External pressures and financial performance of Indonesian MSMEs: role of material flow cost accounting

Noorlailie Soewarno; Satwiko Oetomo Adji Basoeki; Bambang Tjahjadi

doi:10.1504/IJGSB.2023.130315

External pressures and financial performance of Indonesian MSMEs: role of material flow cost accounting

Noorlailie Soewarno, Satwiko Oetomo Adji Basoeki, Bambang Tjahjadi

Research output: Contribution to journal › Article › peer-review

Abstract

This study aims to investigate the mediating effect of material flow cost accounting (MFCA) on the external pressure (regulatory pressure and market pressure) - financial performance relationship. The topic of MFCA is rarely researched. The data was collected using questionnaires directed to the owners/managers of micro, small and medium-sized enterprises (MSMEs) in the East Java Province, Indonesia. As many as 156 respondents participated in this research. The finding reveals that MFCA partially mediates the external pressure-financial performance relationship proving that MFCA as one of the environmental management accounting methods is beneficial and needed to enhance financial performance. Employing institutional theory, this study provides additional support to the scarcity of empirical evidence focusing on MFCA in the MSME research setting.

Original language	English
Pages (from-to)	268-290
Number of pages	23
Journal	International Journal of Globalisation and Small Business
Volume	13
Issue number	3
DOIs	https://doi.org/10.1504/IJGSB.2023.130315
Publication status	Published - 2023

Keywords

MFCA
MSMEs
external pressure
financial performance
institutional theory
material flow cost accounting
micro
small and medium-sized enterprises

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10.1504/IJGSB.2023.130315

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title = "External pressures and financial performance of Indonesian MSMEs: role of material flow cost accounting",

abstract = "This study aims to investigate the mediating effect of material flow cost accounting (MFCA) on the external pressure (regulatory pressure and market pressure) - financial performance relationship. The topic of MFCA is rarely researched. The data was collected using questionnaires directed to the owners/managers of micro, small and medium-sized enterprises (MSMEs) in the East Java Province, Indonesia. As many as 156 respondents participated in this research. The finding reveals that MFCA partially mediates the external pressure-financial performance relationship proving that MFCA as one of the environmental management accounting methods is beneficial and needed to enhance financial performance. Employing institutional theory, this study provides additional support to the scarcity of empirical evidence focusing on MFCA in the MSME research setting.",

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AU - Basoeki, Satwiko Oetomo Adji

AU - Tjahjadi, Bambang

PY - 2023

Y1 - 2023

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AB - This study aims to investigate the mediating effect of material flow cost accounting (MFCA) on the external pressure (regulatory pressure and market pressure) - financial performance relationship. The topic of MFCA is rarely researched. The data was collected using questionnaires directed to the owners/managers of micro, small and medium-sized enterprises (MSMEs) in the East Java Province, Indonesia. As many as 156 respondents participated in this research. The finding reveals that MFCA partially mediates the external pressure-financial performance relationship proving that MFCA as one of the environmental management accounting methods is beneficial and needed to enhance financial performance. Employing institutional theory, this study provides additional support to the scarcity of empirical evidence focusing on MFCA in the MSME research setting.

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External pressures and financial performance of Indonesian MSMEs: role of material flow cost accounting

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