THE IMPACT OF MANAGEMENT ACCOUNTING SYSTEM ON COMPETITIVE BUSINESS PERFORMANCE

Abstract

ABSTRACT

The purpose of this investigation is to investigate the impact of management accounting systems in terms of traditional and contemporary accounting systems, which can have advantages on business performance in the Riau Islands. There were 179 respondents, namely chief financial officers, who answered the questionnaire. The approach known as Partial Least Square (PLS) was utilized in this study for the purpose of data analysis. The research results show The traditional accounting method is found to have a substantial positive impact on corporate performance. Business enterprises persist in their dependence on conventional management accounting system practices rather than the"strategic" practices of contemporary management accounting systems. Traditional accounting systems are still used because this system is easier to use, so that it can improve business performance. Workers' hope for using this system is that it can improve business performance. Increased business performance can be seen by increasing productivity. Meanwhile, essential obstacles encountered in applying contemporary methods are the need for more active management accounting professionals and the lack of training programs and expertise.

Keywords: Traditional Accounting System, Contemporary Accounting System, Business Performance