Market Competition, Lean Manufacturing Practices and The Role of Management Accounting Systems (MAS) Information

ABSTRACT Adoption of advanced manufacturing techniques such as lean manufacturing is one of the strategies that help manufacturing firms to sustain their competitiveness and achieve the desired outcomes. It is argued that the traditional Management Accounting Systems (MAS) are no longer capable of providing information necessary to operate in the ever changing business environment. This study examines the role of MAS information in the relationship between market competition, lean manufacturing and organisational performance. Data were gathered using a questionnaire survey from manufacturing firms listed in the Federation of Malaysian Manufacturers (FMM) Directory. The results reveal the relationships between lean manufacturing and the MAS, as well as between the MAS and performance, are positive and significant, which suggest that the relationship between lean manufacturing and performance is indirect through the MAS. This provides evidence that the use of MAS information in a lean manufacturing environment facilitates firms in improving organisational performance. Keywords: Lean manufacturing; just in time; total quality management; market competition; management accounting systems ABSTRAK Penggunaan teknik pengilangan maju seperti pengilangan ‘lean’ adalah salah satu strategi yang membantu syarikat pengilangan untuk mengekalkan daya saing mereka dan mencapai hasil yang dikehendaki. Adalah dikatakan bahawa sistem perakaunan pengurusan (MAS) tradisional tidak lagi mampu menyediakan maklumat yang diperlukan untuk beroperasi dalam persekitaran perniagaan yang sentiasa berubah-ubah. Kajian ini mengkaji peranan maklumat MAS dalam hubungan di antara persaingan pasaran, pengilangan ‘lean’ dan prestasi organisasi. Data dikumpulkan dengan menggunakan soal selidik dari firma-firma pengilangan yang disenaraikan di Direktori Persekutuan Pekilang-Pekilang Malaysia (FMM). Keputusan mendedahkan bahawa hubungan di antara pengilangan ‘lean’ dan MAS, serta di antara MAS dan prestasi, adalah positif dan signifikan, yang menunjukkan bahawa hubungan di antara pengilangan ‘lean’ dan prestasi adalah secara tidak langsung melalui MAS. Ini memberikan bukti bahawa penggunaan maklumat MAS di dalam persekitaran pengilangan ‘lean’ memudahkan syarikat untuk meningkatkan prestasi organisasi. Kata kunci: Pengilangan ‘lean’; ‘just in time’; pengurusan kualiti menyeluruh; persaingan pasaran; sistem perakaunan pengurusan