Management Accounting Practices and Sustainability Performance of Manufacturing Firms in Ghana

Abstract

This study was designed to assess the relationship between Management Accounting Practices (MAPs) and sustainability performance (SsP) of manufacturing firms in Ghana. The study also investigated the moderating roles of IT adoption, CG and OC in the link between MAPs and SsP. The positivist philosophical paradigm, quantitative research approach, explanatory research design, and cross-sectional study design were employed for the study. Questionnaire was designed to obtain data from managers of 266 manufacturing firms and Smart PLS-SEM was used to analyse the data. The study found significant positive relationships between CS and FP, DSS and EP, DSS and SP, PMS and EP, PMS and SP, as well as SMAP and EP. All other individual first order direct relationships were not significant. Secondly, the study also found a significant positive moderating role of IT adoption in the link between PMS and FP. Thirdly, CG was found to have a positive significant moderating effect in the connection between PMS and EP. Fourthly, CG was found to have a negative significant moderating effect in the link between DSS and EP. However, OC played no moderating role in the MAPs and SsP nexus. The study concludes that, manufacturing firms should implement CS (like variable costing), DSS (like customer profitability analysis), PMS (like variance analysis, and ratio analyses) and SMAP to boost their SsP. They must also implement IT adoption skills and PMS to enhance their FP. Last but not least, they should resource their audit committees as well as implement PMS to boost EP.