Abstract:

This conceptual paper aims to present the new conceptual model for sustainable survival in context of SMEs of Pakistan. Scholarship has reflected that desire of survival in profoundly ingrained in SMEs owners / managers due to which they endeavor to diminish their struggle for survival. This survival striving in the long run or sustainable survival is arguably influenced by the strategic thinking. Conversing about SME context, research in management accounting has captured the attention of scholars due to its significance and usage. Management accounting systems provides the financial as well as non-financial information that cognitively activate the thinking process. Under the theoretical underpinnings of cognitive psychology, we have argued in this conceptual paper that management accounting systems can activate the strategic thinking cognitively which can lead SMEs to sustain in the long run. It is imperative for SMEs to focus on management accounting systems that can have significant implications in managing their survival.