Top Management Team Quality as a Determinant of Strategic Management Accounting Practices: Evidence from Indigenous Manufacturing Firms in Ogun State, Nigeria

Abstract

This study examined the influence of Top Management Team (TMT) quality on Strategic Management Accounting Practices (SMAPs) sophistication among indigenous manufacturing firms in Ogun State, Nigeria. Anchored in Upper Echelons Theory and Contingency Theory, the study adopted a cross-sectional survey design, collecting questionnaire data from TMT members of 50 indigenous manufacturing firms selected from 57 firms operating within Agbara Industrial Estate. Data were analysed using descriptive statistics and multiple regression. The findings revealed that TMT quality positively and significantly influenced SMAP sophistication (β = 0.462, p < 0.001). Environmental uncertainty also had a significant positive effect (β = 0.217, p = 0.002), whereas competition intensity, firm size, and firm age were not significant predictors. These findings highlight managerial capability and environmental uncertainty as important determinants of sophisticated strategic management accounting practices. The study extends Upper Echelons and Contingency perspectives within the context of indigenous manufacturing firms in an emerging economy. It recommends strengthening executive competence, strategic leadership, and professional accounting capabilities to enhance SMAP sophistication.