Factors Influencing the Choice of Sophisticated Management Accounting Practices - Exploratory Evidence from An Emerging Market

Abstract

This study attempts to explore the factors that may lead to the choice behind sophisticated management accounting practices (SMAP) in an emerging economy, Bangladesh. A semi-structured questionnaire has been developed to capture the market data and different descriptive and inferential statistical tools have been used to test relevant hypotheses. The findings of the study are helpful for the management accounting practitioners, academics, and researchers to understand the current state of management accounting practices in an emerging market. In addition, the study brings an extension to existing literature by exploring potential causal relationship between sophistication in applying management accounting tools and satisfaction of management accounting practitioners. This study confirms that there is a missing link between practitioners’ satisfaction and SMAP. It gives a signal to the market that the critical decision-making process is not supported by tactical exercises and market lacks professionalism greatly which may act as an obstacle to develop a competitive business environment.

Keywords

• accounting
• management accounting practices
• emerging market
• exploratory research
• sophistication