Utilizing Strategic Management Accounting Techniques in Iranian Firms

Document Type : Research Article


Faculty of Social Science, Imam Khomeini International University, Qazvin, Iran


The main objective of this article is to describe and explain the utilization of Strategic Management Accounting Techniques (SMATs) in Iranian various firms. For this, a survey was carried out using questionnaires provided for the seventy-five Chief Executive Officers in productive and services firms. Data gathered from respondents about the usage rate of SMATs based on the five-point Likert scale. The findings show that the usage rate of SMATs is different in the strategic management of quality, business, market, and competitors. The results suggest that all approximately major of SMATs has used in the different firms, while the strategic tools such as market segment analysis, product profitability analysis, competitors’ analysis, customers’ profitability analysis, R&D and MRP and a few other techniques are widely known among firms. Also, the use of these tools and techniques are not the same among the firms operating in various industries and having different size and ownership. As a result, there were identified hidden reserves for wider dissemination of Strategic management accounting in practice. The research disclosed that strategic management accounting could be assessed company-wide, seeking to find an optimal configuration of the local management accounting system from Technical - managerial view.


Akmeşe, H., and Bayrakçı, S. (2016). A Research on Use of Management Accounting Tools and Techniques in Fast Food Operations: The Case of Konya. 2nd Multidisciplinary Conference. Madrid: SPAIN 2-4 November, 8-21.
Armitage, H.M., and Scholey, C. (2006). Management Accounting Guideline. Using Strategy Maps to Drive Performance. The Society of Management Accountants of Canada. The American Institute of Certified Public Accountants and The Chartered Institute of Management Accountants.
Askarany, D. (2004). The Evolution of Management Accounting Innovations and the Level of Satisfaction with Traditional Accounting Techniques. University of South Australia, 1-26.
Birnberg, J. G. (2000). The Role of Behavioral Research in Management Accounting Education in the 21st Century. Issues in Accounting Education, 15 (4), 713-728.
Cescon, F., Costantini, A., and Grassetti, L. (2018). Strategic choices and strategic management accounting in large manufacturing firms. Journal of Management and Governance, 23(3), 605–636.
Cinquini, L., and Tenucci, A. (2010). Strategic management accounting and business strategy: a loose coupling?. Journal of Accounting & Organizational Change, 6(2), 228–259. 
Elbanna, S. (2007). The nature and practice of strategic planning in Egypt. Strategic Change, 16, 227-243.
Fuertes, G., Alfaro, M., Vargas, M., Gutierrez, S., Ternero, R., and Sabattin, J. (2020). Conceptual Framework for the Strategic Management: A Literature Review—Descriptive. Hindawi: Journal of Engineering, 1-21.
Hassas Yeganeh, Y. Dianati Deilami, Z. and Norooz Beigi, E. (2011). Investigating Management Accounting Status in Accepted Companies in Tehran Stock Exchange. Journal of Management Accounting, 4 (8), 1-18.
Kader, M.A., and Luther, R. (2004). An Empirical Investigation of the Evolution of Management Accounting Practices. Colchester: Dept. of Accounting, Finance, and Management.
Kalkan, A., and Bozkurt, O. C. (2013). The choice and use of strategic planning tools and techniques in Turkish SMEs according to attitudes of executives. Procedia - Social and Behavioral Sciences, 99, 1016-1025.
Kamal, Sh. (2015). Historical Evolution of Management Accounting, The Cost and Management, 43 (4), 12-19.
Kaplan, R. S., and Norton, N. P. (2000). Having Trouble with Your Strategy? Then Map It, Harvard Business review (September-October).
Khodamipour, A., and Talebi, R. (2010). the investigation of the use of the management accounting tools by managers of productive companies listed in Tehran stock exchange. journal of accounting knowledge, 1 (2), 117 - 137.
Ma, Y., and Tayles, M. (2009). On the emergence of strategic management accounting: An institutional perspective. Accounting and Business Research, 39(5), 473-495. 
Mclellan, J.D., and Moustafa, E. (2013). An exploratory analysis of management accounting practices in the Arab Gulf Cooperative countries. Journal of Islamic Accounting and Business Research. 4 (1), pp. 51-63.
Mashayekhi, B., and Mashayekh, Sh. (2008). Development of accounting in Iran. The International Journal of Accounting, 43 (1), 66-86.
Mohamed, A. A. (2010). a Proposed Strategic Management Accounting Model for Profitability: An Empirical Study, Ph.D. thesis, University of Gloucestershire, 1-282.
Nair, S., and Nian, Y.S. (2017). Factors Affecting Management Accounting Practices in Malaysia. International Journal of Business and Management. 12(10), 177-184.
Nouri, B. A., and Soltani, M. (2017). Analyzing the use of strategic management tools and techniques between Iranian firms. Academy of Strategic Management Journal, 16 (1), 1-18.
Pavlatos, O. (2015). An empirical investigation of strategic management accounting in hotels. International Journal of Contemporary Hospitality Management, 27(5), 756–767.
Pavlatos, O., and Kostakis, X. (2018). The impact of top management team characteristics and historical financial performance on strategic management accounting. Journal of Accounting and Organizational Change, 14(4), 455–472.
Petera, P., and Soljakov, L. (2019). Use of strategic management accounting techniques by companies in the Czech Republic. Economic research-ekonomska istraživanja., 33 (1), 46–67.
Pires, R., Alves, M., and Rodrigues, L.L. (2015). Strategic management accounting: Definitions and dimensions. In XVIII Congreso AECA Innovación y internacionalización: factores de éxito para la pyme. Cartagena. 1-17.
Rahnamay Roodposhti, F., and Ahyaei, H. (2015). Evaluation of Theoretical Framework of Management Accounting and Conceptual Model Presentation, Ph.D. thesis. Islamic Azad University. Tehran Research Branch.
Ramljak, B., and Rogoši ć, A. (2012). Strategic management accounting practices in Croatia. The Journal of International Management Studies. 7(2), 93-100.
Šaponja, L. D., and Suljović, E. (2017). Strategic management accounting in the Republic of Serbia. Economic Research-Ekonomska Istraživanja, 30 (1), 1829-1839.
Simmonds, K. (1981). Strategic management accounting. Management accounting, 59 (4). 26-29.
Siska, L. (2016). The contingency factors affecting management accounting in Czech companies. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 64(4).1383–1392.
Sulaiman, M., Nik Ahmad, N. N., and Alwi, N. (2004). Management accounting practices in selected Asian countries. Managerial Auditing Journal, 19 (4), 493–508.
Strumickas, M., and Valanciene, L. (2008). Research of Changes of Management Accounting in Context of Modern Management Theories. Economics and Management – 2008, 72-78.
Strumickas, M., and Valanciene, L. (2009). Research of Management Accounting Changes in Lithuanian Business Organizations. Inzinerine Economical-Engineering Economics (3), 26-32.
Strumickas, M., and Valanciene, L. (2010). Development of Modern Management Accounting System. Engineering Economics, 21(4). 377-386.
Waweru, N. M. (2010). The origin and evolution of management accounting: a review of the theoretical framework. Problems, and Perspectives in Management, 8(3-1), 165-182.
Wickramasinghe, D. and Alawattage, Ch. (2012). Management Accounting Change: Approaches and Perspectives. Routledge.
Valipour, H., and Kaviani Fard, H. (2017). The importance of the field of industry in the type of management accounting procedures. Journal of Accounting Research, 7 (3), 81-95.
Vásquez, A. U., and Naranjo-Gil, D. (2020). Management Accounting Systems, Top Management Teams, and Sustainable Knowledge Acquisition: Effects on Performance. Sustainability, 12(5), 1-14.