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Management
Impact of external and internal accounting
factors on management accounting practices

practices: a study of Pakistan

Sidra Shahzadi, Rizwan Khan and Maryam Toor 211
University of Arid Agriculture, Rawalpindi, Pakistan, and
Received 7 August 2018
Ayaz ul Haq Accepted 12 October 2018
Business Administration Department, Iqra University Islamabad Campus,
Islamabad, Pakistan

Abstract
Purpose – The accounting system plays an important role in the company’s organizational structure.
The purpose of this paper is to demonstrate that the integration of management accounting practices is
subject to coordination between external and internal factors and accounting management practices.
Design/methodology/approach – Therefore, the authors move to the contingency model to determine the
most significant external “unexpected factors” that explain the introduction of management practices for the
management of the various stages of development. The exploratory study examines a sample of Pakistani
companies from various sectors.
Findings – This study reveals that the main factors of uncertainty that affect the organizational structure,
environmental uncertainty, advanced production technology, just-in-time method strategy, integrated
management of quality and structure findings reveal that MAP affected all process and changes all system in
simple to complex system in Pakistani’s industries.
Practical implications – This study is to acquisition the impact of external factors on management
accounting practices, to find the impact of internal factors on management accounting practices, to establish
the management accounting practices undertaken by the companies in Pakistan.
Originality/value – The study contributes to the literature by enhancing our understanding for the impact
of external and internal factors on management accounting practices in Pakistan.
Keywords Environmental uncertainty, Contingency theory, Management accounting practices,
External factors, Internal factors
Paper type Research paper

Background
Accounting is the process of keeping financial accounts of the organizations. Accounting is
an information system for recording economics events. The development of accounting is
closely related to writing, money and counting. The money and number may be related to
the trading activities of temples.
Management accounting practice is how to use the information given by accounting for
decision making. Many writers and researchers write about MAP to avail their own
purposes (Shotter, 1999). Management accounting history consist of confirmation that
“Lucca Paciolis” introduced double entry book recording system at that time all the people
recognize importance for their businesses (Legaspi, 2014).
In previous years a lot of taking have been done to bring changing in MAP. In 1987, a
researcher “Johnson” argued that there were not such changes are come in MAP until in

© Sidra Shahzadi, Rizwan Khan, Maryam Toor, Ayaz ul Haq. Published in Asian Journal of Accounting
Research. Published by Emerald Publishing Limited. This article is published under the Creative Asian Journal of Accounting
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Vol. 3 No. 2, 2018
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2443-4175
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AJAR start of the twentieth century. After these types of criticism there are much management
3,2 accounting techniques are developed in many organizations which include competitive
strategy. Studies reveal that MAP affected all process and changes all system in simple to
complex system. Studies also reveal that in which environmental MAP are to be practiced
are changed which includes advancement in IT, complex markets, changed organization
structure and new practices of management accounting (Kamal, 2015).
212 Johnson warned the accounting community for the first time that management and
other users of information apparently no longer considered management accounting.
There were a lot of prescriptive studies about changes in accounting systems, techniques
and management practices ( Johnson and Kaplan, 1987). More recently, professional
accounting offices in the UK and the USA have funded research into changes in
management accounting in companies in this country. In the UK, the Chartered Institute of
Management Accounting (CIMA) give funds for a long-term study on the development of
management accounting in 1995–1998 (Forsaith et al., 2003). Changing in manufacturing
system of the organizations and introduced the new technology has increased the
competition in the market among organization. It creates stress, risk and uncertainty
for organizations. Managers are using MAP for getting the proper information to compete
the organizations in the market. Management accounting system provides and monitors
all historical information of organization which helps and assists its effort related
to competitors.
The contingency theory on management accounting practices and explained that
there is no single standard accounting practice that can be applied to all organizations
(Otley, 1980). Basically, every organization will have its own accounting management
practices. Theory examines a number of factors that support management when
deciding on appropriate accounting practices. These factors can be either the
technological changes or the infrastructure of an organization. For example, a food
production company may want to change the technology used for a more modern, healthy
and efficient way of handling, processing and packaging food. Thus, you can consider
installing a computer-based system that massively produces its products. However, the
type of specialized personnel required to manage such a complex appliance will influence
the type of accounting practices selected and the cost of production. Management
accounting practice helps to survive an organization in a competitive and ever-changing
world because it provides a significant competitive advantage for a management
company that supports motivational attitudes and make the necessary cultural values
for the achievement of strategic goals. The management accounting mainly deals with the
internal needs of the administration. The oriented assessment and development of
future valuations in relation to traditional financial accounting, which focuses on
historical data on legal economic issues such as ownership, investment, loans, taxation,
regulation and the creation of reporting foundations external constant and conservative
performance “in compliance with generally accepted accounting principles.” Flexibility is
an essential feature of management control, because it means that particular attention
has been paid to identifying key management needs, many of which may not be accurate
(Gichaaga, 2014).
According to the Chandler in the nineteenth century, there were for the first time
management accounting system in the USA. This Management Accounting System used
simple and complicated accounting methods. To calculate the costs of direct work and the
total cost of converting products into assets. Already in the first quarter of the nineteenth
century, some companies in the USA, according to Porter (1980) used advanced expenditure
accounts. New accounting systems for the monitoring and recording of cash inventories in
this period have been developed, as well as for timely administration and a detailed expense
declaration (Kamal, 2015). Total quality management assumes that agency employees must
work together to achieve quality for the needs of their clients. Quality can be achieved by Management
controlling the production/service processes to avoid defects. TQM base on different values accounting
and beliefs which company’s staff explains with each other. The concept of quality has gone practices
from an unrelated factor, based on imperfect market competition, to considering it as a
strategic resource for companies (Gharakhani et al., 2013). Information is more important for
decision making in manufacturing company and create awareness among the organizations
that giving proper information is more necessary for effective decision (Gichaaga, 2014). 213
Given the great economic importance of internal and external factors and the economic
gap. The purpose of this paper is to get an overview of using MAP in Pakistani companies,
their role in the management of different sectors and to examine so many factors that lead to
their use and their effect on management accounting practices. Our study has including
following research questions:
RQ1. How is the encounter of Environmental uncertainty on MAP?
RQ2. What is the impact of internal factors on MAP?
Our main objectives of this study is to acquisition the impact of external factors on
management accounting practices, to find the impact of internal factors on management
accounting practices, to establish the management accounting practices undertaken by the
companies in Pakistan. This study has useful for practical, theoretical and managerial level.
This study will increase the current accounting literature in two important ways. First, this
study will provide new experimental evidence using MAP. Second, this study will
participate in additional studies in a new context of Pakistan as regard what contingency
factor effect the use of MAP (Ahmad, 2012).

Literature review
Management accounting practices are commonly used in literature review when all of
activities done by organization for minimizing their cost, improving efficiency, providing
proper information and reducing business resources. Literature shows that most
researchers have studied the management accounting practices adoption and
implementation on developed and developing countries. The management accounting
practices takes an outstanding place in this culture to exchange the modern accounting
techniques which are explained briefly by the many contingence factors which include
internal and external (Amara and Benelifa, 2017). In organization management accounting
plays essential part in the management process. It helps to provide elemental information to
the business-like planning, evaluating, controlling and decision making. Manager take
information from management accounting and perform activates (Sunarni, 2015).
The effect of immoderate completion in market, economy, less business resources, low
business communications among companies, complex business environment and Many
technological changes takes companies recognize that the need of management accounting
practices to control the cost and decisions which are beneficial for companies (Sleihat et al.,
2012). In 1980, a lot of management accounting techniques established like activity based
management, balanced scorecard and strategic management accounting. The purpose of
these techniques is to support latest technology and latest management accounting
practices for instance cost-volume-profit analysis, total quality management, marginal
costing and just- in-time production system (Oyerogba, 2015). Financial and non-financial
techniques added in current management accounting. The aim of this process is to give
information at operational and organizational level. Management accounting objective is to
present non-financial and financial data that are needed for managers, owners, investors
and employees (Abdullah et al., 2016). Companies have changed their strategy from
traditional accounting practices to the recent use of the advanced management accounting
AJAR (AMA) tool. In today’s business world, many companies face various challenges to
3,2 effectively overcome and maintain competitiveness. Many researchers claim that traditional
management accounting is no longer adequate for modern production environments, since
the production process has changed as the productivity and destructive productivity of the
organization have changed. These changes require relevant and timely information relevant
to support management for planning and control purposes because the traditional
214 administration did not provide such information. One area in which organizations can adapt
effectively is to monitor the movement of competitors (Abdallah, 2017).
Through management accounting practice MNCs reduce their cost and increase the
profit and also achieve the global competition, but in KSA smallest companies use in
traditional technologies instead of advance technologies (Sulaiman et al., 2004). The
management accounting must be used for management accounting practices that the result
must be satisfies the management before taking or implementing any decision (Amara and
Benelifa, 2017). The internal or external issues affect the MAPs changes in organization
(Nishimura, 2005). When the mass increase the firm also increase factors influence on the
management accounting practices (Davilla and Foster, 2005, 2007).

Theory of contingency
There are many techniques are developed to respond the innovations and technology
in business environment and all of these changes in management accounting practices
have to face the contests of present business needs (Paaso, 2013). Every organization has
its own management accounting system which is affected by internal and external factors
which can be changed in technology or infrastructure change. Like a food company
wants to change its technology for handling, packaging, processing food then they must
be installing the computer-based system which is influenced by the management
accounting practices (Alleyne and Weekes-Marshall, 2011). Theory shows that there is no
single most ideal approach to control organizations which would generally apply to all
organizations consistently and in all conditions (Paaso, 2013). Contingency theory
claims that there is no universally satisfactory model of organizations that describe the
variety of organized design, that’s why organization design rest on contingency factors
suited to the situation. Contingency variables encompassing business policy, external
environment, company mass, and kind affect the sketch of management control system.
Contingency approach assumes that the plan and the practices of management control
system are impact by the framework in which they are applied (Dropulić, 2013). Micro
level hence deals with the practical “doing” of management accounting in the daily life of
managerial actors (Šiška, 2016).
The basic resolution of this review of literature on contingency theory is to form an idea
of how framework affects operations and results in contingent outcomes in organizational
performance. Being familiar with the different types of control challenges organizational
framework can impose is also important when considering the responses by management to
apply control over various actions. This information will be further polished when
designing the study and the measurement instrument.
This study talks the research question on whether contingency variables included
strategic business, type of company, size and environment affect the design of management
control system.

External factors
An organization cannot simply evolve to reflect the objectives, motivations or needs of
members or its leadership. You must respect the limits imposed by your relationship with
the environment. Therefore, the unpredictable state of the environment has an impact on the
accounting management system (Amara and Benelifa, 2017).
Environment uncertainty Management
Literature shows a contingency relationship between circumstantial variables and accounting
Management accounting practices from them many studies explore the effects of practices
circumstantial variables such as environment uncertainty on Management accounting
practices. These studies give us an understanding into a “Fit” hypothesis; very rare efforts
have been made to connect all variables to performance. In simple words, many literatures
claim and showed analytically that if there is high environment uncertainty then it will 215
cause more dependence on Management accounting practices Gul and Chia, 1994.
Environmental uncertainty is one of the first conditional factors that examined due to the
impact on the development of management accounting practices. When perceived insecurity
is low, management can make relatively accurate estimates on the market. Companies with
higher environmental safety use more sophisticated methods for management accounting
than companies with lower environmental safety. The level of environmental uncertainty
affects the level of improvement in management accounting practices (Amara and Benelifa,
2017). The association between the intensity of competition role of benchmarking of the
marketing control and management system and a performance from the information
provided by the accounting system and the business unit. Being able to compete
successfully with market competition in the nature of organizations that use information
management system, and improve their result.

Internal factors
The internal factors of the company are related to its competitive strategy, organizational
structure, advance manufacturing technology, total quality management and just in time.

Competitive strategy
In the management accounting literature, it was considered that there was a general
organization strategy and the relationship between strategic decisions and the design of an
organization’s accounting and control system is analyzed. These studies usually measure
strategy as a continuum between companies that follow a “back,” “harvest” or “cost leader”
strategy and companies that follow a “perspective,” “build” or “innovative” strategy
although it is a useful indicator of the organization’s strategy, this simple continuous
process lacks the multidimensional nature of other strategic decisions such as the provision
of superior quality compared to the competition, the differentiation of products through the
brand image (McLellan and Moustafa, 2011). Findings reveal that every unit in an
organization often followed different strategies. The literature of management accounting
practices commonly takes organizational strategy as an assumed and then shows the
relationship between strategic of business choices and an organization’s accounting
management control system.
Organizations must change strategies to adapt changes to the environment. However,
the institutional approach to organizational change suggests that the organizational
structure affects the learning strategy of the organization and the ability to adapt to
environmental changes. Using a strategic change in gradual or radical adaptation may lead
to a successful change in the structural arrangement of the organization. All elements
of the organization, such as structure, strategy, system, people, culture, etc., need to be
changed at the same time to achieve greater organizational consistency and efficiency
(Ghasemi et al., 2016).

Organization structure
Literature shows that in the decentralized business system it is the big responsibility
of the managers to control the function and get the information that is not available
AJAR to top level managers. Decentralized system companies are be successful if their
3,2 accounting system is strong. A strong management accounting system helps the manager
and provides useful information to managers for decision making (Abdel-Kader and
Luther, 2008). The structure has been studied by many authors with the intention of a
possible factor explaining the integration of accounting management practices. It is
presented in two types of opposing structures in relation to participation in the decision.
216 This corresponds to the central structure and the decentralized structure. The result is a
positive relationship between decentralization and the state of development of accounting
practices. There is no positive relationship between the practice of concentration and the
accounting system (Amara and Benelifa, 2017).

Advance manufacturing technology

To be one of the first conditional variables in connection with management accounting
systems, design was a type of production technology. For example, a positive relationship
was found between the degree of automation in the production process and how budget
systems are used. The traditional performance indicators only have a limited focus, are
historical and, in many cases, incomplete. Organizations using AMT need a multi-
dimensional performance measurement (financial and non-financial) system to offer
managers with continuous signals, which is more significant in their daily operations and
where efforts must be focused (Abdul-Kader and Luther, 2008). As the environment changes
and the AMT level increases, managers are expected to use management accounts more
often and more frequently than they decide. It is expected that greater acceptance of AMT
will be related to the wider use of new accounting systems such as ABC and non-financial
performance indicators.

Total quality management

Managers and leaders got energy through the fulfilling need of customers which
are the main objective of total quality management. Its bring improvement in quality and
innovation in an organization. Organizations which are using TQM getting more
advantages in term of loyal customers, best quality products, bringing innovations in
products (Zehir et al., 2012). However, the effect is significant efforts to investigate the
cost of modern management practices the overall management of quality. From the
literature, which examines the relationship between the sum quality management and
accounting system, increases the auxiliary connecting faith in the non-financial data.
Traditional accounting methods that depend on budget discrepancies are inadequate
throughout the quality management environment because they do not find the origin of
capacity (Gerdin, 2005).

Just in time
In previous accounting system accountant records thousands of journal entries and ledgers
which are most difficult for organizations which are producing many products in a day.
Through JIT it is reduce many entries which are very help in accounting system (Dalci,
2006). The literature on the use of JIT in small and medium enterprises, especially in
developing countries is limited. The introduction of JIT inventory management system
requires well-designed and well-established infrastructure such as efficient transportation
system, electronic information network and reliable power source (Mazanai, 2012). As above
discussion, the contingency factors (internal and external) as independent variable and
MAP as dependent variable can be seen in model as below: The below framework shows the
impact of internal and external factors on MAP (Figure 1).
 IV’S DV Management
External Factors: accounting
• Environmental Uncertainty practices
• Market competition

217
Internal factors:
Management Accounting Practices
• Competitive strategy
• Organizational Structure
• Advance Manufacturing Technology Figure 1.
• Total Quality Management Theocratical
framework
• Just in time of the study

Research hypotheses
H1. “Companies that operate in conditions of high environmental uncertainty integrate
management accounting practices.”
H2. “Companies with extreme market competition integrate the management accounting
practices.”
H3. “Companies that adopt the differentiation strategy adopt the most sophisticated
management accounting practices.”
H4. “Firms with decentralized structures adopt the management accounting practices
compared to firms with centralized structure”.
H5. “Firms with advanced manufacturing technology (AMT) adopt more sophisticated
MAPs.”
H6. “Firms with total quality management (TQM) adopt more sophisticated MAPs.”
H7. “Firms with a just-in-time ( JIT) system adopt more sophisticated MAPs.”

Research design and methodology

A research design provides the basic instructions to execute the project. In particular, a
research project must provide the relevant information that is most appropriate respond
effectively to research questions or assumptions (Ahmad, 2012). The determination of the
sample size is influenced by many factors counts at the same time. The factors include cost
and time restrictions, the variability of the data in the target population, the required
accuracy of evaluation and if the results should be generalized and, if so, with what degree
of confidence (Hair et al., 2008). When deciding on the size of the sample, there is often an
exchange between cost and time and the large sample size. A larger sample size obviously
requires more data collection and analysis.
An exploratory study was carried out based on a questionnaire on a sample of Pakistani
companies from the different fields of activity. The main objective of this research is to
examine the impact of business sectors on accounting practices. The research questions in
this study refer to the use of MAP by Pakistani different sectors. In demand to collect the
required data, we will adopt a questionnaire focusing on a sample of Tunisian companies
characterized by a differentiation of internal and external factors. The data which are
AJAR collected are “quantitative” in nature which represents the numerical measurement of data
3,2 in numbers. The purpose of this questionnaire is to find that accounting practices are
directly related to these factors. The questionnaire was distributed by direct contact in
different sectors. In total, 200 questionnaires were distributed and 183 copies were
completed and maintained with 91.5 percent (Table I).
Statistical methods are necessary for conducted analysis so in this study “SPSS 21.0”
218 software was used for processing the questionnaire data. The detail of variables and their
references are as follow (Table II):

MAP ¼ aþb1 EU þb2 MC þb3 CS þb4 Sþb5 AMT þb6 TQMþb7 JITþe:

Above equation shows MAP as a dependent variable and “α” is constant with variables, β1
shows environmental uncertainty, β2 shows market competition, β3 shows competitive
strategy, β4 shows Structure, β5 shows advance manufacturing Technology, β6 Total
quality management, β7 shows just in time and e shows error term.

Results
Table III indicates the correlation between all variables and the level of significance is (0.01).
The values which are less than 0.5 are listed in weak correlation. “EU and MC,” “EU & CS,”
“MC and CS,” “MC and TQ,” “MC and s,” CS and S,” “CS and TQ, “CS and JIT” and “CS and
MAP” having a weak and significant relationship and the direction of relationship is
positive among them. The values between 0.5 and 0.6 are listed in medium correlation. “EU
and JIT, MC and AMT, MC and JIT, MC and MAP, CS and AMT, S and AMT, S and JIT,
S and MAP, AMT and TQ, AMT and MAP, JIT and MAP having a medium and significant
relationship and the direction of relationship is positive among them. The values which are
more than 0.6 are listed in high correlation. “EU and S, EU and AMT, EU and TQ, EU and
MAP, S and TQ, AMT and JIT having a high and significant relationship and the direction
of relationship is positive among them.

Table I. Elements Total distributed questionnaires Collected questionnaires Rate of participations (%)
Response rate
of the study Direct contact 200 183 91.5

Nature of No. of
Variables variable Measurement questions References

Management accounting Dependent Questionnaire 26 Amara and Benelifa (2017),

practices Abdel-Kader and Luther (2008)
Environmental Independent Questionnaire 9 Amara and Benelifa (2017),
uncertainty Abdel-Kader and Luther (2008)
Market competition Independent Questionnaire 6 Amara and Benelifa (2017)
Competitive strategy Independent Questionnaire 9 Amara and Benelifa (2017)
Organization Structure Independent Questionnaire 5 Amara and Benelifa (2017)
Advance manufacturing Independent Questionnaire 7 Egbunike et al. (2015), Abdel-Kader
technology and Luther (2008)
Table II. Total quality management Independent Questionnaire 5 Abdul-Kader and Luther (2008)
Sources of the scale Just in time Independent Questionnaire 8 Abdul-Kader and Luther (2008)
Correlation EU MC CS S AMT TQ JIT MAP
Management
accounting
EU practices
Pearson correlation 1
Sig. (two tailed)
n 183
MC 219
Pearson correlation 0.492** 1
Sig. (two tailed) 0.000
n 183 183
CS
Pearson correlation 0.411** 0.210** 1
Sig. (two tailed) 0.000 0.004
n 183 183 183
S
Pearson correlation 0.771** 0.422** 0.360** 1
Sig. (two tailed) 0.000 0.000 0.000
n 183 183 183 183
AMT
Pearson correlation 0.661** 0.558** 0.568** 0.559** 1
Sig. (two tailed) 0.000 0.000 0.000 0.000
n 183 183 183 183 183
TQ
Pearson correlation 0.671** 0.422** 0.360** 0.742** 0.559** 1
Sig. (two tailed) 0.000 0.000 0.000 0.000 0.000
n 183 183 183 183 183 183
JIT
Pearson correlation 0.588** 0.575** 0.393** 0.575** 0.627** 0.775** 1
Sig. (two tailed) 0.000 0.000 0.000 0.000 0.000 0.000
n 183 183 183 183 183 183 183
MAP
Pearson correlation 0.720** 0.597** 0.260** 0.591** 0.576** 0.591** 0.577** 1
Sig. (two tailed) 0.000 0.000 0.000 0.000 0.000 0.000 0.000
n 183 183 183 183 183 183 183 184 Table III.
Note: **Correlation is significant at the 0.01 level (two tailed) Correlation analysis

Regression
Table IV

Discussion
The relationship between EU and MAP is highly significant .These findings confirms the
empirical results of previous studies such as Kader et al. (2008) and Amara and Benelifa
(2017) indicate that companies with a higher level of environmental uncertainty use more
complex MAPs than companies with a lower level of environmental uncertainty.
The relationship between MC and MAP is insignificant (0.067) the EU has a significant
impact on MAP. These findings confirms the empirical results of previous study of Mia
et al. and Amara and Benelifa (2017) explained that the Kruskall–Wallis test shows that
there is no significant difference between the three groups of companies in terms of the
intensity of competition in the market. This implies that the level of improvement in
management accounting practices is not explained by intensity of market competition.
AJAR Unstandardized coefficients Standardized coefficients
3,2 Model 1 B SE β T Sig.

Coefficient
(Constant) −0.721 0.321 −2.250 0.026
EU 1.094 0.123 0.880 8.859 0.000
MC 0.529 0.084 0.394 6.305 0.067
220 CS −0.085 0.076 −0.060 −1.110 0.269
S 0.342 0.074 0.432 4.654 0.001
AMT 0.245 0.075 0.229 3.286 0.001
TQ 0.993 0.210 0.973 4.727 0.000
JIT 1.635 0.244 −1.540 −6.688 0.000
Table IV. Notes: R2 ¼ 0.673; F ¼ 60.36. Dependent Variable: MAP; R2 shows the degree of change into DV with respect
Regression analysis to IV’s In model summary; β shows percentage change in DV due to 1 percent change in IV’s. po 0.000

The relationship between CS and MAP is highly insignificant 0.085. This results not confirm
the previous literature because due to geographically Pakistan is developing country and all
previous literature shows results on developed countries but in the future after three to four
years results can be significant because Pakistan is moving toward developed economy. The
relationship between Structure and MAP is highly significant. These findings confirms the
empirical results of previous studies such as Abdul-Kader and Luther (2008) explained that
there is a significant relationship between decentralization in organization structure and MAP.
Amara and Benelifa (2017) indicate that significant relationship found among structure and
MAP and Zainun et al. also show significant relationship between structure and MAP.
The relationship between AMT and MAP is highly significant. These findings confirm
the empirical results of previous studies such as Abdul-Kader and Luther (2008),
Egbunike et al. (2015) and Ahmad (2012) these all explained that there are positive and
significance relationship between advance manufacturing technology and MAP.
The relationship between TQM and MAP is highly significant. These findings confirm
the empirical results of previous studies such as Zehie et al. and Abdul-Kader and Luther
(2008), which explains that firms are with TQM adopt more MAP and there is significant
relationship between TQM and MAP.
The relationship between JIT and MAP is highly significant. These findings confirm the
empirical results of previous studies such as Abdul-Kader and Luther (2008), and Dalci
(2006) indicates that just in time has significant impact on MAP.

Conclusion
In this paper, we examine the impact of internal and external characteristics of companies
on the management accounting practices. In particular, we investigate to what extent the
characteristics associated with the internal and external environment of a company. The
literature conducted is more limited and inside the Pakistan, with our preliminary work, it
let us to think that the diversification of the complexity of management accounting is partly
explained by contingent variables.
Results investigate that management accounting differences significantly affected by
environmental uncertainty, these variables the direction of the significant relationships
confirms a prior expectations. On the other hand, our expectations about the significant
relationships between the market competition (H2) and competitive strategy (H3) are not
supported by the data and these are shown as an insignificant.
This study suggests that there is need of awareness and understanding the use of MAP
in small firms in Pakistan so that the small firms can enhance their productivity at low cost
and increased their performance.
 This study will provide benefit to the managers whom are working in different sectors Management
for maximization of profit. This study represents significant results and the concepts of accounting
MAP become popular in Pakistan. Organizations can use the knowledge to implement MAP practices
policies to protect them from losses. The data collected from 200 different companies are too
small compared to previous researches. Finally, research in this field can be developed by
comparing the situation in Pakistan with the introduction of a MAP to other developing
countries, studying differences in cultural factors and other conditional factors. 221
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Corresponding author
Ayaz ul Haq can be contacted at: publications@cbsr.com.pk

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