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Relationship between strategic management accounting techniques and profitability – a proposed model

Relationship between strategic management accounting techniques and profitability – a proposed model Purpose – The purpose of this study is to propose a comprehensive strategic model to manage profitability. Strategic management accounting concepts and tools are adopted to explore and manage the main profitability drivers (cost, assets, and revenue). Design/methodology/approach – A deductive approach is used to identify the variables of the profitability model. Phase one of this study rely on reviewing prior literature in the field in order to identify the key profitability drivers that uses in managing profitability (costs, assets and revenue).Phase two of the research focuses on testing the perceptions of the managers of Egyptian “Information and communications technology” sector, the relative merits of such a model. Findings – The most important finding in the current study, which has not been investigated in previous studies, is that the proposed comprehensive profitability model which contains cost, the assets and revenue techniques was a better predictor of profitability than the alternative models, which contain a combination of two variables. Originality/value – As the first study of its kind, this model contributes to the theoretical literature in the field. It is also a practical contribution in managing profitability of the Egyptian “Information and communications technology” sector. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Measuring Business Excellence Emerald Publishing

Relationship between strategic management accounting techniques and profitability – a proposed model

Measuring Business Excellence , Volume 18 (3): 22 – Aug 12, 2014

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References (84)

Publisher
Emerald Publishing
Copyright
Copyright © 2014 Emerald Group Publishing Limited. All rights reserved.
ISSN
1368-3047
DOI
10.1108/MBE-04-2013-0023
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this study is to propose a comprehensive strategic model to manage profitability. Strategic management accounting concepts and tools are adopted to explore and manage the main profitability drivers (cost, assets, and revenue). Design/methodology/approach – A deductive approach is used to identify the variables of the profitability model. Phase one of this study rely on reviewing prior literature in the field in order to identify the key profitability drivers that uses in managing profitability (costs, assets and revenue).Phase two of the research focuses on testing the perceptions of the managers of Egyptian “Information and communications technology” sector, the relative merits of such a model. Findings – The most important finding in the current study, which has not been investigated in previous studies, is that the proposed comprehensive profitability model which contains cost, the assets and revenue techniques was a better predictor of profitability than the alternative models, which contain a combination of two variables. Originality/value – As the first study of its kind, this model contributes to the theoretical literature in the field. It is also a practical contribution in managing profitability of the Egyptian “Information and communications technology” sector.

Journal

Measuring Business ExcellenceEmerald Publishing

Published: Aug 12, 2014

Keywords: Intellectual capital; Customer value management; Profitability management; Strategic management accounting; Customer profitability analysis

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