SMEs Operational Efficiency and Adoption of Management Accounting Information: Evidence from Thailand

Abstract

The vitality of SME performance and its contribution to overall GDP has been extensively established in past studies. Similarly, the Management Accounting Information (MAI) is a vital organizational resource. Despite several studies on this topic, a paucity of studies identified the antecedents of MAI, hurting the SME's business performance (SME's-BP). Therefore, the present study intends to investigate the link between SME's business characteristics (SME's BC) and internal and external factors with MAI. Similarly, the study investigates the relationship between MAI and SMEs' business performance. The respondents of the survey were 399 SME managers working in Thailand. The sample of the study was selected using a basic random sampling approach. The acquired data was evaluated by multiple regression analysis using SPSS 22. The study results confirm the higher performance of SMEs; as a result, management needs to be worried about management accounting information. More specifically, two components of SME's-BC, i.e., Year of Business: (YOB) and Annual Revenues: (ARV); organizational structure from internal variables and economics from external factors, have a substantial effect on MAI. The study also indicated that two parts of MAI, i.e., scope and aggregation, substantially affect SME's-BP. The paper also highlights research limitations and ideas for future research.