Abstract

Organizations use management accounting information in a variety of ways, and specifically management accounting information that plays a significant role in the effective management process. In addition, management accounting information contributes to the organization’s performance by giving feedback on carrying out the strategic plans and completing the work, and consequently enhancing the economy of the country. However, new management accounting systems, due to its externally and future-oriented strategic characteristics, (that may avoid many of the weaknesses of conventional management accounting systems) still lack a solid base in empirical studies. The main goal of this research is to determine the effect of Strategic Management Accounting (SMA) on the Jordanian service sector’s performance as one of the emerging economies. This is especially important as service sectors in several countries in the Middle East, including Jordan, have faced a notable decline in their performance. This research uses a quantitative method; the quantitative data was collected via a questionnaire. The total selected sample size for the quantitative approach was 127 companies belonging to the Jordania service sector for the fiscal year 2017. The research found that the Strategic Management Accounting influences the service sector’s performance and therefore that could be used to help the service sector’s managers understand the importance of accounting information for strategic decision making.

Keywords: Management accounting, financial performance, service sector, Jordan

How to Cite:

Alabdullah, T. T., (2019) “Management Accounting and Service Companies' Performance: Research in Emerging Economies”, Australasian Accounting, Business and Finance Journal 13(4), 100-118. doi: https://doi.org/10.14453/aabfj.v13i4.8