A Structural Contingency Model of the relationship among Intensity of Competition, Differentiation, and Management Accounting System: Impact on Organizational Performance

Abstract :

This study aims to examine the relationship between a two contingent factors and Management Accounting System (MAS) and their influence on organizational performance. Based on contingency theory, the study developed a theoretical framework to hypothesize the relationships among the variables. In the first phase of the study, the effects of Intensity of Competition (IC) and differentiation on MAS were investigated. Then, the effect of MAS on the organizational performance was examine as well. Data were collected using questionnaire distributed to the top management working at listed companies in Amman Stock Exchange, then, Measurement Model Evaluation and Structural Model Evaluation were established using Smart-PLS. The findings provide support for the contingency theory’s assumptions. The study’s findings provide directions for future studies in developing countries to expand the knowledge in the area of management accounting.