An Empirical Investigation of the Adoption Status of New Cost and Management Accounting Techniques Among Kenyan Manufacturing Companies.

20 Pages Posted: 21 Jul 2016

See all articles by Oluyinka Ogungbade

Oluyinka Ogungbade

Afe Babalola University

Patrick Idode

Bells University of Technology

Alade Ezekiel

Adekunle Ajasin University

Date Written: June 20, 2016

Abstract

The aim of this study was to investigate the adoption status and the challenges of modern management accounting techniques among Kenyan manufacturing companies. A well-structured questionnaire was used to collect the data.56 companies which represent 30% of the population were sampled and 43 of them returned the completed questionnaire. Descriptive statistics, one sample t-test and Spearman correlation were used to analyze the data. It was found out that most of the new techniques have not been adopted as only Total Quality Management, Customer Accounting, Throughput Accounting, and Backflush Accounting have been partially or fully adopted. As touching the difficulties facing the adoption, lack of management support is the most prevailing difficult, followed by lack of awareness of those techniques and preference for financial/historical information. The findings of this study also indicate that manufacturing companies in Kenya currently practices traditional management accounting techniques while some of them use some new techniques alongside. Empirical evidence from this study also suggests a moderate and positive relationship between firm size and adoption of modern management accounting techniques.

Keywords: Accounting, Techniques, Adoption, Management, Cost, Innovation

JEL Classification: M40,M41,M49

Suggested Citation

OGUNGBADE, OLUYINKA and Idode, Patrick and Ezekiel, Alade, An Empirical Investigation of the Adoption Status of New Cost and Management Accounting Techniques Among Kenyan Manufacturing Companies. (June 20, 2016). Available at SSRN: https://ssrn.com/abstract=2798037 or http://dx.doi.org/10.2139/ssrn.2798037

OLUYINKA OGUNGBADE (Contact Author)

Afe Babalola University ( email )

KM 8.5, Afe Babalola Way,
P.M.B 5454
Ado-Ekiti, Ekiti State, Western 234432
Nigeria

Patrick Idode

Bells University of Technology

P. M. B. 1015
Ota
Nigeria

Alade Ezekiel

Adekunle Ajasin University ( email )

Akungba-Akoko, Ondo State
Nigeria

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