THE EFFECT OF CONTEMPORARY MANAGEMENT ACCOUNTING PRACTICES ON FINANCIAL PERFORMANCE IN VIET NAM ENTERPRISES

Abstract

This study examines the association between contemporary management
accounting practices with financial performance in Vietnam enterprise. Data were
collected based on survey distributed to 247 medium and large sized enterprise in
Vietnam. The quantitative data collected was analyzed using the Partial Least
Squares Structural Equation Modeling (PLS-SEM) approach. Overall, the results
indicate that Vietnamese businesses use contemporary management accounting
practices (CMAP) relatively infrequently. However, the research results indicate that
CMAP have a positive impact on the financial performance in Vietnamese
enterprises. Therefore, enterprises should plan and implement suitable CMAP
according to their circumstances and current conditions to enhance their competitive
advantage and financial performance. Additionally, the study applies dynamic
capability theory to explain the impact of CMAP on financial performance.