Do strategic management accounting techniques rationalise waste through implementing MRP system in the Jordanian industrial environment?

Ashraf Bataineh, Ziyad Mustafa Shwiyat and Omar Al-Bataineh

International Journal of Procurement Management, 2025, vol. 22, issue 2, 172-190

Abstract: This study aims to examine the mediating role of the material requirements planning (MRP) system in the relationship between strategic management accounting techniques (SMAT) and waste rationalisation in production processes in the Jordanian industrial environment. A meticulously designed questionnaire is employed to measure the study variables. The questionnaire is disseminated among a purposively selected sample of 250 employees encompassing financial managers, department heads, accountants, and production department personnel affiliated with Jordanian public shareholding industrial companies. A total of 197 completed questionnaires are procured and subjected to rigorous statistical analysis using the (Smart-PLS-4) program. The empirical findings unequivocally demonstrate a significant influence of management accounting techniques (lean production, value engineering, and Kaizen costing) on waste rationalisation in production processes, particularly when MRP systems are effectively employed in the Jordanian industrial environment. Specifically, the Kaizen costing technique exerts the most substantial impact, followed by the Lean Production technique, whereas the value engineering technique exhibits the least pronounced influence. Based on these results, it is strongly recommended that industrial companies prioritise the meticulous documentation of available raw material inventory and associated costs, even within factory warehouses. Such practices play a vital role in achieving cost reduction and effectively mitigating waste in production processes.

Keywords: strategic management accounting techniques; SMAT; material requirements planning; MRP; waste rationalisation; Jordanian industrial environment. (search for similar items in EconPapers)
Date: 2025
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