MANAGEMENT ACCOUNTING INNOVATIONS AND ORGANIZATIONAL COMPETITIVENESS: A CURSORY LOOK

Abstract

This study examines the link between Management Accounting Innovations (MAIs) and organizational competitiveness in Nigeria, using secondary data from Dangote Cement Plc, GTCO Plc, MTN Nigeria Plc, Nigerian Breweries Plc, and Nestlé Nigeria Plc between 2018–2023. Grounded in Contingency Theory, Resource-Based View, Institutional Theory, and Dynamic Capabilities Theory, it adopts an ex-post facto design with data from annual reports, financial statements, and regulatory publications. Findings show that advanced costing techniques such as activity-based costing, target costing, and life-cycle costing improved accuracy, efficiency, and profitability, though their benefits were constrained by inflation and foreign exchange volatility. Integrated performance systems, especially the Balanced Scorecard, boosted competitiveness by balancing financial and non-financial outcomes, illustrated by GTCO’s reduced cost-to-income ratio and MTN’s subscriber growth. Strategic management accounting practices, including rolling forecasts, beyond budgeting, and competitor analysis, enhanced adaptability and resilience, sustaining market leadership. However, sectoral differences emerged: banks and telecoms led in MAI adoption, while manufacturing firms and SMEs lagged due to cost and expertise limitations.The study concludes that MAIs significantly enhance competitiveness but remain contingent on sectoral and macroeconomic conditions. It recommends wider adoption of innovative systems, SME support, and policies stabilizing the business environment.