ISSN: 2225-8329
Open access
Accountants play a critical role in SMEs by giving strategic advices in accounting and finance matters. They are considered significant resources in the uplifting performance of SMEs because employing accountants may assist in addressing SME constraints. In this regard, this research aims to explore the role of accountants in developing and using management accounting systems in SMEs to ensure the sustainable survival of SMEs in Pakistan. A qualitative research design was incorporated, and data were gathered from 16 semi-structured interviews. Furthermore, some observations and documentary evidence were collected for data triangulation purposes. Thematic analysis was performed for qualitative data analysis. Findings have revealed that SME owners have employed accountants for strategic advice purposes. Furthermore, accountants have portrayed dynamic capabilities in the context of developing and using management accounting systems in SMEs. These accountants’ dynamic capabilities have ensured the sustainable survivability of SMEs. This is one of the earlier studies in the context of Pakistani SMEs where accountants were involved in developing and using management accounting systems by portraying dynamic capabilities.
Abdi, M. D., Dobamo, H. A., & Bayu, K. B. (2021). Exploring current opportunity and threats of artificial intelligence on small and medium enterprises accounting function; evidence from south west part of ethiopia, oromiya, jimma and snnpr, bonga. Academy of Accounting and Financial Studies Journal, 25(2), 1-11.
Bell, E., Bryman, A., & Harley, B. (2022). Business research methods. Oxford university press.
Ben Hamadi, Z., & Fournès, C. (2023). Understanding the adoption or rejection of management accounting innovations within an SME using Rogers’ conceptual frameworks. Journal of Accounting & Organizational Change, 19(1), 142-163.
Berry, A. J., Sweeting, R., & Goto, J. (2006). The effect of business advisers on the performance of SMEs. Journal of small business and enterprise development, 13(1), 33-47
Blackburn, R., Carey, P., & Tanewski, G. (2018). Business advice by accountants to SMEs: relationships and trust. Qualitative Research in Accounting & Management.
Carey, P., & Tanewski, G. (2016). The provision of business advice to SMEs by external accountants. Managerial Auditing Journal, 31(3), 290-313.
Castillo-Montoya, M. (2016). Preparing for interview research: The interview protocol refinement framework. The qualitative report, 21(5), 811-831.
Chenhall, R. H., & Moers, F. (2015). The role of innovation in the evolution of management accounting and its integration into management control. Accounting, organizations and society, 47, 1-13.
Cleary, P., Quinn, M., Rikhardsson, P., & Batt, C. (2022). Exploring the Links Between IT Tools, Management Accounting Practices and SME Performance: Perceptions of CFOs in Ireland. Accounting, Finance & Governance Review, 28.
Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.
De Bruyckere, S., Verplancke, F., Everaert, P., Sarens, G., & Coppens, C. (2020). The importance of mutual understanding between external accountants and owner–managers of SMEs. Australian accounting review, 30(1), 4-21.
Doron, M., Baker, C. R., & Zucker, K. D. (2019). Bookkeeper-controller-CFO: the rise of the chief financial and chief accounting officer. Accounting Historians Journal, 46(2), 1-8.
Dyer, L. M., & Ross, C. A. (2007). Advising the small business client. International Small Business Journal, 25(2), 130-151.
Gordini, N. (2016). Does the family status of the CFO matter to enhance family firm performance? Evidence from a sample of small and medium-sized Italian family firms. International Journal of Entrepreneurship and Small Business, 28(1), 36-57.
Goretzki, L., Strauss, E., & Weber, J. (2013). An institutional perspective on the changes in management accountants’ professional role. Management Accounting Research, 24(1), 41-63.
Honig, B., & Samuelsson, M. (2014). Data replication and extension: A study of business planning and venture-level performance. Journal of Business Venturing Insights, 1, 18-25.
Hyder, S., & Lussier, R. N. (2016). Why businesses succeed or fail: a study on small businesses in Pakistan. Journal of Entrepreneurship in Emerging Economies, 8(1), 82-100.
Kuttner, M., Mayr, S., Mitter, C., & Duller, C. (2022). Impact of accounting on reorganization success: empirical evidence from bankrupt SMEs. Journal of Accounting & Organizational Change.
Lasyoud, A. A., & Alsharari, N. M. (2017). Towards an understanding of the dimensions and factors of management accounting change. Asia-Pacific Management Accounting Journal, 12(1), 105-142.
Lopez, L. O., & Hiebl, M. R. (2015). Management accounting in small and medium-sized enterprises: current knowledge and avenues for further research. Journal of management accounting research, 27(1), 81-119.
Ma, D., Fisher, R., & Nesbit, T. (2021). Cloud-based client accounting and small and medium accounting practices: Adoption and impact. International Journal of Accounting Information Systems, 41, 100513.
Ma, L., Chen, X., Zhou, J., & Aldieri, L. (2022). Strategic management accounting in small and medium-sized enterprises in emerging countries and markets: A case study from China. Economies, 10(4), 74.
Mazuri, A. G., Izani, S. M. S., & Shahid, L. (2021). The relevancy of strategic thinking in the role of management accounting systems for SME’s survivability: A new conceptual framework.
Munir, S., Abdul Rasid, S. Z., Aamir, M., Jamil, F., & Ahmed, I. (2022). Big data analytics capabilities and innovation effect of dynamic capabilities, organizational culture and role of management accountants. Foresight. https://doi.org/10.1108/FS-08-2021-0161
Niemi, L., Kinnunen, J., Ojala, H., & Troberg, P. (2012). Drivers of voluntary audit in Finland: to be or not to be audited?. Accounting and business research, 42(2), 169-196.
Paananen, M., Renders, A., & Blomkvist, M. (2016). Causes and consequences of improvements in the information environment for Swedish small and mid-sized firms. Accounting in Europe, 13(1), 21-42.
Pelz, M. (2019). Can management accounting be helpful for young and small companies? Systematic review of a paradox. International Journal of Management Reviews, 21(2), 256-274.
Perry, J., Badger, B., Lean, J., & Leybourne, S. (2010). Taking over the reins: the needs of individuals who purchase small established enterprises. The International Journal of Entrepreneurship and Innovation, 11(1), 57-67.
Rashid, S., & Ratten, V. (2020). A dynamic capabilities approach for the survival of Pakistani family-owned business in the digital world. Journal of Family Business Management, 10(4), 373-387.
Sarasvathy, S. D. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of management Review, 26(2), 243-263.
Sarasvathy, S. D. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of management Review, 26(2), 243-263.
Sarens, G., Everaert, P., Verplancke, F., & De Beelde, I. (2015). Diversification of External Accountants Serving Small and Medium?sized Enterprises: Evidence from Belgium. Australian Accounting Review, 25(2), 155-174.
Saunders, M. N., Lewis, P., & Thornhill, A. (2019). Research Methods for Business Students (Eighth). Harlow: Pearson Education Limited.
Sian, S., & Roberts, C. (2009). UK small owner?managed businesses: accounting and financial reporting needs. Journal of Small Business and Enterprise Development, 16(2), 289-305.
Silverman, D. (2015). Interpreting qualitative data. Sage.
Stoian, M. C., Dimitratos, P., & Plakoyiannaki, E. (2018). SME internationalization beyond exporting: A knowledge-based perspective across managers and advisers. Journal of World Business, 53(5), 768-779.
Stone, G. (2015). Power, dependence and frustration: A study of power in Australian accountants’ advisory relationship with small business. Meditari Accountancy Research, 23(3), 250-275.
Tan, L. M., Braithwaite, V., & Reinhart, M. (2016). Why do small business taxpayers stay with their practitioners? Trust, competence and aggressive advice. International Small Business Journal, 34(3), 329-344.
Teece, D. J. (2012). Dynamic capabilities: Routines versus entrepreneurial action. Journal of management studies, 49(8), 1395-1401.
Teece, D. J. (2018). Business models and dynamic capabilities. Long range planning, 51(1), 40-49.
Teece, D. J. (2022). The evolution of the dynamic capabilities framework. In Artificiality and Sustainability in Entrepreneurship: Exploring the Unforeseen, and Paving the Way to a Sustainable Future (pp. 113-129). Cham: Springer International Publishing.
Tipu, S. A. A. (2022). Organizational change for environmental, social, and financial sustainability: A systematic literature review. Review of Managerial Science, 16(6), 1697-1742.
Vanstraelen, A., & Schelleman, C. (2017). Auditing private companies: what do we know?. Accounting and Business Research, 47(5), 565-584.
Weigel, C., & Hiebl, M. R. (2022). Accountants and small businesses: toward a resource-based view. Journal of Accounting & Organizational Change, (ahead-of-print).
Wolf, T., Kuttner, M., Feldbauer-Durstmüller, B., & Mitter, C. (2020). What we know about management accountants’ changing identities and roles–a systematic literature review. Journal of Accounting & Organizational Change, 16(3), 311-347.
In-Text Citation: (Latif et al., 2023)
To Cite this Article: Latif, S., Salleh, S. I. M., & Abd.Ghani, M. (2023). Role of Accountants in Developing and Using Management Accounting Systems (MAS) of SMEs in Pakistan: A Qualitative Approach. International Journal of Academic Research in Accounting Finance and Management Sciences, 13(1), 373–386.
Copyright: © 2023 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode