Abstract

This study employs a survey research design to investigate the causal relationships between business strategies, Traditional Management Accounting Practices (TMAP), Modern Management Accounting Practices (MMAP), and the performance of industries in Thailand. Data were gathered through structured questionnaires distributed to 720 Thai companies, with 348 valid responses yielding a response rate of 48.33%. The sample comprised accounting executives. The findings reveal that both cost leadership and differentiation strategies have a significantly positive effect on the adoption of TMAP and MMAP. Additionally, TMAP is shown to positively impact the performance of Thai industrial enterprises, serving as a mediating variable in the relationship between cost leadership and differentiation strategies and business performance. The study indicates that business strategy is pivotal in determining management accounting practices. Specifically, the cost leadership strategy is more aligned with TMAP, which emphasizes financial indicators and short-term outcomes, whereas the differentiation strategy is associated with MMAP, which integrates strategic objectives and comprehensive decision-making information. The findings also highlight that there is a positive outcome when management accounting practices are integrated with business strategies to improve organizational performance. Such a study develops an understanding of how various strategies influence the adoption of TMAP and MMAP and their impact on performance and thus supports the view of contingency theory, where management accounting systems should align with business strategies in order to enhance competitiveness and performance.