1

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

NGUYỄN THỊ HUYỀN TRÂM

FACTORS AFFECTING THE IMPLEMENTATION OF

MANAGEMENT ACCOUNTING TECHNIQUES IN
SMALL AND MEDIUM PRODUCTION ENTERPRISES
IN VIETNAM

Major: ACCOUNTING

Code: 9340301

SUMMARY OF PhD THESIS

HO CHI MINH CITY – 2021

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This thesis is prepared at: University of Economics Ho Chi

Minh City

Professional advisor: Asso. Prof. PhD. Võ Văn Nhị

Critic 1:

Critic 2:

Critic 3:

The thesis will be presented to the Thesis committee at:

At hours day month year

The thesis can be found in Library:

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PUBLICATIONS

1. Võ Văn Nhị - Nguyễn Thị Huyền Trâm - Tạ Thị Ngọc Thạch,
2019, Factors affecting the application of cost management
accounting practice at small and medium enterprises in Viet Nam.
International Conference on Finance, Accounting and Auditing
(ICFAA 2019), p.210-221.
2. Nguyễn Thị Huyền Trâm, 2020, Các nhân tố ảnh hưởng đến áp
dụng lập dự toán ngân sách tại các doanh nghiệp nhỏ và vừa ở
Việt Nam. Tạp chí Công Thương - Số 19, tháng, p. 373-378.
3. Võ Văn Nhị - Nguyễn Thị Huyền Trâm, 2020, Factors affecting
the Application of Performance Evaluation management
accounting practices at Small and Medium Enterprises in
Vietnam. International Conference on Finance, Accounting and
Auditing (ICFAA 2020), p.48-56.
4. Nguyễn Thị Huyền Trâm – Lê Anh Tuấn - Võ Văn Nhị, 2021,
Factors affecting the implementation of management accounting
techniques in medium-sized enterprises of Vietnam - Problems
and Perspectives in Management - Volume 19, Issue 3, p.440-
452.
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INTRODUCTION
1. Significance of the research thesis
In the context of fierce global competition, scarce resources and
rapid technological change, having accurate accounting information
is extremely important, making the right decisions is the most
important goal of management accounting information. Besides,
other essential goals to ensure and maintain successful business
operations of an enterprise are to maximize revenue and minimize
costs. Therefore, over time, businesses need to improve their
accounting information systems to meet new challenges.
SMEs have a great influence in stimulating economic
development. Furthermore, in SMEs, management accounting (MA)
techniques are also seen as an information system. Currently,
according to the author, there are not many scientific works on MA,
especially in Vietnamese SMEs. Therefore, these enterprises may
encounter difficulties in changing and in market competition. This is
the reason for the author to choose the topic "Factors affecting the
use of MA techniques in small and medium-sized manufacturing
enterprises in Vietnam".
2. Objectives and questions research
- General objective: Examines the impact on the
implementation of MA techniques in small and medium-sized
manufacturing firms in Vietnam by specific contingent factors and
institutional factors.
- Detailed objectives:
1. Identify factors affecting the application of MA techniques
in SMEs in Vietnam's manufacturing industry.
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2. To examine the impact of factors on the use of MA

techniques in small and medium-sized manufacturing firms in
Vietnam.
- Research questions
1. What are the specific factors that govern the operation of
accounting management techniques in small and medium-sized
manufacturing firms in Vietnam?
2. How is the impact of each factor on the use of MA
techniques in small and medium-sized manufacturing firms in
Vietnam today?
3. Research subject and scope
- Subject of research: Factors that govern the application of MA
techniques in small and medium-sized manufacturing firms.
- Research scope:
+ Space: in small and medium-sized manufacturing firms in the
South of Vietnam.
+ Time: Data collected in 2018.
+ Limit of topic: do not extensively consider the content of each
MA techniques.
4. Research methodology
This thesis uses the mix of qualitative and quantitative
research methods. In which, qualitative is the method that
researchers use to discover the scientific phenomena to be studied
such as constructing hypotheses (theory) or discovering the scale of a
research concept. Next use the quantitative method to confirm
qualitative results.
The research process is shown in Figure 3-1.
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5. Contribution of the thesis

- In scientific terms: The thesis adds factors and scales to a
number of factors affecting the implementation of MA techniques at
small and medium-sized manufacturing firms in Vietnam and
examines the impact level of these factors.
- In practical terms:
+ Proposing policy implications from the results of the thesis
so that relevant governmental agencies can refer to the issue of
reasonable decisions to promote the application MA in small and
medium-sized manufacturing firms in Vietnam.
+ The thesis’s results help SMEs managers better understand
the importance of MA, consider MA as a means to improve business
results and increase the competitiveness of enterprises in the market.
6. Structure of the thesis
In addition to the introduction, the content of the thesis is
presented in 5 chapters: Chapter 1: Overview of research thesis;
Chapter 2: Theoretical basis; Chapter 3: Research methodology;
Chapter 4: Results and discussion; Chapter 5: Conclusion and policy
implications.

CHAPTER 1: OVERVIEW OF RESEARCH THESIS

1.1 International literature review
1.1.1 Researches on MA techniques in developed countries

Typical researches on enterprises applying MA techniques in

countries such as the UK (Drury et al. (1993); Abdel-Kader and
Luther (2006)), Belgium (Bruggeman et al (1996)); Ireland (Pierce
and O'Dea (1998)), USA and Japan (Shields et al. (1991); Australia
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(Smyth (1960); Chenhall and LangfieldSmith (1998)); Greece

(Angelakis et al. (2010)); Turkey (Yalcin (2012))
1.1.2 Researches on MA techniques in developing countries

Typical researches on enterprises applying MA techniques in

countries such as China (Wu et al. (2007)) Saudi Arabia (El-Ebaishi
et al (2003)); Africa (Waweru et al. (2004)); Brazil (Frezatti (2007));
Thailand (Phadoongsitthi (2003), Nimtrakoon (2009)); Singapore
(Ghosh and Kai Chan (1997)) ... It can be seen very clearly that
traditional MA tools still widely adopted, and advanced MA
techniques haven't been implemented much yet although managers in
many countries still recognize advanced techniques may have a
strong impact on operations and bring many benefits to the
enterprises.
1.1.3 Researches on factors affecting the application of MA
techniques
International researches show that the "competition" is the
most important external factor that encourages managers to apply a
new cost system in enterprises. Factors such as "production
technology", "scale", "business strategy", "top management support"
were also included to test the degree of control over the application
of the MA technique. The budget estimation methods are dominated
by random events such as "decentralized organization form",
"centralized organization form" and "unusual situations" happening
in business. The design of MA at enterprises’ branches is influenced
by the factor "enterprises affect the enterprises’ branches". The
design of an MA can also be explained by unexpected events such
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as: "dependency between departments"; "The strength level of the

competitive market" and "the production technique is operating at
enterprises". The announced results about SMEs emphasize the
factor "accountant’s qualification" and "awareness of managers" can
be the factors related to the application of MAtechniques.
1.2 Domestic literature review
1.2.1 Researches on MA techniques
Nghiem Thi Tha (2004) examined some models of
organization of advanced countries to learn from experience and
apply these structures to develop MA to suit Vietnamese
circumstances. Doan Ngoc Phi Anh (2005) presents the contents,
advantages, disadvantages, methods of applying and conditions for
implementing ABC technique in Vietnamese enterprises. Huynh Loi
(2008) proposed that when designing an MA mechanism, it is
necessary to pay attention to the scale, the activities that the
departments of accounting - finance management must implement,
the optimal integration between the two parts. Dang Thi Huong
(2010) encouraged enterprises to explore and apply BSC to business
activities. Pham Ngoc Toan (2010) researched about the actual status
of MA organization in SMES and proposed supporting solutions.
Nguyen Huu Phu (2013) suggested construction corporations should
apply responsible MA if they want to develop sustainably in the
integration period. Tran Thi Thu Huong (2014) discussed the
operation of advanced technologies such as ABC technique and cost
targeting methods to help enterprises use resources in an optimal
way. Nguyen Thi Phuong Dung (2015) proposed that implementing
targeted cost engineering has directed waste management in
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Vietnamese enterprises in a better way. Dao Thuy Ha (2015)

explored the interdependence between information needs and the
cost system to be designed. Nguyen Thanh Huyen (2015)
investigated the application of cost techniques such as: "target cost,
Keizen, normative cost ..." into product life cycle.
1.2.2 Researches on factors affecting the application of MA
techniques
Tran Ngoc Hung (2016) found 7 factors influencing the
implementation of MA in SMEs: the level of state ownership, the
fierceness from the perspective of market competition, enterprises
culture, awareness of the owner enterprises, enterprises' size,
expenses for the organization of MA and the strategy of enterprises.
Doan Ngoc Phi Anh (2016) found that two factors of management -
decentralization and competition - both have a strong impact on the
operation of advanced MA tools, but are not related to the operation
of traditional MA techniques. Enterprise and enterprises that
implement MA tools all have better business results than before. Le
Thi Tu Oanh et al (2019) found there are five factors positively
related to the degree of MA application; This includes enterprise
size, organizational culture, organizational structure, technology and
human resources.
1.3 Comment on previous works and identify gaps
Literature review presenting previous studies on MA in
Vietnam shows that there are some important gaps in the current MA
literature, from the point of view of a developing economy like
Vietnam. The overview highlights the following key points:
- Large-scale research on MA techniques started in the
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developed countries in the 1990s. In developing countries, the

majority of empirical evidence on this topic has only been collected
in the 21st century.
- Previous studies mainly focus on specific MA techniques.
These studies aim to introduce MA techniques and how to
implement them in the Vietnamese context. In which, the most
popular researched MA techniques are the cost systems; budget
systems and performance evaluation systems, on the contrary,
decision-making assistance systems and strategic MA are less
studied.
- The documents show that traditional techniques are deployed
more than advanced technology in both developed and developing
countries. However, recent studies show that more advanced
techniques are being deployed.
- The documents show very little evidence of implementation
of MA techniques in SMEs. Research on this topic in SMEs is
mostly concentrated in developed countries. In recent years, scholars
in developing countries have begun to pay attention to this issue.
Therefore, the overview has identified a sizable gap in
research on MA techniques in SMEs, there are very few studies on
this issue in developing countries, especially this issue has not been
considered in SMEs in Vietnam.
Conclusion chapter 1
CHAPTER 2: THEORETICAL BASIS
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2.1 Overview of management accounting

2.1.1 Definition and functions of management accounting
2.1.1.1 Definition of management accounting
In chronological order, all definitions of IMA, CIMA or IFAC
have shown that management accounting go from the perspective of
traditional management to the point of centralized assistance to
senior management activities, including make the organization more
valuable.
2.1.1.2 Functions of management accounting
The activities and duties of the administrator can be divided
into three main functions: Planning; Directing; and Controlling.
Decision making is not a separate management function. Rather, it is
the result of trained effort to have good judgment in planning,
directing and controlling.
2.1.2 Management accounting techniques
2.1.2.1 Costing systems
According to ACCA: Costing is the process of determining the
costs of products, services or activities.
The information on product cost prices provided by the cost
system has many benefits, such as: making decisions on the selling
prices of products or services; for cost control, (Yoshikawa et al.,
1989; Bright et al., 1992; Lukka and Granlund, 1996; Cinquini et al.,
1999; Van Triest and Elshahat, 2007); production process evaluation
and price transfer (Bjornenak, 1997).
Some of the costing techniques used are: absorption costing,
direct (variable) costing, activities based costing, job costing, process
costing.
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2.1.2.2 Budgeting systems

The main purpose of budgeting is to plan future activities;
develop future financial plans; plan future cash flows; plan upcoming
daily activities; and cost control (e.g., Lyne, 1988; Armstrong et al.,
1996; Chenhall and Langfield-Smith, 1998; Sulaiman et al., 2004;
Fruitticher et al., 2005; Abdel-Kader and Luther, 2006). Budgeting
are also used to evaluate performance, communicate goals and
formulate strategies (Briers and Hirst 1990; Guilding et al., 1998;
Hansen and Van der Stede, 2004; Sulaiman et al., 2004; Fruitticher et
al. the, 2005), to coordinate activities between business units
(Chenhall and Langfield-Smith, 1998); for timely detection of weak
issues and improving next period budgeting (Joshi et al., 2003).
Some of the budgeting techniques used are: sales budgeting,
operational budgeting, cash flow budgeting, financial budgeting,
flexible budget, incremental budgeting, zero-based budgeting.
2.1.2.3 Performance evaluation system
Emmanuel et al. (1990) affirmed that performance evaluation
is an important function of management accounting. Performance
evaluation is intended to provide information to assist administrators
in achieving the organization's strategic goals (Jusoh and Parnell,
2008). Hall (2008) found that in recent years, organizations have
improved their performance measurement systems to make
measurement more comprehensive, providing more information for
administrators and employees, helping them to better manage the
activities in the organization. According to Hall (2008), a
comprehensive performance measurement system (such as BSC) is a
system that includes a series of scales to estimate many criteria and
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these metrics are closely linked to the business strategy (Kaplan and
Norton, 1996) and accountability accounting (Lynch and Cross,
1992).
Some of the performance evaluation techniques used are:
Performance evaluation based on financial measures, Performance
evaluation based on non-financial measure(s) related to customers,
Performance evaluation based on non-financial measures related to
operations, Performance evaluation based on non-financial
measure(s) related to employees.
2.1.2.4 Decision support system
Wu et al. (2007) argue that effective decision-making is a key
factor in today's constantly changing competitive environment.
Decision-making techniques can be divided into short term analysis
techniques and long term analysis techniques. Abdel-Kader and
Luther (2006) suggested that with regular / short-term decisions,
management accountants can deploy CVP analysis, product
profitability analysis, and customer profitability analysis and
inventory control models. For long-term investment decisions,
management accountants can implement techniques such as rate of
return, payback period as well as discounted cash flow techniques
(such as capital budget). Klammer et al. (1991) found that the
superiority of IRR and NPV techniques has been confirmed in the
context of a stable business environment, which is highly effective.
Conversely, in volatile market conditions, better implementation of
sensitivity analysis techniques, increased rate of return, game theory
and Monte Carlo simulation.
Some of the techniques used to assist in making decisions are:
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Cost-volume-profit analysis, Stock control model, Investment

appraisal discounting techniques, Investment appraisal non-
discounting techniques, Customer profitability analysis, Product
profitability analysis.
2.1.2.5 Strategic management accounting
Strategic management accounting is the use and analysis of
management accounting information of an enterprise and a
competitor to develop and monitor the business strategy of the
enterprise (Simmonds, 1981).
According to Guilding et al. (2000), there are 12 strategic
international economic strategies: Target cost; Quality costing;
Strategic costing; Strategic pricing; Value chain costing; Competitor
cost assessment; Competitive position monitoring; Product life cycle
analysis; Attribute costing; brand value budgeting; Brand value
monitoring; Competitor appraisal based on published financial
statements.
2.2 The characteristics of small and medium enterprises affect the
application of management accounting techniques
With all the inherent characteristics of SMEs such as small size,
small capital, low level of management... may lead to SMEs not
applying or applying limited advanced management accounting
techniques and apply many traditional techniques in business
activities
2.3 Background theories
The thesis presents the main background theories including:
Contingency theory and Institutional theory. Based on the content
and method of applying these two theories to the topic, the author
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makes seven assumptions:

H1: There is a positive relationship between the strength of
competitive markets and the implementation of management
accounting techniques.
H2: There is a positive relationship between technology and the
implementation of management accounting techniques.
H3: There is a positive relationship between the participation of
business owners / administrators and the implementation of
management accounting techniques.
H4: There is a positive relationship between accountant
qualifications and implementation of management accounting
techniques.
H5: There is a positive relationship between coercion and
implementation of management accounting techniques.
H6: There is a positive relationship between imitation and
implementation of management accounting techniques.
H7: There is a positive relationship between normative and
implementation of management accounting techniques.
Conclusion chapter 2

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Research framework and process
3.1.1 Research framework
The author used the mixed method presented in Diagram 3.1.
3.1.2 Research process
The research process consists of 5 steps: (1) Overview of
previous works to identify gaps; (2) Identify management accounting
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techniques and factors that can affect the implementation of

management accounting techniques, then propose a research model;
(3) Discuss with the expert to edit the outlined models and scale the
concepts that the author has inherited from the previous works; (4)
Use the adjusted survey after working with experts to collect data for
official model testing; (5) Cleaning and processing of collected data.
Then, read and analyze the key components, outstanding aspects of
the results and suggest policies to support SMEs in Vietnam in
implementing management accounting techniques into management.
3.2 Research design and Methodology
A mixed method is used to solve a found gap.
3.2.1 Qualitative research
Qualitative techniques are applied through two phases with the
aim of: (1) identifying the factors that influence the application of
management accounting techniques in production SMEs to sketch
research models; (2) to adjust the proposed model. The content of
expert interview is presented in Appendix 4
3.2.1.1 Target population
The author conducts 06 expert interviews (Appendix 5).
3.2.1.2 Sample selection method
In-depth interview technique with semi-structured questions
3.2.1.3 The method of data collection
Outline of expert interviews (Appendix 4).
3.2.1.4 The method of data analysis
The data was processed immediately after the interview. The
results from each interview will be compared with the draft model
and the results of previous discussions. At the end of this process, the
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author will correct the research model, scale the concepts and
prepare for the quantitative research phase.
3.2.2 Quantitative research
3.2.2.1 Sample selection method
Collect data by conducting a survey
3.2.2.2 Sample selection method
The detailed questionnaire, the formats included in this
questionnaire include closed question and suggested response
options, measured on a 5-point Likert scale (Appendix 6).
3.2.2.3 Target sample
Medium-sized enterprises in the manufacturing sector
3.2.2.4 Sampling method and Sample size
- Sampling method: Non-probability sampling, namely
convenient sampling
- Sample size: 129 enterprises, each enterprise is a survey sample
- Subject of survey: The author invites the CEOs, CFOs, experts
in charge of MA or Chief Accountant in SMEs in Vietnam in the
manufacturing sector.
3.2.2.5 Data Processing
With SPSS 20 software, the thesis uses Cronbach's alpha analysis
techniques and EFA analysis with PCA and Varimax. Next, the
author will use multivariate analysis techniques to test models and
hypotheses.
3.3 Models and hypotheses
3.3.1 Research models
On the basis of the contigency theory, institutional theory and
results from previous publications on factors affecting the
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application of management accounting techniques, and taking into

account the characteristics of SMEs in the production field and
experts’ opinion, the author proposes a model as shown in diagram
3-2.
3.3.2 Hypotheses
H1: The strength and weakness of the competitive market has the
same direction with the use of management accounting techniques
H2: The viewpoint of corporate manager has the same direction
with the use of management accounting techniques
H3: Advanced technology has the same direction with the use of
management accounting techniques
H4: The qualification of accounting has the same direction with
the use of management accounting techniques
H5: Imitation has the same direction with the use of management
accounting techniques
H6: Coercion has the same direction with the use of management
accounting techniques
H7: Normative has the same direction with the use of
management accounting techniques.
3.3.2.1 Regression model and measurement of variables
There are 6 models as following:
(1) HTCP = ß0 + ß1CT + ß2CD + ß3CN + ß4TD + ß5BC + ß6CB + ß7QP
+ε
(2) HTDT= ß0 + ß1CT + ß2CD + ß3CN + ß4TD + ß5BC + ß6CB + ß7QP
+ε
(3) HTDG = ß0 + ß1CT + ß2CD + ß3CN + ß4TD + ß5BC + ß6CB + ß7QP
+ε
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(4) HTRQD = ß0 + ß1CT + ß2CD + ß3CN + ß4TD + ß5BC + ß6CB +

ß7QP +ε
(5) HTQTCL = ß0 + ß1CT + ß2CD + ß3CN + ß4TD + ß5BC + ß6CB + ß7QP
+ε
(6) HTKTQT = ß0 + ß1CT + ß2CD + ß3CN + ß4TD + ß5BC + ß6CB +
ß7QP +ε
- Dependent variables: the extent of application of cost system
(HTCP); the extent of application of the budgeting system (HTDT);
the extent of application of performance evaluation system (HTDG);
the extent of application of the decision-making support system
(HTRQD); and the extent of application of management accounting
techniques.
- Independent variables: The Strength of the competitive market
(CT); the Viewpoint of Corporate Manager (CD); Advanced
technology (CN); the Accountant’s Qualification (TD); Imitation
(BC); Coercion (CB); Normative (QP).
- Parameter: ß1 – ß7; error: ε; ß0: constant.
3.4 The scales for research concepts
The draft questionnaire includes 18 questions with 65 observed
items (Appendix 6).
Conclusion chapter 3

CHAPTER 4: RESULTS AND DISCUSSION

4.1 Achieved results
4.1.1 Qualitative research results
4.1.1.1 Expert Interview process
Expert interview process consisted of 4 steps: (1) Introduction
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about the author and the objectives of the interview; (2) Present
concepts, terms, background theory and works related to the topic;
(3) Ask the experts about issues about Management Accounting
(MA) and factors affecting the application of MA; (4) Ending of the
interview process, the give thanks and send the author's contact
information so that the expert can contribute more comments (if
any).
4.1.1.2 Expert Interview Results
About selected unexpected situations (Question 1): There are
many contingencies that can dominate the application of MA in an
enterprise and for SMEs, the unexpected situations proposed in the
model are reasonable. Proposing to add some observed variables for
two scales of strength and weakness in the competitive market and
the point of view of enterprise’s managers. About institutional
factors (Question 2): All these three factors affect the application of
MA. Regarding the MA used by ME (Question 3): Many MA are
being performed in Vietnamese enterprises and the dimension of
MA’s implementation is very diverse (Question 4). The application
of MA is quite stable (Question 5). Budgetting techniques remain the
unchanged for many years (Question 6). Some MAs are also
developed regularly or adjusted accordingly with changes of
enterprises (Question 7). Finally, after reviewing the draft
questionnaire, the expert proposed to rename some terms to match
the terms being used in Vietnam, delete three budgetting techniques
that are not suitable for the size of medium enterprises as well as
quite new in Vietnam (Question 8). The author has adjusted
according to the expert's opinions (Table 4.1)
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4.1.2 Quantitative Results

4.1.2.1 Descriptive Statistical Results
Results emphasize that the use of traditional international
economic techniques is relatively more than the use of advanced
international economic techniques.
By almost all enterprises interviewed, the competitive market is
considered fierce. The degree of diversity in point of views of the
enterprise’s managers can effect differently on the use of MA in
enterprises. Enterprises apply advanced technology widely. The
degree of applying advanced technology is quite high. The expertise
of accountants or consultants has a great influence on the application
of MA in enterprises. Mutual imitation or being forced may involve
the application of MA in enterprises.
4.1.2.2 Multiple Variable Regression Analysis
4.1.2.2.1 Cronbach’s Alpha
All scales are of good quality.
4.1.2.2.2 Exploratory Factor Analysis - EFA
The factor analysis is appropriate. The data and observed
variables are correlated in the whole. Average variance extracted can
explain 69.131% of the variation of the sample. All factors are
qualified and have a very high convergence.
4.1.2.2.3 Factors affecting the costing system
The results show that the strength and weakness of the
competitive market and advanced technology are factors that can
accurately predict the use of cost systems in enterprises. As the
intensity of competition increases and the use of advanced
technologies increases, the implementation of cost systems in
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enterprises also increases. Moreover, the strength and weakness of

the competitive market have an effect on the application of the cost
system greater than the advanced technology.
4.1.2.2.4 Factors affecting the budgeting system
The test results show that the strength and weakness of the
competitive market and the enterprise managers’s opinions are
important predictors for the use of a budgeting system. When the
intensity of competition and the enterprise owner’s point of views
increase, the application of the accounting system in enterprises also
increases and the participation of the owners affect the application of
the accounting system more than the intensity of competition in the
market.
4.1.2.2.5 Factors affecting the performance evaluation system
The test results show that the three factors: the intensity of
competition (IoC), the enterprise manager’s point of view (EMPV)
and imitation are important for the use of an activity performance
evaluating system (APES). When the intensity of competition
increases, the managers have better awareness and the imitation
increases, the application of APES in enterprises also increases. Of
these three factors, the EMPV is the strongest one. The IoC is the
secondly strong and imitation is the third.
4.1.2.2.6 Factors affecting the decision support system
The test results show that the three factors: EMPV, AT and
imitation are important for the use of a decision support system. If
enterprises apply more AT, the managers have better awareness and
enterprises intensively imitate each other, then the application of the
decision support system in enterprises also increases. Among these
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three factors, the EMPV has the strongest influence, followed by

imitation and, finally, AT.
4.1.2.2.7 Factors affecting the strategic management accounting
The test results show that the IoC in the market, the EMPV
and AT are important factors for the use of a strategic management
accounting (SMA). When the intensity of competition increases,
advanced technology is applied more and managers having better
awareness, the application of SMA in enterprises also increases.
Among these three factors, the EMPV is most influential, followed
by AT and finally the IoC in the market.
4.1.2.2.8 Factors affecting the application of MA techniques
The test results show that there are 4 factors: The IoC in the
market, the MEPV, the AT and imitation are important for the
application of MA techniques. When the IoC increases, managers
have good awareness, increases the application of AT and enterprises
increase imitation, the application of MA techniques in enterprises
also increases. Among these four factors, the MEPV has the
strongest influence, followed by the IoC in the market, followed by
AT and finally imitation.
4.2 Discussion about the Results
Of the 7 factors included in the testing model, the four factors
that affect the application of the MA techniques are: Competition in
the market; Viewpoint of business owner; Advanced technology and
Imitation. The other three factors (the qualifications of accountants,
coercive and normative) do not have a statistically significant
relationship with the application of MA techniques in SMEs in
Vietnam.
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4.2.1 The results of testing accepted hypotheses

4.2.1.1 The strength of the competitive market
The strength of the competitive market have a positive and
statistically significant relationship with the application of a cost
system, a budgeting system, an assessment system of activity
performance, strategic management accounting and MA technique in
enterprises.
4.2.1.2 Owner’s participation
The point of view of enterprise manager has a positive and
statistically significant relationship with the use of the budgeting
system, the performance evaluating system, the decision support
system and the strategic management accounting and MA technique
in enterprises.
4.2.1.3 Advanced Technology
Advanced technology has a positive and statistically
significant relationship with the use of the cost system; the decision
support system; strategic management accounting and MA technique
in enterprises.
4.2.1.4 Imitation
The imitation factor has a positive and statistically
significant relationship with the use of performance evaluating
system, decision support system; and MA technique in enterprises.
4.2.2 The results of testing rejected hypotheses
The three factors: Accountant's qualifications, coercive and
normative do not have a statistically significant relationship with the
use of the cost system, the budgeting system, the performance
evaluating system, the decision support system, strategic
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management accounting and MA techniques in enterprises.

The coercive factor does not have a statistically significant
relationship with the use of the cost system, the budgeting system,
the performance evaluating system, the decision support system,
strategic management accounting and MA techniques in enterprises.
The normative factor does not have a statistically significant
relationship with the use of the cost system, the budgeting system,
the performance evaluating system, the decision support system,
strategic management accounting and MA techniques in enterprises.
Conclusion of Chapter 4

CHAPTER 5: SUMMARY AND POLICY

RECOMMENDATION
5.1 General Conclusion
These research results may imply that the unpredictable
situations and institutional factors considered in this thesis are the
factors that can accurately predict the use of management accounting
techniques in Vietnamese medium-sized enterprises in the
manufacturing industries. Each specific contingency factor or
institutional factor will have different degrees of influence on
management accounting techniques which a business chooses to
apply in their business activities. But in general, it can be seen that
medium-sized enterprises in Vietnam use more management
accounting techniques when their enterprises are faced with events
from the internal or external environment or when the owners want
apply management accounting techniques to their work or when
businesses want to imitate successful businesses.
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5.2 Policy recommendation

5.2.1 Theoretical perspective
From a theoretical perspective, this work has contributed:
- Find out 4 factors that affect the use of MA techniques in the
medium-sized manufacturing enterprises. There are three unexpected
factors which are the market competition factor, the opinion of the
enterprise manager, the advanced technology and an institutional
factor – imitation factor. The discovery of an institutional factor
affecting the use of MA techniques for medium-sized manufacturing
enterprises in Vietnam is a new contribution of the study.
- Develop additional observed variables for the scale of the
strength/weakness of the competitive market and the scale of
enterprise manager’s point of view.
- To change the perception and to provide knowledge of MA
techniques in SMEs in Vietnam so that enterprises can deploy and
benefit from the market, reduce the possibility of business failure.
5.2.2 On the Governance
5.2.2.1 The strength of the competitive market.
The government needs to continuously improve the business
environment, create a space for fair competition for industries and
business types of enterprises. The continuous change will create
pressure for businesses to change and increase their competitive
capacity.
Professional associations should enhance their role and
importance in the context of international integration. In addition to
being a representative to fight for the rights and interests of
enterprises, the association also has to contribute to trade promotion,
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investment, human resource training, consulting and sharing

experiences, and providing essential services for enterprises.
The business community should actively improve its
competitiveness in the context of economic integration. They should
actively learn and update business knowledge to capture the growth
trend of domestic and foreign markets. Increasing knowledge and
changing awareness of the importance of international economic
techniques in operating business activities will promote enterprises
to apply MA techniques.
5.2.2.2 The enterprise manager’s point of view
The government should have incentives and supporting polycies
to raise awareness about the role of enterprise managers in the
application of MA techniques. The Government needs to make
propaganda to help enterprises realize the richness of the
international economic techniques as well as the benefits of these
techniques, and introduce many interventions to promote the
development of SMEs, ensuring their sustainability of this area.
Through the professional association, the Government provides
financial support for training courses on technical aspects of
business, marketing and management skills to encourage SMEs to
develop international economic skills. When having in-depth
understanding on this issue, the corporate authorities will implement
international economic techniques.
Professional associations should organize regularly and widely
training courses on MA skills. The sponsored training courses will
motivate SMEs to participate, thereby helping managers to have in-
depth knowledge and better understanding of the meaning of
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implementing MA techniques, especially the implementation of

advanced MA techniques in business activities of enterprises.
Enterprise managers should accumulate, continuously update
knowledge about MA and change their perception of MA. Enterprise
managers that have foresight will actively apply MA techniques to
their business activities.
5.2.2.3 The advanced technology
The Government should distribute the budget to finance science
and technology projects and programs to motivate enterprises to
quickly put advanced technologies into operation. The Government
should also promulgate regulations to support enterprises importing
advanced machines to encourage enterprises to innovate technology.
Professional associations should regularly organize seminars,
share experiences and advantages when applying advanced
technology. They should organize programs to honor successful
businesses because of their investment in advanced technology to
motivate other enterprises.
Enterprises need to actively improve internal resources to stand
firmly in the marketplace, should not just rely on supportive policies.
Managers should develop a process to invest in improving
production equipment, technology, modernizing machinery and
equipment, and abandoning obsolete equipment. When operating
advanced technology equipment, businesses will apply contemporary
MA techniques.
5.2.2.4 The imitation factor
The Government should promptly publish guidelines on MA
techniques, especially advanced ones.
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Professional associations should closely link with media agencies

to organize and widely advertise successful business and business
honoring programs to serve as examples for other businesses to
learn. The Association should also learn from other countries'
experiences to disseminate new knowledge about MA to enterprises.
Enterprises should change perceptions about the role of
professional associations. In the new era, the association should act
as a bridge between businesses and the world, between businesses
and public agencies, and between businesses. Therefore, when
joining the Association, businesses will quickly grasp the regulations
issued by the State; help businesses learn and share knowledge and
experiences from domestic and international businesses.
5.3 Limitations of the topic and upcoming directions
The work still has the following shortcomings. (1) response
rate to survey questionnaire is low. (2) only focusing on the
manufacturing sector, so the sample will limit the generality of the
results for all medium-sized enterprises. (3) the number of
contigency factors included in the survey is quite small, (4) the data
is collected via mail and email, which may cause the respondents to
misunderstand the question, (5) inherent limitations of using Likert-
scale questions.
From the results achieved, the author submitted some further
directions: (1) expanding the sample size to get better response rates,
(2) selecting a specific industry in the manufacturing sector or using
case study techniques, (3) Conducting qualitative research on a
particular enterprise to see if a medium-sized enterprise that
implements advanced management accounting techniques in which
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conditions is effective. (4) Adding contigency factors to the model.

(5) developing research in the direction of comparing the application
of management accounting techniques between Vietnam and other
countries to see if there are cultural differences between Vietnam and
these countries.
Conclusion chapter 5
General conclusion
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