Factors Influencing the Use of Management Accounting Information Systems in Vietnamese Enterprises

Abstract

Management accounting system has positive support in providing information for decision-makers. Based on Upper Echelons Theory, this study examines the impact of top managers’ characteristics (age, education background, and risk-taking propensity) on the choice of prospector strategy, the use of management accounting system information, and financial performance. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to test the hypotheses. The analysis was based on a sample of 218 medium and large manufacturing enterprises in Vietnam and showed that all hypotheses were statistically significant, except for the effects of managers’ age and risk-taking propensity on financial performance. This study extends the application of upper echelons theory to the field of management accounting and demonstrates that aligning top managers’ characteristics, organizational strategies, and the use of management accounting system information can improve organizations’ financial performance.