Does Management Accounting Positively Influence the Performance of Businesses Operating Within the Circular Economy?

Abstract

The objective of the study is to assess the influence of management accounting (MA) on the performance of businesses operating within the circular economy. The findings are derived from a survey conducted with 244 enterprises in Hanoi, Vietnam, utilizing descriptive statistics and quantitative analysis methods. These methods include the evaluation of research concepts through Cronbach's alpha reliability testing, exploratory factor analysis (EFA), and confirmatory factor analysis (CFA), among others, to test the validity of the research model against the proposed hypotheses. The standardized results from the SEM linear structural model indicate that three hypotheses were accepted: first, the implementation of management accounting positively influences the degree of engagement of enterprises in the circular economy; second, the degree of engagement in the circular economy positively influences the performance of businesses; and third, the implementation of management accounting positively influences the performance of businesses. Nevertheless, the study lacks sufficient evidence to conclusively state that the application of management accounting, mediated by the circular economy, positively impacts the performance of enterprises.