Mediation and moderation effects on strategic management accounting usage and performance of Australia manufacturing companies

This research investigates the role of Strategic Management Accounting (SMA) in enhancing the performance of Australian manufacturing firms. SMA is defined as an approach that focuses on analysing the external environment to guide corrections and adjustments to internal control systems, organizational structures, and decisionsupport systems vital for organizational survival. Despite its recognized potential, the application of SMA in Australia’s manufacturing sector remains underexplored, particularly considering the sector’s declining contribution to Gross Domestic Product (GDP) since 2012. This study addresses this gap by evaluating the impact of SMA on firm performance, alongside the mediating roles of technology, information, and people, as well as the moderating role of government policies. A structured questionnaire was distributed to 5,000 senior managers across Australian manufacturing firms, yielding 400 valid responses, surpassing the minimum sample size required for robust statistical analysis. The findings demonstrate that SMA significantly enhances firm performance, with information and human resources serving as essential mediators in this relationship. However, technology was not found to be a significant mediator, and government policies did not moderate the relationship between SMA usage and performance. These findings highlight the pivotal roles of internal information and human resources in driving the effectiveness of SMA, regardless of external factors such as government policy support or technological adoption. By providing empirical evidence of SMA’s utility within the manufacturing context, this research contributes to the broader strategic management literature and offers practical strategies for firms to address sectoral challenges. Enhancing SMA practices could support the sector in improving performance and potentially reversing its declining economic contribution to Australia’s GDP. The study concludes with actionable recommendations for managers and policymakers, while also acknowledging its limitations and outlining directions for future research.