The Role of Organization Strategy and Management Accounting Innovations on Cost Performance: The Case of Higher Eduaction Institutions

Abstract

Research aims: This study aims to examine the effect of strategy and management accounting innovations on cost performance of private Higher Education institutions (HEIs). Also, this study examines the management accounting innovations as mediating variable.Design/Methodology/Approach: This study is quantitative research with a survey approach. This study is conducted by involving HEIs located in several provinces in Sumatera Island, Indonesia, covering West Sumatra, Riau, Riau Archipelago and Jambi. The research respondents are head of the HEI finance department. Data analysis uses Structural Equation Model with Partial Least Square approach (SEM-PLS).Research findings: The results show that strategy and management accounting innovations have a positive direct effect on cost performance. However, management accounting innovations is not able to be mediating variable.Theoretical contribution/Originality: This study contributes to research areas related to strategy, management accounting innovations and cost performance in HEI sector.Practitioner/Policy implication: Effectiveness and efficiency in managing HEI funds requires a strategy and management accounting innovations.Limitation/ Implication: The research only includes HEI located in the areas of West Sumatra, Riau, Riau Archipelago, and Jambi.