Managerial Accounting Control Orientation and Firm Performance: An Empirical Investigation of Garment Manufacturing Businesses in Thailand

Extreme environmental change causes a firm to find tools in controlling operations for improving competitive advantage and performance of the organization. Prior research emphasis is on managerial accounting practice as a tool for operational management and control, but it is unclear on the capability and function of managerial accounting that may link to operational controlling. Therefore, this research aims at investigates the relationship between the dimension of managerial accounting control orientation (MACO) and firm performance. The questionnaires of 286 garment manufacturing businesses in Thailand were collected. Regression analysis was employed to verify the hypotheses. The evidence highlights that goal achievement setting and budgeting participation implementation have the strongest positive significance for all mediating outcomes. Both outstanding operational proficiency and superior information usefulness are significantly positive to decision-making value and resource management effectiveness. Furthermore, the findings also suggest that each dimension of MACO required either decision-making value or resource management effectiveness as a mediator variable effect on firm performance. The finding provides not only contributions, but also recommendation for future research