Strategic Management Accounting and Organizational Performance in Dynamic Business Environments: An Integrative Literature Review

Abstract

Strategic management accounting (SMA) has become increasingly important in supporting managerial decision-making, competitive positioning, and organizational performance in dynamic business environments. This study aims to synthesize the literature on the relationship between strategic management accounting practices and organizational performance, with particular attention to the mechanisms through which accounting information supports strategic planning and managerial control. An integrative literature review was conducted by examining peer-reviewed studies related to strategic costing, competitor accounting, strategic performance measurement, budgeting, management control, and strategic decision-making. The synthesis indicates that SMA contributes to organizational performance by providing forward-looking, externally oriented, and strategically relevant information that supports cost management, resource allocation, competitive analysis, performance evaluation, and long-term decision-making. The effectiveness of SMA is strengthened when accounting information is integrated with managerial strategy, organizational learning, market orientation, and adaptive control systems. However, the contribution of SMA may vary according to environmental uncertainty, organizational structure, technological capability, management competence, and the level of strategic integration within the organization. The review concludes that SMA creates greater organizational value when accounting practices are positioned as part of the strategic management process rather than as merely technical reporting activities.