THE EFFECT OF MANAGEMENT ACCOUNTING SYSTEM ON CIRCULAR ECONOMIC: USING AGILE-ADAPTIVE BALANCED SCORECARD AS MEDIATOR

Abstract

In recent years, the literature has dealt with the analysis of many studies on the circular economic and in various fields. However, there are many areas that have not yet been explored, for example the study of factors affecting management accounting systems on the recovery of corporate activities. This paper aims to study the impact of the management accounting system (MAS) on the circular economic by adopting the agile-adaptive balanced scorecard (AABSC) as a mediating factor for this relationship. The purpose of this study is to recommend the problems of the circular economy represented in waste of resources and air pollution, in addition to innovation, customer satisfaction, and internal operations problems. A dual approach was applied which are Structured Equation Model (PLS-SEM) and Artificial Neural Network (ANN) approach. The results of this study provide a positive relationship to the impact of the MAS on the circular economy through the implementation of the AABSC as a mediator. A new perspective was presented in this research that may contribute to encouraging the study of the impact of this MAS on the circular economic to increase innovation processes and customer satisfaction that may contribute to improving the competitive advantage of firms in general.