The relevancy of strategic thinking in the role of management accounting systems for SME’s survivability: A new conceptual framework
This paper aims to present a novel conceptual model for long-term survival in the context of Pakistani SMEs. Researchers have long been interested in uncovering what makes certain entrepreneurs better to others, particularly in SMEs from emerging economies that are primarily concerned with their o...
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| Main Authors: | , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2021
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| Subjects: | |
| Online Access: | http://eprints.unisza.edu.my/4238/1/FH03-FPP-21-56046.pdf http://eprints.unisza.edu.my/4238/ |
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| Summary: | This paper aims to present a novel conceptual model for long-term survival in the context of Pakistani
SMEs. Researchers have long been interested in uncovering what makes certain entrepreneurs better
to others, particularly in SMEs from emerging economies that are primarily concerned with their own
survivability. Scholarship has revealed that the desire for survival is deeply ingrained in the
owners/managers of SMEs, as a result of which they endeavor to lessen their struggle for survival.
Long-term survival, or sustainable survival, is arguably influenced by strategic thinking. When
discussing the SME context, management accounting research has captured the attention of scholars
due to its significance and application. Management accounting systems provide financial and nonfinancial data that stimulate the cognitive process. Certain management accounting tools, particularly
at the strategic level, include “strategy mapping, analysis of core competencies, long-range and
business planning, risk management, environmental impact assessment, value for money audits, value
engineering or value analysis, competitor analysis”. We have argued in this conceptual paper that
management accounting systems can activate strategic thinking cognitively, thereby enabling SMEs
to sustain themselves in the long run. Thus, it is critical for SMEs to optimize management accounting
systems because they can have a significant impact on their survival. Further, the presence of
management accounting systems can bring robustness in planning, controlling and decision making in
SMEs. |
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