Abstract:
Purpose: The aim of this study is to examine the casual relationship among strategic
management accounting, environmental uncertainty, competitive strategy, and
organizational performance of listed companies in Sri Lanka.
Design/methodology/approach: Using a qualitative research approach data were
gathered from 180 respondents, including operational managers, chief financial
officers, senior accountants of diverse sectors in Sri Lanka. The proposed hypotheses
were tested using the partial least squares structural equation model (SEM).
Finding: The results of the study emphasize the strong relationship between the use
of strategic management accounting and organizational performance. Further, the
results evidence the moderating role of environmental uncertainty and competitive
strategy on the relationship between the use of strategic management accounting
and organizational performance.
Practical implication: The finding provides valuable insight for organizations
aiming to improve strategic responses and optimize performance in indeterminate
environment.
Originality value: This study explores how strategic choices and different level of
environmental uncertainty configurate the use of strategic management accounting
and its efficacy in enhancing organizational performance.
