Ảnh hưởng của cạnh tranh và quy trình sản xuất sản phẩm đến kế toán quản trị cho việc ra quyết định và tác động của nó đến hiệu quả hoạt động của doanh nghiệp: Nghiên cứu tại các

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INFLUENCE OF COMPETITION AND THE REQUIREMENTS
FOR PRODUCTION PROCESS ON MANAGEMENT ACCOUNTING
FOR DECISION - MAKING AND ITS IMPACT ON FIRM
PERFORMANCE: A SURVEY IN VIETNAMESE MECHANICAL
MANUFACTURING ENTERPRISES

ẢNH HƯỞNG CỦA CẠNH TRANH VÀ QUY TRÌNH SẢN XUẤT
SẢN PHẨM ĐẾN KẾ TỐN QUẢN TRỊ CHO VIỆC RA QUYẾT ĐỊNH
VÀ TÁC ĐỘNG CỦA NÓ ĐẾN HIỆU QUẢ HOẠT ĐỘNG
CỦA DOANH NGHIỆP: NGHIÊN CỨU TẠI CÁC DOANH NGHIỆP
SẢN XUẤT CƠ KHÍ VIỆT NAM

MA, Nguyen Quynh Trang - Thuongmai University


Abstract

The purpose of this study is to determine the influence of competition and the requirements
for production process on management accounting for decision-making in Vietnamese mechanical
manufacturing enterprises (VMMEs). The sample was collected from a survey of senior
executives, chief accountants and accountants of 38 VMMEs in July 2020.The results showed
that both competition and requirements for production processes have an impact on management
accounting for decision-making in these enterprises. In addition, management accounting for
decision-making also contributes to improving firm performance. From the results, the study
proposes some suggestions to promote the role of management accounting for decision-making
in VMMEs.

Keywords: Management accounting for decision-making, competition, production

processes, firm performance.
Tóm tắt

Nghiên cứu được thực hiện nhằm xác định mức độ ảnh hưởng của 2 yếu tố: cạnh tranh và
yêu cầu đối với quy trình sản xuất sản phẩm đến kế toán quản trị cho việc ra quyết định tại các
DN sản xuât cơ khí Việt Nam. Dữ liệu được thu thập thông qua khảo sát các nhà quản trị cấp
cao và những người phụ trách công tác kế tốn của 38 DN sản xuất cơ khí Việt Nam. Kết quả
nghiên cứu chỉ ra rằng cả áp lực cạnh tranh và yêu cầu đối với quy trình sản xuất sản phẩm đều
có ảnh hưởng đến KTQT cho việc ra quyết định tại các DN được khảo sát. Ngoài ra, KTQT cho
việc ra quyết định cịn có vai trị tích cực đối với hiệu quả hoạt động của doanh nghiệp. Từ đó,
chúng tơi đã đưa ra một số khuyến nghị cần thiết nhằm phát huy tối đa vai trò của KTQT cho
việc ra quyết định trong các DNSX cơ khí Việt Nam.
Từ khóa: Kế tốn quản trị, ra quyết định.

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1. Introduction

Mechanical manufacturing is a fundamental industry to the country’s socio-economic
development. In recent years, the number of VMMEs accounts for nearly 30% of the total
processing and manufacturing enterprises in Vietnam (General Statistics Office of Vietnam, 2019).
Vietnam is a developing country, before the requirements of economic restructuring towards
industrialization and modernization, the mechanical industry must be strong enough to carry out
the contents of the Industrial revolution 4.0 and technological innovation for other economic
sectors. However, with the development trend of the market economy, production and business
activities of corporations are increasingly expanded, VMMEs are facing to some difficulties:

Firstly, the mechanical industry is a diversified product industry but the pressure of
competition is great. Competition makes economic relationships arising in the business process
of enterprises become complicated. Enterprise must be competed with domestic and foreign
businesses. In fact, many domestic manufacturing enterprises are not competitive enough, not
ready to access new technologies to meet the increasing demand for quality technology products.

Secondly, difficulties comes from the specific characteristics of the mechanical
manufacturing industry. This is a production industry, that the production process goes through
many different stages, requires very high accuracy in terms of technology level and production
inputs. The main materials are iron, steel and other color alloys. Most of these materials cannot
be domestically produced, so they must be imported. Therefore, the price of input materials
fluctuates and affected by the world market. For labour, this is a field that requires highly skilled
and specialized labor to exploit and operate technology in design and production consultancy
process. This is also a big challenge for VMMEs.

In the context of the Industrial revolution 4.0 and economic integration with other
economies in the region and the world, VMMEs must change to be able to adapt and survive and
develop. In fact, managers of these enterprises are facing many difficulties in identifying,
collecting, processing and analyzing information in decision-making. They have a great demand
for modern management knowledge and the support of management tools. In particular,
management accounting is effective tool for providing useful information for manager. In recent
years, the perception of managers about the role of management accounting has also changed. It
directly affects to the application of management accounting in the enterprises.. In order to
maximize the role of management accounting in advising administrators to make decision, the
identification factors affecting the management accounting contents is essential. Based on that,
enterprises have a basis to organize management accounting contents scientifically and logically,
ensure that management accounting providing reliable, useful and appropriate infornation
for users.

The study was conducted for two purposes: (1) to determine the impact of competition and
requirements for product processes on management accounting for decision-making; (2) to assess
the role of management accounting for decision-making to the firm performance in VMMEs.

The remainder of the paper is structured as follows: section two discusses about the literature review along with the research hypotheses development. The research methodology, data
analysis and hypothesis testing, are discussed in section three and four respectively. Section five
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presents the conclusions along with the implications of the study. Finally, the limitations and further research is presented in section six.

2. Literature review and research hypothesis

2.1. Management accounting for decision-making

Management accounting was appeared in the early 19th century in the USA due to the need
for corporating governance information in the market economy, especially large-scale businesses.
Although many studies, which related to management accounting, have been conducted by
accounting and auditing professional organizations and researchers all over the world, there is
no official concept widely accepted.

From the perspective of managers, according to professional organizations such as: IMA
(1981, 2008), IFAC (1989, 2002) and many famous authers, such as: Ronald W. Hilton (1994),
Kaplan (1998), , Garrison, Noreen & Brewer (2007, 2012, 2017), Horngren et al (2014),
management accounting is an accounting division, which providing information to the
administrators to serve the administrative functions. In this view, management accounting is a
part of the management process. It also performs accounting work adequately, including:

collecting, processing, analyzing and providing information to assist the managers in planning,
controlling, developing and implementing strategies, ensuring the efficient use of capital and
assets of enterprises (IMA, 2008).

The second approach is from the perspective of the owners. From this perspective,
contemporary management accounting is seen as an interplay between finance and strategic
management, with a focus on creating, protecting, preserving and adding value to the owners
(CIMA, 2005).

Although there are many different opinions, but the concepts of management accounting
show that it is one of the tools associating with the management activities, playing a role in
advising managers, executing its management functions in order to achieve the owner’s goals.
With the approach under functional information, the content of accounting management includes:
collecting, processing, analyzing and providing information for decision-making by specific
management accounting techniques. In the context of the Industrial revolution 4.0, the application
of scientific and technological achievements is becoming more and more popular. Manufacturing
enterprises need to base on the characteristics of production and business activities, the demand
of information for manager to apply softwares in collecting, processing, analyzing and providing
information. Therefore, management accounting for decision-making in enterprises includes: (1)
Collecting management accounting information for decision-making; (2) Processing and
analyzing management accounting information for decision-making; (3) Providing management
accounting information for decision-making and (4) Application IT in collecting, processing,
analyzing and providing management accounting information for decision-making.
2.2. Competition and management accounting for decision-making

In the market economy, enterprises always have to compete with others on the source of
raw materials, labor, product diversification, quality of products, services, prices, market share
of product... Based on the Contingency Theory, researchers have explained that the increase of
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competitive pressure is the motivation for managers to change the way of operating and
corporating governance to be able to control and use resources effectively. The needs of managers
for management accounting techniques in providing information for decision-making also adapt
to fluctuations of the business environment. Over the years, empirical studies on the relationship
between competitive pressure and management accounting for decision-making have been
conducted in many countries all over the world. However, the results of these studies are not the
same. The majority of studies indicate that the higher the level of competition, the more
enterprises use different accounting management tools to support decision-making (Libby &
Waterhouse, 1996; Granlund & Lukka, 1998; Mia & Clare, 1999; O’Conner et al, 2004; Guilding
& McManus, 2008; Waweru et al, 2008; Sulaiman et al, 2015; Ahmad, 2015...). However, a few
other studies have found that competition has an opposite effect on the application of management
accounting for decision-making (William & Seaman, 2001). In Vietnam, empirical studies in
recent years (Doan Ngoc Phi Anh, 2016; Tran Ngoc Hung, 2016; Bui Tien Dung, 2017; Do Thi
Huong Thanh, 2019; Thai An Tuan, 2019 ...) are both shown that competition is the motivating
factors for the application of management accounting techniques to support decision-making in
enterprises operating in different fields. However, so far no studies have been conducted in
VMMEs. In the context of integration, competition is one of the biggest difficulties for VMMEs.
This motivates these enterprises applying more modern management tools, including management
accounting. Therefore, we hypothesize the first hypothesis:
H1: Competition has an impact on management accounting for decision-making

2.3. The requirements for production processes and management accounting for decision
making

Based on the Contingency Theory, researchers have explained the influence of the
requirements for production processes on the application of management accounting techniques

in enterprises (Abdel - Kader & Luther, 2008; Albu , 2012; Sulaiman et al, 2015; Almad, 2012,
2015; Doan Ngoc Phi Anh, 2012, 2016; Bui Tien Dung, 2018; Thai Anh Tuan; 2019 ...). In the
process of production and business, enterprises must always control costs well, calculate prices
accurately, fully and determine a reasonable selling price. In order to determine the product cost,
enterprises must identify the exact objects cost. At that time, accountants need to study the
characteristics of the products, the organization of production and the requirements of the
technological process. According to experts, mechanical manufacturing is an industry with
complex technological processes, undergoing many stages. The product of mechanical
manufacturing businesses is diverse. In an enterprise, products can be mass produced in batches
with different sizes. They may be replicated periodically or not be repeated and transformed into
new designs according to customers’ requirements. In order to manage enterprises, managers will
often apply modern production management systems such as: TQM, JIT... This inevitably requires
the high degree of application and complexity of management accounting techniques for decisionmaking. With the context of researching in VMMEs, we hypothesize that:
H2: The requirements for production processes has an impact on management
accounting for decision-making
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2.4. Management accounting for decision-making and firm performance

Firm performance is the economic, political and social benefits that an enterprise gains in
its operation (Ngo The Chi & Nguyen Trong Co, 2008). The measure to evaluate firm
performance is one of the issues that many researchers are interested in. The most common
evaluation is through indicators of operating profitability, economic profitability and financial
profitability (Josette Peyrard, 2005; Ngo The Chi & Nguyen Trong Co, 2008; Nguyen Tan Binh,
2010…). With this perspective, firm performance is assessed through the system of financial and
non-financial indicators such as revenue growth, profits, return on investment capital, new product

development, research and development activities, quality of the product, distribution schedule,
market share, etc…

Many authors have studied the relationship between management accounting for decisionmaking and firm performance (Chan et al., 1997; Abdel - Kader & Luther, 2008; Sulaiman et al.
2015; Almad, 2012, 2015; Doan Ngoc Phi Anh, 2012, 2016, Bui Tien Dung, 2017; Do Thi Huong
Thanh, 2019 ...). The study of Chan et al. (1997) in the US and Canada about the effects of
applying management accounting for decision-making in enterprises has shown that the
enterprises, which have effective management accounting system, the management process will
be better than the ones do not apply properly. Similarly, Ismail & King (2005), the appropriate
application of management accounting will have a positive impact on innovating and developing
the market, reducing negative effects on reputation and financial performance. Doan Ngoc Phi
Anh (2012) studied the factors affecting the application of management accounting and its effect
on firm performance with a sample of 220 medium and large Vietnamese enterprises. The
conclusion is that the application of management accounting is closely related to firm performance
by providing information to administrators in operating the business. With the information which
is collected, processed, analyzed, and provided by the management accounting , the managers
will make the decisions correctly, thereby improving firm performance. Based on empirical
studies on the relationship between management accounting and firm performance, to clarify the
role of management accounting for decision-making in VMMEs, we have the third hypothesis:
H3: Management accounting for decision-making has an impact on firm performance

The theoretical framework was developed in (figure 1)

Figure 1: Theoretical framework of the study

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3. Research methodology

3.1 Designing questionnaire and selecting scales

In order to have more basis for proposing research models, after overviewing the researches

related to the topic, we held a discussion with 5 experts on the mechanical industry in Vietnam

to research the factors that affect management accounting for decision-making in enterprises.

The results of direct interviews and group discussions are the basis for us to propose a draft
research and development model for the survey questionnaire.The questionnaire was designed

with 3 parts:

- Part 1: Information about respondents (Name, gender, position, seniority...).

- Part 2: Surveying the impact of competition and requirements for product processes on

management accounting for decision-making.

- Part3: Determining the role of management accounting for decision-making to the firm

performance in VMMEs.

Survey questions in sections 1 are short forms of answers. Part 2 and 3 of the questionnaire

is a table of 17 measurement questions for the independent and dependent variables in the pro-

posed research model. With 3 independent variable, the answers are measured by a Likert scale

with 5 levels, the lowest is “1 - Strongly disagree” to “5 - Strongly agree”. Dependent variable

are also measured by a Likert scale with 5 levels with “1- very bad, 2 – bad, 3 – medium, 4 –

good, 5 – very good”. These questions are based on the questions used in the various studies that

have been carried out before and translated from English to Vietnamese. Respondents will also

base on the actual situation of their business to choose the appropriate answer. In order to ensure

that the respondents have relatively sufficient knowledge to answer the survey questions, the
authors selected potential respondents: senior executives, chief accountants and accountants in

VMMEs with different scales. They are the people who regularly relating to collect, process and

provide information to make decision.

To test the suitability of the questions, we investigated the pilot testing by sending 60

questionnaires to the managers, financial directors, chief accountants and accountants of 9

mechanical manufacturing companies in Hanoi. With 43 collected questionnaires, we have
checked the reliability of the scale with two tools: Cronbach Alpha and Corrected Item-Total

Correlation. Both of these two coefficients need the requirements: Cronbach Alpha of the
independent and dependent variables are greater than 0.7, the Corrected Item-Total Correlation

of observed variables are greater than 0.3 (Hair et al., 2010). After that, we officially surveyed

on a large scale with the enterprises of the research object. The questions (corrected) in the
research model are described in Table 1 below:

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Factor/ Study
Variable

Table 1. The study variable
Sources

Competition Sulaiman et al, (2015),
(COM)
Ahmad (2015), Doan Ngoc
Phi Anh 2016), Tran Ngoc
Hung (2016), Bui Tien
Dung, (2017), Do Thi Huong
Thanh, (2019), Thai An Tuan
(2019)

The
requirements
for production
processes
(PPC)

Abdel - Kader & Luther
(2008), Albu
(2012),
Sulaiman et al ( 2015),
Almad (2015), Doan Ngoc
Phi Anh, (2016), Bui Tien
Dung (2018), Thai Anh Tuan
(2019)

Management
accounting for
decisionmaking (MAD)

Kinney & Raiborn (2011),
Garrison, Noreen & Brewer
(2017), Lanen et al (2013),
Horngren et al (2014)

Code

COM 1
COM2

COM 3
COM 4
PPC 1
PPC 2
PPC 3
PPC 4

MAD 1
MAD 2
MAD 3

Firm
performance
(PER)

Ngo The Chi & Nguyen
Trong Co (2008), Doan
Ngoc Phi Anh (2016), Bui
Tien Dung (2017); Do Thi
Huong Thanh (2019)

Observation
variables

The large number of competitors in the
same segment.
Competition on revenue/ market share
Competition on price

Competition on distribution channels

The design and production process is
strictly controlled
Flexible production system

The machine is controlled by digital

Products are designed and manufactured
to maximize the added value to the
customers.

Collecting management accounting
information for decision-making

Processing and analyzing management
accounting information for decisionmaking

Providing management accounting
information for decision-making
MAD 4 Application IT in collecting, processing,
analyzing and providing management
accounting information for decisionmaking
PER 1

Revenue growth

PER 3

Quality of the products

PER 2
PER 4
PER 5

3.2. Sample and data collection method

Profit growth

Labor productivity

Research and development

After editing the survey and identifying the respondents, we made a survey to collect data
by sending the questionnaires via email through the googledocs tool to 79 VMMES:
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b30 Machinery manufacturers;

b24 Auto suppliers/ Vehicle components suppliers;

b25 Electronics manufacturers.

These are 3 important mechanical sub-sectors on the list of national key mechanical
products according to Decision No. 10/2009/QD-TTg dated January 16, 2009 on the support
mechanism for key mechanical products, period 2009 - 2015.

During 2 months of survey from December 2019 to April 2020, we sent 350 questionnaires
and received 327 ones. However, only 201 questionnaires were used for analysis purposes. The
descriptive statistical analyses are performed with the support of SPSS 22.0 and AMOS 22.0.

4. Results of data analysis

4.1. Describe the research sample

Classification results of research samples is as follows:

Table 2. Information about respondents

Sex

Items

Male

Frequency

Ratio %

Percentage
of accumulative

137

68.16

68.16

Senior executives

52

25.87

25.87

Accountants

72

35.83

100

Female

Postion

Chief accountants/ Finance Director
Experience

Less than 5 years
5 to 10 years

More than 10 years

64

77

31.84

38.30

100

64.17

33

16.41%

16.41

102

50.77

100

66

4.2. Reliability and validity analysis

32.82%

49.23

To test the reliability of observed variables, the researchers used Cronbach’s Alpha and
Corrected item-total correlation. The analytical results are presented in the following table:

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Table 3. Test results of Cronbach’s Alpha coefficient

Variables

Scale Mean if
Item Deleted

COM 1

7.4876

6.571

.790

.845

COM 3

7.2338

6.550

.810

.837

COM 2
COM 4

Scale Variance if Corrected Item- Cronbach’s Alpha if
Item Deleted Total Correlation
Item Deleted

Competition (COM) Cronbach’s Alpha = .889

7.4826
7.4080

6.471

.838

7.993

.599

.825
.911

The requirements for production processes (PPC) Cronbach’s Alpha = .781

PPC 1

12.35

3.058

.577

.733

PPC 3

12.31

3.046

.647

.696

PPC 2
PPC 4

12.13
12.34

3.177

.551

3.265

.571

.745

.735

Management accounting for decision-making (MAD) Cronbach’s Alpha = .897

MAD 1

11.51

4.421

.747

.877

MAD 3

11.39

4.090

.790

.861

MAD 2
MAD 4

11.47
11.42

4.010

.822

4.524

.732

Firm performance (PER) Cronbach’s Alpha = .896

.848
.882

PER 1

15.8458

6.841

.632

.897

PER 3

15.8905

6.468

.713

.881

PER 2
PER 4
PER 5

15.8358
15.8259
15.8657

6.088

.799

6.435

.782

6.147

.801

.861
.866
.861

The results of the reliability analysis showed that all independent and dependent variables
in the research model have Cronbach’s Alpha groups from 0.781 to 0.897. Also all observed variables had Corrected Item- Total Correlation greater than 0.3. All of these indicators are greater
than the minimum to ensure convergence, reliability and distinctiveness of factors as suggested

by Hair et al (2010) should be included in the analysis in the next steps.

4.3. Exploratory Factor Analysis (EFA)

Exploratory Factor Analysis (EFA) with Principal Axis Factoring and Promax rotation
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showed that the observed variables in each factor is unidirectional scale and the 17 observed variables are compatible with the data. The KMO coefficient is 0.795, greater than 0.5, the Barlett
test has a p-value less than 0.05, the Eigenvalue coefficient > 1, factor loading > 0.5 (see table 2)
Table 4. Results of EFA analysis
1

PER5

.861

PER2

.824

PER4

3

4

.803

PER1

.728

MAD2
MAD4

.865
.828

MAD3

.815

MAD1

.793

COM2
COM1

.909
.906

COM3

.892

COM4

.709

PPC1
PPC3

.848
.791

PPC2

.641

PPC4

Variance explained) (%)

2

.834

PER3

KMO

Component

0.795

.624

72.36%

4.4. Confirmatory Factor Analysis (CFA)

We used Confirmatory Factor Analysis (CFA) to evaluate the fit of the research model with
collected data. CFA results indicated that Chi-square/df = 2.086 < 3; CFI = 0.947; TLI = 0.932;
IFI = 0.948, were all greater than 0.9; RMSEA = 0.074 < 0.08. The normalized regression weights
were greater than 0.5, the Composite Reliability (CR) were greater 0.7 indicating that all factors
are sufficiently credible (Hair et al., 2006). Testing Discriminant validity representing the level
of square roof of Average Variance Extracted (AVE) of factors was greater 0.5 indicating that the
factors have convergent value, the latent variable is well explained by its observation variables
(Hair et al., 2006) (Table 5).

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Table 5. Result of Confirmatory Factor Analysis (CFA)
Factor
Competition (COM)

The requirements for production
processes (PPC)
Management accounting for
decision-making (MAD)
Firm performance (PER)

Number of
observation
variables

Composite
Reliability

4

.781831

4

.886035

Minimum norAverage
malized regresVariance Exsion weight
tracted
.904

.816453

.796

.633493

4

.897714

.911

.829178

5

.90636

.903

.815423

4.5. Structural Equation Modeling Analysis and Hypothesis Testing

The analysis of structural equation modeling showed that the model fits the data, Chisquare/df = 2.211 < 3; CFI = 0.941; TLI = 0.924; IFI = 0.942, were greater than 0.9; RMSEA =
0.078 < 0.08, P.Value = 0.000 < 0.05. The estimated results of relationships among factors are
shown in Figure 2.

Figure 2. Standardized structural equation modeling analysis

The two factors: competition (COM) and the requirements for production processes(PPC)
both have positive impact on management accounting for decision-making (MAD). This result
is also consistent with the findings of previous studies (Abdel - Kader & Luther, 2008; Albu,
2012; Sulaiman et al, 2015; Almad, 2012, 2015; Doan Ngoc Phi Anh, 2012, 2016; Bui Tien Dung,
2018; Thai Anh Tuan, 2019; Do Thi Huong Thanh, 2019…). In which PPC with beta coefficients
of .618 has a stronger influence on MAD than COM (β = 0.248).

In addition, the results also indicate that management accounting for decision-making
(MAD) has a positive effect on firm performance (PER) with beta coefficients of.541. As a result,

three hypotheses are accepted.
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Table 6. Regression analysis and hypothesis results
MAD

<—-

COM

PER

<—-

MAD

MAD

<—-

PPC

Estimate

S.E.

C.R.

P

.248

.077

3.231

.001

.541

.091

5.912

.000

.618

.096

6.460

.000

5. Conclusion

The requirements for production process are factors that motivate VMMEs to increase the
application management accounting techniques in collecting, processing, analyzing and providing
information for decision-making. Specifically, the characteristic of the mechanical manufacturing
industry is an industry with a complex technological process, requiring very high precision of
technology and production inputs. In the context of globalization and the effects of the Industrial
revolution 4.0, VMMEs should apply modern technology to their production. The application of
scientific and technological advances will help enterprises use rationally and efficiently
production resources, improve quality of products and labor productivity, thereby increasing
competitiveness. Therefore, the authors suggest that VMMEs should establish / maintain R&D
centers. These centers are responsible for researching and improving of products and
manufacturing processes, designing and updating of modern manufacturing processes. In addition,
these enterprises should build flexible production systems, integrate computer and robot systems
with fast, accurate and safe job processing speed. We believe that the application of advanced
and modern production technology not only motivates VMEs to increase the implementation of
management accounting contents for decision-making but also for the process of collecting,
processing, analyzing and providing management accounting information more smoothly and
effectively.

On the other hand, research also shows that competition also affects the implementation
of management accounting for decision-making in VMMEs. In fact, the competitiveness of these
enterprises is not high. Especially in the context of the Industrial revolution 4.0, VMMEs have
to compete in many aspects: input materials, selling price, market share, labor skills, production
equipment, distribution, product diversification ... In order to survive and develop, each enterprise
needs to choose one / a number of different competitive advantages which can compare with
other competitors in the market.

The results of this study also show that, in VMMEs, the implementation management
accounting for decision-making (collecting, processing, analyzing, providing information and
the application of IT for decision-making) also contributes to improving firm performance (both
financial and non-financial perspective). Therefore, administrators in these enterprises should

promote the investment in modern technology in production and apply measures to increase the
competitiveness of enterprises, facilitate the implementation of management accounting contents
value for decision-making.
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ICYREB 2020

From a macro perspective, we need to have appropriate policies to enhance the advantages
of management accounting, thereby encouraging enterprises to implement management
accounting for decision-making. To do this, it is important to pay attention to the role of
professional associations, as well as universities and training centers in introducing,
disseminating, and guiding the work process of accounting management and related techniques
for enterprises.

6. Limitations and further research

The results of these studies are the basis for managers in VMMES to consider in
establishing a management accounting system in their enterprises as well as applying management
accounting techniques for controlling and operating enterprise.The research also has a number
of limitations. Due to limited time, our research only investigated 2 factors affecting management
accounting for decision-making in VMMEs. There are some factors which influence the application of management accounting for decision-making that have not been included in the research
model such as organizational structure, managers’ knowledge, culture, qualification of
accountants,... Therefore, these issues may be further clarified in further research.

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