The impact of prospecting strategy on small business performance in Vietnam: The role of broad-scope management accounting system

Abstract

The purpose of this study is to uncover the role of broad-scope management accounting system (MAS) on the link between prospecting strategy and the performance of small businesses. In particular, this paper hypothesizes that a high degree of prospecting strategy is positively associated with a high degree of broadscope MAS, and a high degree of broad-scope MAS is correlated with a high degree of performance of small businesses. Also, it is hypothesizes that prospecting strategy increases the performance of small businesses. The last hypothesis proposes that broad-scope MAS mediates the link between prospecting strategy and the performance of small businesses. Data was collected from 131 small businesses located in Cantho city to assess the proposed hypothesis. A PLS-SEM was analyzed with the collected data. The results reveal that all hypotheses are supported by the data except the hypothesis describing the relationship between prospecting strategy and the performance of small businesses. It implies that broad-scope MAS fully mediates the link between these two variables.