STRATEGIC PRECISION: EXPLORING THE INFLUENCE OF STRATEGIC MANAGEMENT ACCOUNTING TECHNIQUES ON INVESTMENT EFFICIENCY DECISIONS WITH A FOCUS ON MODERATING ROLE OF OPERATIONS QUALITY CONTROL IN INDONESIAN MANUFACTURING COMPANIES
The implementation of quality control measures in production operations has the potential to greatly enhance the effectiveness of strategic management accounting techniques in large-scale companies. By implementing measures to maintain a high level of product quality and effectively reducing the oc...
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| Format: | Article |
| Language: | English |
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Regional Association for Security and crisis management, Belgrade, Serbia
2023-04-01
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| Series: | Operational Research in Engineering Sciences: Theory and Applications |
| Subjects: | |
| Online Access: | https://oresta.org/menu-script/index.php/oresta/article/view/593 |
| _version_ | 1797193578545414144 |
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| author | Widia Astuty Adelina Lubis Fajar Pasaribu Sri Rahayu |
| author_facet | Widia Astuty Adelina Lubis Fajar Pasaribu Sri Rahayu |
| author_sort | Widia Astuty |
| collection | DOAJ |
| description |
The implementation of quality control measures in production operations has the potential to greatly enhance the effectiveness of strategic management accounting techniques in large-scale companies. By implementing measures to maintain a high level of product quality and effectively reducing the occurrence of defects, organisations have the opportunity to decrease their production expenses and bolster their standing within the industry. This facilitates the conduct of precise cost analyses and enables more informed investment decisions, thereby enhancing investment efficiency. Hence, the primary objective of this study is to examine the moderating impact of quality control processes on the association between management accounting techniques and investment efficiency within the context of manufacturing firms in Indonesia. A structured, self-administered questionnaire was distributed to a sample of 300 owners and senior managers using a convenient sampling technique. The study employed a cross-sectional research design, which involved collecting data at a single point in time, and utilised a quantitative research approach, focusing on numerical data analysis. The findings from the Partial Least Square (PLS)-Structural Equation Modelling (SEM) analysis reveal that the utilisation of strategic management accounting techniques, such as just in time, target costing, and balanced scorecard, exhibits statistically significant and positive effects on investment efficiency. However, it is important to note that the relationship between target costs and investment efficiency is greatly influenced by quality control. This underscores the crucial role that quality control plays in cost management and the enhancement of efficiency. The level of quality control exhibited by the just-in-time, balanced scorecard, and investment efficiency approaches was found to be relatively insignificant. This study presents noteworthy findings and offers recommendations for Indonesian manufacturing firms to improve their investment efficiency and competitiveness within their distinct market environment. The results of this study enhance our comprehension of the factors that impact investment efficiency and underscore the interplay between quality control and specific management accounting strategies within the manufacturing sector in Indonesia.
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| first_indexed | 2024-03-07T14:12:38Z |
| format | Article |
| id | doaj.art-65e5bd7a03bc4f31acb269b97b7837a8 |
| institution | Directory Open Access Journal |
| issn | 2620-1607 2620-1747 |
| language | English |
| last_indexed | 2024-04-24T05:42:37Z |
| publishDate | 2023-04-01 |
| publisher | Regional Association for Security and crisis management, Belgrade, Serbia |
| record_format | Article |
| series | Operational Research in Engineering Sciences: Theory and Applications |
| spelling | doaj.art-65e5bd7a03bc4f31acb269b97b7837a82024-04-23T19:49:35ZengRegional Association for Security and crisis management, Belgrade, SerbiaOperational Research in Engineering Sciences: Theory and Applications2620-16072620-17472023-04-0161STRATEGIC PRECISION: EXPLORING THE INFLUENCE OF STRATEGIC MANAGEMENT ACCOUNTING TECHNIQUES ON INVESTMENT EFFICIENCY DECISIONS WITH A FOCUS ON MODERATING ROLE OF OPERATIONS QUALITY CONTROL IN INDONESIAN MANUFACTURING COMPANIESWidia Astuty0Adelina Lubis1Fajar Pasaribu2Sri Rahayu3Universitas Muhammadiyah Sumatera Utara, Medan, IndonesiaUniversitas Medan Area, Medan, IndonesiaUniversitas Muhammadiyah Sumatera Utara, Medan, IndonesiaUniversitas Islam Sumatera Utara, Medan, Indonesia The implementation of quality control measures in production operations has the potential to greatly enhance the effectiveness of strategic management accounting techniques in large-scale companies. By implementing measures to maintain a high level of product quality and effectively reducing the occurrence of defects, organisations have the opportunity to decrease their production expenses and bolster their standing within the industry. This facilitates the conduct of precise cost analyses and enables more informed investment decisions, thereby enhancing investment efficiency. Hence, the primary objective of this study is to examine the moderating impact of quality control processes on the association between management accounting techniques and investment efficiency within the context of manufacturing firms in Indonesia. A structured, self-administered questionnaire was distributed to a sample of 300 owners and senior managers using a convenient sampling technique. The study employed a cross-sectional research design, which involved collecting data at a single point in time, and utilised a quantitative research approach, focusing on numerical data analysis. The findings from the Partial Least Square (PLS)-Structural Equation Modelling (SEM) analysis reveal that the utilisation of strategic management accounting techniques, such as just in time, target costing, and balanced scorecard, exhibits statistically significant and positive effects on investment efficiency. However, it is important to note that the relationship between target costs and investment efficiency is greatly influenced by quality control. This underscores the crucial role that quality control plays in cost management and the enhancement of efficiency. The level of quality control exhibited by the just-in-time, balanced scorecard, and investment efficiency approaches was found to be relatively insignificant. This study presents noteworthy findings and offers recommendations for Indonesian manufacturing firms to improve their investment efficiency and competitiveness within their distinct market environment. The results of this study enhance our comprehension of the factors that impact investment efficiency and underscore the interplay between quality control and specific management accounting strategies within the manufacturing sector in Indonesia. https://oresta.org/menu-script/index.php/oresta/article/view/593strategic management accounting techniquesinvestment efficiencyquality control |
| spellingShingle | Widia Astuty Adelina Lubis Fajar Pasaribu Sri Rahayu STRATEGIC PRECISION: EXPLORING THE INFLUENCE OF STRATEGIC MANAGEMENT ACCOUNTING TECHNIQUES ON INVESTMENT EFFICIENCY DECISIONS WITH A FOCUS ON MODERATING ROLE OF OPERATIONS QUALITY CONTROL IN INDONESIAN MANUFACTURING COMPANIES Operational Research in Engineering Sciences: Theory and Applications strategic management accounting techniques investment efficiency quality control |
| title | STRATEGIC PRECISION: EXPLORING THE INFLUENCE OF STRATEGIC MANAGEMENT ACCOUNTING TECHNIQUES ON INVESTMENT EFFICIENCY DECISIONS WITH A FOCUS ON MODERATING ROLE OF OPERATIONS QUALITY CONTROL IN INDONESIAN MANUFACTURING COMPANIES |
| title_full | STRATEGIC PRECISION: EXPLORING THE INFLUENCE OF STRATEGIC MANAGEMENT ACCOUNTING TECHNIQUES ON INVESTMENT EFFICIENCY DECISIONS WITH A FOCUS ON MODERATING ROLE OF OPERATIONS QUALITY CONTROL IN INDONESIAN MANUFACTURING COMPANIES |
| title_fullStr | STRATEGIC PRECISION: EXPLORING THE INFLUENCE OF STRATEGIC MANAGEMENT ACCOUNTING TECHNIQUES ON INVESTMENT EFFICIENCY DECISIONS WITH A FOCUS ON MODERATING ROLE OF OPERATIONS QUALITY CONTROL IN INDONESIAN MANUFACTURING COMPANIES |
| title_full_unstemmed | STRATEGIC PRECISION: EXPLORING THE INFLUENCE OF STRATEGIC MANAGEMENT ACCOUNTING TECHNIQUES ON INVESTMENT EFFICIENCY DECISIONS WITH A FOCUS ON MODERATING ROLE OF OPERATIONS QUALITY CONTROL IN INDONESIAN MANUFACTURING COMPANIES |
| title_short | STRATEGIC PRECISION: EXPLORING THE INFLUENCE OF STRATEGIC MANAGEMENT ACCOUNTING TECHNIQUES ON INVESTMENT EFFICIENCY DECISIONS WITH A FOCUS ON MODERATING ROLE OF OPERATIONS QUALITY CONTROL IN INDONESIAN MANUFACTURING COMPANIES |
| title_sort | strategic precision exploring the influence of strategic management accounting techniques on investment efficiency decisions with a focus on moderating role of operations quality control in indonesian manufacturing companies |
| topic | strategic management accounting techniques investment efficiency quality control |
| url | https://oresta.org/menu-script/index.php/oresta/article/view/593 |
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