Management
Abbas Alimoradi; Sepideh Borzoupour
Abstract
In the present business atmosphere, an organization should be able to respond to environmental needs occasioned by rapid and dynamic evolution as quickly as possible. It is obvious that such ability is impossible without a proper strategic approach, strategic thinking, and a suitable management accounting ...
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In the present business atmosphere, an organization should be able to respond to environmental needs occasioned by rapid and dynamic evolution as quickly as possible. It is obvious that such ability is impossible without a proper strategic approach, strategic thinking, and a suitable management accounting system. This study attempts to investigate the relationships between strategy, management accounting systems, and the performance of Iranian petrochemical companies under the framework of contingency theory. It is assumed that matches between organizational strategies and the content variables of organizational structure in controlling environments such as management accounting systems could produce an optimal level of performance. The statistical population of the study is Iranian petrochemical private companies, and the required information has been gathered by questionnaire the internal reliability of which is confirmed by a Cronbach's alpha coefficient of 83.4%. Structural equation modelling with LISREL software has been used for data analysis and hypotheses testing. The results not only confirm the direct association between strategy, management accounting systems, and company performance, but also support the effect of management accounting system as a mediating variable on the relationship between strategy and performance. According to the results, it might be concluded that contingency theory postulates are applicable to the Iranian petrochemical industry, and this conclusion may shed some light on the way in which these companies are managed and controlled.
