A System of Innovative Management Accounting Practices for Egyptian Manufacturers

35 Pages Posted: 21 Mar 2017

Date Written: March 19, 2017

Abstract

The purpose of this study is to examine the use of recently developed, strategically focused management accounting techniques by Egyptian managers and to compare the adoption rate to other MENA countries as Saudi Arabia, Kuwait and the United Arab Emirates. In addition, the paper aims at developing a system of innovative management accounting practices to assist Egyptian manufacturers be more strategically focused.

Data was collected from the management of two hundred and fifteen Egyptian manufacturers on their use of a number of the recently developed management accounting practices. Results were compared to similar surveys of businesses in other MENA countries. Data was also collected on Egyptian manager’s perception to the strategic priorities and relative performance of their companies.

Results indicate that approximately seventy-five percent of Egyptian manufacturers do not use activity based costing/activity based management, balanced scorecard or benchmarking techniques in the management of their businesses. Also, eighty percent of respondents indicate that the strategic priority for their company is to be a low cost producer. Respondents also stated that their firms were not performing at a high level.

It is for that reason that the secondary purpose for this study was to examine the innovative management accounting literature to inform Egyptian management on the effective and efficient implementation of Activity based costing/Activity based management, balanced scorecard and benchmarking practices as management practices in their firm.

This paper puts forth a “system” of innovative management accounting practices for managers to adapt to their respective business operations.

Keywords: Activity Based costing, Activity Based management, the Balanced Scorecard, Value chain analysis, Benchmarking, Knowledge management

JEL Classification: L60, L74, M40, O53

Suggested Citation

Farouk Abdel Al, Sherine and McLellan, John Daniel, A System of Innovative Management Accounting Practices for Egyptian Manufacturers (March 19, 2017). Journal of Accounting, Ethics and Public Policy, Vol. 18, No. 1, 2017, Available at SSRN: https://ssrn.com/abstract=2937483

Sherine Farouk Abdel Al (Contact Author)

Abu Dhabi University ( email )

Abu Dhabi

John Daniel McLellan

Abu Dhabi University ( email )

Abu Dhabi
United Arab Emirates

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