<b>The Adoption of Strategic Management Accounting in Nigerian Manufacturing Firms</b>

Abstract

This study investigated Strategic Management Accounting (SMA) with a view to determining the extent to which it influences Competitive Advantage in the manufacturing industry in Nigeria. To achieve this purpose, some research questions were raised, and a review of related literature was made. The population of this study consists of Chief Executives, Chief Accountants and Marketing Directors of those manufacturing companies quoted in the Nigerian Stock Exchange Factbook of 2009. A total of one hundred (100) of such companies and three hundred (300) respondents were identified. The questionnaire, which was administered on the Chief Executives, Chief Accountants and Marketing Directors of the selected companies, was the instrument used for data collection in this study and it was subjected to a face and content validity. Its reliability was tested through a pilot survey of twenty-four (24) respondents with thirty-two (32) test items. A reliability co-efficient of 0.96 was computed using the Kendall Co-efficient of Concordance. The data generated for this study were analysed using tables, frequencies, bar charts, and mean scores. Our findings revealed that Strategic Management Accounting enhances Competitive Advantage although several factors bedevil its adoption in Nigerian manufacturing firms. Based on the above, it was recommended that – a course on Marketing Accounting should be introduced into accounting curriculum in Nigerian tertiary institutions to adequately equip future accountants with good knowledge of Strategic Management Accounting; a consensus should be reached among business executives, academics, and accounting practitioners on the components of SMA to enhance its adoption in the Nigerian manufacturing industry; manufacturing firms in Nigeria should welcome a change from Functional- Based Costing to an Activity-Based Costing for the effectiveness of Strategic Management Accounting; and accountants in Nigerian manufacturing firms should be adequately equipped through seminars, workshops and conferences for the transformation of Strategic Management Accounting to strive.

Key words: Strategic management accounting, competitive advantage, competition, marketing accounting, functional-based costing, activity-based costing