Aligning management accounting and accounting information systems for better decisions in Malaysian SMEs

Abstract

Small and medium enterprises (SMEs) are central to the Malaysian economy, yet many continue to rely on basic accounting routines that limit the quality of managerial decisions. Management accounting practices (MAPs) and accounting information systems (AIS) have each been studied extensively, but they are usually examined in isolation, leaving limited understanding of how the two jointly shape decision-making in resource-constrained firms. This conceptual paper addresses that gap by proposing an integrated framework that links MAPs, AIS capability and the alignment between them to decision-making effectiveness and, in turn, to the sustainable performance of Malaysian SMEs. Drawing on contingency theory, the resource-based view and information processing theory, the paper synthesises classic and recent literature to develop six research propositions. The framework positions AIS capability as an enabler of contemporary MAPs, treats MAP-AIS alignment as a distinct organisational capability, and recognises the moderating roles of perceived environmental uncertainty and owner-manager digital and accounting competence. The paper contributes to the management accounting and AIS literature by bridging two research streams that rarely meet in the SME context, and it offers practical guidance for owner-managers, accounting professionals and policymakers pursuing digitalisation. Empirical operationalisation and testing are recommended for future research.