Use of Management Accounting Methods in SMEs: A case study on Finnish SMEs

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School of Business | Bachelor's thesis

Date

2024

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Mcode

Degree programme

Laskentatoimi

Language

en

Pages

31+8

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Abstract

Purpose: This study investigates how SMEs use and implement management accounting methods, how their use supports SMEs' strategic processes, and what factors motivate and drive SMEs to adopt specific management accounting methods. Design/method/approach: This study was done as a qualitative case study of two Finnish SMEs in different industries. Findings: SMEs employ various management accounting methods primarily to enhance operational efficiency and support strategic decision-making. Motivation for adopting these methods is influenced by the perceived benefits, available resources, and strategic orienta- tions. The adoption and refinement of methods was found to increase with maturity in line with organizational lifecycle theories. Research limitations: Reliance on a limited set of data may not represent all SMEs. The qualitative data from the case study may limit the findings’ applicability. The research method and subjective interpretation of the qualitative data may have introduced biases. Findings may not be applicable to SMEs in other regions. The scope and length of this study was restricted, thus relevant information may have been overlooked. Implications for research and practice: Further studies could use a wider set of data to find similarities inside different sizes, strategic orientations, and lifecycle stages to build a clearer framework for SMEs. This could help SMEs with significant resource constraints find efficient ways to utilize management accounting methods.

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Thesis advisor

Taussi, Thomas

Keywords

management accounting methods, SMEs, strategy, organizational lifecycle, customer accounting

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