Modeling Factors Affecting the Application of Management Accounting Techniques In Small and Medium Enterprises Using Fuzzy Cognitive Mapping

Document Type : Original Article


1 Ph.D. Student, Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran.

2 Associate Professor, Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran.

3 Assistant Professor, Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran.

4 Associate Professor Department of Management, Yazd Branch, Islamic Azad University, Yazd, Iran.


Management accounting emphasizes managers' using of accounting information in organizations in order to make informed business decisions. The main objective of this study was to determine the factors affecting the application of management accounting techniques in small and medium industrial units. In this regard, using the content analysis method, an inclusive set of factors affecting the application, based on Institutional and Contingency Theories, was recognized, and factors appropriate to the nature of small and medium- sized enterprises were selected via measuring expertise and screening method. Finally, using fuzzy cognitive mapping technique, the causal relationships between the effective variables and the intensity of the relationships were examined. The findings indicated that from the viewpoint of the financial experts in the present study, such variables as in-service training of employees, spirit of cooperation among managers and their collectivism, type of industry and corporate activity, level of production technology, intensity of competition in industry and environmental uncertainty were found to have the highest impact. on small and medium-sized companies; thereby by strengthening these factors, the process of applying management accounting techniques can be improved in these enterprises.


  • Abulghasim, A (2006) Management accounting techniques in Libyan manufacturing companies, PhD Thesis, University of Lincoln, UK
  • Alkizza (2006) The impact of business environment on management accounting practices: Libyan evidence, Ph.D Thesis, University of Liverpool,UK
  • Allahyari, A, Ramazani, M (2011) Studying the factors which delay management accounting changes (case study of Iranian manufacturing firms), International Journal of Accounting and Financial Reporting, vol.1, pp176-189
  • Askarany, D, Smith, M (2004) Contextual factors and administrative changes, Journal of issues in information science and information technology, vol.1, pp 179-188
  • Asgarnezhad Nouri, B (2017) Analyzing the use of strategic management tools and techniques between Iranian firms, Electronic business journal, vol. 16, no. 1
  • Albaddad, O, Nasser, M (2018) Factors influencing the implementation of management accounting systems in samall and medium sized enterprises in Dubai, International Business Research, vol.11, no.1, pp
  • Barzegari Khaneghah, Jamal and Sarvi, Elias (2014) An Investigation of Fifty Tools, Methods and Techniques Applied in Management Accounting, Journal of Accounting Knowledge and Research, Journal 36, Spring
  • Brown, D.A, Booth, P, Giacobbe, F (2004) Technological and organizational influences on the adoption of activity-based costing in Australia, Accounting & Finance, vol. 44, no.3, pp. 329-356
  • Boukr, A (2018), A study of the factors influencing the adoption of management accounting innovations in less developed countries: the case of Libya, PhD thesis, university of salford
  • Clarke, P., Thorley H. & Stevens, K (1999) Activity-based costing in Ireland: Barriers to, and opportunities for change, Critical Perspectives in Accounting, vol. 10, no. 4, pp. 443-468
  • DiMaggio, P.J, Powell, W. W (1983) The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields, American Sociological review, pp 147-160
  • Dianti Deilami, Zahra, Alam Beigi, Amir and Khatibi, Hassan (2016) An Investigation of the Impact of Environmental Uncertainty on the Performance of Management Accounting Tools, Journal of Management Accounting and Auditing Knowledge, 5(17), Spring
  • Ehyaaei, Hedyeh and Rahnma -Rudposhti, Fereydoun (2015) Examination of Factors Affecting the Establishment of A Management Accounting System, 2nd International Conference on Management and Development Culture
  • Fisher, J (1996) The impact of perceived environmental uncertainty and individual differences on management information requirements: A research note, Acconting Organizations and Society, vol.21, no.4, pp 361-369
  • Groumpos, P. P (2010) Fuzzy cognitive maps: Basic theories and their application to complex systems. In Fuzzy cognitive maps, Springer Berlin Heidelberg, pp 1-22
  • Gerogiannis, V.C, Papageorgiou, E.I (2012) Identifying factors of customer satisfaction from smartphones: A fuzzy cognitive map approach, In International Conference on Contemporary Marketing Issues, vol.27
  • Granlund, M., & Lukka, K (1998) It is a small world of management acconting practices, Journal of Management Accounting Research, vol. 10, pp. 153-179
  • Hajiha, Zohreh and Taghizadeh, Zahra (2016) An Examination of the Relationship Between Organizational Culture and the Employment of Management Accounting Techniques in units listed on the Tehran Stock Exchange, Organizational Culture Management, 14(4), Pages 1067-1089
  • Hajiha, Zohreh and Kharatzadeh, Mohaddeseh (2014) The Relationship between Organizational Culture and the Application of Management Accounting Innovations in Companies Listed on the Tehran Stock Exchange, Quarterly Journal of Management Accounting, 7(23)
  • Heugens, P. M. A. R & Lander, M. W (2009) Structure Agency ( and other quarrels): A meta analysis of institutional theories of organization , Acad, Management, vol. 52
  • Innes, J, Mitchel, F (1990) The process of change in management accounting: some field study evidence, Management Accounting Research, vol. 1, pp 3-19
  • Joshi, P.L (2001) The international diffusion of new management accounting practices: the case of India, Journal of International Accounting, Auditing and Taxation, vol.10, pp 85-109
  • Joshi, P. I., Bremser, W. G., Deshmukh, A., & Kumar, R (2011) Diffusion of management accounting practices in gulf cooperation council countries, Accounting Perspectives, vol. 10, no. 1, pp. 23-53
  • Johansson, T., & Siverbo, S. (2009). Why is research on management accounting change not explicitly evolutionary? Taking the next step in the conceptualisation of management accounting change. Management Accounting Research, 20(2), 146-162
  • Kashanipour, Mohammad, Hamidizadeh, Ali, Kazempour, Morteza and Kabarpour, Morteza (2015) The Effects of Economic and Human Factors on the Using Management Accounting Techniques in Companies Listed on the Tehran Stock Exchange, Quarterly Journal of Management Accounting, 11(38), Spring
  • Ketokivi, M.A, Schroeder, R.G (2004) Strategic, structural contingency and institutional explanations in the adoption of innovative manufacturing practices, Journal of Operations Management, vol. 22. Pp 63-89
  • Khodamipour, Ahmad and Talebi, Roghayyeh (2010) A n Investigation of the Application of Management Accounting Techniques by Managers at Manufacturing Companies Listed in Tehran Stock Exchange, Journal of Accounting Knowledge, 1(2), pp. 117-137
  • Leftesi, A (2008) The diffusion of management accounting practices in developing countries: Evidence from Libya, Ph.D Thesis, University Huddersfield, United Kingdom
  • Mitchell,F, Reid,G.C (2000) Editorial problems, challenges and opportunities : the small business az a setting for management accounting research, Management Accounting Research, vol.11, pp 385-390
  • Moll, J, Burns, J, Major, M (2006) Institutional theory, Methodological issues in accounting research: Theories and methods, pp 183-205
  • Moghadaspour, Hengameh and Ebrahimi Kordlar, Ali (2014), Development and Description of Management Accounting Development Model in Iran, Journal of Management Accounting and Auditing Knowledge, 3(10)
  • Namazi, Mohammad (2006) Challenges and Opportunities of Management Accounting, Accountant Journal, Year 21, Number One Hundred and Eighty, pp. 3-11
  • Nasser, M, Al-Khadash,H, Al-Okdah,S, Sangster, A (2011) The implementation of management accounting innovations within the Jordanian industrial sector: The role of supply-side factors, European Journal of Economics, Finance and Administrative Sciences, vol.35, pp72-85
  • Nategh, Mohammad (2015) Role of Clustering Increasing Competitiveness of small and medium Enterprises with an Emphasis on Marketing Development, Tehran, Institute of Business Studies and Research
  • Otley, D. T. (1980) The contingency theory of management accounting: achievement and prognosis, Accounting, Organizations and Society, vol.5, no.4, pp. 413-428
  • Özesmi, U. & Özesmi, S. L. (2004). Ecological models based on people’s knowledge: a multi-step fuzzy cognitive mapping approach. Ecological Modeling, 176, 43–64
  • Prihastiwi, D.A, Sholihin, M (2018) Factors affecting the use of management accounting practices in small and medium enterprises: evidence from Indonesia, Journal Dinamika Akuntansi, vol.10, no.1, pp.158-176
  • Rahnam-Roodposhti, Fereydoun, Niko Maram, Hashem and Jalili, Arezoo (2013) The Effects of Judicial Biases on the Performance of Management Accounting Techniques, Management Accounting Quarterly, 6(16)
  • Rodriguez-Repiso,L, Setchi, R, & Salmeron,J.L (2007) Modelling IT projects success with fuzzy cognitive maps, Expert Systems with Applications, 32 (2), 543-559
  • Shahzadi, s, khan, R, Toor, M (2018) Impact of external and internal factors on management accounting practices: a study of Pakistan, Management Accounting Practices
  • Scapen, R.W (2006) Understanding management accounting practices: a personal journey, The British Accounting Review, vol.38, pp 1-30
  • Valipour, Hashem and Kavianifard, Hashem (2017) Importance of Industry in the type of Management Accounting Techniques, Accounting Research, No. 26, Fall.
  • Volberda, H.W, Van der Weerdt, N, Verwaal,
  • E, Stienstra, M, Verdu, A.J (2012) Contingency fit, institutional fit, and firm performance: A metafit approach to organization-environment relationships, Organization Science, vol.23, pp 1040-1054
  • Waweru, N.M, Hoque, Z, Uliana, E (2004) Management accounting change in South Africa: case studies from retail services, Accounting, Auditing & Accountability Journal, vol. 17, pp 675-704
  • Wu, J, Boateng, A, Drury, C (2007) An analysis of the adoption, perceived benefits, and expected future emphasis of western management accounting practices in Chinese SOEs and JVs, The international Journal of Accounting, vol. 42, pp 171-185
  • Williams, J. J, Seaman, A. E (2001) Predicting change in management accounting systems: National culture and industry effects, Accounting, Organizations and Society, vol.26, pp 443-460
  • Yazdifar, H (2004) Insight into the dynamics of management accounting systems implementation in group (dependent) organizations: An institutional perspective, PHD Thesis, University of Manchester, UK
  • Yigitbasioglu, ogan M (2017) Drivers of management accounting adaptability: the agility lens, journal of accounting & organizational change, vol. 13, issue. 2
  • Yazdifar, H., & Askarany, D (2010) A comparative investigation into the diffusion of management accounting innovations in the UK, Australia and New Zealand Research Executives Summaries Series, vol. 5, no. 9