AL-MEAIDI, IBRAHIM, KHALID, A. (2011) AN INVESTIGATION INTO THE CURRENT MANAGEMENT ACCOUNTING PRACTICES AND THE CONTINGENT ASPECTS THAT HAVE PROMPTED SAUDI AND NON-SAUDI MANUFACTURING FIRMS TO ADOPT OR NOT ADOPT MODERN MANAGEMENT ACCOUNTING SYSTEMS: THE CASE OF THE EASTERN PROVINCE OF SAUDI ARABIA. Doctoral thesis, Durham University.
This research has investigated the current application of management accounting practices in Saudi and non-Saudi manufacturing firms that operate in the Eastern Province of Saudi Arabia, and the internal and external contingent aspects that prompted these firms to adopt or not to adopt advanced management accounting practices.
In order to achieve the aforementioned aims, a mixed methodology was used, with a questionnaire survey and semi-structured interviews being used as instruments for
collecting the required data. Three types of statistical analysis were used (descriptive, bivariate and multivariate) to analyse the data obtained from the returned
questionnaires (158 out of 260).
Analysis of the descriptive parts of the questionnaires has shown that Saudi and non-Saudi manufacturing firms are still loyal to their traditional management accounting
practices, such as the extensive use of one accounting system for several purposes, traditional allocation methods, traditional decision-making tools, standard costing
systems, traditional budgeting, and traditional financial measures. At the same time, the analysis has shown that there is slow move toward adopting new trends in
management accounting among these firms, mainly due to satisfaction with traditional management accounting practices and a lack of relevant skill regarding the advanced management accounting practices.
The bivariate results have shown that adoption of advanced management accounting practices by Saudi and non-Saudi manufacturing firms is subject to certain contingent
aspects, such as perceived environmental uncertainty, competition, size and firm strategy, but not product range or number. The same statistical test has shown that
there is a partial relationship between the extent of adoption of advanced management accounting practices, culture, and advanced manufacturing technologies.
The results of the multivariate test have shown that adoption of advanced management accounting practices by Saudi and non-Saudi manufacturing firms is related to only three predictors, which are size, number of products, and prospector strategy.
Theoretical analysis of the interviews has revealed that adoption of advanced management accounting practices is due to perceived environmental uncertainty, price and quality competition, size, number of products, culture, and firm strategy, but not advanced manufacturing technology. Also, analysis of the interviews has confirmed the descriptive finding regarding the heavy use of traditional management accounting practices.
The research concludes by emphasising that the case of the Eastern Province of Saudi Arabia follows the mainstream in regards to the limited acceptance of advanced management accounting practices and the fact that adoption of these practices is due to certain internal and external contingent drivers.
|Item Type:||Thesis (Doctoral)|
|Award:||Doctor of Philosophy|
|Faculty and Department:||Faculty of Social Sciences and Health > Economics, Finance and Business, School of|
|Copyright:||Copyright of this thesis is held by the author|
|Deposited On:||19 Jul 2011 13:16|