Keywords: management accounting practices, advanced manufacturing technology, AMT adoption, performance measurement indicators, manufacturing strategy, agile manufacturing, activity-based costing, ABC
Adoption of advanced manufacturing technology (AMT) and management accounting practices: the case of manufacturing firms in Malaysia
This paper examines advanced manufacturing technology (AMT) adoption in manufacturing firms and its relationship with management accounting practices. Advancements in technology and trade liberalisation have significantly intensified competition in the domestic and the international markets. One of the strategies for manufacturing firms to become agile and responsive to market changes is to adopt AMT, which often results in drastic changes in the production cost structure. Hence, it is conjectured that AMT adoption would lead to adoption of new costing methods, such as activity-based costing (ABC) and a higher emphasis on non-financial performance measurement indicators (PMIs). Results from this study offer mixed support for the predictions on the hypothesised relationship between AMT adoption and certain management accounting practices.