Bridging perceived environmental uncertainty, information technology quality and firm performance: the mediating role of advanced management accounting tools in an emerging market

Abstract

Purpose Based on the contingency theory, this study aims to clarify the complex mechanisms that influence firm performance. Specifically, the paper tests whether perceived environmental uncertainty (PEU) and information technology quality (ITQ) have a direct impact on firm performance (FP). Furthermore, this study investigates the mediating role of advanced management accounting tools (AMAT) adoption in the relationship between PEU and FP, as well as between ITQ and FP. Design/methodology/approach Data were collected through a web-based survey of 221 managers from Vietnamese manufacturing firms and analyzed using the SmartPLS software, employing partial least squares structural equation modeling with bootstrapping techniques to ensure the robustness of the estimates. Findings The analysis results show that PEU and ITQ both have a positive and statistically significant effect on AMAT adoption. AMAT adoption also has a positive and statistically significant effect on FP. Notably, the effect size analysis (f2 values) shows that AMAT adoption has a very large practical effect on FP, while PEU has a medium effect on AMAT adoption and ITQ has a small effect. The mediation tests, according to Baron and Kenny (1986), showed that both indirect relationships were highly statistically significant (PEU →AMAT adoption →FP). At the same time, the direct effects of PEU on FP were also statistically significant. The fact that the direct effects were reduced in magnitude compared to the total effects but remained statistically significant confirmed that AMAT adoption played a partial mediating role in both relationships. Research limitations/implications The findings highlight the important role of PEU and ITQ in driving AMAT adoption and improving FP in the emerging market context of Vietnam. The partial mediation results emphasize that firm performance is a multifaceted outcome influenced by a combination of direct and indirect factors. This suggests that organizations need to adopt a comprehensive approach, integrating investments in advanced management accounting practices with other direct strategic and operational initiatives to maximize effectiveness. Consequently, the findings can inform policy decisions aimed at promoting networking opportunities and creating a supportive ecosystem for innovation within the Vietnamese economy. Originality/value This study fills a gap in the literature by examining the role of PEU and ITQ as drivers for AMAT adoption in emerging markets, specifically Vietnam. It offers new insights into how these factors influence FP indirectly through AMAT adoption, enhancing the understanding of operational efficiency in manufacturing firms. The study also contributes to contingency theory by demonstrating its multidimensional relevance in dynamic business environments, providing both theoretical and practical value for researchers and practitioners.