Abstract

Investigating the effects of business characteristics (BC), business environment (BE), business strategy (BS), and human resource skills (HR Skills) on the adoption of management accounting (MA) practices among micro, small, and medium-sized firms (SMEs) in Indonesia is the goal of this study. Additionally, the mediating role of information system integration (IIS) is also explored. The cross-sectional research design was used quantitatively, relying on survey data from 132 SMEs that were selected by purposive sampling. For statistical data analysis using the path structural model, the PROCESS SPSS macro model is adapted. The study findings show that HR skills, BC, BE, and BS significantly positively affect IIS. However, only HR Skills and BE were found to have a direct and significant positive impact on the implementation of MA among SMEs. Additionally, IIS also demonstrated a significant positive influence. On the other hand, BC and BS do not have a direct impact on the implementation of MA. Evaluating the mediation pathway model parameters shows an indirect effect through IIS. However, the mediation effect of IIS is at a moderate level of partial mediation capability. The findings also conclude that some HR Skills have a positive and significant indirect effect on applying MA through IIS mediation. Also, some of the BC, BE, and BS showed a positive and significant indirect effect on the application of MA among SMEs.

Keywords: HR skills; business characteristics; business environment; business strategy; information system integration; management accounting

How to Cite:

Wahdiniwaty, R., Firmansyah, D., Syafei, M. Y. & Astillero, M. R., (2026) “Management Accounting Application Model and Business Strategy: The Context of SMEs in Indonesia”, Australasian Accounting, Business and Finance Journal 20(1): 5, 67–91. doi: https://doi.org/10.14453/aabfj.v20i1.05

Rights: In Copyright