EFFECT OF MANAGEMENT ACCOUNTING TECHNIQUES ON SUPPLY CHAIN AND FIRM PERFORMANCE – AN EMPIRICAL STUDY

The issue of adoption of various modern management accounting techniques by Indian industries has been less researched. In the present study, an attempt has been made to develop a model of adoption of management accounting techniques and their impact on improving the supply chain performance as well as the overall performance of the firm. In India advanced management accounting techniques by the manufacturing firms to control the supply chain cost and to make the supply chain performance more effective has not yet been adopted to realise its full potential. A survey was conducted through a structured questionnaire for exploring the impact of various management accounting techniques on SC performance indicators. A Confirmatory Factor Analysis was used through Structural Equation Modelling to establish the reliability and convergent validity of the data. Finally, this present study proves that adoption of various management accounting techniques on supply chain activities is the most appropriate strategy to boost the performance of any firm.