Does environmental uncertainty influence the application of strategic management accounting? An investigation of listed manufacturing firms in Nigeria

Eferakeya Idowu ()
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Eferakeya Idowu: Department of Accounting, Faculty of Management Sciences, Dennis Osadebay University, Asaba, Nigeria

Journal of Economics and Management, 2025, vol. 47, issue 1, 355-384

Abstract: Aim/purpose – This research investigates the influence of environmental uncertainty on applying strategic management accounting among listed manufacturing companies in Nigeria. Design/methodology/approach – The study population comprises 76 manufacturing firms listed on the Nigerian Stock Exchange as of December 2023, with a sample size of 60 firms derived using the Green (1991) formula. The data collection method involved administering a structured questionnaire. The independent variables include competition intensity, market turbulence, and environmental uncertainty, while the dependent variable is the application of strategic management accounting. The factor loading test confirmed the construct’s validity and reliability, as indicated by Cronbach’s alpha test and Bartlett’s test of sphericity, which demonstrated internal consistency. Additionally, the Kaiser–Meyer–Olkin test was used to verify the sampling adequacy. Pearson Correlation and variance inflation factor tests confirmed the absence of multi-collinearity, and multiple regression analysis was employed to estimate the model. Findings – The article reveal that competition intensity, market turbulence, and environmental uncertainty significantly influence strategic management accounting applications. Research implications and limitations – These findings have theoretical, managerial, and practical implications for manufacturing firms. They stress the importance of strategic management accounting in times of environmental uncertainty. The study recommends that firms adopt strategic management accounting in response to increased competitive intensity, market turbulence, and environmental uncertainty. The study’s limitations are sample size, industry, scope, and variables. Originality/value/contributions – It contributes to the existing literature, offers valuable insights to academia, industry experts, and practitioners, and sheds light on and bridges the knowledge gap between environmental uncertainty and the application of strategic management accounting.

Keywords: Competitive intensity; market turbulence; environmental uncertainty; and strategic management accounting (search for similar items in EconPapers)
JEL-codes: L60 M31 M40 M41 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:jecman:v:47:y:2025:i:1:p:355-384:n:1014

DOI: 10.22367/jem.2025.47.14

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