Risk Orientation and SME Performance: The Mediating Role of Management Accounting

Kamilah Ahmad (), Rumaizah Ruslan (), Shafie Mohamed Zabri () and Mohd Khairul Adne Mat Hussin ()
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Kamilah Ahmad: Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Malaysia,
Rumaizah Ruslan: Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Malaysia,
Shafie Mohamed Zabri: Johor Business School, Universiti Tun Hussein Onn Malaysia, 86400 Batu Pahat, Johor, Malaysia
Mohd Khairul Adne Mat Hussin: Tabung Haji, Jalan Tun Razak, 50400, Malaysia.

International Journal of Economics and Financial Issues, 2025, vol. 15, issue 6, 10-18

Abstract: Limited studies have examined how risk orientation affects the adoption of management accounting (MA) and performance in small and medium-sized enterprises (SMEs). Performance in SMEs is influenced by various factors, including the ability to adapt to changes in the market and the effective use of resources. Understanding how risk orientation impacts the adoption of management accounting practices can offer helpful tips for enhancing overall business performance and sustainability in this sector. This study seeks to examine the effects of risk orientation and MA on performance using structural equation modelling. A quantitative study was established where a questionnaire survey was administered to Malaysian SMEs across different sectors. Based on 189 valid responses, the results indicate that MAs partially mediate the relationship between risk orientation and SMEs' performance. The findings provide significant information for identifying the underlying factors within the setting of small businesses in improving financial resilience of SMEs. Our findings offer practitioners valuable insight about how risk orientation and management accounting can consequently affect the positive outcomes of organisational performance.

Keywords: Management Accounting; Risk Management; Small and Medium-Sized Enterprises; Manufacturing Sector; Malaysia (search for similar items in EconPapers)
Date: 2025
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DOI: 10.32479/ijefi.3391

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