Exploring the Impact of Internal Organizational Factors on Strategic Management Accounting

Abstract

Strategic Management Accounting (SMA) represents a significant evolution in the field of management accounting, integrating both financial and non-financial information to enhance strategic decision-making. Unlike traditional management accounting, which primarily focuses on cost control and internal reporting, SMA adopts a broader perspective by incorporating external market dynamics and long-term strategic insights. The adoption and effectiveness of SMA techniques, however, are not uniform across organizations. Instead, they are influenced by a variety of internal factors, including organizational strategy, culture, structure, information system quality, and firm size. While prior research has extensively examined external factors such as market competition, regulatory changes, and technological advancements, the role of internal factors remains underexplored. This literature review critically evaluates existing studies on internal organizational factors and their impact on SMA adoption. The findings suggest that firms must align SMA practices with their internal characteristics to optimize decision-making and performance. Additionally, understanding how these internal factors interact can provide deeper insights into SMA implementation. Future research should explore the dynamic relationships between internal organizational factors to develop a more comprehensive framework for SMA adoption.