Transformative Impact: Evaluating the Implementation of Zakah Applications on the Lives of Zakah Recipients – A Cross-Sectional Study Guided by the Holy Quran and Hadith Nabwi (S.A.W.W)

Transformative Impact: Evaluating the Implementation of Zakah Applications on the Lives of Zakah Recipients – A Cross-Sectional Study Guided by the Holy Quran and Hadith Nabwi (S.A.W.W)

Alharath Ateik, Mukhtar Idris Abu Baker Adam, Abdoulrahman Aljounaidi, Muhammad Ali, Siti Maisara Binti Mohd Jafre

Faculty of Finance & Administrative Science, Al-Madinah International University, Petaling Jaya, Kuala Lumpur 57100, Malaysia

DOI: https://doi.org/10.51244/IJRSI.2024.1108085

Received: 02 August 2024; Accepted: 10 August 2024; Published: 14 September 2024

ABSTRACT

Background: Zakah, as a vital pillar of the Islamic economic system, holds great significance in Islamic principles. This research serves as an extension of a prior survey, delving into the awareness and understanding of Zakah in Pakistan’s urban areas through a cross-sectional study.

Objective: This study aims to scrutinize the status of Zakah recipients in society and assess the aftermath of their Zakah payments, seeking to comprehend the overall impact on their lives.

Methodology: A sample of 125 male respondents was selected from four provinces of Pakistan, encompassing diverse backgrounds such as religious scholars, Muftis, students of Islamic education, individuals with formal education, and uneducated individuals. The respondents, aged between 20 and 60, were categorized into three age groups for statistical analysis, and Data Tab along with Graph Prism edition 9.5.1. were employed for result interpretation.

Results: The research findings suggest that Zakah payees express high levels of satisfaction with their lives, despite facing challenges associated with the economic and political instability prevailing in the country.

Conclusion: The analysis reveals a consistent level of satisfaction among Zakah payees, transcending demographic variables like location, education, and age group, with a remarkable 100% satisfaction rate in each category. This underscores the positive impact of Zakah payments on the overall well-being of recipients in Pakistan.

Keywords: Zakah Implications, Zakah benefits, Zakah Results, Zakah Societal Impact (ZSI), Eradication of Inequality, Poverty Eradication

KAUJIE Classification: E0, E1, E14,

JEL Classification: P40, P49,

INTRODUCTION

Most SMEs face financial and non-financial problems at different company operations stages. However, they need to be better equipped to practice risk management because of the lack of support available. Non-financial limitations include poor product quality, lack of focused marketing initiatives, poor decision-making, and inefficient accounting practices. Abundant resources are unavailable, and an overall lack of expertise are two important contributing factors that make the company susceptible to risks. According to Marks & Thomalla (2017), monitoring accounting practices and their timely evaluation can help SMEs address the risks they face in an orderly fashion. Moreover, misusing accounting practices for personal gain can cause harm to the company by decreasing its competitive advantage and making it a target for malpractice allegations. The responsible use of MAPs is essential to maintaining a company’s reputation and increasing the confidence of stakeholders and customers (Brustbauer, 2016).

1.2. Problem Statement

SMEs are heavily influenced by their performance levels because it affects their employee productivity and profits. MAPs play a significant role in increasing productivity, shaping the company’s strategy and improving the company’s performance. However, the ineffectiveness of accounting practices can cause SMEs to fail in their operations and expose them to new challenges. Choosing the right accounting software for the company’s needs is essential (Boylan, 2018). In contrast, SMEs in developing countries rarely benefit from changing their accounting practices. This raises the question of the lack of available comprehensive studies regarding SMEs. Regarding the GCC, minimal studies are available, and those published have a fragmented approach, while none specifically cater to Oman. Thus, this study aims to bridge this gap by studying the impact of MAPs on the business performance of SMEs in Oman.

1.3 Research objectives

The following are objectives which have been framed to achieve the main objective:

1. To study the importance of MAPs and how it affects different business operations for SMEs in Oman.
2. To know the potential challenges and limitations for implementing MAPs for SMEs in Oman.
3. To find out how MAPs (strategic analysis, budgeting, performance evaluation, decision support system, costing system) affects business performance of SMEs in Oman.
4. To study the select factors (qualification, owner’s participation, competition, advanced accounting software’s) on MAPs in SMEs in Oman.
5. To recommend specific recommendations for the stakeholders of SMEs for better implementation of MAPs in Oman.

1.4 Research Scope

This research study focuses on SMEs in Muscat, the capital of Oman. This region has been chosen specifically because it has many SMEs, which increases access to required information. The chosen sample has been taken from various sectors within the fields of accounting and finance.

1.5 Research Significance

According to Askarany et al. (2010), less than 33% of SMEs in Oman utilize modern accounting practices in their performance measurement process. The implementation of MAPs has impacted the organizational culture of SMEs in Oman. SMEs practice two types of accounting methods: traditional and contemporary. Traditional practice focuses on budget preparation, strategic planning, and product profitability estimation. In contrast, contemporary practices focus on improving customer service, encouraging teamwork, and improving cost management efficiency (Tsamenyi, 2020). One of the biggest strengths of SMEs is their skillful use of accounting practices, which creates a sustainable long-term plan and ensures their relevance in the market. A few SMEs resort to external support for accounting activities because of insufficient talent, lack of understanding of accounting practices, and poor awareness of the business. According to Haddara and Zach(2011), the government identified this problem and has thus distributed training courses in accounting and free accounting consultations to SMEs in Oman. This study aims to contribute to the available literature in this field and supplement past studies in the Omani context while promoting future development.

LITERATURE REVIEW

2.1 SMEs in Oman

SMEs improve the country’s economy by increasing the productivity of the workforce and increasing employment. According to Khan (2014), the Ministry of Commerce and Industry has recognized the role of SMEs in the development of Oman’s GDP. Data indicates that companies with 5 – 9 employees reach a sales target within the 25,000 – 250,000 OMR range. Companies with ten or more employees usually reach a sales target of 250,000 – 1.5 million OMR. There is a reported increase in the number of SMEs in Oman, from 46.8% in 2021 to 81.46% in 2022, as shown in The Development Authority for Small and Medium Enterprises reports. According to Ramachandran and Yahmadi (2019), the Omani government supports these businesses through special discounts for entrepreneurs and access to valuable resources to encourage them to contribute to the Omani economy

2.2 Understanding Management Accounting Management accounting is a process managers use to analyze the collected data and make the right decisions. Companies commonly use these to triangulate, analyze, and interpret information. It also helps with the review of financial documents and periodic monitoring of the company’s work. Companies have developed various accounting techniques to improve their processes and systems and create a competitive advantage (Lavia and Hiebl, 2014). Five areas are taken into consideration: costing, budgeting, performance measurement, decision-making, and strategic management for this study.

2.2.1 Cost accounting and management

SMEs rely on cost accounting to measure the costs that they incur. The organization’s overall costs are reduced by practicing cost management, as it increases the efficiency of resource allocation within the organization (Horngren et al., 2013). Cost accounting influences how the company decides the prices of its products and how the company remains competitive in the market. Cost accounting utilizes diverse cost forecasting methods and helps efficiently control the company’s finances. It strictly refers to understanding the company’s accounting costs and management. Over time, various tools have been used to monitor both fixed and variable costs and the activities that depend on these costs.

2.2.2 Performance Evaluation System(PES)

It is the process by which companies measure and track their employees’ performance, task completion, punctuality, and overall efficiency (Elhamma, 2022). Performance evaluation provides a platform to build relationships between employees and managers, motivate the employees, and increase their productivity. Previous studies have proved that performance measurement and organizational performance are linked because utilizing performance measurement allows employees to gain feedback and perform better (Fatoki, 2024). The best way to evaluate employee performance is through self-evaluation. This method provides employees with a set of questions, and they evaluate themselves. Their responses are then compared to the manager’s opinion, which helps identify communication gaps and provides valuable feedback to improve performance (Jaradat, 2021). The central assessment and 360-degree feedback methods are also popular performance evaluation techniques, allowing for more transparency and authentic communication.

2.2.3 Budgeting System

An essential element of the management system within a company is the budget. A budget depends on quantitative data from previous company records and is usually analyzed through charts that list the company’s assets, cash flow, and revenue (Arnold and Gillenkirch, 2015). It also helps estimate revenue and funds. It regulates the organization’s savings and expenditures. The traditional budgeting system is heavily influenced by bureaucracy. The accuracy of the budget can only be verified through periodic discussions within the organization. Financial management practices have four critical points: financial reporting, capital allocation, fixed assets, and budget preparation.

2.2.4. Decision Support Systems (DSS)

Efficient decision-making procedures help the organization in making short- and long-term decisions. An information system called DSS (Decision Support System) helps in decision-making and supports managers. As Arnold (2015) mentioned, a short-term decision support system is used to help with profit analysis, cost analysis, and monitoring. A long-term decision support system is used to help with the organization’s internal rates of return and cash flow. DSS utilizes machinery and human intelligence, distinguishing it from other tools as it has a higher capacity for obtaining and analyzing data. Moreover, this system is used in the operations and sales departments for forecasting purposes so that the organization is aware of future risks it could face (Kefasi, 2019).

2.2.5 Strategic Management Accounting (SMA)

Companies depend on Strategic Management Accounting (SMA) to collect and analyze information related to competitors, strategy, and product diversity (Singh et al., 2022). It relies on three main principles: creating strategies to reduce costs, effectively implementing accounting systems, and exploring the competition in the market. MAPs help the organization establish its competitive advantage by influencing the company’s cost, customer experience, performance measurement, accounting strategy, and monitoring. A strong accounting strategy helps execute goals and pushes the company toward success. Two critical points decide the management accounting strategy of a company: the use of technology in accounting and the skills of the accounting staff related to decision-making.

2.3 Research gap

Based on the previous research, a few gaps have been identified:

1. Most researchers have identified a few select management accounting practices variables, thus not giving a complete picture of their utilization.
2. Most studies are about Asian, African, and Western countries. There are minimal studies related to Gulf countries, if any.
3. The relationship between MAPs and business performance is still unexplored in Gulf countries, and most studies have been limited to the manufacturing or retail sectors.

Therefore, a systematic study of management accounting practices in various sectors of Gulf countries, particularly Oman, is necessary and a potential game-changer. This could be the first comprehensive attempt to understand these factors in the context of Oman. The significance of this study extends beyond the theoretical framework and literature review, as it holds practical importance for the field. Given that SMEs are integral to Oman’s economy and job creation, the impact of this study cannot be overstated. The novelty and potential impact of this research should be considered.

RESEARCH METHODOLOGY

The current study has used deductive and descriptive methods to test the hypotheses and understand the relation between dependent and independent variables. This method provides a realistic approach and checks the cause and effect of a relationship. Quantitative research has been used to test the hypothesis, which aligns with the study’s objectives (Wang, 2023). Questionnaires were designed to meet the requirements of the study, and collected data was converted to numbers to ensure the anonymity and privacy of the respondents. The data analysis was conducted through SPSS. The unit of analysis for this study is small and medium enterprises in the Muscat region in Oman. The data collected was around 238 samples, and only 187 filled questionnaires could be used for the study.  This is 71% of the response rate, which is considered suitable for the research study(Arnold, 2015 ).  The respondents were from the auditing, financial, and accounting departments and worked in different companies. The sample size is well suited for this study as previous studies have also received a similar response rate. The research is based on non-probability sampling,  which was chosen due to the need for the study and because it is time- and cost-effective. The convenience sampling method was used to reach out to companies, and those who agreed to participate in the study were contacted during the second stage. In the initial phase, there was a low response rate. Later, snowball sampling methods were used to reach companies whose employees could participate. This approach has been used by many researchers in the past (Johnson et al., 2023).

3.1 Measurement of construct

In the current study, business performance is the dependent variable. It reflects the organization’s overall performance and productivity. The independent variables that influence the dependent variable in managerial accounting are performance appraisal, budgeting, decision-making system, cost, and strategic management. To capture the essence of the extent of use, a 5-point Likert scale has been used (Al Mamun et al., 2022)nik. This is the most important scale when we are collecting opinions, attitudes, and preferences. The scale ranges from never used to frequently used.

Table 1: Measurement of variables

Constructs of study	Item No.	Measures	Adapted from
Budgeting	11	5-point Likert scale	Johnson, 2023
Costing	8	5-point Likert scale	Ismail et.al, 2018
PES	13	5-point Likert scale	Chen et al., 2019
DSS	8	5-point Likert scale	Ahmad and Zabri, 2015
SMA	6	5-point Likert scale	Ojua, 2016
Business performance of SMEs	6	5-point Likert scale	Khan, 2014
Select factors	4	5-point Likert scale	Ahmad and Zabri, 2015

3.2 Designing Questionnaire

The questionnaire has three parts, and it was developed in English and distributed to the participants. The first part delves into the demographic profile of the respondents working in small and medium enterprises, meeting the minimum criteria of the sampling design. The questions concerned gender, age, education qualification, experience, business sector, annual sales, and nationality. The second part was developed to capture the statements for dependent and independent variables and has six parts. Open-ended questions were also developed to mitigate the risks of closed-ended questions. It allows respondents to express their opinions without being judged.

3.3 Research Framework

Fig. 1 Research framework depicting dependent and independent variables including MAPs variables, select factors and business performance of SMEs

3.3.1 Hypotheses

There are 2 main hypotheses related to managerial accounting practices that are covered for the current study:

H1: There is significant and positive relationship between variables of MAPs and business performance of SMEs in Oman.

H2: There is a significant relationship of select factors and MAPs of Omani SME.

3.4 Data collection methods

The data was collected in two ways:

1. A)  Secondary sources: For this study, secondary data was collected from the official websites of the participating companies, government websites, books, journal articles, and reports from Oman’s Chamber of Commerce.
2. B)  Primary data source:  The data was collected through an online questionnaire developed on Google Forms. The questionnaire was checked for its validity and reliability. The validity was checked through pilot testing and reliability through Cronbach alpha. The content validity was checked with the three respondents to see whether the questionnaire was clear and straightforward and if it captured the needed responses (Ismail, 2018). The feedback was incorporated, and the questionnaire was further refined. In the second section, three statements were dropped as they seemed duplicated for the respondents. The questionnaire was developed in English.

3.5 Reliability statistics

Reliability ensures consistency in measuring constructs over a period. It indicates whether the instrument can be used for different sample sets and will get the same result when the conditions are consistent. Values from 0.80 onwards indicate high reliability and confirm that the instrument is stable and accurate across sectors and over time. Values between 0.700 and 0.800 are an acceptable range (Creswell & Creswell, 2018).

Table 2: Reliability statistics of the chosen variables

Dependent and Independent Variables	Statements included	Cronbach’s Alpha
CS	8	.765
BS	11	.786
PES	13	.804
DSS	8	. .881
SMA	6	.789
BP	6	.891
Select factors (SF)	4	.762

The above table indicates that the scale is highly reliable for DSS, PES, and BP. Select factors CS, BS, and SMA have acceptable Cronbach alpha. Overall, the instruments’ measurement is good for the study.

3.6 Respondents profile (demographic)

The following table summarizes the demographic profile of the respondents. This data was collected from section 1 of the questionnaire, and it gives reflections on the respondents’ gender, sector, age, qualifications, experience, sales turnover(annual), number of employees, and nationality.

Table 3: The table shows the Sociodemographic profile of the respondents (N=426, n=187)

Respondents’ characteristics	Percentage		Cumulative
	n	%	n	%
Gender
Female	82	43.85	82	43.85
Male	105	56.15	105	100
Age
18-25	27	14.44	27	14.44
25-30	56	29.95	56	44.39
36-40	40	21.39	40	65.78
41-45	34	18.18	34	83.96
More than 45	30	16.04	30	100.00
Highest educational level
Only certification	75	40.11	75	55.08
Diploma	44	23.53	44	78.61
Bachelor’s degree certificate	28	14.97	28	14.97
Master’s degree	18	9.63	18	88.24
Postgraduate (PhD)	7	3.74	7	91.98
Any other	15	8.02	15	100.0
No. of yrs of experience
Less than 2 years	49	26.20	49	26.2
6-10 yrs	64	34.22	64	60.42
11-20	32	17.11	32	77.54
21-30	24	12.83	24	90.37
more than 30 years	18	9.63	18	100.0
Note. N = 426(n = 187

The above table depicts the results of the participants related to the gender. Males depicted 56.15% and females depicted 43.85%. Though the response rate was high, it can be observed that females also had a decent proportion and representation in the job market, specifically in the accounting field. This can also be linked to Omanisation, which in Oman reaches up to 70% in the private sector and 90% in the public sector. Females are given the same support and opportunities to work. The highest age category is shown in the age category of 25-30 years at 29.95%, followed by the age category of 36-40 years, which shows 21.39%. The number of years of experience in the accounting field had the highest percentage(34%) for  2-10 years, while less than two years was 26.2%. Respondents with experience between 11-20 years had a percentage of 17.11%.  More than 30 years of experience was only 9.63%, and between 21-30 years was 12.8%. There is a spread out of varied experiences by the respondents, which shows data enrichment and dispersion. Of the participants related to the gender. The results show that 40% of the respondents had only certifications, followed by Diplomas(23.5%) and Bachelors(14.9%). Master’s degrees accounted for 18%, and postgraduates were 7%. Overall, qualifications are spread, and more initiatives should be taken to motivate employees to higher degrees.

DATA ANALYSIS

4.1 Correlation of select factors with MAPs

Correlation was conducted in SPSS to determine whether there is any association between the select variables and MAP variables. This was done to test the H2 and achieve objective 3. The following table showcases the output of the correlation test.

Table 4 Pearson Correlation

Select factors	Correlation	Impact on MAPs variables
Education qualification	Pearson Correlation	.317
	Sig. (2-tailed)	.067
	N	187
Use of advanced accounting software	Pearson Correlation	.621**
	Sig. (2-tailed)	.001
	N	187
Owners/managers participation	Pearson Correlation	.811**
	Sig. (2-tailed)	.000
	N	187
Market competition	Pearson Correlation	.678**
	Sig. (2-tailed)	.001
	N	187

**. Correlation is significant at the 0.01 level (2-tailed).

The above table-4 notes a significant correlation between the usage of advanced accounting software, market competition, and owners/managers’ participation at the 0.01 level (2-tailed), while education qualification exhibited no correlation. A stronger correlation was observed for owners’ participation compared to the other two factors (market coemption and usage of advanced accounting software). Hence, we can only accept H2.

4.2 Regression Table

4.2.1 Model Summary

Table 5 Regression Model Summary

Model	R	R Square	Adjusted R Square	Std. Error of the Estimate	Durbin Watson
1	.724a	.524	.515	.24266	2.463

1. Predictors: (Constant), SMA, CA, DSS, PE, BS
2. Dependent Variable: BP

The regression model was executed in SPSS to test H1 hypotheses and determine whether the MAP variables affect the business performance of SMEs. Independent factors were Costing system (CS), Strategic management accounting (SMA), Decision support systems (DSS), performance evaluation systems (PE), and the dependent variable was Business performance (BP). The R-value is 0.724, which shows a significant relationship between independent and dependent variables. The R square value was measured to know how closely the acquired data fits the regression model, and this can be attributed and checked with the variance for the model. The greater the variance value, the more is assumed to be closer to perfect model fit (100%), also known as goodness of fit (Mafini & Meyer, 2016). The adjusted R square is .515, so the proportion of variance in BP is explained or predicted by MAP variables, which accounted for 51.5%, and 48.5% might be affected by other external factors not considered for this study.

4.2.2 ANOVA

Table 6: Regression ANOVA

Model		Sum of Squares	Df	Mean Square	F	Sig
1	Regression	167.142	5	33.4284	27.577	.001
	Residual	220.630	182	1.2122
	Total	387.772	187

1. Dependent Variable: BP
2. Predictors: (Constant), SMA, CA, DSS, PE, BS

In Table 6, the value of F is calculated as the mean squared regression (33.4284), divided by the mean squared residue (1.2122), and results in F=27.577 at p=.001 significance level. The significant model can predict the outcome as the value is less than 0.05. Thus, the model can explain a significant amount of variance in Business performance as a dependent variable because of the independent variables (MAPs).

4.2.3 Coefficients-Regression analysis

Table 7: Regression analysis

* Significant at the .05 level

The above table-7 explains the regression analysis and provides information to predict business performance from MAP variables. It also gives a comprehensive overview of whether the different independent variables that part of Management accounting practices contribute statistically to this model. It was observed that a few variables had a positive impact, while two variables were not significant. The value of Unstandardized B coefficients for three variables is significant. The unstandardized B coefficient for Budget system (.154, t=11.226, sig. at. 000); Costing system (0.089, t=5.562, sig.st. 000); performance evaluation (.121, t=3.667, sig. at. .001) are significantly affecting the business performance of SMEs. Hence Hypothesis H1a, H1b, H1c are accepted. The value of the Unstandardized B coefficient for decision support system (-.017, t=-.186, p=.091) and Strategic management accounting (.127, t=1.345, p=.167) do not significantly affect the business performance of SMEs. Hence, H1d and H1e are rejected as the p-value is much higher than 0.05. The following table summarized the results of the hypotheses derived from the research model.

Table 8: Hypothesis testing

Hypothesis of the study	Outcome/results
H1a: The CS significantly impacts BP of the SMEs in Oman	Accepted
H1b: BS has positive impact on BP of the SMEs in Oman	Accepted
H1c: PE is significantly impacting the BP of the SMEs	Accepted
H1d: The DSS significantly impacts the BP of the SMEs	Rejected
H1e: SMA positively affects the BP of the SMEs	Rejected
H2: Select factors (demographic variables) and MAPs variables association	Partially accepted

4.3 Analysis of open-ended question

This section, which was included at the end of the questionnaire, has three open-ended questions that require the participants to respond as truthfully as possible. It is meant to improve this study’s accuracy while incorporating participant feedback.

1. Respondents’ opinion: Importance of MAPs on business performance

Most of the respondents felt that MAPs had a positive impact on the companies where they work. They felt that MAPs help control and monitor the organization’s goals. After the results of their work are seen and operations are analyzed, MAPs help the managers make the right decisions for future reference. Moreover, some respondents felt that the effective use of MAPs has helped their company to run smoothly by contributing to financial reports and budget preparation and guiding employees in choosing the correct alternatives and decisions at work.

2. Respondents’ opinion: Challenges faced by the company when implementing MAPs

While summarizing the responses of participants, a common theme was noticed. Many participants felt that the biggest issue with the application of MAPs is the accounting staff’s need for more skills in staying up to date with new technology and programs. On the other hand, some SMEs could not effectively apply MAPs to their practice because they needed large sums of money or special programs to facilitate this change. Some respondents mentioned this discrepancy and explained that such problems negatively affect the company’s short-term decisions. In contrast, some respondents stated that their companies faced a few difficulties while implementing MAPs because they had trained their staff beforehand and were accustomed to the new procedures.

3. Respondents’ opinion: Suggestions and recommendations for adopting MAPs by SMEs

Most participants emphasized the importance of a win-win situation to influence stakeholders during the application of management accounting practices, such as training employees through specially developed programs and teaching them the importance/role of MAPs. A few respondents highlighted the need to provide structure and guidance to the accounting staff to motivate them to achieve these goals and reward them to help with employee motivation. Including accounting consultants is also a great idea because they are equipped to make decisions regarding management accounting practices.

4.4 Findings of the study and their implications

Despite large amounts of literature related to MAPs, the most accurate information was found through large global companies. Studies that were extensively done on MAP usage in the Omani context are relatively limited, making this study unique. It accommodates both SMEs and their use of MAPs while explaining the different variables in the Omani context. Three factors affect MAP variables (market competition, owners’ participation, and usage of advanced accounting software). However, they do not have a strong positive correlation related to education qualifications.  This study aligns with the previous studies and has shed light on the SMEs in Oman and their use of MAPs for business operations and performances. Furthermore, it can help the SMEs to leverage their competitiveness by putting more emphasis on MAP variables.

CONCLUSION AND RECOMMENDATIONS

The research conducted for this study holds significant implications for SME owners and their managerial departments. It comprehensively examines the impact of MAPs on these organizations, underscoring the pivotal role of management accounting in enhancing business performance. The following recommendations are derived from these insightful findings:

1. Establishing a shared database that provides accurate data can be an asset for SMEs in the long run. This will enable employees to stay abreast of technological advancements within the organization, enhancing their market competitiveness (Bromwich & Scapens, 2016).
2. Given that MAP variables evolve in response to the business environment, conducting periodic studies related to SMEs is crucial, ideally once every 2 – 3 years (Richard et al. 2009).
3. Training the organization’s accounting staff through courses or team initiatives regarding MAPs will allow employees to develop their skills and increase productivity. To mitigate the risk of employee error, managers should also develop their skills related to management accounting practices and act as guides to their team members. Managers play a crucial role in setting the tone for the adoption of MAPs, providing necessary resources, and fostering a culture of continuous learning and improvement (Pelz, 2019).
4. Managers should create an organized plan for implementing MAPs in their department and execute those strategies with continuous monitoring and care. This diligent approach is crucial, as it ensures that the benefits of MAPs are fully realized, and any potential issues are addressed promptly. Usage of advanced accounting software might aid in implementing MAPs as decision making becomes easier and availability of data is accessible by all the key stakeholders. But SMEs need to see the tradeoff between implementing new accounting systems and the benefits which they achieve.
5. It is essential for SMEs in Oman to upskill themselves by using effective MAPs to leverage the potential for business performance. This proactive approach is truer for SMEs seeking to expand in the next 2-3 years. The results have shown that many of the features of MAPs are still unexplored, like decision-making support and strategic management accounting techniques. The business environment is quite competitive and dynamic in Oman, especially after the current political tension in the GCC. Apart from other strategic decisions, MAPs can also provide a competitive advantage.
6. The associations and sectors should motivate and support SMEs to use these findings and refine their policies, training materials, and approach to this area. The focus should be more on MAP’s strategic leveraging techniques than basic financial and management skills. This could involve training modules, courses, and additional support, such as certifications, to enhance employee skills.

5.2 Limitations and future studies

A non-random search method was used to select this study’s research sample. Moreover, only SMEs located in Muscat were chosen for this study. Despite the limitations, this study opens avenues for future extensive research. It has effectively served the researcher’s objectives, albeit in a limited capacity, due to the scale of SMEs in Muscat, Oman. However, it can be seen as a springboard for advancement in this field, particularly by collecting data from different Gulf countries and applying MAPs to their work environment. For future studies, qualitative and quantitative methods can gather large amounts of data and information on MAP variables and their relation to business performance. To enhance their current accounting systems, SMEs should adopt advanced technology. Future studies should adopt a focused approach to gather diverse strategies and opinions from SMEs.

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