INTEGRATION OF STRATEGIC MANAGEMENT ACCOUNTING AND BUSINESS PERFORMANCE: CASE STUDIES FROM THE MANUFACTURING SECTOR IN NIGERIA

Abstract

This study examines the integration of Strategic Management Accounting (SMA) and its impact on competitive advantage within Nigerian manufacturing firms. Drawing on a mixed‑methods approach, the research investigates how SMA practices contribute to enhanced business performance and identifies the challenges hindering their adoption. The study population comprised chief executive officers, chief financial officers, and marketing directors from manufacturing firms listed in the 2023 Nigerian Stock Exchange Factbook. Data were collected using a validated questionnaire with a reliability coefficient of 0.96 and analyzed through descriptive statistics and frequency distributions. The findings reveal that SMA significantly enhances competitive advantage by providing relevant financial and non‑financial information for strategic decision‑making, market positioning, and performance monitoring. However, adoption is constrained by limited awareness of SMA concepts, high implementation costs, resistance to change, inadequate technical expertise, and the dominance of traditional management accounting practices. The study recommends embedding SMA in tertiary accounting curricula, fostering collaboration among Nigerian executives, academics, and practitioners to standardize SMA best practices, transitioning from functional‑based costing to activity‑based costing, and providing targeted SMA training for manufacturing accountants. This research contributes to the limited empirical literature on SMA in Nigeria, offering insights for policy, education, and industry to advance competitive positioning in the manufacturing sector.