Abstract:

Globalization in business environment rapidly growing changes to intense competition, changing governmental regulation, dynamic capabilities and resources, best practices strategy and innovation in technology have significant impacts to the organizations.  The organizations demand for more proactive entrepreneurs with dynamic team, who can run and steer the business to success.  This definitely changes the strategy, roles, tasks and entrepreneurial skills development to enhance its performance.  Craft industry is a heritage and long term industry and one of the major contribute in manufacturing sector and also to the development of SMEs in most developing countries.  Consequently, its potential is almost overlook. This study attempts to address some of the relevant factors influencing its performance that relies on resource-based view theory, and to further provide an integrated framework to determine SMEs performance.  This study is also to explore the links between evolution of management accounting practices and entrepreneurship on innovation best practices within the context of firm performance in small medium-sized enterprises. Factors driving the changes of management accounting practices were also examined.  This conceptual paper builds on a historical review of the relevant current factors in the firm performance is carried out. It is conclude to describe and scrutinized that understanding of managerial behavior and organizational factor in SMEs firm is need on improvement. A framework is developed to explore on entrepreneurship in innovation best practices, evolution of management accounting practices issues are identified as factors affecting SMEs performances and facing on going transformation of firm performance within the craft industry.