The Role of Management Accounting Practices in Strategy Implementation by Small and Medium Enterprises in Manufacturing Sector in Bulawayo Metropolitan Province

International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue IX, September 2020 | ISSN 2454–6186

The Role of Management Accounting Practices in Strategy  Implementation by Small and Medium Enterprises in Manufacturing Sector in Bulawayo Metropolitan Province

Dr Fainos Chinjova¹, Elvis Msipha^2
1,2 Graduate School of Business; National University of Science and Technology; P O Box AC 939 , Ascot , Bulawayo, Zimbabwe

Abstract : The study sort to establish the role of management accounting practices in strategy implementation by SMEs in manufacturing sector in Bulawayo Metropolitan Province. The research was motivated by the fact that SMEs in manufacturing sectors in Zimbabwe are facing a host of challenges which includes failure to adopt prudent accounting practices in their strategy implementation. An explanatory study in which a survey research design was adopted. The major finding was that SMEs were willing to adopt management accounting practices in their strategy implementation, but were constrained by a number of challenges that included a volertile economic environment, ever changing government policies as well as lack of financial resources.

Key Words: MAPS; SMES

I. INTRODUCTION

The strategic financial performance of any business entity is ultimate and of paramount importance to its owner. Different authors of strategic management have forwarded divergent explanations as to what constitute the basis of strategic financial performance. According to Porter (1979), the manipulation of the market structure by a firm is the basis for competitive advantage and performance. Comparably, scholars considers a firm’s resources as the explanation for differences in financial performance. Despite these two seemingly prominent propositions, there are still variations in the strategic financial performance of firms within the same industry albert with comparable resource. This led to the refinement and extension of the resource based view that argues that resources can be valuable if they meet the four fundamental attributes. These attributes are that resources must be valuable, rare, inimitable and non-substitutable. The possession and successful orchestration of these resources will lead to sustainable competitive advantage. These resources can either be intangible and tangible.

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