The mediating role of managerial accounting in non-profit organizations: a structural equation modelling approach

Abstract

Structural equation modelling (SEM) characteristics seem to be adapted to answer various relevant research questions in management accounting research. Thus, this study aims to illustrate the use and advantages of SEM in management accounting research in the non-profit sector. The contributions of this study include revealing the relationship between the leadership style, managerial accounting, and the performance of non-profit organizations measured by their community engagement. Furthermore, the mediating role of managerial accounting in non-profit organizations is also investigated in this context. The empirical results prove the existence of direct relationships between analytical and proactive leadership style and managerial accounting on the one hand and between managerial accounting and successful community engagement of non-profit organizations (non-financial performance) on the other. The study also confirms that managerial accounting mediates the relationship between the analytical and proactive leadership style and successful community engagement of non-profit organizations. The findings provide a valuable insight to guide managers in non-profit organizations and improve their non-financial performance through managerial accounting.

Keywords

• non-profit organizations
• managerial accounting
• structural equation modelling