Factors affecting the application of management accounting in Vietnamese enterprises

 enterprises 
and large enterprises regarding the application of management accounting. Specifically, large-scale 
enterprises with strong financial capacity, diverse products, and large market share, with complex 
management systems require highly sophisticated management accounting techniques. In small 
enterprises, it is not necessary to design a management accounting system. However, it is possible to 
apply management accounting in small companies especially at high level management. The owners/ 
managers of enterprises or the chief accountants must equip themselves with knowledge and 
application of management accounting. The application of management accounting in small businesses 
can help them reduce risks through budgeting tools, create better business plan or take advantages of 
business opportunities. 
5.3 Organizational culture 
In this study, the organizational culture has the highest impact on the application of management 
accounting in enterprises, with the coefficient of 0.375. Research results show that support from 
managers to employees, consensus on development goals, and cooperation of employees in 
departments increase the feasibility of management accounting application. This result confirms 
hypothesis H6, and is consistent with previous studies of Erserim (2012), Chenhall (2007), Xydias-
Lobo et al. (2004), Laitinen (2003). In Vietnam, the majority of enterprises are small enterprises with 
personal and family relationships. Therefore, the consistency and conformity are relatively high which 
can facilitate the application of management accounting such as developing standard costing; decision 
making tools; budgeting and control; performance measurement can reach high consensus from 
business departments, and the Board of Directors. 
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5.4 Organizational structure 
The results of regression analysis show that organizational structure has a positive effect on the 
application of management accounting in enterprises, with the coefficient of 0.269. This factor has the 
highest impact on the dependent variable. This result confirms hypothesis H4 that, and is consistent 
with previous studies of Fasesin (2015), Lavia et al. (2015), Abdel and Luther (2008). Enterprises in 
Vietnam operate under the Vietnamese Enterprise Law and often have line and functional 
organizational structure. Specifically, clear structure of enterprises is reflected in the division of the 
organization into small units such as departments, units, teams with specific tasks, and performance of 
each unit is periodically evaluated. Therefore, clear organizational structure facilitates the application 
of management accounting in Vietnamese enterprises. 
5.5 Technology 
This study proved that technology has a positive impact on the application of management accounting 
(coefficient = 0.203). This result confirms hypothesis H5, and is consistent with previous studies of 
Kordlouie and Hosseinpour (2018) , Afirah (2018), Lavia et al. (2015), Ahmad (2012). In the era of 
industrial revolution 4.0, technology has a great influence on business activities. New technology 
allows high-level automation in producing and manufacturing as well as communication and 
cooperation between machines and humans in a real-time. Specifically, technology is represented by 
the degree of automation in the processes of production, sales, personnel, business, management. It 
enables rapid production and standardized quality. This study also showed that technology factors and 
firm size (the amount of capital and the number of product) have a positive impact on the application 
of management accounting. Hardware and software technologies are applied and enhance efficiency in 
foreign-invested companies (joint ventures). Companies with a capital of more than 200 billion VND, 
revenues of more than 200 billion VND, and more than 200 products such as Samsung, Toyota, Canon, 
apart from machinery and equipment, they also apply technology such as management process, 
automatic production, employee work trackers, controlling inventory, materials. The automation level 
may reach 52%. In State-owned companies, technology is not advanced and includes mainly machinery 
and equipment with poor operation and management processes. The amount of investment in 
technology in the private sector (limited liability companies and joint stock companies) is smaller than 
that in stated-owned enterprises, but higher efficiency. 
5.6 Human resources management 
The factor of human resources management has a positive influence on the application of management 
accounting, however the level of impact is small (0.046). The management of human resources depends 
greatly on the perspectives and strategies of the managers. With highly flexible management strategy, 
companies need to apply complex management accounting techniques to collect relevant information 
for making decisions in diverse business contexts. 
6. Summary and Conclusion 
Management accounting is considered a component of management system in enterprises. Managers 
at all levels can use management accounting information to perform management functions and achieve 
business objectives. However, application of management accounting is affected by many factors, so 
investigating influential factors is essential. This study using quantitative research method proved that 
organizational culture has the highest impact of management accounting application, followed by 
organizational structure and technology. Therefore, potential solutions for enterprises are proposed as 
follows: 
Solutions regarding organizational culture: Organizational culture is one of the most valuable assets 
of an organization which should be preserved and promoted by its members. Companies with strong 
cultures have a high consensus among members toward common objectives which is a critical factor 
for long-term success. Potential solutions for companies to promote and strengthen their culture include 
T.T.O. Le et al. /Uncertain Supply Chain Management 8 (2020) 
421
(i) Developing an investment strategy to explore and promote strengths and talents of each employee 
in the organization; (ii) Regularly evaluating strengths and weaknesses of corporate culture to 
communicate and remind responsibilities and obligations of each individual in enterprises; (iii) 
Organizing events to enhance teambuilding, contests, programs to enhance cooperation and help 
employees understand corporate culture as well as the importance and benefits of the development of 
the enterprises and its members. 
Solutions regarding enterprise size: There are many different ways to increase enterprise size such as 
mergers, integrations, alliances. With larger size, companies can have sufficient financial capacity to 
access capital from banks. It is recommendable to diversify business activities, products. Furthermore, 
in order to apply management accounting effectively, appropriate data collection should be emphasized 
which allows better processing of data and making reports for managers at all levels. In other words, it 
is critical to maintain high consistency from data collection to data analysis 
Solutions regarding business environment: Business environment is an external factor which has a 
negative impact on the application of management accounting in Vietnamese enterprises. Since it is 
impossible to restrain or reduce the impact of external environment, an effective solution is to adapt to 
the environment and take control of enterprises’ production and business activities. Particularly, 
enterprises should select appropriate management accounting techniques to help managers make right 
decisions to tackle environmental instability. 
Solutions regarding organizational structures: Enterprises should select suitable management 
structures, adapt the management structures in relation to organizational cultures. Furthermore, 
management structures should be established based on responsibility center. 
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