Factors affecting the role of management accounting in manufacturing organisations in Namibia and in the Eastern Cape province of South Africa

Manufacturing is one of the important sectors needed to improve the economies of Namibia and South Africa. However, the manufacturing sectors of both countries are not performing as planned. Management accounting is one of the requirements needed for a successful organisation. With the aim of reducing costs, improving decision making, profits and customer satisfaction, the main role of management accounting in manufacturing companies of Namibia and the Eastern Cape Province of South Africa is to control cost, forecast and budget, make decisions, report internally, improve profits and manage working capital. This study used an online survey to examine the factors that affect the effectiveness of management accounting in executing this role. The findings of the study revealed that management accounting is affected by the external environment, developments in technology and customer satisfaction. It also found that organisational structure, relationships with stakeholders and management accounting reporting were internal factors affecting management accounting. Specific skills like numerical and analytical skills were also identified as important to the role of management accounting. Based on contingency and role theories, this research aims to find those factors which can be controlled to improve the effectiveness of management accounting systems in manufacturing organisations, and as a result improve the success of those organisations on which these systems are contingent