THE IMPACT OF STRATEGIC MANAGEMENT ACCOUNTING ON IMPROVING THE EFFICIENCY OF MANUFACTURING FIRMS

The aim of this paper was to review the impact of strategic management accounting (SMA) on improving the efficiency of manufacturing firms. SCOPUS, EBSCO and WoS databases were searched for relevant literature, and 21 papers were finally selected for a review. The results found that the relationship between SMA and performance of manufacturing firms is influenced by many contingency factors. The decision to adopt and use SMA is the first step to improving performance. Then, there is a need to determine what types of SMA techniques to be used. This is dependent on what strategy the company wants to pursue. Having decided to use it, the firm goes through the four processes of SMA adoption leading to performance. This research has implications for manufacturing firms looking to adopt SMA to improve their performance.