Management accounting and controls, core competence development and firm performance：A survey based on 293 construction projects of Chinese construction firms

Mao Hongtao; Zhou Yan; Ren Xulin; Zhang Zhengyong

Science Research Management ›› 2014, Vol. 35 ›› Issue (2) : 70-78.

Mao Hongtao¹, Zhou Yan¹, Ren Xulin², Zhang Zhengyong³

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Abstract

Management accounting and controls (MACs) have being applied more frequently and broadly in Chinese firms in recent years. However, little literature studies the effectiveness of MACs. We conduct a survey of 293 construction projects and adopt the structural equation model to analyze the influence of MACs on firm performance. We find that application of MACs can directly improve firms' financial performance and indirectly affect financial performance through the development of firms' core competence. In its application process, MACs improve firms' core competence and bring sustainable competitiveness through the integration of core competence. Further, we find that the development level of MACs affects their influence on core competence and firm performance. The more developed MACs are, the more obvious the influence on firm performance is. Therefore, this paper provides guidance for understanding, choosing and implementing MACs.

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management accounting and controls / core competence / performance / construction firms

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Mao Hongtao, Zhou Yan, Ren Xulin, Zhang Zhengyong. Management accounting and controls, core competence development and firm performance：A survey based on 293 construction projects of Chinese construction firms[J]. Science Research Management. 2014, 35(2): 70-78

References

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