strategic management

1. STRATEGIC MANAGEMENT
ACCOUNTING AND SMEs
PERFORMANCE IN NIGERIA.
A THEORETICAL OVERVIEW
AHMED ALIYU PALLADAN

2. INTRODUCTION
The concept of strategic management accounting is related to the
provisions and use of accounting information by people in the
organization such as the management and the managers, for the
purpose of making business decisions that would allow them to
have competitive advantage and able to effectively control the
firm’s activities (Uyar, 2010).
Lately Strategic Management Accounting popularity has been extended to
SMEs (Alvarez, Sensini, Bello & Vazquez, 2021).

3. INTRO (CONT.)
One major issue confronting SMEs across the
globe is the inappropriate financial management
resulting from the lack of strategic management
accounting practices (Dang, Le & Pham, 2021).
Due to competition taking place in the business
environment, the role of strategic management
accounting becomes very crucial and important in order
to assist SMEs improve their performance.

4. OVERVIEW OF STRATEGIC MANAGEMENT
ACCOUNTING (SMA)
On
One of the most noted vanguards in the re-invention of management accounting
practices in contemporary time was Kaplan. Kaplan in 1980s through the
promotion of Activity-Based Costing.
Otley (2001) suggest that Activity-Based Costing has given rise to the
prominence of other management accounting sub-issues- the most important
being Activity-Based Budgeting, Activity-Based Cost Management and Activity-
Based Management

5. Otley (2001) notes, Activity-Based Costing has given rise to
the prominence of other management accounting sub-
issues- the most important being Activity-Based Budgeting,
Activity-Based Cost Management and Activity-Based
Management.
Kaplan’s work can be seen as part of a more general
movement to adapt and change the management accounting
practice that led to emergence of Strategic Management
Accounting (Philip, 2021).

6. Different business and accounting approaches are popular in today's diverse and
competitive market environment. Thus, information managers use economic data,
particularly financial data, to make short- and long-term decisions and can be crucial
to a variety of decision motivations (Royaee,Salehi & Aseman, 2012).
Traditional management accounting (MA) methods, such as
traditional costing, variance analysis, budgeting, break-even
analysis, and cost-benefit analysis, have either been used by
firms that are no longer suited to today's market environment
or have actually created paperwork business anomalies (Saleh &
Mousa, 2022)

7. OVERVIEW OF SMEs
SME sector is the backbone of major developed economies, as
well as important contributors to employment, economic and
export growth
In Nigeria, SMEs contribute 48% of national GDP, account for
96% of businesses and 84% of employment
Nigeria Bureau of Statistics opined that small and medium
scale enterprises (SMEs) in Nigeria have contributed about
48% of the national GDP in the last five years
There are 17.4 million SMEs in Nigeria and they account for about
50% of industrial jobs and nearly 90% of the manufacturing sector

8. COMPONENTS FOR EFFECTIVE SMA
IMPLEMENTATION BY SMEs
Technology
Information
People
Government Policy

9. BENEFITS OF SMA TO SMEs
• SMA facilitate
SMEs
business
decisions that
enhance their
competitivene
ss and
influence their
performance
2
• SMA
Enhanced
SMEs good
Corporate
practice
3
• SMA is
broader than
Mgt Accnt.,
since it
encompasses
Mgt. Acctng.
& Strategic
Mgt.
• Accountants
and Mangers
could gain
significant
benefits on
the
governance
functions of
SMA

10. CONCLUSION
Managerial
Implication
Managers should be
reminded that optimal
use of strategic
managt accounting
techniques would
boost SMEs
organisational
performance
Theoretical
Implications
overall, evidence
from reviewed
literature underlines
the criticality of
SMA techniques
usage to SMEs
organisational
performance.

11. THANK YOU FOR LISTENING