STRATEGIC MANAGEMENT ACCOUNTING AND COMPETITIVE ADVANTAGE IN NIGERIAN SMES

Abstract

This study investigates the role of strategic management accounting (SMA) in enhancing competitive advantage among small and medium‑sized enterprises (SMEs) in Nigeria. SMA integrates financial and non‑financial information to support strategic decision‑making in areas such as cost reduction and product differentiation, both of which are critical for sustaining competitiveness in dynamic markets. Drawing on stakeholder theory, the study examines how SMA practices influence SMEs’ ability to achieve operational efficiency and market differentiation. A survey was conducted among accounting, finance, and administrative personnel from five SMEs, with 38 valid responses analyzed. Data were collected using structured questionnaires and assessed for reliability, yielding a Cronbach’s Alpha coefficient of 0.796, indicating strong internal consistency. Findings reveal that SMA practices have a positive and statistically significant effect on SMEs’ cost reduction and product differentiation decisions, thereby contributing to improved performance and competitive positioning. The study recommends that SME managers adopt SMA tools such as activity‑based costing, target costing, and strategic performance measurement systems to strengthen their strategic capabilities. Policymakers should provide training and incentives to promote SMA adoption across SMEs. This research contributes to the limited empirical evidence on SMA and competitive advantage in emerging economies, offering insights for both practitioners and researchers.