Strategic Management Accounting: A Comprehensive Literature Review Mohamed Rifkhan Ahamed Hibathur Rahuman

Abstract

Strategic Management Accounting (SMA) has emerged as an important discipline that bridges the gap between traditional management accounting and strategic decision-making. Unlike conventional approaches that focus primarily on internal financial metrics, SMA integrates external market-driven perspectives, providing organizations with a comprehensive framework for competitive advantage. This paper presents a detailed literature review of SMA, tracing its historical evolution, key definitions, techniques, and challenges. The review highlights various SMA techniques, including benchmarking, competitor analysis, strategic pricing, and value chain costing, which have been instrumental in aligning financial data with business strategy. However, despite its strategic importance, SMA faces significant challenges such as the lack of a universal definition, inconsistent implementation across industries, and barriers related to data availability and technological integration. The paper also emphasizes the role of digital transformation in reshaping SMA practices, particularly through artificial intelligence (AI) and big data analytics, which offer enhanced decision-making capabilities. Future research should focus on standardizing SMA frameworks, addressing implementation barriers, and integrating sustainability considerations to further enhance its relevance in contemporary business environments. As companies navigate increasingly complex and dynamic markets, the adoption of SMA will be critical for long-term strategic planning and performance optimization.