Western management accounting practices in Vietnamese enterprises: adoption and perceived benefits

Abstract

Purpose – This study aims to examine the experiences of Vietnamese enterprises with respect to the adoption and benefits of Western management accounting practices (MAPs) during a period when the economy was in transition toward a more market-oriented system.

Design/methodology/approach – Questionnaire responses were obtained from the head or vice-head of the accounting department in 181 enterprises, and follow-up interviews conducted with 20 of the respondents. The responses were analysed with simple statistical tests and ANOVA.

Findings – Two of the key findings are in line with results reported previously for other countries: adoption rates for “traditional” Western MAPs are higher than for “contemporary” ones; and state-owned enterprises tend to exhibit lower adoption rates than other enterprises. A third key finding represents new insight, but it may be applicable to only Vietnam (and possibly a limited number of other transition economies). This third finding arises from our identification of a group of Western MAPs which closely resemble the type of accounting and planning activities routinely undertaken under the former central planning (CP) system. These CP-compatible MAPs are adopted far more widely (even at present) than are other MAPs. Overall, the findings are broadly consistent with the diffusion of innovation theory.

Originality/value – This study examines the Western MAP adoption experiences of a developing economy in transition, one which has received relatively little attention in the MA literature to date.