Investigation of the Influence of Environmental Uncertainty on the Effectiveness of Management Accounting Practices

Document Type : Original Article

Authors
Zahra Dianati Deilami
Amir Alam Beigi
Hassan Khatibi
Abstract
Now, more than ever, commercial organizations need accountability, flexibility and environmental compatibility to maintain their competitiveness. Therefore, This study has attempted to implement the contingency theory by examining the relationship between environmental uncertainty and management accounting practices (MAPs) provide a better understanding of the effectiveness of MAPs. Dimensions of the environmental uncertainty, including dynamism, heterogeneity and hostility. Also, MAPs into three categories of practices costing, budgeting and performance evaluation are studied. Required data has collected through questionnaires distributed among 34 manufacturing firms listed in Tehran Stock Exchange and using partial least squares (PLS) method of structural equation modeling has analyzed.
The results show that the environmental uncertainty has a positive impact on the usefulness of MAPs. Also, the results indicate that the usefulness of MAPs have a positive impact on firms performance. In addition, environmental uncertainty through usefulness of MAPs have a positive impact on firms performance.
Keywords
Management Accounting Practices (MAPs)
environmental uncertainty
contingency theory