The study analyzes how Nepalese manufacturers improve operational performance with management accounting practices (MAPs). It examines how Traditional MAPs (TMAPs) and modern MAPs (MMAPs) affect corporate productivity and investigating the contextual factors that cause discrepancies.
A quantitative cross-sectional research was employed to survey 357 managers from 18 listed manufacturing companies. Descriptive statistics, t-tests, correlation and SPSS-based comparative analyses were used to examine TMAPs, MMAPs and performances across different firm sizes.
In contrast to developed economies, both TMAPs (r = −0.155, p < 0.01) and MMAPs (r = −0.174, p < 0.01) exhibit significant negative correlations with firm performance. Small- and medium-sized enterprises report greater adoption of MMAPs than larger companies (t = 4.63, p < 0.001). The results reveal a “productivity paradox”, demonstrating that adoption negatively affects performance due to institutional mismatch, implementation failures or unrecovered transition costs. Among the strategic accounting practices (MMAPs), total quality management (TQM) (51.82%) and cash flow analysis (84.03%) showed the highest adoption levels.
The study is limited to the listed manufacturing firms and relies on self-reported survey data, which may introduce response bias. Future studies could use longitudinal or mixed methods to capture implementation dynamics.
The results emphasize the need for phased MAP implementation strategies tailored to local contexts. Policymakers and managers should adapt global best practices to Nepal’s informal business culture, technological limitations, and workforce skill levels.
The study challenges conventional MAP–performance assumptions, extends contingency theory by showing how developing economy contexts can reverse expected outcomes, and offers actionable guidance for policymakers and practitioners.
