The Effect of Strategic Management Accounting Practices on Firm Performance in Jordan, the Mediating Role of Supply Chain Management Practices

Purpose - This study aims to investigate the mediating impact of Role of Supply Chain Management Practices on the relationship between Strategic Management Accounting Practices and Firm Performance. Design/methodology/approach - The research uses quantitative method to test the relationship between strategic Management Accounting Practices, Supply Chain Management Practices, and firm Performance in Jordan, the Mediating Role of Supply Chain Management Practices. The sample consists of 313 managers of manufacturing companies in Jordan. AMOS software is used for regression analysis. Findings-The empirical findings of the study showed that strategic Management Accounting Practices is negatively positively associated firm Performance. Moreover, the findings showed that Supply Chain Management Practices is positively associated with firm Performance. Regarding the mediation role of Supply Chain Management Practices, the results revealed that Supply Chain Management Practices fully mediate the association between strategic Management Accounting Practices and firm Performance. Research limitations – This research was conducted in industry companies in Jordan. However, the companies studied did not have the same product, so the researchers were concerned that this could limit the generalizability of the research findings. In addition, the method of collecting data was done property study where the researchers used data across management units so that it was not an ideal approach to evaluate the impact of SMA on FP. In the future, similar research should also be applied to service companies because it will provide very interesting theoretical and managerial implications. Practical implications: The findings of the current study have implications for providing local businesses and policymakers with tailored insights into the strategic nuances of SMAP and SCMP in the Jordanian context. This research, therefore, serves as a valuable resource for academics, practitioners, and policymakers, fostering a deeper


Introduction
Organizations of today are in a continuous struggle to face the challenges posed by the incessantly changing business environment (Cavusgil & Knight, 2015).Because of the level of competition, globalization has disarticulated the industrial sector of most countries due to increasingly high production costs especially in developing countries.The rise in costs is attributable partly to the almost free entry and exit of global firms, placing a heavy burden on the local manufacturing firms (Okoye & Nwaigwe, 2015).Such challenges have compelled these companies in the affected countries such as Jordan to limit their budgets as a result of the financial constraints (Al-Ali & Abu-Rumman, 2019).
According to Al Sharif (2017) the Jordanian economy has been affected negatively in general, and the manufacturing sector in particular.Hence, the survival of the manufacturing sector is critical to add value to the country's economy (Ojua, 2018).As firms face increasingly multifarious, dynamic, and intimidating environments, major attention has been focused on how to enhance the performance of firms especially in the manufacturing sector (Mahadeen et al., 2016).Firm performance is of vibrant importance for economic development, stakeholders, and investors (Mirza & Javed, 2013).
Therefore, operating in a competitive environment requires companies to have access to relevant information.According to Soheilirad & Sofian (2016) accounting information is beneficial for companies with long-term strategic tactics.From data collection to data analyses and formulation of business decisions for management (Daraban, 2018).Management accounting system turns out to be a vital part of the organization's common management practice.However, the system also poses a notable difficulty in the decisionmaking process because the traditional management accounting (TMA) methods lack the strategic capability for decision making and resource allocation (Achimugu & Ocheni, 2015;Ojua, 2018).
Therefore, the adoption and implementation of Strategic Management Accounting (SMA) tools which explore and scan both internal and external business and socio-economic environment for effective business decisions are advocated since SMA tools are capable to give insights into information about competitors (Thapayom, 2019).Besides, SMA provides firms the competitive edge over companies in similar industry and also in the economy as a whole (Alsoboa et al., 2015;Ojra, 2014).
Furthermore, Supply Chain Management (SCM) has become an integral part of business enterprises and is now synonymous with the success of businesses in improving customers' satisfaction levels (Pradhan et al., 2018).SCM practice plays a major part in reducing operating costs, boosting customer satisfaction, and improving the financial position of a company (Andria et al., 2020).The era of the industrial revolution 4.0 has made almost all business organizations begin to realize that it is not enough to increase efficiency in an organization, but also that their entire supply chain must be made competitive (Haudi et al., 2022).The understanding and practice of supply chain management (SCM) have become an important prerequisite to remaining competitive in global competition and at the same time to increasing profits (Muafi et al., 2020).Thus, SCM is the lifeline on which most of the topperforming companies currently depend on (Pradhan et al., 2018).
Many theories discuss the importance and motivation of management in the SMA and SCMP.Among them, the most widely covered in the literature is the Resource-Based View (RBV) theory.This theory presents a vision of the managerial framework which uses to determine the strategic resources with the potential to deliver comparative advantage to a firm.The firm can exploit these resources to achieve sustainable competitive advantage.However, no known study has explained the mediating role of Supply Chain Management Practice's the relationship between Strategic management accounting and Firm performance of companies in Jordan.The study seeks and aims for the following

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To investigate the effects of SMA on FP in Jordanian companies.

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To investigate the effects of SMA on SCMP in Jordanian companies.

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To investigate the effects of SCMP on FP in Jordanian companies.

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To determine if SCMP mediates the relationship between SMA and FP Jordanian companies.The current study is organized as follows: section two reviews the literature related to study variables and builds the study's hypotheses.Conceptual framework in section three.Study data and research methodology are highlighted in section four.Section five discusses study results and implication.implication and conclusion are drawn in section six.Finally, conclusion in section seven.

Literature Review & Hypothesis Development
The Effect of Strategic Management Accounting on Firm Performance Alamri (2018) conducted a study to develop a detailed standardization of SMA facets and to investigate their influence on both financial and non-financial measures of FP.A total of 435 accounting managers working in Saudi companies listed on the Saudi Stock Exchange participated in the study.The results reveal that SMA facets have a positive impact on FP both in terms of financial and non-financial performance.
Also, Phornlaphatrachakorn and Na-Kalasindhu (2020) anylazed the the effects of strategic management accounting on firm performance of finance businesses in Thailand.In the study, 175 finance businesses in Thailand are the samples of the study.Found the SMA is positively related to managerial efficiency and organizational effectiveness.
Moreover, according to a study conducted in Jordan (Shaqqour, 2020) on the vertical and horizontal integration of SMA and decision-making on reducing financial failures, there is a positive impact of vertical and horizontal integration of SMA and operational and strategic decision making on reducing financial failures of industrial companies listed on the Amman Stock Exchange (ASE).According to the study, Jordanian businesses should be more interested in implementing more advanced accounting methods and tools (SMA approaches), which would prevent financial failures and enhance levels of performance via better operational and strategic decision-making.Besides, Nguyen and Nguyen (2021) indicate that employing SAM methods may positively help to strategic decision-making by increasing the competitiveness and performance of the mentioned firms in their study on the use of SMA in the consumer products sector in Vietnam.
Conversely, Odia (2019) examined the impact of SMA techniques' usage and strategic choices on the performance of financial institutions in Nigeria.Based on a questionnaire completed by 156 top management employees of 13 deposit money banks in Benin metropolis.The findings from the multiple regression analysis showed that while the use of SMA techniques had a negative impact on financial performance Based on the above discussed literature, the following hypotheses is developed H1: There is a significant effect of SMA on FP in Jordanian companies.Khalila et al (2019) examined the relationship between SCMP and organizational performance with innovation as a mediator.Data from 207 small and medium enterprises (SMEs) in Punjab, Pakistan were obtained.The suggested hypotheses were tested using PLS-SEM.Findings show no impact on organizational performance from a strategic partnership with suppliers and the level of information sharing.Besides, the quality of information sharing, the internal supply chain process, and lean practices affected firm performance significantly.These five supply chain management practices have had a strong and positive impact on innovation.Innovation meanwhile significantly and positively mediated the relationship between five practices in supply chain management and organizational performance.

The Effect of Supply Chain Management Practices on Firm Performance
Gopal et al ( 2019) determined the impact of supply chain management practices (i.e., strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, postponement, and risk and reward sharing on firm performance, that is, marketing performance and financial performance).The instrument is adopted, and it is administered to 115 target respondents from 6 organizations in Chennai.A valid of 100 samples is taken for further analysis, and multiple regression analysis is employed to determine the purpose of the study.The findings indicated that supply chain management practices (i.e., strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, postponement, and risk and reward sharing) have significant and positive impact on firm performance (i.e., marketing and financial performance).
Also, the study by Alam (2022) evaluated the impact of supply chain management practices on the firm performance in Manufacturing firms.The methodology included a quantitative approach and explanatory type with convenience sampling and linear regression analysis using a sample of 200 respondents working at various manufacturing firms in Karachi-Pakistan.The study found that strategic supplier partnership, knowledge management capability, and customer relationship significantly influence firm performance.
Moreover, the study by Silitonga et al (2023) aimed to examine the effect of supply chain management (SCM) on competitive advantage and company performance in the industry in Bandung.The type of research is quantitative research using a questionnaire distributed directly to the companies, with as many as 40 questionnaires.Data analysis used multiple linear regression and path analysis.The results show that supply chain management influences competitive advantage, supply chain management tends to have an influence direct effect on company performance.
SCMP are extroverted doors of the companies in order to ensure mutual advantages in their own processes and increases the performance of firms.Therefore, enhanced performance may be achieved by paying more attention to SCMP (Kwamega et al., 2018).Besides, various studies have supported the impact of SCMP on FP.Therefore, the following hypothesis is proposed: H2: There is a significant effect of SCMP on FP in Jordanian companies.
The Effect of Strategic Management Accounting and Supply Chain Management Practices.Doktoralina and Apollo (2019) studied SMA to augment the performance of Malaysian logistics firms.The study used a survey method to gather data and employed PLS-SEM to assess the collected data.The findings show that SMA activities have a significant positive association with supply chain outputs which ultimately enhance the profitability of the logistics companies.Besides, Pradhan et al (2018) evaluated the utilization of SMAP and their influence on enhancing the supply chain performance as well as the overall performance of the organizations in India.They employed a structured questionnaire for exploring the impact of various management accounting techniques on performance indicators.A confirmatory factor analysis measure was used through SEM to establish the reliability and convergent validity of the data.It revealed that the adoption of various management accounting techniques on SCMP is the most suitable strategy to boost firm performance Also, Jamal et al (2020) investigated relationships between supply chain management and management accounting practices and their individual or combined effects on both supply chain and overall organizational performance.Using a contingency theory approach a conceptual model was empirically tested with managers in Malaysian publicly listed organizations and the resultant structural equation analysis found a positive and direct relationship between both sets of practices.
Therefore, advanced management accounting techniques provide the necessary support systems for managers to enhance performance in the supply chain management (, Pradhan et al., 2018).Based on the argument above, the following hypothesis is proposed: H3: There is a significant effect of SMA on SCMP.

The Mediating Role of Supply Chain Management Practices in the Relationship Between Strategic Management Accounting and Firm Performance
The present study refers to SCM as the lifeline on which most of the top-performing companies depend, as suggested by (Andria et al., 2020).According to Andria et al. (2020), SCMP plays a major part in reducing operating costs, boosting customer satisfaction, and improving firm performance.Marinagia et al (2015) argue that information sharing among partners along the supply chain facilitates higher overall performance, as a result of Supply Chain Management Practices (SCMP) elevating information reliability and quality.Siddiqui et al (2012) defined SCMP as the configuration, coordination, and continuous improvement of an organized set of operations.Peng et al (2016) argue that IT capability with a firm's ability to improve SCMP can enhance firm performance.The study by Kamboj et al (2015) shows the mediating role of SCMP in the relationship between operations capability on firm performance.Hence, based on the above explanations and evidence, and taking into considerations the previous set of hypotheses, the following hypotheses are proposed in this study Based on the above discussed literature, the following hypotheses is developed H4: There is a significant mediating effect of SCMP on SMA and FP in Jordanian companies.

Conceptual Framework
A conceptual framework is a foundation erecting the whole research project.Its devices rationally developed and explained associations between the different variables elaborated from similar studies in the literature to obtain the solutions to the problem statement.It also offers a base to devise and measure the hypotheses.The conceptual framework for the current research is represented in Figure 3.1 as follows Figure 3.1 Conceptual Framework

Methodology Research Method
This study was conducted by surveying the population of managers in manufacturing companies in Jordan.This has also been investigated by several previous researchers with the object of manufacturing companies (Cescon et al., 2019;Almatarneh et al., 2022).The objective of this study is to enhance a better understanding of the current prominence of managers hence, the target population of this study data from the Amman Chamber of Industry (2018) showed that the population is 1682.Hence, applying Krejcie and Morgan's (1970) sample size selection table, the suitable sample size required for this study is 313 managers.According to Sekaran (2006), the population of the study is the Stratified (proportional) sampling methods and basic random sampling are used for data collection for the present research.Stratified sampling methods enable the researcher to assign each company's exact number of managers while simple random enables the researcher to randomly select the managers from the strata.Questionnaires were distributed to 313 managers as respondents and as many as 275 data could be processed for further analysis because some of the data did not meet the requirements and were categorized as outliers.The scale technique in this study used a Likert scale with a choice of a scale of 1 to 10.This refers to (Molell, 2015;Ojua, 2018;Zaki, 2019).Hypothesis testing was done by using AMOS 25 analysis technique.From the testing it can be concluded that all variables and questionnaire items are valid and reliable.All AMOS 25 assumption tests are also met (Collier, 2020).

Result Analysis
This study analyzed Three variable, namely SMA (Strategic Management Accounting), SCMP (Supply Chain Management Practices), and FP (Firm Performance).As this research follows the two-phase method of modelling and evaluation of the structural model, hence the study tested all measurement models of the latent construct for onedimensionality, validity, and reliability before modelling the structural model and executing SEM (Awang et al., 2016;Bakar & Afthanorhan, 2016).This entire validation procedure is called Confirmatory Factor Analysis (CFA) (Awang, 2014(Awang, , 2015)).Because the data in this study fulfilled of these requirements, in this study CB-SEM analysis was carried out using AMOS 25 software.

Strategic Management Accounting
Before further analysis was carried out, the data in the study had to be ensured to pass the feasibility test.The first feasibility test is testing the validity of each indicator.(Hair et al., 2017) provides criteria that an indicator has a good validity value if the loading factor value is > 0.5.If an analytical model has an indicator with a loading factor value of <0.5, the indicator must be dropped from the analysis.The loading factor values of all indicators are shown in  (2016), the construct gained Convergent Validity if its AVE crosses the value of 0.5.The study needs to measure the CR in order to evaluate the Composite reliability and its value should surpass 0.6 in order to achieve reliability (Awang, 2014(Awang, , 2015;;Bakar & Afthanorhan, 2016).
The AVE and CR were measured using the factor loading and tabulated in Table 1.The results of the validity and reliability tests are shown in Table 2.

Hypothesis Testing
In this study proposed 4 hypotheses, there are 3 direct hypothesis (H1, H2, H3) and their indirect hypothesis (H4).The results of hypothesis testing can be seen by looking at the Critical Ratio (CR) value and the probability (P) value from the results of data processing.If the test results show the CR value is above 1.96 and the probability value (P) is below 0.05/5%, then the relationship between exogenous and endogenous variables is significant.The results of hypothesis testing are shown in Table 5.

Mediation Test
The mediation test is seen from the significance of the indirect effect between variables as seen from the

Discussion and Implication
The results of the research show that SMA has a not significant effect on FP (H1 is rejected), and this supports previous research (Ojua, 2016;Odia, 2019), and the results of the research show that there is a significant positive effect between SCMP on FP (H2 is accepted), this supports previous research.( Khalila et al., 2019;Subhashini & Velmurugan, 2019;Alam, 2022;Silitonga et al., 2023), and it has been shown in this research that there is a significant positive effect between SMA on SCMP (H3 is accepted) and this supports previous research (Doktoralina & Apollo, 2019;Pradhan et al., 2018;Jamal et al., 2020).This research states that SCMP mediates SMA on FP (H4 accepted).

Limitations and Suggestions for Future Research
This research was conducted in industry companies in Jordan.However, the companies studied did not have the same product, so the researchers were concerned that this could limit the generalizability of the research findings.In addition, the method of collecting data was done property study where the researchers used data across management units so that it was not an ideal approach to evaluate the impact of SMA on FP, but other variables such as SMA on SCMP, SCMP on FP the results were very influential and significant with mediating of this study and a direct relationship between SMA on FP is not significant.However, this research is very interesting to note considering that currently Jordan it's a safe country Middle East so that it is expected to have an impact on business performance in the future.In the future, similar research should also be applied to service companies because it will provide very interesting theoretical and managerial implications.

Conclusion
The research on the effect of Strategic Management Accounting practices (SMAP) on firm performance in Jordan, with the mediating role of Supply Chain Management Practices (SCMP), holds substantial theoretical and contextual contributions.The significance of this research lies in its theoretical advancements, expanding the understanding of the intricate relationships between SMAP, SCMP, and firm performance.By investigating the mediating role of SCMP, the study contributes to bridging gaps in the existing literature, providing a nuanced perspective on how supply chain management practices influence the impact of SMAP on firm performance.The findings not only augment the theoretical foundations of SMAP and SCMP but also offer practical insights for businesses operating in the unique context of Jordan.As a safe country in the Middle East, Jordan's business landscape is distinct, and this research sheds light on the specific dynamics at play.The contextual contribution is notable, providing local businesses and policymakers with tailored insights into the strategic nuances of SMA and SCMP in the Jordanian context.This research, therefore, serves as a valuable resource for academics, practitioners, and policymakers, fostering a deeper comprehension of the intricate interplay between strategic management accounting practices, supply chain management practices, and firm performance in the unique socio-economic landscape of Jordan.

Table 2
Reliability TestFurthermore, the conformity test of the confirmatory model was tested using the Goodness of Fit Index.There are 3 goodness of fit criteria, namely absolute fit indices, incremental fit indices and parsimony fit indices.In this study, several criteria were taken from each type of GOFI, namely RMSEA and CMINDF representing absolute fit indices, CFI and TLI representing incremental fit indices, and PGFI and PNFI representing parsimony fit indices.The goodness of fit test is carried out and it was found that there are the results of the goodness of fit are shown in Table3and the model is shown in Figure1.
table of indirect effects-two tailed significance.The results show a significant mediation role if it has an indirect effect-two tailed significance value less than 0.05.The results of the indirect influence analysis are as follows: