innovative MAPs have environmental, social and sustainable develop-ment impacts on manufacturing SMEs’ decision-making?

The main finding concludes that innovative MAPs can enable manufacturing SMEs to protect the environment and society through integrating sound environmental; health and safety; supply chain management and recycling polices that may enhance their operational efficiency and subsequently promote their achievement of economic sustainability in the long run. The research breaches the existing gap between theory and practice by identify-ing seven (7) innovative MAPs that manufacturing SMEs can integrate into their strategies to achieve sustainability.

The structure of this article is as follows: the background to the study is portrayed by defining SMEs and their role in the economy, discussing management accounting practices (MAPs), management accounting change and environmental and social changes in MAPs. This is followed by the research methodology, data analysis and a discussion on the find-ings. Finally, the article concludes highlighting the findings, contributions, limitations and further research suggestions.

2 Background

2.1 Definition and the role of SME’s in the economy

SMEs have no singular definition universally and are therefore, defined differently by various countries’ legislative frameworks. In South Africa, they are known as small and medium enterprises (SMEs) or small businesses. The National Small Enterprise Act (Act 2019) in South Africa defines an SME as a “separate and distinct business entity, together with its branches or subsidiaries, if any, including cooperative enterprises, managed by one owner or more, predominantly carried on in any sector or subsector of the economy” (Act 2019:1). They employ less than 250 employees and have a turnover of less than R170 mil-lion. Although Australia has a number of SMEs and acknowledges their contribution to the economy, they do not have a uniform legislative definition (Commonwealth of Australia, 2018). However, they do indicate that if it is a manufacturing enterprise, the enterprise employs less than 100 employees. The European Commission (2015) defines an SME as an enterprise employing less than 250 employees, annual turnover less than Eur 50 million or a balance sheet total less than Eur 43 million. They also value SMEs as engines of growth. The US small Business Administration (SBA, 2013) introduces Small and Medium Sized Manufacturers in the United States of America (USA) as those enterprises employing less than 500 employees and having less than $100 million sales.

The development of SMEs is the first step towards economic development and indus-trialisation (Mat et al., 2018) and they are therefore an engine of growth through which economic objectives are achieved (Ayub, 2018; Dubihlela & Rundora, 2014: 28; Mat et al., 2018). SMEs contribute to a healthy economic sector through creating employment opportunities; high production units; export growth; and the introduction of innovation and entrepreneurial skills (Mahembe et al., 2011: 14; Le et al., 2018). Therefore, governments


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all over the globe are initiating strategies to safeguard the development of a vibrant SME sector to promote their sustainability (Olalekan & Jumoke, 2017). Hence, SMEs have come under the spotlight among management accountants and scholars all over the globe (Ayub, 2018; Johnson & Schaltegger, 2016).

2.2 Management accounting practices (MAPs)

Technological advancement is causing complex change across the globe hence; enterprises are susceptible to change (CIMA, 2014: 1; Neziraj & Shaqiri, 2018: 22). Currently, large enterprises and SMEs are competing to be the most innovative in the twenty-first century. The idea of long-standing economic improvement is being challenged as both the capacity and speed of data delivery escalate (CIMA, 2014: 2; Neziraj & Shaqiri, 2018: 22). Most importantly, enterprises are doing more to react correctly to emerging risks and defend their created economic values when information is not abundant, difficult or demand com-plex technology to interpret (CIMA, 2014: 6; Matsoso & Benedict, 2014: 248; Neziraj & Shaqiri, 2018). Against this backdrop, MA is more relevant than ever and in general, is defined as a system that identifies, measures, evaluates, accumulates, analyses, pre-pares, and interprets data to assist management in decision-making to achieve the enter-prise’s objectives (Ahmad & Leftesi, 2014; Radović-Marković & Vučeković, 2015: 186; Drury, 2018). Drury (2018) argues that MAPs deal with the provision of information to improve the enterprise’s internal decision-making, performance and efficacy in the enter-prise’s strategy. MAPs enable forward-looking internally and creates structured answers to unstructured problems, enables enterprises to gather information that ensure strategic deci-sions are reached and reported meritoriously (CIMA, 2014: 3; Neziraj & Shaqiri, 2018). Therefore, MAPs may be suitable to be integrated into manufacturing SMEs strategies to facilitate effective decision-making towards sustainability.

The need for MAPs to be integrated is that, MAPs create sustainable values through sound decision-making by ensuring complete analysis of data to support SMEs to evalu-ate, plan, coordinate, and control the implementation of their strategies (CIMA, 2014: 5). Furthermore, MAPs facilitate the accessibility of appropriate and correct information to back enterprise’s activities for effective decision-making. Hence, SMEs’ sustainability and long-term value will be created for stakeholders (CIMA, 2014: 6; Neziraj & Shaqiri, 2018). Rufino (2014) argues that the adoption of innovative MAPs by enterprises to counter environmental and social changes was stimulated by the global crises facing enterprises. MAPs are business practices, which may assist enterprises to create value with sustainable development through the technical skills of management accountants (Nuhu et al., 2016). Through training, management accountants develop special knowledge to uniquely place them to contribute to enterprises’ sustainability (Prowle & Lucas, 2016). Innovative MAPs produce evidence-based reports to solve management problems such as costing, risk and value analyses in enterprises’ strategy and provide data justification (CIMA, 2014; Sharma, 2015). Amara and Benelifa (2017) argue that innovative MAPs harmonised the internal and external factors of enterprises. Furthermore, it also assists management accountants to collect, evaluate and analyse available data and develop scenarios to project alternative outcomes that may benefit the enterprise’s objectives in the context of social and environ-mental factors (Namazi, 2013). This data flow is shown in Fig. 1.

Figure 1 supports Rufino’s (2014); and Matambele and van der Poll’s, (2017) argu-ment that MAPs are accounting practices that support management decision-making


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internally based on economic, monetary and non-monetary data generation. Hence, MAPs assist decision-making which might promote manufacturing SMEs sustainability.

2.3 Management accounting change

The most important challenge confronting enterprises in this technology age is the pro-cess of acquiring the right mix of data to plan cost of production, quality and time-related activities in enterprises (Matsoso & Benedict, 2014). According to Shah et al. (2011), traditional MAPs identified in RSQ1 (Fig. 3) is inadequate to provide the neces-sary information in this twenty-first century. They argue that traditional MAPs focuses on the past, are too narrow and mislead managers to plan, evaluate and control decision-making of enterprises in the emerging era when planning, evaluating and controlling. The reason being that these MAPs focus on expired information (reports on transac-tions that have already taken place and not what is expected). Moreover, Ramljak and Rogošić (2012) argue that the emphasis of traditional MAPs also neglects the environ-mental issues where management decisions are taken and integrated into an enterprise’s strategy as a major weakness in the 21st-century business contextualisation. According to Amara and Benelifa (2017), many factors influence the change in MA within enter-prises. They argue that environmental uncertainty, structures, size, activities, market competition, technology, design, information complexity and strategies are drivers of change in enterprises. According to Ntalamia (2017), such changes may originate owing to diverse factors in the economic and cultural environment. As a result, some stud-ies focus on changes in MAPs (Alleyne & Weekes-Marshall, 2011; Tuanmat & Smith, 2011; Sunarni, 2013:616). Furthermore, IoDSA (2016:14) argues in the King IV report that the economic business environment has changed with the advent of fast-moving technology’s influence on the strategic activities of enterprises. Hence, manufacturing SMEs may need to change from traditional MAPs to innovative MAPs that may provide them with the necessary tools to compete effectively in the twenty-first century.

The next section discusses the environmental and social MAPs changes.

Fig. 1 Management accounting information flows. Source: CIMA (2014:6)


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2.4 Environmental and social changes in management accounting practices

Global competition may be leading all enterprises towards reformed obligations, high lev-els of operational excellence and competitiveness (Dubihlela & Rundora, 2014:27; Smith, 2015:76; Hamann et al., 2017). With economic instability, Annandale (2013:54) and Hamann et al. (2017) enquired how SMEs can benefit from sustainability. To answer this, it is argued in this article that by integrating innovative MAPs into SMEs’ strategy, man-agement would be able to identify environmental, social, and economic strengths, weak-ness, opportunities and threats (SWOT) during decision-making. Innovative MAPs as seen in enterprises in the twenty-first century involve environmental and social changes, ema-nating from enterprises’ change prompted by a new interest in practices relating to sustain-ability. This rise of innovative MAPs attracted the attention of various scholars (Ahmad, 2017; Ahmad & Zabri, 2016; Azudin & Mansor, 2017; Bonvoisin et al., 2017; Maziriri & Mapuranga, 2017; Nair & Nian, 2017; Nuhu et al., 2016; Prowle & Lucas, 2016). These scholars have mainly been evaluating which MAPs such as costing, budgeting, planning, pricing and performance strategies in enterprises have changed to embrace environmental and social issues (Cuzdriorean, 2017; Nair & Nian, 2017; Rufino, 2014; Uyar, 2010). Their studies identify the changes to comprise environmental strategies, health and safety strate-gies, legal regulations, inclusive total quality management (TQM), and sustainable devel-opment. Furthermore, the scholars argue that environmental strategic prospects are identi-fied in the process of integrating, that is, environmental technology, energy conservation strategy, products design, market packaging, and recycling. These activities demand inno-vative MAPs to evaluate strategic cost/benefits analysis, alternative cost savings scenar-io’s, full life-cycle costing (LCC), activity-based costing (ABC), reports on waste control, investment appraisals, management control and performance evaluation (Biernacki, 2015; Ntalamia, 2017; Nucci et al., 2016; Testa et al., 2011). For instance, innovative MAPs might identify, measures and link environmental and social accounts to capital budgeting (Ndwiga & van der Poll, 2013; Nuhu et al., 2016). Therefore, innovative MAPs may be viewed as those practices that support internal management to perform their function of planning, controlling, decision-making, evaluation, and long-term strategic development.

According to Biernacki (2015), innovative MAPs are not necessarily seeking the abolishment of traditional MAPs, however, it is more of the integration of environmen-tal and social practices into MA. Hence, Namakonzi and Inanga (2014); and Maziriri and Mapuranga (2017:20) argue that innovative MAPs are holistic concepts, which combine environmental and social activities and integrates them into enterprises’ strategy to assist environmental and social costs’ identification and the measurement of production effi-ciency. These main functions relate to human, social, economic, and environmental aspects which manufacturing SMEs should report (Arena & Azzane, 2012; Lemus, 2016).

From an environmental viewpoint, SMEs are known to be irresponsible, owing to their limited knowledge of MAPs (Ramli & Ismail, 2013; Mat et al., 2018, Ngibe & Bingwa, 2020). As a result, there may be a need for regulatory agencies to be care-ful when designing frameworks and regulations to ensure that such policies promote benefits for SMEs’ involvement in environmental and social sustainability (Jamil et al., 2015; Nair & Nian, 2017:182). According to Vandayar (2015:54) and Smith (2015), corporate governance philosophies are not only responsible for the survival of large enterprises; SMEs can also benefit from integrating such strategies that rein-force professional behaviour. Stubblefield et al. (2010) argue that the major reason for SMEs to adopt innovative MAPs is not the leading edge, however, it is since the


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planet matters to them. As MAPs change to accommodate social and environmental impacts of enterprises in management accounting, manufacturing SMEs may stand a chance to effectively protect the environment, which supports their existence to achieve sustainability through the integration of innovative MAPs.

3 Research methodology

The method employed in this research involved a systematic literature review. This is con-sidered appropriate in order to address the research problem. Marshall and Rossman (2014) advocate that the researcher should firstly consider data analysis issues pertaining to the research and secondly, processes of analysing conceptual qualitative data begins at the moment data is collected and proceeds thereafter (Creswell, 2014). Hence, the researchers considered the research questions and decided to conduct a systematic literature review. The researchers opted to use desktop research as a tool to collect the necessary literature to answer the questions. The Unisa Library was used to search for all the necessary frame-works, publications, and articles on MAPs, SMEs and theoretical frameworks globally.

3.1 Data collection process

During this data collection process 350 articles were identified using the following keywords:

• Innovative management accounting practices;• Management accounting;• Management accounting change;• Environmental and social accounting change;• Sustainability accounting;• Sustainability management accounting;• Innovative management technology;• Environmental management accounting;• Environmental management system; and• Social accounting.

The researchers deemed it appropriate to adopt the philosophy of Creswell (2014), and Wouters et al. (2016) to track subject concepts and data from a wide range of literature through which the following articles were rejected:

• Articles that only mentioned MAPs briefly, however, the content was misaligned with the scope of this research.

• Articles that mentioned MAPs, however, it was articles referred to in the reference list.• Articles where MAPs were not mentioned at all (that is, the article pops up due to a

search term as a result of words in phraseology or at the end, or due to another lan-guage –connected context or the abbreviation of the MAPs however a different conno-tation).

• Articles which are antecedent of alternative articles with less data important to the research.


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• Articles that were an introduction to another article or merely constituted a brief sys-tematic literature review or an abstract of successive articles.

The screening identified 60 articles suitable for analyses. The conceptual data collec-tion process requires an interactive stable movement of concepts and data, and related con-tinuous procedures across all indications to regulate the level and scope evolved in data (Creswell, 2014). The following data collection processes were adopted:

• Mapping of data routes;• Analysing and classifying the identified data;• Recognising and coding of concepts;• Deconstructing and sorting of concepts;• Integrating and re-integrating concepts;• Synthesising, and re-synthesising to make sense out of them all;• Establishing credibility, transferability and conformability of concepts; and• Re-thinking of the concepts and frameworks.

3.2 Data analysis

A thematic analysis was used in this qualitative study. This choice was justified by the arguments of the under-mentioned scholars. Bryman and Bell (2015) define thematic anal-ysis as a method that analyses documents and scripts to enumerate content relating to pre-arranged groupings, methodical and in a replicable manner. The major practice of thematic analyses comprises coding the collected data in order to identify a qualitative data set for analyses (Cooper & Schindler, 2014). Furthermore, Saunders et al. (2016) propose three (3) main sources to derive names for coding:

• Using terms that appear in data;• Actual terms used by study participants; and• Terms used in existing literature.

The thematic data were derived from existing literature. The researchers considered it a suitable approach to use a thematic analysis to understand the meaning and the content of the MAPs literature. The qualitative data coding and analyses software of Atlas.ti was used to synthesise data from the identified MAPs literature.

3.3 Trustworthiness of the study

Bashir et al. (2008:38) argue that a paradigm is a worldview that bridge ontology, epis-temology, axiology and the quality of a social study completed within a paradigm must be judged by its own paradigm’s terms. Centred on the perception of various constructed realities, it is more vital for qualitative research to demonstrate that its findings are cred-ible, transferable and conformable as follows:

• Credibility To certify the credibility, the researchers ensured that the literature used in the research were predominantly from peer-reviewed published articles.

• Transferability To ensure transferability, the researcher compared MAPs literature from different settings and continents.


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• Confirmability An audit trail was left when the researchers discussed the details of the process of data collection, data analysis, and interpretation of the data.

• Dependability Other researchers have enough information to replicate the research and obtain similar findings.

4 Data analysis

Innovative MAPs provide management with information for internal solutions. The prob-lem is how to identify specific innovative MAPs that manufacturing SMEs can integrate into their strategies to achieve sustainability. In this research, the researchers employed figures and tables to make conclusions meaningful to communicate and answer the main research question:

Which innovative MAPs can be integrated into manufacturing SMEs’ strategy to achieve environmental and social sustainability?

To answer the main research question, the research sub-questions (RSQ) were answered next.

RSQ1: What are the traditional and innovative MAPs that manufacturing SMEs can integrate into their strategy?

To answer RSQ1, the data analysis identified traditional and innovative MAPs generally employed by manufacturing SMEs as depicted in Fig. 2.

The researchers have been able to identify MAPs from synthesised and reviewed arti-cles and have categorised them into traditional and innovative MAPs as shown in Fig. 2 to simplify understanding.

RSQ2: 0Which innovative MAPs have environmental, social and sustainable develop-ment impacts on manufacturing SMEs’ decision-making?

To answer RSQ2, the data analyses revealed that for manufacturing SMEs to cope with changes in time and modern technology, strategies have to be integrated with MAPs that provide management with all-round information to deal with enterprises’ environmental and social impacts (Ghorbel, 2016), since innovative MAPs relate to providing solutions to management internally (Nuhu et al., 2016). Managing environmental impacts of enter-prises involves the control of environmental and social effects of enterprises’ actions and their effects on the ecosystem (ISO14004, 2016; Bebbington & Unerman, 2018). Ntalamia (2017:6) argues that to avoid manufacturing SMEs incurring high environmental and social costs, they may need to integrate innovative MAPs to reduce such costs. Though many innovative MAPs were identified in Fig. 3, the study considers innovative MAPs that may promote manufacturing SMEs’ sustainability as MAPs which may impact the decision-making of SMEs regarding the environment, society and sustainable development. Hence, the innovative MAPs for sustainability are MAPs that can impact decision-making on the three (3) footprints of manufacturing SMEs’ strategies as presented in Fig. 3.


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MANAGEMENT ACCOUNTING

TRADITIONAL MAPs INNOVATIVE MAPs

Cos�ng• Standard Cos�ng• Relevant Cos�ng• Ac�vity Based Cos�ng• Absorp�on Cos�ng• Variable Cos�ng• Process Cos�ng• Joint Cos�ng• By-Product Cos�ng• Job Cos�ng

Budge�ng• Variance Analysis• Capital Budge�ng• Ac�vity Budge�ng• Master Budge�ng• Zero-Based Budge�ng• Cash Flow

Performance• Internal Rate of Return• Economic Value Added• Capital Investment• Appraisal Methods

Decision-Making• Cost-Value-Profit Analysis• Margin of Safety• Mul�-Product Analysis• Price Decision Making

Strategic Analysis• Probability Analysis• Risk and Uncertainty• Capital Investment Analysis

Cos�ng• Cost of Quality• Product Life Cycle Cos�ng• Target Cos�ng• Kaizen Cos�ng• Material Flow Cos�ng• Environmental Cost

Management

Budge�ng• Ac�vity Based Budge�ng• Es�ma�on and Incremental Cost

Budge�ng• Target Cost Budge�ng• Material Flow Budge�ng

Performance• Benchmarking• Value Chain Analysis• Product Profitability Analysis• Customer Product Analysis• Economic Value Analysis

Decision-Making• Total Quality Management• Back Flush Analysis• Ac�vity Based Management• Relevant Cos�ng

Strategic Analysis• Stakeholder Value Analysis• Balanced Score Card• Value Analysis• Func�onal Analysis• Material Flow Analysis

Fig. 2 Traditional and innovative MAPs (Authors’ own)


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In Fig. 3 the data analysis has identified seven (7) innovative MAPs which cut across all three (3) footprints, namely:

• Activity base costing/budgeting (ABC/B)• Product lifecycle costing (PLCC)• Total quality management (TQM)• Environmental costing (EC)• Target costing (TC)• Kaizen costing (KC)• Value analysis (VA)

These seven (7) innovative MAPs will be discussed in the findings section.

5 Findings

To conclude this research, the innovative MAPs identified from the data analyses which may assist manufacturing SMEs to protect the environment and society when integrated into their strategies to achieve sustainability are therefore discussed next.

INNOVATIVE MAPs

Environmental impacts Social impacts Sustainable development

impacts

• ABC/B

• PLCC

• TQM

• EC

• TC

• KC

• VA/VE

• ABC/B

• PLCC

• TQM

• EC

• TC

• KC

• VA/VE

• ABC/B

• PLCC

• TQM

• EC

• TC

• KC

• VA/VE

Fig. 3 Sustainability MAPs (Authors’ own)


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5.1 Activity‑based costing/budgeting (ABC/B)

ABC/B focuses on managing the variety of activities that SMEs engage in. It is struc-tured on the principles that activities consume costs. Consequently, by controlling activi-ties, costs are controlled in the long-term (Dubihlela & Rundora, 2014; Mahal & Hossain, 2015). ABC/B aims to facilitate client approval whilst making a few changes to SMEs’ resources. Ascertaining activity costs permit activities with a high cost to be identified and prioritised for a thorough study to determine if they can be performed more efficiently or eliminated (Drury, 2018; Tsai et al., 2010). The integration of ABC/B into manufacturing SMEs’ strategy will allow management to:

• Identify major activities in the SME;• Assign costs to each activity;• Identify cost drivers for every main activity; and• Allocate cost to each activity in accordance with the product’s demand.

ABC/B may offer appropriate target areas to reduce environmental and social costs in product designing. Hence, manufacturing SMEs may allocate costs to processes and fur-ther activities using environmental data provided by ABC/B methods for decision-making on sustainability (Andersson et al., 2011). As a result, management might become efficient in identifying the real production costs and offer insights for improving on-going processes in manufacturing SMEs. Hence, ABC/B was identified as an innovative MAP that may assist SMEs to be sustainable.

5.2 Product life cycle costing (PLCC)

According to Biernacki (2015); Nucci et al. (2016) and Drury (2018) PLCC projects and calculates a product’s cost cumulatively over its total life cycle to ascertain if the expected profit in the manufacturing stage will defray the costs incurred over the entire manufactur-ing stage. They furthermore maintain that the identified costs incurred over several stages of a product’s life cycle may offer an understanding of the product’s total costs accumu-lated in its life cycle. Accordingly, PLCC gives management an understanding of the mag-nitude of a cost structure by detecting areas in which a reduction strategy can be affected. Testa et al. (2011) argued that PLCC certifies that enterprises decision-making is centred on increasing awareness of the perspective problem in terms of costs on the environment and society at the product design phase. Furthermore, Arena and Azonne (2012) indicated that PLCC can facilitate sustainability through the integration of innovative MAPs such as TC, VA, PLCC and ABC which are powerful management tools that SMEs can use

Fig. 4 Product life cycle cost and revenue tracking. Source: Rebitzer and Hunkeler (2003)


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to overcome the challenges faced in implementing general sustainability standards. PLCC includes allocating costs and revenues on a product-by-product basis over various phases throughout the life cycle as depicted in Fig. 4.

Figure 4, shows that management can use PLCC as a practice to identify cost com-ponents in products which may impact negatively on the environment and society to be eliminated in subsequent product design stages before the cost is committed into produc-tion. Hence, the identification of PLCC as innovative MAPs for manufacturing SMEs sustainability.

5.3 Total quality management (TQM)

TQM is a method that permits manufacturing SMEs to estimate the degree to which its resources are employed in activities that prevent poor quality. These costs are grouped into three (3) categories: preventive, appraisal and failure cost. Its purpose is to attract man-agement attention to prioritise quality standards (Barone, 2020). Drury (2018) argues that TQM is a tool that may assist management to compete effectively in the twenty-first century by making clients’ satisfaction an overriding priority. TQM is a practice used by management accountants in the setup of an SME. It assists internal management to meet clients’ demands and improves service levels regarding costs, quality, dependability, supply and high-quality in innovation.

It is plausible that the integration of TQM as an innovative MAP into manufacturing SMEs’ strategies may assist managers to achieve quality goals through the provision of the under-listed reports as per Drury (2018):

• Preventive costs Assist to report on costs of prevention, maintenance, and quality plan-ning, training and the additional cost of obtaining advanced quality materials. This will draw management’s attention to devise strategies at the product design stage to reduce or eliminate such costs.

• Appraisal costs Assist to report on costs of checking materials, inventory-in-progress and completed inventory, audits and fields trials.

• Internal failure costs Assist to present an internal assessment report on materials or products that fail to meet quality standards. Hence, management will be able to estab-lish costs that will be incurred on products’ ratification before they are dispatched to clients such as re-work, cost of scraps, downtime and stoppages caused by defects.

• External failure costs Managers will be able to assess costs that will be incurred on products and materials dispatched to clients that have failed to meet quality standards. These costs may involve the cost of controlling a client’s grievances, guarantee replace-ment, repairs of returns and cost of impaired enterprise image.

When these costs, which are components of TQM, are integrated into SMEs’ strategies, it may generate reports that will support management to identify and control the above costs internally (Boca, 2011). TQM will provide management with information to deter-mine the potential savings to be gained by implementing process improvement (Mohamad & Wahab, 2017; Sahoo & Yadav, 2018). This confirms the Sigma philosophy, which strives to achieve zero defects in the production process the first time rather than to rectify (Cuzdriorean, 2017). Hence, management will devise strategies to minimise these costs to the best possible level or eliminate them entirely during products’ design stages to increase manufacturing SMEs’ sustainability.


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5.4 Environmental costing (EC)

Environmental costing (EC) is a method of determining costs linked to the real or pro-spective depletion of natural assets owing to economic undertakings of an enterprise. EC ensures that SMEs’ resources, processes, obligation, planning activities and structures are developed to implement, attain, appraise, and maintain environmental strategies. The data analyses uncovered that SMEs have challenges to integrate the right innovative MAPs into their strategy to assist them to track environmental costs to facilitate decision-making (Ntalamia, 2017). Moreover, Drury (2018) argues that environmental costs are accrued in different cost pools, analysed into suitable classifications and traced to the products that caused the cost with the help of ABC no matter the size of the SME. Such knowledge may assist management accountants to categorise environmental costs and their causes. It may also provide management with information needed to manage such costs effectively through process designs to reduce pollutants emitted into the environment. Manufacturing SMEs with their scarce resources might integrate EC into their strategies to assist them identify and manage environmental costs through the following techniques (Drury, 2018):

• Environmental prevention cost It is a strategic tool used to avert waste that may cause or impair the environment at the product design stages. This may comprise costs connected to product design and operational routes to minimise pollutants, products recycling and gain accreditation relating to national and international environmental standards.

• Environmental detection cost It is used to trace products, activities and procedures that do not adapt to controlling laws and standards at the product’s design stages. This may assist managers to inspect manufacturing products and procedures to ensure environ-mental compliance, audits and tests.

• Environmental internal failure costs It is a practice used to identify costs incurred from executing activities that may produce containments and waste discharges into the environment. These are costs incurred by rectifying or minimising waste which do not comply with controlling laws and are brought to management’s attention for decision-making during the product design stages.

• Environmental external failure costs It is a cost incurred on the activities after discharge of waste into the environment. These are costs of renovating contaminated soil, land restoration, oil spills, and waste discharged clean-up costs that are brought to manage-ment’s attention for decision-making during the product’s design. Management could, therefore, establish measures at the manufacturing design stage to reduce or eliminate such a cost entirely.

With the integration of EC into manufacturing SMEs’ strategies, society may be assured that negative environmental impacts of SMEs could be minimised or eliminated entirely in the manufacturing SMEs’ sector.

5.5 Target costing (TC)

Target costing is a practice that assists enterprises’ management to estimate a target price, production costs and the expected margins for a new product (Hendricks, 2015). Where such manufacturing projections cannot be achieved, management may cancel the designing of the product entirely (Romanova et al., 2017; Volker, 2015). According to Drury (2018), the prime


1 3

aim of TC is to support management to employ practical cost planning and management by integrating cost reduction strategies during the product design and development cycle.

The principles of TC are:

• Price led costing;• Cross purpose teams;• Client emphasis;• Emphasis on products design;• Life cycle cost minimisation; and• Value chain investment appraisal.

The integration of TC into manufacturing SMEs’ strategy may ensure inclusive cost planning, management and control principles are integrated at the primary stages of prod-uct design in order to impact cost structures for sustainability.

5.6 Kaizen costing (KC)

Kaizen costing (KC) is a method that can be integrated into the manufacturing stage of PLCC (Drury, 2018). The purpose of KC in MA is to achieve cost reduction primarily through increased efficiency in production. The possible cost reduction takes place, one slight pace at a time, to solve precise problems since these products are already in the man-ufacturing phases of the life cycle. Hence, a significant amount of cost has been locked in.

The real power of KC is to create a small amount of perfection repeatedly in the pro-cesses or reduce waste (Romanova et al., 2017). As a result, KC depends on employee empowerment as they are presumed to have more infomration on the product and the best way out to increase its efficiency in the production line (Romanova et al., 2017). The phi-losophy of KC creates a culture that places more importance on the working environment as an actual place of improvement and a source of evidence concerning the improvement of the enterprises (Mind Tools, 2018).

According to Boca (2011), when enterprise management is thinking of going green, KC is one of the innovative MAPs that can be employed to promote enterprises’ environmental friendliness. Hence, manufacturing SMEs may stand a chance of achieving environmental and social sustainability when integrating it into their strategy.

5.7 Value analysis (VA)

Value analysis is a method that applies a systematic, inter-disciplinary valuation of causes that affect production costs in order to devise appropriate ways of realising the exact activity most economically at the prerequisite quality (Ismail et al., 2010). The benefit of VA aims at a spe-cific product or process to increase efficiency in managing projects by resolving problems, encourage innovations and improve communication across the SME (Drury, 2018). VA also enables people’s contribution to the value-added process by continuously focusing on products design and services. Finally, VA provides risk reduction and continuous improvement of SMEs (Ismail et al., 2010). To achieve the above, VA undertakes activities such as cost analysis of products’ functions and evaluates alternatives. Secondly, VA recommends to management issues that may facilitate environmental and social protection in product design for manufac-turing SMEs (Ramli et al., 2013). Hence, integration of this innovative MAP into manufactur-ing SMEs’ strategy may assist to strive towards environmental and social sustainability.


1 3

6 Conclusion

To address the problem of this research, the systematic literature review discovered that manufacturing SMEs exert considerable pressure on the environment and society through their collective impact of smaller activities (Wangombe, 2013). These impacts could be traced and controlled by using innovative MAPs as a strategic tool which may provide pre-cise information to advance manufacturing SMEs’ social and environmental disclosure on its performance to promote their sustainability. The summary of the findings is presented in Fig. 5 to show the identified innovative MAPs, how they may impact manufacturing SMEs strategic policies and operations to promote their sustainability.

From Fig. 5, the research concludes that innovative MAPs will enable manufacturing SMEs to protect the environment and society through integrating sound environmental; health and safety; supply chain management and recycling polices that may enhance their operational efficiency and subsequently promote their achievement of economic sustain-ability in the long run.

The research has also contributed to:

• Creating internal and external awareness on the complex environment in which manu-facturing SMEs’ operate, and the need to consult them when enacting policies that may impact the sector.

• Educating manufacturing SMEs on available innovative MAPs that can be integrated into their strategy to achieve environmental and social sustainability in the economy;

• Breaching the existing gap between theory and practice by identifying seven (7) inno-vative MAPs that manufacturing SMEs can integrate into their strategies to achieve sustainability, and

• Add to the extant literature of management accounting.

The research had the following limitations:

• A limitation of a qualitative research approach to data analyses is that findings cannot be extended to the broader population and its equivalent degree of conviction compared to quantitative. It is because the findings of this research are not tested to ascertain whether they are statistically significant or due to chance.

• The research focused on manufacturing SMEs only and is not open to analyses of the whole SME sector, hence the findings cannot be generalised to cover the whole SMEs sector.

• The research seeks to identify only innovative MAPs that can promote manufacturing SMEs sustainability considering environmental and social impacts in decision-making with regard to economic challenges.

The above limitations notwithstanding, it is believed that this research has resulted in insights for scholars and practitioners. It is hoped that this research will also inspire further research in the discipline of management accounting to identify factors; strategic proce-dures; and the environmental and social benefits of integrating these identified innovative MAPs into manufacturing SMEs to achieve sustainability.


1 3

Appendix

See Table 1.

MANUFACTURINGSMEs

INNOVATIVE MAPs FOR SUSTAINABILITY

• Activity based costing/budgeting (ABC/B)• Product lifecycle costing (PLCC)• Total quality management (TQM)• Environmental costing (EC)• Target costing• Kaizen costing (KC)• Value analysis (VA)

• Environmental policy• Health and safety policies• Supply chain management• Recycling policy

• Produc�on technology• Product design• Market packaging• Financial sustainability

Innova�ve MAPs will iden�fy, measure andlink environmental and social costs to impactmanufacturing SMEs capital budge�ng, planning, produc�on efficiency, marke�ngand decision-making to achieve sustainability

Fig. 5 Innovative MAPs impacting manufacturing SMEs policies and operations for sustainability


1 3

Tabl

e 1

Man

agem

ent a

ccou

ntin

g pr

actic

es

Aut

hor (

Year

)Su

mm

ary

(reg

ardi

ng th

e fo

cal M

APs

)Fi

eldw

ork

(Cou

ntry

)

1A

hmad

(201

7)In

tegr

atio

n of

inno

vativ

e M

APs

(AB

C, T

C a

nd S

MA

) in

SMEs

is lo

wer

com

pare

d to

larg

e en

ter-

pris

es. M

APs

inte

grat

ion

has a

sign

ifica

nt in

fluen

ce o

n SM

Es o

pera

tions

and

re-e

nfor

ced

the

sign

ifica

nce

of M

APs

inte

grat

ion

in to

day’

s ent

erpr

ises

. Dis

cove

red

that

med

ium

ent

erpr

ises

mos

tly

inte

grat

e in

nova

tive

MA

Ps c

ompa

red

to sm

all e

nter

pris

es. H

ence

, med

ium

ent

erpr

ises

are

obs

erve

d to

be

sust

aina

ble

com

pare

d to

smal

l ent

erpr

ises

Mal

aysi

a

2A

hmad

and

Lef

tesi

(201

4)M

anuf

actu

ring

ente

rpris

es in

Lib

ya re

ly o

n tra

ditio

nal M

APs

com

pare

d to

the

inno

vativ

e M

APs

. Ind

i-ca

tes M

APs

are

still

inte

grat

ed a

t lev

el o

ne a

nd tw

o of

IFA

C-b

ased

mod

el. I

mpl

ying

mos

t Lib

yan

man

ufac

turin

g en

terp

rises

inte

grat

e M

APs

that

pro

vide

dat

a on

cos

t det

erm

inat

ion

and

finan

cial

co

ntro

l man

agem

ent f

or d

ecis

ion-

mak

ing

Liby

a

3A

hmad

and

Zab

ri (2

016)

Trad

ition

al M

APs

wer

e m

ore

inte

grat

ed b

y SM

Es in

Mal

aysi

an c

ompa

red

to in

nova

tive

MA

Ps. M

APs

w

ere

mos

tly u

sed

for m

onet

ary

than

non

-mon

etar

y pe

rform

ance

mea

sure

s. H

ighe

r acc

epta

nce

of

tradi

tiona

l MA

Ps w

as a

ttrib

uted

to th

e fa

ct th

at th

ey p

rovi

de e

asily

und

erst

anda

ble

info

rmat

ion

com

pare

d to

the

inno

vatio

n M

APs

. SM

Es m

anag

ers a

re sc

eptic

al a

bout

its c

ost o

f im

plem

enta

tion

com

pare

d to

its b

enefi

ts

Mal

aysi

a

4A

lbel

da (2

011)

Expl

ore

the

role

of M

APs

as f

acili

tato

rs o

f env

ironm

enta

l man

agem

ent.

MA

Ps o

pera

te a

s a fa

cilit

a-to

r rei

nfor

cing

the

four

sign

ifica

nt e

lem

ents

of E

MA

: com

mitm

ent t

o co

ntin

ual i

mpr

ovem

ent o

f th

e en

viro

nmen

tal p

erfo

rman

ce; c

ompl

ianc

e w

ith e

nviro

nmen

tal l

egis

latio

n; c

omm

unic

atio

n w

ith

inte

reste

d pa

rties

; and

em

ploy

ee in

volv

emen

t5

Alle

yne

and

Wee

kes-

Mar

shal

l (20

17)

MA

Ps a

ssist

man

agem

ent t

o ob

tain

rele

vant

info

rmat

ion

to fa

cilit

ate

the

deci

sion

-mak

ing

proc

ess i

n B

arba

dos m

anuf

actu

ring

SMEs

. It a

ssist

s to

redu

ce so

cial

and

env

ironm

enta

l cos

t dur

ing

prod

uct

desi

gn st

ages

and

pro

mot

es e

nter

pris

e effi

cien

cy w

hich

lead

s to

sust

aina

bilit

y

Wes

t Ind

ies

6A

lsay

egh

(202

0)C

ritic

al li

tera

ture

revi

ew o

f act

ivity

-bas

ed c

ostin

g ar

ound

the

wor

ld c

over

ing

artic

les f

rom

dev

el-

oped

and

dev

elop

ing

coun

tries

and

is o

rgan

ised

to p

rovi

de in

sigh

ts o

n fo

ur m

ajor

asp

ects

of A

BC

ad

optio

n, im

plem

enta

tion,

out

com

es a

nd c

ritic

ism

. Man

y co

mpa

nies

fail

to im

plem

ent A

BC

due

to

cultu

re a

nd o

rgan

isat

iona

l iss

ues

Glo

bal

7A

mar

a an

d B

enel

ifa (2

017)

Acc

ount

ing

play

s a si

gnifi

cant

role

in e

nter

pris

es’ d

ecis

ion-

mak

ing.

Acc

ount

ing

assi

sts m

anag

emen

t to

por

tray

ente

rpris

es c

ontin

genc

y fa

ctor

s suc

h as

ent

erpr

ise

strat

egy,

env

ironm

enta

l ris

k, n

ew te

ch-

nolo

gy a

nd st

rate

gic

plan

ning

. Int

erna

l and

ext

erna

l fac

tors

are

the

pre-

dete

rmin

ed ty

pe o

f MA

Ps to

be

ado

pted

by

man

agem

ent.

In T

unis

ia, e

xter

nal f

acto

rs d

o no

t pre

dict

the

leve

l of M

APs

inte

grat

ed

into

ent

erpr

ises

but

sim

ilar f

acto

rs li

ke si

ze, r

esou

rces

, tec

hnic

al sk

ills o

f man

agem

ent d

eter

min

e th

e le

vel o

f MA

Ps in

tegr

atio

n

Tuni

sia


1 3

Tabl

e 1

(con

tinue

d)

Aut

hor (

Year

)Su

mm

ary

(reg

ardi

ng th

e fo

cal M

APs

)Fi

eldw

ork

(Cou

ntry

)

8A

nder

sson

et a

l. (2

011)

Eval

uate

d th

e us

e of

AB

C in

a D

ES e

nviro

nmen

t. D

isco

vere

d th

at u

sing

AB

C h

as lo

wer

impl

emen

ta-

tion

cost

com

pare

d to

LCA

and

DES

. To

mak

e th

e LC

A a

naly

sis c

ompa

rabl

e to

AB

C in

a D

ES

syste

m th

e sa

me

data

mus

t be

used

. How

ever

, maj

or d

iffer

ence

s exi

st in

the

data

base

and

in th

e va

riant

s of m

ater

ial u

sed

in th

e stu

dy. E

stab

lishe

d th

at a

n A

BC

app

roac

h fo

r env

ironm

enta

l im

pact

an

alys

is is

feas

ible

. It i

s the

refo

re sy

nerg

istic

with

cal

cula

ting

a pr

oduc

t’s p

rice

but d

oes n

ot im

prov

e th

e sp

eed

of im

plem

entin

g en

viro

nmen

tal i

mpa

ct a

naly

sis i

n th

e en

terp

rise.

Com

parin

g th

e st

atic

LC

A a

ppro

ach,

it is

like

ly to

ana

lyse

the

vibr

ant e

ffect

s in

prod

uctio

n. A

s new

pro

duct

s and

met

hods

ar

e in

trodu

ced,

dyn

amic

effe

cts t

hat a

re h

ard

to a

naly

se u

sing

a st

atic

LCA

tool

can

be

unde

rtake

n w

ith a

n A

BC

app

roac

h

USA

9A

nnan

dale

(201

3)In

tegr

atin

g a

sust

aina

bilit

y str

ateg

y ca

n m

ake

SMEs

mor

e ec

onom

ical

in th

e su

pply

cha

in. I

nteg

rat-

ing

inno

vativ

e M

APs

into

SM

Es w

ill u

nloc

k th

e be

nefit

s of s

usta

inab

le p

ract

ices

and

adh

eren

ce

to in

tern

atio

nal a

ccep

tanc

e. S

usta

inab

ility

ena

bles

SM

Es to

take

a lo

ng-te

rm st

and

on m

anag

ing

envi

ronm

enta

l and

soci

al ri

sks t

o ac

hiev

e im

porta

nt g

row

th a

nd c

ost s

avin

gs. I

t als

o im

prov

es b

rand

an

d re

puta

tion,

stre

ngth

ens s

take

hold

er’s

rela

tions

, and

boo

sts th

eir b

otto

m li

ne. F

inal

ly, S

MEs

th

at e

mpl

oy in

nova

tive

MA

Ps m

ay b

ette

r und

erst

and

thei

r im

pact

of s

yste

mic

risk

and

reso

urce

co

nstra

ints

of b

usin

ess o

pera

tions

whi

ch re

sults

in th

eir s

usta

inab

ility

Sout

h A

fric

a

10A

rena

and

Azo

nne

(201

2)To

inte

grat

e su

stai

nabi

lity

into

SM

Es, s

peci

fic su

stai

nabi

lity

indi

cato

rs sh

ould

be

deve

lope

d to

suit

SMEs

cha

ract

erist

ics.

This

can

be

faci

litat

ed th

roug

h th

e in

tegr

atio

n of

inno

vativ

e M

APs

such

as

(TC

, VE,

LC

C a

nd A

BC

) whi

ch a

re p

ower

ful m

anag

emen

t too

ls th

at S

MEs

can

use

to o

verc

ome

the

chal

leng

es fa

ced

in im

plem

entin

g ge

nera

l sus

tain

abili

ty st

anda

rds.

Inte

grat

ing

inno

vativ

e M

APs

in

SMEs

will

be

a ke

y to

iden

tify

sust

aina

bilit

y in

dica

tors

Italy

11A

zudi

n an

d M

anso

r (20

17)

MA

Ps p

rovi

de v

ario

us to

ols a

nd im

porta

nt d

ata

that

faci

litat

es b

udge

ting,

pla

nnin

g an

d ev

alua

tion.

M

APs

gui

de a

nd sh

ape

the

inte

rnal

dat

a sy

stem

. MA

Ps a

re n

ot st

anda

rdis

ed a

nd th

eref

ore

varie

s fro

m o

ne e

cono

my

to a

noth

er

Mal

aysi

a

12B

ebbi

ngto

n an

d U

nerm

an (2

018)

Acc

ount

ing

as a

tech

nolo

gy u

sed

in e

stim

atin

g, e

valu

atin

g an

d re

porti

ng w

ithin

the

struc

ture

s of U

N

SDG

. Lite

ratu

re p

erce

ives

acc

ount

ing

to p

lay

a si

gnifi

cant

role

in c

onne

ctin

g SD

G a

nd p

ract

ical

w

ork

with

ent

erpr

ises

man

agem

ent.

Inno

vativ

e M

APs

can

add

ress

ent

erpr

ises

env

ironm

enta

l, so

cial

an

d su

stai

nabl

e de

velo

pmen

t pro

blem

s to

prom

ote

UN

SD

G in

ent

erpr

ises

dec

isio

n-m

akin

g. C

on-

clud

ed th

at th

e ne

w w

ay o

f eva

luat

ing

and

theo

risin

g SD

Gs i

n en

terp

rises

is to

inte

grat

e in

nova

tive

MA

Ps

UK


1 3

Tabl

e 1

(con

tinue

d)

Aut

hor (

Year

)Su

mm

ary

(reg

ardi

ng th

e fo

cal M

APs

)Fi

eldw

ork

(Cou

ntry

)

13B

iern

acki

(201

5)EL

CC

dea

ls w

ith th

e co

llect

ion

of to

tal c

osts

con

nect

ed w

ith a

pro

duct

’s li

fe c

ycle

. It i

ntro

duce

s en

viro

nmen

tal a

nd so

cial

cos

t int

o co

st co

mpu

tatio

n at

the

desi

gnin

g of

the

prod

uct.

ELC

C a

ssist

s en

terp

rises

to su

m u

p co

sts su

ffere

d at

the

time

of d

esig

ning

, bui

ldin

g, tr

ansp

ortin

g, u

ntil

the

end

stock

pilin

g, m

arke

t dem

and

and

recy

clin

g

N/A

14B

oca

(201

1)U

sing

Kai

zen

Cos

ting

(KC

), en

terp

rises

not

onl

y re

duce

was

te b

ut a

lso

incr

ease

pro

duct

ivity

at l

ower

co

sts a

nd e

nerg

ises

em

ploy

ees a

s wel

l. K

C is

an

effec

tive

tech

niqu

e to

cre

ate

chan

ge in

a m

anu-

fact

urin

g str

ateg

y. C

ontin

uous

impr

ovem

ent a

nd a

chie

ves f

unda

men

tal p

rinci

ples

cha

ract

eris

ed b

y va

lue

engi

neer

ing:

(i.e

. min

imis

ing

was

te d

efec

ts a

nd h

igh-

qual

ity c

ontro

l pro

cedu

res a

t all

phas

es,

qual

ity a

ssur

ance

, lea

ders

hip,

low

cos

ts a

nd su

pply

man

ufac

turin

g)

Rom

ania

15C

uzdr

iore

an (2

017)

Few

SM

Es m

anag

ers i

nteg

rate

MA

Ps in

man

agem

ent d

ecis

ion-

mak

ing,

and

they

are

mos

tly fa

mili

ar

with

trad

ition

al M

APs

com

pare

d to

inno

vativ

e M

APs

. Inn

ovat

ive

MA

Ps a

re o

nly

disc

usse

d in

lit

erat

ure

and

text

book

s in

Rom

ania

. The

few

Rom

ania

n SM

Es in

tegr

ate

inno

vativ

e M

APs

for t

he

purp

ose

of b

rand

val

uing

, stra

tegi

c co

sting

, KC

, sta

keho

lder

val

ue c

reat

ion

and

valu

e an

alys

is.

SMEs

man

agem

ent f

ail t

o in

tegr

ate

inno

vativ

e M

APs

due

to a

lack

of i

nfor

mat

ion

and

the

high

cos

t of

impl

emen

tatio

n

Rom

ania

n

16D

ubih

lela

and

Run

dora

(201

4)SM

E ow

ners

and

adm

inist

rato

rs c

an e

ffect

ivel

y ad

vanc

e th

eir c

ost p

erfo

rman

ces b

y em

ploy

ing

AB

C.

Ulti

mat

ely,

effe

ctiv

e SM

Es c

ost a

ctiv

ity is

exp

ecte

d to

mak

e m

ore

profi

t for

SM

Es a

nd c

an im

prov

e th

eir s

urvi

val i

n pr

edom

inan

t diffi

cult

econ

omic

situ

atio

ns. A

BC

inte

grat

ion

posi

tivel

y im

pact

s th

e co

st of

SM

Es p

erfo

rman

ce. I

t ass

ists S

MEs

to a

djus

t the

ir str

uctu

res t

o im

prov

e m

anag

emen

t sk

ills t

o ac

hiev

e effi

cien

cy a

nd su

stai

nabi

lity.

An

effec

tive

inte

grat

ed A

BC

syste

m b

rings

cha

nge

in

SMEs

cul

ture

and

new

skill

s are

acq

uire

d by

em

ploy

ees a

nd m

anag

emen

t of S

MEs

to e

nhan

ce th

eir

sust

aina

bilit

y

Sout

h A

fric

a

17G

horb

el (2

016)

A m

anag

er’s

pro

file

has a

rela

tions

hip

with

MA

Ps in

tegr

atio

n in

man

ufac

turin

g SM

Es. M

anag

er’s

age

an

d M

APs

inte

grat

ion

have

no

rela

tions

hip.

Man

ager

s edu

catio

nal b

ackg

roun

d, sk

ills a

nd in

dustr

ial

expe

rienc

e ha

s a si

gnifi

cant

rela

tions

hip

on ty

pes o

f MA

Ps to

be

inte

grat

ed. S

MEs

in T

unis

ia h

ave

been

inte

grat

ing

MA

Ps d

espi

te th

eir l

imita

tion.

For

man

ufac

turin

g SM

Es to

ben

efit f

rom

MA

Ps,

they

may

nee

d to

und

erst

and

inno

vativ

e M

APs

and

inte

grat

e th

ose

tailo

red

to su

it th

eir s

yste

m o

f op

erat

ion

Tuni

sia


1 3

Tabl

e 1

(con

tinue

d)

Aut

hor (

Year

)Su

mm

ary

(reg

ardi

ng th

e fo

cal M

APs

)Fi

eldw

ork

(Cou

ntry

)

18H

aman

n et

al.

(201

7)Th

e m

anag

er’s

per

cept

ions

are

mos

tly d

river

s of e

nviro

nmen

tal i

mpa

ct. T

heir

know

ledg

e of

the

envi

-ro

nmen

tal i

mpa

cts i

nflue

nces

man

agem

ent s

trate

gy a

nd c

ultu

re. L

egiti

mac

y in

fluen

ces e

nter

pris

es

soci

etal

role

whe

re st

atut

ory

legi

slat

ions

’ driv

ers a

re a

bsen

t. Pr

oact

ive

ente

rpris

es m

ay b

e ch

arac

-te

risin

g ex

pect

atio

n an

d co

mpe

titiv

enes

s. Th

e co

nstit

utio

nal s

ettin

g an

d po

ssib

le in

terfe

renc

e dr

ive

expl

anat

ions

as t

o w

hy S

MEs

par

ticip

ate

in p

ro-e

nviro

nmen

tal a

ctiv

ities

in d

evel

opin

g ec

onom

ies

Sout

h A

fric

a

19H

endr

icks

(201

5)TC

prin

cipl

es a

re u

sefu

l for

seve

ral p

urpo

ses s

uch

as d

esig

n ec

o-fr

iend

ly p

rodu

cts a

nd p

roce

sses

, im

prov

e th

e effi

cien

cy o

f ope

ratio

ns a

nd a

s par

t of a

com

preh

ensi

ve b

usin

ess s

trate

gy. B

y ad

optin

g TC

prin

cipl

es, e

nter

pris

es a

re a

ble

to fa

ctor

in b

oth

cost

and

envi

ronm

enta

l mea

sure

s int

o de

cisi

on-

mak

ing,

and

man

agem

ent c

an st

reng

then

ent

erpr

ises

pos

ition

ing

now

and

in th

e fu

ture

CPA

– C

anad

a

20Ja

lalu

din

et a

l. (2

011)

Expl

ains

the

rela

tions

hip

betw

een

insti

tutio

nal p

ress

ure

and

envi

ronm

enta

l man

agem

ent a

ccou

ntin

g (E

MA

) ado

ptio

n. T

he in

terv

iew

ed a

ccou

ntan

ts a

gree

d th

at th

ey w

ere

pres

sure

d by

thei

r cus

tom

ers,

shar

ehol

ders

, hea

d offi

ce a

nd th

e go

vern

men

t in

term

s of e

nviro

nmen

tal p

erfo

rman

ce—

com

pany

po

licy

influ

ence

thei

r MA

Ps, i

nclu

ding

EM

A a

dopt

ion

Mal

aysi

a

21Ja

mil

et a

l. (2

015)

Urg

e ac

coun

ting

prof

essi

onal

s to

be in

volv

ed in

pro

mot

ing

EMA

Ps in

SM

Es. T

hey

argu

e th

at in

tegr

at-

ing

envi

ronm

enta

l iss

ues i

nto

acco

untin

g de

man

ds e

nter

pris

es le

arni

ng st

rate

gies

. With

incr

ease

d pr

essu

re, f

rom

the

gove

rnm

ent,

and

legi

slat

ive

instr

umen

ts, m

anuf

actu

ring

SMEs

are

will

ing

to in

te-

grat

e EM

A to

brin

g ch

ange

and

ado

pt le

gitim

acy.

Fin

anci

al c

onstr

aint

s, in

suffi

cien

t env

ironm

enta

l kn

owle

dge,

and

skill

s wer

e al

so se

en to

be

a ba

rrie

r to

the

inte

grat

ion

of E

MA

Ps in

man

ufac

turin

g SM

Es. A

utho

ritie

s wer

e ur

ged

to c

ome

up w

ith ta

x po

licie

s tha

t will

mot

ivat

e M

APs

’ int

egra

tion

by

man

ufac

turin

g SM

Es in

Mal

aysi

a

Mal

aysi

a

22Jo

hnso

n an

d Sc

halte

gger

(201

6)Eff

ort t

o str

uctu

re sp

ecifi

c M

APs

for S

MEs

hav

e be

en a

chie

ved,

how

ever

, gen

eral

MA

Ps h

ave

been

in

nova

ted

to m

ake

its in

tegr

atio

n ea

sy in

SM

Es st

rate

gy. C

olla

bora

te w

ith S

MEs

to jo

in fo

rces

to

hand

le su

stai

nabi

lity

chal

leng

es in

the

econ

omy

and

inte

grat

ing

thei

r ext

ensi

ve k

now

ledg

e an

d th

ough

ts o

n un

ique

ness

and

com

plic

atio

ns o

f SM

Es. R

esea

rche

rs w

ith a

stro

ng fo

cus o

n SM

Es c

an

bala

nce

the

exist

ing

liter

atur

e on

sust

aina

bilit

y m

anag

emen

t too

ls to

suit

SMEs

Ger

man

y

23Le

mus

(201

6)Th

e C

SR g

uide

line

take

s pos

ition

in sm

all e

nter

pris

es c

ompa

red

to m

ediu

m a

nd la

rger

ent

erpr

ises

. C

SR is

com

preh

ende

d as

the

wor

ldw

ide

ente

rpris

e pr

actic

e w

hich

ens

ures

soci

al b

enefi

ts to

SM

Es

in th

e in

tern

atio

nal a

rena

. The

env

ironm

enta

l, so

cial

, and

eco

nom

ic a

reas

are

the

thre

e pi

llars

of

sust

aina

bilit

y. T

he T

BL

shal

l be

ackn

owle

dged

as a

n in

tegr

ated

repo

rt. T

he in

tegr

atio

n of

CSR

in

man

agem

ent a

ccou

nts h

as th

e ca

paci

ty to

impr

ove

the

data

qua

lity

sent

to sh

areh

olde

rs

Uni

ted

Stat

es


1 3

Tabl

e 1

(con

tinue

d)

Aut

hor (

Year

)Su

mm

ary

(reg

ardi

ng th

e fo

cal M

APs

)Fi

eldw

ork

(Cou

ntry

)

24Le

et a

l. (2

018)

SMEs

in V

ietn

am p

lay

a si

gnifi

cant

role

in th

e ec

onom

y. S

MEs

man

agem

ent l

acks

the

nece

ssar

y kn

owle

dge

and

skill

s in

inno

vativ

e M

APs

. MA

Ps a

re b

eing

em

ploy

ed in

dec

isio

n-m

akin

g str

uctu

res

to o

ffer m

anag

emen

t with

the

right

eco

nom

ic d

ata.

Eve

n th

ough

som

e m

anag

ers m

ay se

e th

e ne

cess

ity fo

r int

egra

ting

MA

Ps in

to th

eir s

trate

gy, m

ost a

void

it b

ecau

se o

f fea

r of i

t brin

ging

an

addi

tiona

l cos

t to

the

ente

rpris

es o

pera

ting

cost

Vie

tnam

25Ló

pez

and

Hie

bl (2

015)

SMEs

inte

grat

e M

APs

diff

eren

tly c

ompa

red

to la

rge

ente

rpris

es a

nd m

ost m

anag

ers i

n SM

Es d

o no

t ac

tual

ly u

nder

stan

d M

APs

. A la

ck o

f env

ironm

enta

l and

soci

al st

aff a

nd e

nter

pris

es st

ruct

ural

fac-

tors

influ

ence

MA

Ps in

tegr

atio

n in

SM

Es a

nd th

eir s

usta

inab

ility

ben

efits

. The

nee

d fo

r acc

ount

ing

prof

essi

onal

s to

esta

blis

h ed

ucat

ive

prog

ram

mes

on

MA

Ps in

tegr

atio

n pr

oces

ses i

n SM

Es in

hig

her

insti

tutio

ns o

f lea

rnin

g

USA

26Lu

cas e

t al.

(201

3)Th

e stu

dy re

veal

ed th

at S

MEs

use

MA

Ps a

s fol

low

s: w

ith S

mal

l ent

erpr

ises

(pro

duct

cos

ting,

bud

get

& w

orki

ng c

apita

l man

agem

ent)

fully

and

slig

htly

use

MA

Ps fo

r (bu

dget

ing,

CV

P an

alys

is a

nd

resp

onsi

bilit

y ac

coun

ting)

. For

med

ium

ent

erpr

ises

, the

stud

y ob

serv

ed th

at a

ll M

APs

men

tione

d ab

ove

are

fully

use

d in

thei

r stra

tegi

es

UK

27Ly

nch-

Woo

d an

d W

illia

mso

n (2

014)

Regu

latio

n is

impo

rtant

in a

ll pr

obab

ilitie

s tha

t driv

es b

ehav

iour

. SM

Es a

re m

ost u

nlik

ely

to e

mbr

ace

envi

ronm

enta

l pra

ctic

es o

r rea

ct to

self-

regu

lato

ry in

strum

ents

. Reg

ulat

ory

agen

cies

nee

d to

be

care

-fu

l whe

n de

sign

ing

prog

ram

mes

and

regu

latio

ns so

as n

ot to

pro

mot

e th

eir b

enefi

ts. U

nder

stan

ding

SM

Es re

actio

n to

EM

S ne

eds a

serio

us re

flect

ion

on S

MEs

abi

lity

and

alig

nmen

t. Th

is m

ixtu

re

perm

its u

s to

pred

ict e

nter

pris

es w

ith v

ario

us re

gula

tory

acc

ess c

apac

ities

, eve

ryw

here

acc

essi

ble

capa

city

can

be

cons

ider

ed a

s cre

atin

g a

regu

lato

ry a

nd c

ompl

ianc

e ph

iloso

phy

UK

28M

ahal

and

Hos

sian

(201

5)In

nova

tive

MA

Ps h

ave

been

acc

epte

d in

the

twen

ty-fi

rst c

entu

ry a

s a m

anag

emen

t too

l for

effe

ctiv

e de

cisi

on-m

akin

g an

d th

eref

ore

has c

hang

ed th

e tra

ditio

nal c

once

pts o

f man

agem

ent a

ccou

ntin

g in

en

terp

rises

. AB

C m

easu

res t

he c

ost o

f pro

duct

ion

accu

rate

ly a

nd p

rom

otes

acc

urat

e ov

erhe

ads c

ost

allo

catio

n w

hich

lead

s to

few

er d

istor

tions

and

act

s as e

valu

atio

n to

ols i

n M

A

Ban

glad

esh

29M

at e

t al.

(201

8)SM

Es p

lay

a si

gnifi

cant

role

in th

e ec

onom

y an

d m

ay n

eed

to in

tegr

ate

tech

nolo

gy su

ch a

s inn

ovat

ive

MA

Ps a

nd c

ompu

teris

ed in

vent

ory

man

agem

ent s

yste

m. S

MEs

face

cha

lleng

es in

secu

ring

finan

cial

re

sour

ces t

o bu

ild c

apac

ity. T

he 2

1st -cen

tury

eco

nom

y de

man

ds S

MEs

to b

e su

stai

nabl

e, in

tegr

ate

tech

nolo

gy a

nd a

ppro

pria

te in

nova

tive

MA

Ps to

pro

vide

them

with

the

right

mix

of d

ata

to su

ppor

t m

anag

emen

t dec

isio

n-m

akin

g

Mal

aysi

a


1 3

Tabl

e 1

(con

tinue

d)

Aut

hor (

Year

)Su

mm

ary

(reg

ardi

ng th

e fo

cal M

APs

)Fi

eldw

ork

(Cou

ntry

)

30M

atam

bele

and

van

der

Pol

l (20

17)

MA

Ps a

re im

porta

nt to

ols t

o pr

ovid

e su

stai

nabi

lity

data

for d

ecis

ion-

mak

ing

and

ensu

res a

ccur

ate

mea

sure

s of s

usta

inab

ility

. Man

agem

ent i

s urg

ed to

inte

grat

e da

ta g

ener

ated

by

MA

Ps fo

r effe

ctiv

e de

cisi

on-m

akin

g. M

anag

ers w

ho la

ck k

now

ledg

e in

MA

Ps p

ose

a ch

alle

nge

and

fear

to c

onsu

lt ac

coun

tant

’s a

dvic

e in

dec

isio

n-m

akin

g

Sout

h A

fric

a

31M

aziri

ri an

d M

apur

anga

(201

7)M

APs

such

as c

ostin

g, b

udge

ting,

per

form

ance

ana

lysi

s, da

ta fo

r dec

isio

n-m

akin

g an

d str

ateg

ies

instr

umen

tally

impa

ct S

MEs

per

form

ance

in G

aute

ng. S

MEs

that

inte

grat

e in

nova

tive

MA

Ps in

to

thei

r stra

tegi

es e

nhan

ce th

eir p

erfo

rman

ce c

ompa

red

to th

e ot

hers

that

don

’t in

tegr

ate

inno

vativ

e M

APs

Sout

h A

fric

a

32M

oham

ad a

nd W

ahab

(201

7)SM

Es a

re m

ajor

con

tribu

tors

to so

cial

and

eco

nom

ic d

evel

opm

ent a

nd d

rive’

s eco

nom

ic a

dvan

cem

ent

in e

mer

ging

eco

nom

ies.

MA

Ps p

lay

a str

ateg

ic ro

le to

pos

ition

SM

Es a

s driv

ers o

f eco

nom

ic g

row

th

in th

e ec

onom

y. T

radi

tiona

l MA

Ps w

ere

mos

tly a

pplie

d in

SM

Es st

rate

gy in

spite

of i

ts c

ritic

s in

Mal

aysi

a. A

gap

in k

now

ledg

e on

the

role

of M

APs

in S

MEs

dec

isio

n-m

akin

g ex

ist in

lite

ratu

re.

MA

Ps w

ere

iden

tified

to b

e pl

ayin

g th

e ro

le o

f mon

itorin

g, fo

reca

sting

, dec

isio

n-m

akin

g, a

nd p

er-

form

ance

app

rais

al in

SM

Es a

nd a

re p

erce

ived

to p

rom

ote

the

form

ulat

ion

and

impl

emen

tatio

n of

SM

Es st

rate

gies

and

cre

ates

sust

aina

ble

valu

e

Liby

a

33N

air a

nd N

ian

(201

7)Th

e in

tegr

atio

n of

inno

vativ

e M

APs

is a

ffect

ed b

y en

terp

rises

’ siz

e an

d te

chno

logy

use

in m

anag

e-m

ent s

trate

gy. P

rodu

ctio

n de

sign

ers,

engi

neer

s and

fina

ncia

l man

ager

s sho

uld

wor

k to

ens

ure

that

ap

prop

riate

sust

aina

bilit

y str

ateg

ies a

re in

tegr

ated

into

the

ente

rpris

e. S

MEs

may

ben

efit f

rom

in

nova

tive

MA

Ps ju

st lik

e la

rge

ente

rpris

es

Mal

aysi

a

34N

amak

onzi

and

Inan

ga (2

014)

Esta

blis

hed

man

ufac

turin

g en

terp

rise’

s im

pact

the

envi

ronm

ent s

ince

a g

reat

qua

ntity

of m

ater

ial,

ener

gy a

nd w

ater

are

util

ised

by

thes

e en

terp

rises

. Man

ufac

turin

g en

terp

rises

in U

gand

a ha

ve ta

ken

steps

to e

nhan

ce e

ffect

ive

envi

ronm

enta

l man

agem

ent t

hrou

gh E

MA

Ps. E

nter

pris

es fa

ce v

ario

us

chal

leng

es su

ch a

s spl

ittin

g, id

entif

ying

, cat

egor

isin

g, a

sses

sing

and

regu

latin

g en

viro

nmen

tal c

osts

. O

ther

cha

lleng

es a

re a

cces

sibi

lity

to e

nviro

nmen

tal m

anag

emen

t tec

hnol

ogy,

trai

ning

and

legi

slat

ion

Uga

nda

35N

dwig

a an

d va

n de

r Pol

l (20

13)

Prov

ide

insi

ghts

into

the

role

of m

anag

emen

t acc

ount

ing

in c

reat

ing

and

sust

aini

ng a

com

petit

ive

adva

ntag

e es

peci

ally

in th

e ba

nkin

g in

dustr

y. M

APs

pro

vide

bot

h in

tern

al a

nd e

xter

nal c

ompe

titiv

e str

ateg

ies t

hat e

nabl

e bu

sine

ss o

rgan

isat

ions

to c

reat

e an

d su

stai

n a

com

petit

ive

adva

ntag

e

Ken

ya


1 3

Tabl

e 1

(con

tinue

d)

Aut

hor (

Year

)Su

mm

ary

(reg

ardi

ng th

e fo

cal M

APs

)Fi

eldw

ork

(Cou

ntry

)

36N

tala

mia

(201

7)M

anuf

actu

ring

ente

rpris

es in

cur h

ighe

r env

ironm

enta

l cos

ts a

nd a

s a re

sult,

they

hav

e an

ince

ntiv

e to

look

for p

rodu

ctio

n pr

oces

ses s

uch

as le

an a

ccou

ntin

g an

d EM

A th

at m

ay re

duce

env

ironm

enta

l ex

pend

iture

s. In

vesti

ng in

cle

aner

mod

es o

f pro

duct

ion,

the

ente

rpris

e is

abl

e to

impr

ove

and

stay

ah

ead

of th

e co

mpe

titio

n. T

he c

apab

ilitie

s of a

n en

terp

rise

to in

nova

te a

nd d

isco

ver n

ew m

etho

ds o

r te

chno

logi

es fo

r gre

ener

pro

duct

ion

esta

blis

h an

ent

erpr

ise’

s com

petit

iven

ess i

n th

e lo

ng ru

n

Ken

ya

37N

ucci

et a

l. (2

016)

The

study

reve

aled

that

LC

C is

a p

ower

ful i

nstru

men

t use

d by

ent

erpr

ises

and

insti

tutio

ns fo

r diff

eren

t pu

rpos

es, s

uch

as p

rocu

rem

ent,

desi

gn, c

ost m

onito

ring

and

estim

atio

n fo

r env

ironm

enta

l pro

tec-

tion.

LC

C c

onsi

ders

the

envi

ronm

enta

l ext

erna

litie

s of t

he p

rodu

ct u

nder

des

ign

and

its li

fe c

ycle

as

wel

l as d

eter

min

e its

mon

etar

y va

lue

and

sust

aina

bilit

y

Italy

38N

uhu

et a

l. (2

016)

Trad

ition

al M

APs

are

pre

dom

inan

t man

agem

ent p

ract

ices

em

ploy

ed in

Aus

tralia

asi

de fr

om th

e es

ca-

latio

n in

the

use

of a

dvan

ced

activ

ities

est

ablis

hed

by p

ublic

sect

or c

hang

es, t

he se

ctor

con

tinue

s to

lag

behi

nd. T

he st

udy

anal

yses

dat

a on

MA

Ps a

s a p

acka

ge, a

nd it

s con

tribu

tion

to li

tera

ture

by

solv

ing

the

disc

repa

ncy

of re

ports

in p

rior s

tudi

es w

hich

eva

luat

e va

riatio

ns re

porte

d in

MA

Ps

inno

vatio

ns

Aus

tralia

39O

lale

kan

and

Jum

oke

(201

7)EM

APs

usa

ge in

Sou

th A

fric

a ar

e hi

gher

com

pare

d to

Nig

eria

. EM

APs

in N

iger

ia a

re b

arre

d by

insti

-tu

tiona

l bar

riers

(gov

ernm

ent p

olic

y) w

hile

thos

e of

Sou

th A

fric

a is

cau

sed

by fi

nanc

ial b

arrie

rsN

iger

ia a

nd S

outh

Afr

ica

40O

jua

(201

6)Em

ploy

ing

SMA

Ps in

Nig

eria

n m

anuf

actu

ring

ente

rpris

es is

ver

y sl

ow a

nd th

e la

ck k

now

ledg

e ab

out

its p

ract

ices

. Ben

efits

acc

ruin

g to

ent

erpr

ises

that

ado

pt th

e pr

inci

ples

is a

bsen

t in

the

ente

rpris

es

revi

ewed

. Bro

aden

ing

of th

e lim

ited

base

d kn

owle

dge

on S

MA

Ps th

roug

h tra

inin

g an

d its

intro

duc-

tion

in in

stitu

tions

of h

ighe

r lea

rnin

g to

edu

cate

stud

ents

are

nee

ded

Nig

eria

41R

amlja

k an

d Ro

goši

ć (2

012)

Prov

ide

insi

ght i

nto

strat

egic

man

agem

ent a

ccou

ntin

g pr

actic

es (S

MA

Ps) a

nd th

eir i

mpl

icat

ions

on

rele

vanc

e an

d tim

elin

ess o

f inf

orm

atio

n us

ed m

anag

ers.

To o

btai

n th

eir m

arke

t sha

re o

r pro

fit m

ar-

gin

com

pani

es n

eed

mor

e so

phist

icat

ed M

APs

. Stra

tegi

c m

anag

emen

t acc

ount

ing

beco

mes

stro

ng

supp

ort i

n de

cisi

on-m

akin

g an

d th

e gu

ide

to th

e fu

ture

cha

nges

Cro

atia

42R

amli

and

Ism

ail (

2013

)EM

APs

ena

ble

ente

rpris

es in

Mal

aysi

a to

atta

in e

cono

mic

ben

efits

and

adv

ance

thei

r per

form

ance

. En

terp

rise’

s nee

d to

inte

grat

e EM

APs

to a

ggre

ssiv

ely

affirm

thei

r rol

e as

acc

ount

able

soci

al a

ctor

s in

soci

ety

and

ther

efor

e ob

serv

ing

envi

ronm

enta

l iss

ues a

re v

ital t

o m

easu

ring

thei

r rou

tine

strat

e-gi

es w

hich

mot

ivat

e en

terp

rises

to st

rive

tow

ards

env

ironm

enta

l acc

ount

abili

ty. M

ost m

anuf

actu

ring

ente

rpris

es th

at a

dopt

EM

APs

ben

efits

gre

atly

and

may

ben

efit g

reat

ly a

nd p

rom

ote

thei

r sus

tain

-ab

ility

Mal

aysi

a


1 3

Tabl

e 1

(con

tinue

d)

Aut

hor (

Year

)Su

mm

ary

(reg

ardi

ng th

e fo

cal M

APs

)Fi

eldw

ork

(Cou

ntry

)

43R

amli

et a

l (20

13)

VE

help

s ent

erpr

ises

to id

entif

y an

d el

imin

ate

unne

cess

ary

cost

that

may

impa

ct n

egat

ivel

y on

the

envi

ronm

ent a

nd so

ciet

y w

hich

nec

essi

tate

s the

func

tion

of le

ast c

osts

of t

he p

rodu

ct’s

out

put.

VE

also

supp

orts

ent

erpr

ises

to id

entif

y th

e m

ain

issu

es a

nd re

solv

ing

them

at t

he d

esig

ning

stag

e in

pr

oduc

ts, p

roje

cts a

nd se

rvic

es b

efor

e th

e co

st is

com

mitt

ed b

y m

anag

emen

t to

prod

uctio

n. V

E is

us

ed b

y en

terp

rises

as a

tool

to im

prov

e th

eir s

ocia

l sys

tem

Mal

aysi

a

44R

atna

tung

a et

al.

(201

5)Fi

ndin

gs in

dica

te th

at M

APs

pla

y an

impo

rtant

role

in d

ecis

ion-

mak

ing

in A

ustra

lia. H

owev

er, t

he

indu

stry

lack

pro

fess

iona

ls in

cos

ting,

CSR

, car

bon

acco

untin

g, ri

sk m

anag

emen

t, an

alys

t, an

d as

set

man

agem

ent

Aus

tralia

45Ro

man

ova

et a

l. (2

017)

The

study

iden

tifies

that

targ

et c

ostin

g pr

ovid

es m

anag

emen

t with

obj

ectiv

es c

hara

cter

ise

by o

ptim

is-

ing

pric

e an

d qu

ality

ratio

s to

perfo

rmin

g fu

nctio

ns w

ith lo

w o

pera

ting

cost.

TC

ass

ists m

anag

emen

t to

acc

ompl

ish

prod

uct d

esig

n in

tim

e an

d in

acc

orda

nce

with

the

spec

ifica

tions

. TC

bal

ance

s the

co

sts o

f pro

duct

’s e

lem

ents

so th

at a

lloca

ted

amou

nts a

llow

impl

emen

tatio

n of

the

plan

ned

activ

ities

to

ens

ure

com

plia

nce

with

stan

dard

s and

func

tions

of s

ocie

ty. F

inal

ly, T

C e

nsur

es th

at p

rodu

cts c

ost

does

not

exc

eed

the

budg

eted

man

ufac

turin

g co

st

Russ

ia

46Ru

fino

(201

4)Th

e stu

dy d

isco

vere

d m

ost m

anuf

actu

ring

SMEs

are

util

isin

g tra

ditio

nal M

APs

com

pare

d to

inno

va-

tive

MA

Ps to

ass

ist m

anag

ers i

nter

nally

in d

ecis

ion-

mak

ing.

Fur

ther

mor

e, th

e stu

dy id

entifi

ed 2

2 M

APs

of w

hich

13

MA

Ps w

ere

adop

ted

and

inte

grat

ed b

y m

anuf

actu

ring

SMEs

into

thei

r stra

tegi

es

to m

onito

r and

eva

luat

e th

eir p

erfo

rman

ce a

nd p

rofit

abili

ty. I

nteg

ratio

n of

such

MA

Ps a

lso

help

s th

em to

ens

ure

cont

inue

s upg

radi

ng in

qua

lity

of p

rodu

cts a

nd se

rvic

es w

hich

lead

to su

stai

nabl

e pr

ofita

bilit

y

Tarla

c

47Sa

hoo

and

Yada

v (2

018)

Iden

tifies

a p

ositi

ve li

nk b

etw

een

tota

l qua

lity

man

agem

ent (

TQM

) and

ent

erpr

ise

perfo

rman

ce. A

s a

resu

lt, m

anag

ers o

f man

ufac

turin

g SM

Es n

eed

to re

cogn

ise

the

role

of T

QM

in d

ecis

ion-

mak

ing

and

how

they

can

effe

ctiv

ely

be in

tegr

ated

into

dec

isio

n-m

akin

g pr

oces

ses

Indi

a

48Sh

arm

a (2

015)

Find

ings

show

man

y SM

Es in

Nep

al p

erce

ived

MA

Ps to

be

an im

porta

nt to

ol in

dec

isio

n-m

akin

g co

mpa

red

to fi

nanc

ial a

ccou

ntin

g re

ports

. In

rela

tion

to a

ccou

ntin

g re

porti

ng, M

A re

ports

are

wel

l-th

ough

t-out

to b

e m

ore

suita

ble

than

fina

ncia

l acc

ount

ing

repo

rts

Nep

al


1 3

Tabl

e 1

(con

tinue

d)

Aut

hor (

Year

)Su

mm

ary

(reg

ardi

ng th

e fo

cal M

APs

)Fi

eldw

ork

(Cou

ntry

)

49Sh

ield

s and

She

llem

an (2

015)

The

study

has

use

sust

aina

bilit

y SW

OT

to d

eter

min

e th

e en

terp

rises

’ stre

ngth

and

wea

knes

s env

iron-

men

tally

, soc

ially

and

eco

nom

ical

ly. A

lso

usin

g th

e SW

OT

mat

rix to

det

erm

ine

inte

rnal

and

ext

er-

nal c

apab

ilitie

s. Th

e m

atrix

ena

bles

sust

aina

bilit

y m

atte

rs to

be

inte

grat

ed in

to th

e re

st of

SM

Es

strat

egic

pla

nnin

g to

ens

ure

clar

ity in

bud

geta

ry, r

esou

rce

allo

catio

n an

d tra

ckin

g pe

rform

ance

to

prom

ote

sust

aina

bilit

y

N/A

50St

erlin

g (2

016)

Find

ings

arg

ue th

at to

acc

ompl

ish

the

goal

of w

orki

ng to

war

ds a

pro

foun

d tra

nsfo

rmat

ion

awar

enes

s w

hich

reco

ncile

s peo

ple

and

plan

et in

SD

G, t

he ro

le o

f edu

catio

n is

mor

e im

porta

nt a

nd a

ll-in

clu-

sive

than

is d

ocum

ente

d in

the

SDG

s gui

delin

e. H

ence

it is

pos

sibl

e to

add

ress

its a

pplic

atio

n. T

he

scho

lar a

rgue

s tha

t edu

catio

n de

man

ds re

-inve

ntio

n an

d re

-focu

sing

to a

ssum

e th

e ob

ligat

ion

thes

e ch

alle

nges

requ

ire a

nd to

adv

ance

the

agen

cy th

at is

nee

ded

for r

evol

utio

nary

pro

gres

s to

be m

ade

Lond

on, N

ew D

elhi

51St

ubbl

efiel

d et

al.

(201

0)D

iffer

ent M

APs

nee

d to

be

deve

lope

d to

pro

vide

sust

aina

bilit

y in

SM

Es si

nce

thei

r res

ourc

es a

nd

profi

les a

re d

iffer

ent c

ompa

red

to la

rge

ente

rpris

es. T

he sc

ale

of d

iver

sity

and

cha

ract

erist

ics t

hat

exist

in S

MEs

shou

ld b

e ta

ken

into

con

side

ratio

n w

hen

deve

lopi

ng M

APs

to e

ase

its im

plem

enta

tion

and

benc

hmar

king

. The

maj

or re

ason

for S

MEs

to a

dopt

inno

vativ

e M

APs

is n

ot th

e le

adin

g ed

ge,

but b

ecau

se th

e pl

anet

mat

ters

to th

em a

s an

ente

rpris

e. H

ence

inno

vativ

e M

APs

will

faci

litat

e th

eir

prot

ectio

n an

d su

stai

nabi

lity

Can

ada

52Su

narn

i (20

13)

The

rapi

d ch

angi

ng o

f bus

ines

s env

ironm

ent l

atel

y is

sign

ifica

ntly

cha

ngin

g th

e M

APs

and

the

role

of

man

agem

ent a

ccou

ntan

t in

an o

rgan

isat

ion.

Man

agem

ent a

ccou

ntin

g sh

ould

mov

e fro

m a

dmin

-ist

rativ

e le

vel t

o th

e str

ateg

ic o

nes,

from

“be

an c

ount

ers”

to “

busi

ness

par

tner

s”. B

udge

ting

was

co

nsid

ered

the

mos

t im

porta

nt m

anag

eria

l too

l in

MA

Ps fo

r bot

h m

ediu

m a

nd b

ig-s

cale

ent

erpr

ises

. Th

e M

APs

’ foc

us w

as st

ill o

n tra

ditio

nal p

ersp

ectiv

es

Italy

53Te

sta

et a

l. (2

011)

LCC

is a

n in

tegr

ated

met

hod

that

ass

ists m

anag

emen

t in

hand

ling

the

who

le P

LC a

nd se

rvic

es b

y in

tegr

atin

g fu

rther

sust

aina

ble

prac

tices

of m

anuf

actu

re a

nd c

onsu

mpt

ion.

LC

C c

ertifi

es th

at e

nter

-pr

ises

dec

isio

n-m

akin

g is

cen

tred

on in

crea

sing

awar

enes

s of t

he p

ersp

ectiv

e pr

oble

m in

term

s of

costs

on

the

envi

ronm

ent a

nd so

ciet

y at

pro

duct

des

ign

Taiw

an

54Ts

ai e

t al.

(201

0)In

tegr

atin

g of

AB

C, t

he e

ffect

s of e

nviro

nmen

tal c

osts

are

mor

e im

plic

it, u

nlik

e th

e tra

ditio

nal c

ost

tech

niqu

e. E

nter

pris

e m

anag

ers s

houl

d es

tabl

ish

ECA

to a

ssig

n en

viro

nmen

tal c

osts

usi

ng A

BC

to

cost

prod

ucts

, ser

vice

s and

con

sum

ers t

o at

tain

gre

en a

fford

abili

ty

Aus

tral


1 3

Tabl

e 1

(con

tinue

d)

Aut

hor (

Year

)Su

mm

ary

(reg

ardi

ng th

e fo

cal M

APs

)Fi

eldw

ork

(Cou

ntry

)

55Tu

czek

et a

l. (2

018)

Diff

eren

t vol

unta

ry st

anda

rds i

nteg

ratio

n in

larg

e an

d SM

Es sy

stem

atic

theo

ry a

nd g

aps i

n th

e di

sci-

plin

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1 3

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