Oyewo, Babajide and Alta'any, Mohammad and ALo, Kolawole Adeyemi and Dube, Negroes Tembo (2024) Determinants and impact of production planning and control accounting techniques on competitiveness of manufacturing companies: a structural equation modelling approach. Accounting Research Journal, 37 (4). pp. 453-478. DOI https://doi.org/10.1108/arj-01-2023-0014
Oyewo, Babajide and Alta'any, Mohammad and ALo, Kolawole Adeyemi and Dube, Negroes Tembo (2024) Determinants and impact of production planning and control accounting techniques on competitiveness of manufacturing companies: a structural equation modelling approach. Accounting Research Journal, 37 (4). pp. 453-478. DOI https://doi.org/10.1108/arj-01-2023-0014
Oyewo, Babajide and Alta'any, Mohammad and ALo, Kolawole Adeyemi and Dube, Negroes Tembo (2024) Determinants and impact of production planning and control accounting techniques on competitiveness of manufacturing companies: a structural equation modelling approach. Accounting Research Journal, 37 (4). pp. 453-478. DOI https://doi.org/10.1108/arj-01-2023-0014
Abstract
Purpose: This study aims to investigate four internal (organisational structure, quality of information technology, business strategy and market orientation) and two external (competition intensity and perceived environmental uncertainty) contextual factors affecting the use of production planning and control accounting techniques (PPC), as well as the impact of PPC usage on organisational competitiveness. Design/methodology/approach: Seven major PPC techniques were investigated, namely: attribute costing, lifecycle costing, quality costing, target costing, value-chain costing, activity-based costing and activity-based management. By deploying a multi-informant strategy, a structured questionnaire was used to gather survey data from 129 senior accounting, finance and production personnel of publicly quoted manufacturing companies in Nigeria. Findings: The results, using structural equation modelling, show that market orientation is the strongest determinant of PPC usage. The inability of competition intensity and perceived environmental uncertainty to notably affect PPC usage suggests that external environmental pressure to use PPC is weak. Although PPC can engender organisational competitiveness, their interactive usage yields optimal results. Originality/value: The study contributes to knowledge by: (i) presenting evidence that although PPC techniques can engender organisational competitiveness, it is their interactive usage that yields optimal results; (ii) empirically demonstrating that contextual factors influence PPC usage in line with the contingency theory; and (iii) validating the diffusion of innovation theory that organisations will typically deploy PPC techniques because of their relative advantage of improving organisational competitiveness.
Item Type: | Article |
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Uncontrolled Keywords: | Competitive advantage, Market orientation, Contingency theory, Nigerian manufacturing sector, Production planning and control |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 29 Aug 2024 13:29 |
Last Modified: | 29 Aug 2024 13:31 |
URI: | http://repository.essex.ac.uk/id/eprint/39076 |
Available files
Filename: accepted manuscript.pdf
Licence: Creative Commons: Attribution-Noncommercial 4.0